New Zealand Official Yearbook 2000

Te Pukapuka Houanga Whaimana o Aotearoa

Cover

Shelley Watson/Sublime Design

Statistics New Zealand

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Te Hakituatahi o Aotearoa
The first flag of New Zealand 1835

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

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

The New Zealand coat of arms

New Zealand has had its own coat of arms since 1911. Prior to that the United Kingdom coat of arms (featuring a lion and a unicorn on either side of a shield and crown) was used. This design still adorns the top of the pediment on the 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 2000

ISSN 0078 0170

ISBN 1-86953-465-4

This book is copyright. Except for the purpose of fair review, no part may be stored or transmitted in any form or by any means, electronic or mechanical, including recording or storage in any information retrieval systems, without permission in writing from the publishers. No reproduction may be made, whether by photocopying or by any other means, unless a licence has been obtained from the publisher or its agent.

Copyright © Statistics New Zealand 2000.

Published in 2000 by David Bateman Ltd, 30 Tarndale Grove, Albany, Auckland, New Zealand. Printed by PrintLink, Wellington, New Zealand.


Table of Contents

List of Tables

Preface

For over 100 years Statistics New Zealand has produced the New Zealand Official Yearbook. Each edition has faithfully balanced the essential facts and figures of New Zealand life with a snapshot of the year's events and achievements. This is the 102nd edition of the Yearbook and while it continues in this time-honoured tradition it also recognises the change to a new century by touching on the important events of the last 100 years.

A number of major articles have been commissioned to explore this year's theme, “New Zealand in the 20th century and beyond: a statistical history of our century and future prospects”. These explore many major social and political events that have taken place and highlight the impact of the past 100 years of change. The articles can be found in the relevant areas of the book. In addition, there are a number of articles scattered throughout the book celebrating the lives of famous New Zealanders and recalling the events that shaped New Zealand as we know it today.

The new century also brings change for the Yearbook. This edition is the first published by Statistics New Zealand in conjunction with David Bateman Ltd. From this year, the New Zealand Official Yearbook will be published as a book every two years. Options for the in-between years are still being explored but the Statistics New Zealand website now contains a wealth of material to complement the traditional range of published material. The website content includes a condensed version of the Yearbook with links to the latest Statistics New Zealand figures and a range of other websites.

There are many people who have worked on the Yearbook whom I would particularly like to thank. First among them are those who generously supplied us with information. At last count there were around 400 contributors whose goodwill supplied the bulk of this Yearbook's data. I would also like to thank the authors of the commissioned articles and the Dictionary of New Zealand Biography. Finally, a special acknowledgement to the Statistics New Zealand publishing team and the typesetting team at PrintLink for all their hard work.

Dianne Macaskill
Acting Government Statistician
June 2000

Acknowledgements

The 2000 Yearbook was produced by the Publishing and Library Services 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.

Divisional manager: Helen Stott
Publishing operations manager: Jim Hutchison / Michelle Fry
Editorial team leader: Kirsten Wong
Editors: Julie Baga, Emma Turrell (with project management responsibilities)
Editorial assistance: Megan Hutchison, Tim Barlow, Shirley Dixon, Kathy Smith, Jane Williams
Special articles compiling editor: Patrick Ongley
Contract editors and writers: Nicky McCreanor, Megan Huber, Roger Christensen
Bibliographic checking: Brett Russell, Beryl Anderson
Photographs and illustrations: Vicki Robson and Ngaio Double (editors), Kathy Smith, Judy Lyons
Maps and diagrams: Peter McGrath, Maureen Metcalfe, Merran Plunket
Indexer: Alison Lipski

Oral history: Rosemary Goodyear
Biographies: Dictionary of New Zealand Biography

Special historical articles:

New Zealand in the 20th century: David Green, Historical Branch, Department of Internal Affairs

Population: Gillian Smeith, Michael Ryan, Ian Richards and Mansoor Khawaja, Demography, Statistics New Zealand

Social framework: Kate Lang and Patrick Ongley, Social Policy, Statistics New Zealand

Maori: E M K Douglas, Maori Studies, University of Auckland

Communications: Marianne Doczi, Andrew McCallum, Anthony Morris, Mark Holman and Frank March, Ministry of Economic Development

Employment: Dr John E Martin, Department of History, Victoria University of Wellington

The environment: Rosemary Goodyear and Blair Cardno, Regional and Environmental Statistics, Statistics New Zealand

The economy: Professor Gary Hawke. School of Economics and Finance, Victoria University of Wellington

Transport: Dr James Watson, School of History, Philosophy and Politics, Massey University

PrintLink: Shelley Tildesley and Lisa Wright (typesetting), Jon Hartstone (output) and Sharon Marson (scanning).

How to use the 2000 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 describes major changes in New Zealand's administrative framework for the year preceding publication.

The Yearbook contains the most currently available statistics for the 1999 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 the latest available at 26 October 1999, although some were collected up until early in 2000.

Tables

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

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

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

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.

Looking through the 20th century

By Len Cook, Government Statistician, 1991—2000

We start the 21st century with some of our path ahead strongly foreshadowed by how we have arrived at our current state.

Economic, social, political and technological changes and advancements over the last quarter-century have wrought a distinctively New Zealand people from global origins, ideas and forces.

These influences are becoming more distinct, but also increasingly interconnected, not only to trends here in New Zealand, but in the world we trade with. The resulting changes in the face of our world are too complex to be canvassed in one article; however, here are some of the issues that face New Zealand in its global future.

Population

New Zealand's population will continue to grow, although at a slowing rate, until deaths exceed births in some 40 years’ time. Declining fertility, rising life expectancy and the ageing of the post-war baby boomers will all contribute to this. Each of New Zealand's significant ethnic groups reflects this trend differently, but the demographic position of each will probably converge in the very long term.

Maori will experience the current European/Pakeha age distribution in about 40 years’ time. The fastest growth in population will probably be experienced by the Pacific Islands communities, whose higher fertility will lead to a doubling from 6 to 12 percent in their share of the total population. At present, the Asian population is relatively young and is projected to grow at a faster rate than the total population, although future government immigration policies may impact on this. The increasing number of births to these ethnic groups raises education, social policy, health and labour force considerations that government advisers, education providers, business leaders and the wider population need to recognise.

Added to this is the reality of an ageing population. The implications for health, housing, communities and their infrastructures, technology, social policy, and economic development are diverse but connected.

Social framework

New Zealand, with the rest of the world, is sharing the effects of a number of social, cultural and political revolutions. Increased living standards were associated with much of the social change that occurred after World War II. Living conditions of poorer households in the 1950s and 1960s improved, but more recently, change has involved more reallocation rather than growth in the redistributive capacity of the state.

The last 25 years have seen much social change. Living standards for many in New Zealand have declined and the traditional ages of transition, like labour force entry and retirement, are changing. We have seen a significant and continuing shift in the educational, economic and employment position of women. Increases in crime, changes in workforce expectations, the increased need for higher educational qualifications, altered leisure habits, technological change, and many other factors are both drivers and symptoms of these revolutions.

Changes in the economic policies practised by successive governments have also impacted significantly on New Zealand's social policy framework and may have far-reaching effects. Most obviously, the ability of the state to directly provide for citizens has diminished as the public sector competes less successfully with internationally competitive commercial infrastructures, citizens’ rights expand, paternalism lessens and the capacity to tax declines.

However, global calls for reduced government involvement in the lives and business of citizens have at times been at odds with the needs and expectations of New Zealanders. Community organisations now face increasing demand for their services whatever the level of government involvement. Among Maori, community and cultural organisations may have more significance, particularly because they attempt to relieve the effects of less access to paid employment and the unevenness of outcomes in health care, education and other government-directed processes.

Education, crime, health, care and welfare of all people in a community — particularly those most at risk — are just some of the social issues impacting on communities today and leading to major social issues in the future. Stresses on the family, and in certain communities, have sometimes reached crisis point, and the country needs to consider and plan for the kind of social environment we want in the future.

Maori

The past 100 years for Maori have been a time of change, uncertainty, and struggle against strong and competing forces. It is probable that of all groups. Maori have faced the most challenge. They have not only survived the threat of extinction due to the onslaught of war, disease and other results of colonisation; they have emerged as a strong, vibrant and contributing force to the success of this country.

Population growth, reduced mortality rates and an increasing life expectancy have gone hand in hand with a cultural renaissance that has seen a resurgence of te reo and nga tikanga Maori, and increasing participation by Maori in government and public sector affairs, business and education and all aspects of life.

Discrepancies still remain, however, when the development and participation of Maori in New Zealand is compared with non-Maori. The benefits of improving Maori health and life expectancy, educational achievement, employment rates and participation in Government and policy making are beyond doubt. The successes achieved so far by Maori and non-Maori in these areas show the value and positive outcome of a combined focus. The risks to the community of not working with Maori to deal with historical issues still affecting them, such as land confiscation, over-representation in the criminal justice system, and reliance on welfare, will impact on New Zealand as a whole.

The future holds great potential as well as major hurdles for Maori to face. For example, the rapidly increasing age of the workforce over the next 10 years comes at a time of growth in the knowledge economy. This creates new opportunities for educated young Maori and Pacific Islands men and women, particularly in the ever-growing city of Auckland. At the same time escalating technological advances may add barriers to opportunities if Maori are not resourced to learn about and use technology. There are also risks of failure by the education system to adequately provide for the needs of Maori.

New Zealand and its people are continuing to mature and develop, redefining themselves and their place in the world. Globalisation will challenge and also reinforce the identity of New Zealanders, as we come to value the qualities that are distinctly our own. Maori have shown an ability to adapt to significant change, something the rest of New Zealand will face more as time goes by.

Communications

Information and communications technology have created huge opportunities to change the way in which information is gathered, used and disseminated. Technology such as the Internet, initially the preserve of a select few groups, has moved towards being both a tool and a driver of business and social interaction. The capacity to deconstruct, analyse and synthesise minute, seemingly immeasurable phenomena and processes leads us to genetic engineering, robotics, satellite technology and many other technological and biological advances. These changes not only empower our leaders but revolutionise the processes used in every form of endeavour and the expectations of individuals in almost every stage of life.

The beneficiaries of these new tools are as diverse as their uses for them. Increased understanding and empowerment of users will help to drive development, much as the visionaries of computer technology saw that the development of powerful software would push the development of supporting hardware.

As development continues to impact on our social and economic environment, New Zealand and other countries need to ensure there are adequate opportunities for all members of society to learn about and grow with these advances. A particular issue for New Zealand must be the currently bridgeable gap between those who have the access to the technology and those who haven't, particularly Maori and Pacific Islands peoples and other minority ethnic groups. Understanding of and access to technology is essential if people are to participate equally in our society.

Employment

Work has underpinned economic and social policy in New Zealand for over a century, from the 1893 legislation on industrial stabilisation, through to the creation of Work and Income New Zealand in 1998. We continue to have expectations based on the wealth of the 1950s, yet since then we have experienced a continuing relative decline in the level of GDP growth. Future working lives and income levels for all age groups may continue to change, perhaps challenged by a shorter working life, but its quality increased by better education and health.

The quality of working life was originally judged by access to full-time jobs, although the spread of working hours, the nature of new jobs and their locations, occupational safety and the need for equal employment policies have been added to the equation. Our quality of working life may also be judged by access to work-based training. This may shape our adaptation to the emerging information society.

From our historical mainstays of agricultural production and manufacturing, we are moving towards an emphasis on a knowledge economy. Offset against this is the increasing number of low-paid, low-skilled service industries. Employment in New Zealand is evolving at a pace reflected by the trends in the global economy.

Developing the capacity of the New Zealand workforce to meet the needs of a knowledge economy, and also to compete in global labour markets, requires quality outcomes from our education system. At present we may be losing ground.

For women, a huge educational shift has occurred over recent decades. Increasing numbers of young women are entering the workforce with higher levels of education, but older women without qualifications may, like older men, face limitations on access to future employment.

Environment

The importance of the environment and its contribution to wealth, through tourism, lifestyle and ecological balance, is now being recognised by orthodox economies. There is also recognition that, as in the past, current wealth creation is often stimulated by use of non-renewable resources, which has indirect costs in addition to the cost of their depletion.

Around the globe people are becoming aware of the effects of the last century, in particular on the environment in which we live and on which we depend for our very existence. There is more international travel and trade, a common dependence on the limited resources the earth provides, increased local and international research into the impacts of human activities on our environment and the ability to broadcast information about these impacts around the world in a short space of time.

The balancing of the interests of current and future generations is difficult, and many of these issues need to be, and are, considered on a global scale. When considering the future we can be better informed, however, by statistical evidence of current environmental change and the environment's response to influences from human endeavour.

Economy and industry

Global organisations today operate in far wider financial, capital and labour markets. Globalisation of industry has been made possible by huge declines in transport and communications costs, convergence towards common global institutional structures, and the knowledge economy with its new organisational forms and infrastructures. Government reflects this, with treaties, alliances and involvement of regional governments ebbing and flowing as the market dictates.

The diminishing costs of trade, capital and production resources in local and international markets are features of contemporary globalisation. The consequences are many and can be viewed by a community as positive or negative, depending on their impact.

Individual regions may face reduced access to and involvement in economic opportunities and employment, as well as a reduced ability to absorb and deal with change. Economic development and its impact on communities, cultures and the environment are also issues that may affect individual communities, countries and even global regions.

Global issues in trade, resource management and security require governments to take an international perspective. New Zealand's export penetration has risen over the last two decades. As a small dependent economy. New Zealand now faces large, coincident fluctuations in its commodity demand, capital base, and its main productive factors. All have become increasingly mobile. The capacity of the state to operate countercyclical policies, for example increased state spending during low points in business cycles, is quite small, as public investment has reduced and operations of the public and private sectors have become significantly integrated.

Forty years ago New Zealand was a trading nation with a single dominant partner, the United Kingdom. We now have many partners, have experienced less growth in exports than many similar countries, and are still predominantly an exporter of farm products, in various processed forms. We import the lion's share of our new investment capital, and continue to export a significant part of each year's new graduates. We have seen tourism emerge as a strong income earner, and seen our do-it-yourself attributes give us a good start in the new knowledge economies. Services have also increased strongly over the last half-century, as manufacturing and agriculture have declined.

The public, household and business savings trends in New Zealand show very high savings volatility. Households invest considerably in housing although there is a trend towards lower rates of home ownership among younger age groups. Apart from this, New Zealand has very low levels of investment compared with other OECD countries, and private investment is particularly poor. Some of this may be a logical consequence of a growing share of New Zealand's large firms being part of internationally networked organisations that have centralised research elsewhere in the globe. One main growth sector, tourism, has few investment benefits, limited capital, and less human capital, consistent with a knowledge economy.

New Zealand's production and income have shown different rates of growth over the last few years with national income rising by less than gross domestic product (GDP). This is the result of increasing payments of dividends and interest etc to the rest of the world. In other words, a growing proportion of the income generated by New Zealand's economic activity is flowing overseas. This has also contributed to New Zealand's balance of payments deficit increasing every year since 1994.

Transport

New Zealand's isolation from the rest of the world, and the challenges the country's geography created for its inhabitants, has meant we have embraced new and improved modes of transportation. Developments in this area have affected the nature of work, travel, leisure and tourism. Our economy is unavoidably linked with our ability to transport people, livestock, agricultural, pastoral and manufactured products both within the country and overseas.

The motor vehicle has taken on an important role in New Zealand life. In the last 50 years it has opened up access to remote parts of the country and enabled us to live and work in quite separate areas. As with other forms of transportation, our love affair with these vehicles have downsides, including increased pollution levels and the frequent traffic jams that have become a regular part of commuter life.

Increased international travel has made New Zealand a more cosmopolitan society. Our perishable goods — such as cut flowers, chilled meat and seafood and fresh soft fruits — have added to our export earnings, and we are able to host significant international events in spite of our relative isolation.

From a society dependent on horse, bullock and sail, the rise of steam and the development of an extensive rail system began a transition to easier methods of personal travel. Adoption of other mechanised transportation systems such as steam ships, motor vehicles and aircraft has meant travel, transport and a more mobile lifestyle today are beyond anything envisaged by the average New Zealander at the beginning of the last century.

The future

While we cannot be certain what the future will hold, it is part of our essential humanity to wonder. There are certain statistical trends that we predict will continue: the number of births will continue to decline and our population will feature a much larger proportion of elderly than now. Maori, Pacific Islands and other ethnic groups will continue to grow as a proportion of total population. We are seeing the emergence of a broad-based inclusive ‘kiwi’ identity, resulting from the mixing of all ethnicities, at the same time as their distinctiveness is more clearly reflected in our cultural base and attitude.

Our economy, culture, public institutions and processes are increasingly converging with those of Australia. As the trans-Tasman links increase, migrating New Zealanders move overseas rather than to Auckland, challenging historical patterns. Could this be a sign of an increasing partnership between two nations which have historically had a healthy competition? Will New Zealand's environment retain its international ‘clean and green’ image and how will we use this to our benefit? Can Auckland's infrastructure and environment cope as it continues to expand? How will we meet the educational and welfare needs of our young people? Can our economy lead the way in an increasingly globalised world? Will our fisheries survive the impact of global overfishing, warming and pollution?

There is an interdependency of the issues we focus on in the special articles of the Official New Zealand Yearbook 2000. Population, social framework, Maori, communications, employment, environment, economy and industry, and transport — the developments and contractions in one are reflected in and influenced by issues in the others. As development in transport has made fundamental changes in our economy and industry, these in turn have made a huge impact on our environment. Employment, or the lack of it, impacts on our social framework and our ability to participate at an equal level in all aspects of the community.

Despite their apparent precision, statistical trends allow us to build only a partial picture of what might result long after the 20th century from demographic, social, environmental and cultural change we have already experienced.

Chapter 1. Geography

Rubble resulting from erosion, Wellington, 1974.

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 20km 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, 850km east of Christchurch; Raoul Island in the Kermadec Group, 930km north-east of the Bay of Islands; and Campbell Island, 590km 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 ZEALAND1

Land areaSize

1Includes all internal waterways (lakes and rivers).

2Includes all offshore islands 20 sq km or larger, except those listed separately.

Source: Land Information New Zealand

 sq km
North Island113,729
South Island150,437
Offshore islands21,065
Stewart Island1,680
Chatham Islands963
Raoul Island34
Campbell Island113

New Zealand is more than 1,600km long and 450km 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: under a quarter of the land is less than 200 metres above sea level. In the North Island the main ranges run generally north-east to south-west, parallel to the coast, from East Cape to Cook Strait, with further ranges and four volcanic peaks to the north-west. The South Island is much more mountainous than the North Island. A massive mountain chain, the Southern Alps, runs almost the length of the island. There are many outlying ranges to the Southern Alps in the north and the south-west of the South Island. There are at least 223 named peaks higher than 2,300 metres. There are also 360 glaciers in the Southern Alps. The largest are, on the east, the Tasman (length 29km), Murchison (13km), Mueller (13km), Godley (13km) and the Hooker (11km), and, on the west, the Fox (15km) and the Franz Josef (13km).

Table 1.2. PRINCIPAL MOUNTAINS

Mountain or peakElevation

1Since 1986 both the Māori and European names of this mountain have had official recognition.

2Peaks over 3,000 metres.

3Since 1998 both the Māori and European names of this mountain have had official recognition.

Source: Land Information New Zealand

 metres
North Island
    Ruapehu2,797
    Taranaki or Egmont12,518
    Ngauruhoe2,287
    Tongariro1,967
South Island2
    Aoraki or Cook33,754
    Tasman3,497
    Dampier3,440
    Silberhorn3,300
    Hicks (St David's Dome)3,198
    Lendenfeldt3,194
    Torres3,163
    Teichelmann3,160
    Sefton3,157
    Malte Brun3,155
    Haast3,138
    Elie de Beaumont3,117
    Douglas3,085
    La Perouse3,079
    Heidinger3,066
    Minarets3,055
    Aspiring3,033
    Glacier Peak3,007

New Zealand'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 RIVERS1

RiverLength

1Over 150km in length from the mouth to the farthest point in the river system irrespective of name, including estimated courses through lakes.

Source: Land Information New Zealand

 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 LAKES1

LakeMaximum depthArea

1Over 20 square kilometres in area.

Source: Land Information New Zealand and 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)7027
    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 to 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.

Landscape

Apparent in the New Zealand landscape today is the evidence of episodes of intense mountain building that occurred 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 6.0 or above occurs on average about once a year, a shock of magnitude 7.0 or above once in 10 years, and a shock of about magnitude 8.0 perhaps once a century.

The Dominion
A farmer surveys his ravaged land, August 1998, during one of New Zealand's worst droughts.

Table 1.5. CLASSIFICATION OF NEW ZEALAND SOILS

RegionSoilsVegetation and land use
North Auckland Peninsula and Auckland regionLarge areas of infertile gumland soils formerly covered with kauri; granular, oxide and ultic soils from volcanic rocks and weathered sandstone.Patchy land use. Exotic forests on lowland country and remnant kauri forest on uplands. Intensive dairying on rolling lands around Kaipara Harbour, Whangarei, Kaikohe and Dargaville. Sheep and beef on hill country.
Bay of Plenty-Waikato-Thames-Hauraki PlainsVolcanic ash covers much of the area, giving rise to deep, granular soils with good physical properties. Peaty and gley soils with high ground water on Hauraki Plains and parts of Waikato Basin.Predominantly pastoral farming (mostly dairying), exotic forestry and several large tracts of indigenous forest. Kiwifruit along coastal Bay of Plenty. Scattered maize cropping.
Volcanic PlateauPumice soils, lacking in some essential trace elements, but mostly deep, friable and highly suited to tree growth.Important watershed with large areas protected as native forest. Extensive exotic forests. Topdressing of former scrub areas with trace elements has allowed widespread farming.
East Coast-WairarapaBrown soils. Significant areas of recent alluvial soils on Gisborne and Heretaunga Plains. Pallic soils on rolling land south of Hawke's Bay.Semi-extensive sheep farming (wool and store sheep) on dry hill country. Intensive lamb production on flat to rolling plains. Market gardens and orchards near Gisborne, Napier, and Hastings. Important pip-fruit production. Vineyards. Pockets of dairying close to main ranges from Norsewood south.
TaranakiVolcanic ring plain consists of allophanic soils, usually from deep volcanic ash, but stony in west. Soft-rock uplands in east Taranaki.Distinct contrast between intensive dairying on ring plain, and severely eroded inland hill country, with many steep ridges covered in second-growth forest or dense gorse.
Manawatu-HorowhenuaSand dunes and swampy hollows common along coast. Loess-covered terraces and river flats inland. Pallic soils on drier terraces with sand soils near coast and organic and recent alluvial soils on lower plains.Intensive sheep production and cropping on the terrace country; semi-intensive sheep and beef in hill country of Rangitikei. Exotic forestry on coastal sand country.
Marlborough Sounds-NelsonPockets of fertile, recent alluvial soils on Waimea and Motueka Plains. Large areas of steepland soils and stony soils on Moutere Gravels.Intensive orchard and market gardens. Exotic forests in Marlborough Sounds and Moutere Gravels.
Marlborough-Kaikoura CoastPallic soils and brown soils with pockets of recent alluvial soils.Intensive sheep farming and cropping on river terraces, semi-intensive sheep and beef on hill country. Vineyards in lower Wairau Valley.
West CoastExtensive gleyed podzols and organic soils, with recent soils on alluvial flats.Indigenous forestry declining; national parks and reserves; exotic forestry on hill country of north Westland. Dairying on river flats.
CanterburyVery thick layer of gravel covered by variable thicknesses of fine material. Pallic soils and associated stony soils.Intensive cropping for cereals and fodder crops. Intensive sheep production, with widespread irrigation of pasture.
OtagoHigh-country brown soils on ranges, pallic soils at intermediate altitudes and semi-arid soils (often stony), in basins.Extensive sheep and beef farming in uplands. Intensive orcharding in Central Otago basins, especially for stonefruit; irrigation necessary. Market gardening in lower Taieri.
SouthlandSouthland Plain mainly deposits of gravel and silt. Brown soils and recent alluvial soils. Pallic soils inland in drier areas.Semi-intensive sheep and beef farming in rolling areas inland, and intensive fattening on plains. Dairying on plains near Invercargill.
DEATHS IN VOLCANIC AREAS OVER 150 YEARS
YearLocation (eruption)Cause – hazardFatalities
1846Waihi (Lake Taupo)Debris avalanche/mudflow from thermal areac 60
1886Tarawera RiftLarge volcanic eruption108
1903Waimangu (Tarawera)Hydrothermal explosion4
1910Waihi (Lake Taupo)Debris avalanche/mudflow from thermal area1
1914White IslandDebris avalanche from crater wall11
1917Waimangu (Tarawera)Hydrothermal explosion2
1953Tangiwai (Ruapehu)Lahar and flood from crater lake151
 >337
HAZARD COMPARISON
FactorsLarge eruptionsEarthquakesFlooding
Duration of hazardsDays to decadesSeconds to minutesHours to weeks
Areas affectedLocal to nationalLocal to regionalLocal to regional
Duration of precursorsDays to yearsNilHours to days
Warning timeDays to monthsNoneHours
Planning for eventsDifficultFeasibleFeasible
EFFECTS OF MAIN VOLCANIC HAZARDS
HazardThreat to lifeThreat to propertyAreas affected
Ash and pumice fallGenerally low, except close to ventVariable, depends on thicknessLocal to national
Ash and pumice currentsExtremely highExtremely highLocal to regional
LavasLowExtremely highLocal
Lahars/floodingModerateHighLocal to regional
Gases/acid rainLowModerateLocal to regional

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 35km. 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 400km at the northern end, and decreases evenly to a depth of about 200km 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.

Principal earthquakes in New Zealand in 1999. New Zealand experienced another relatively quiet year for earthquakes in 1999. While over 130 earthquakes were felt in various parts of the country during the year, only three were larger than magnitude 6.0 on the Richter scale, and all of these were deep, so caused little damage. While we expect one large shallow damaging earthquake each year in New Zealand, it is not unusual to get periods when there are none because earthquake occurrence is not uniform. Also, given that nearly two-thirds of our earthquakes are deep, it is not unusual to get large deep events as was the case in 1999.

The most significant event during the year occurred on 26 October at a depth of 177km under Taupo. It was of magnitude 7.0 and was felt widely in the North Island, from Tauranga to Wellington, and as far south as Christchurch. It did not cause a significant amount of damage.

On 18 May a deep magnitude 6.5 earthquake occurred under the central North Island. This event caused mild shaking that was felt from Gisborne to Christchurch.

A 156km deep magnitude 6.0 earthquake, located 112km north-east of Whakatane on 18 August, was felt in Opotiki, Whakatane and Gisborne, and was sufficiently strong to shake goods off shelves in Opotiki. The Bay of Plenty is one of the more seismically active regions of the country, so earthquakes like this are quite common.

Various smaller earthquakes were felt throughout the country. A 57km deep magnitude 5.5 earthquake, located 33km north-west of Wellington on 3 January was felt as far away as Christchurch and caused minor damage in the Wellington region. On 21 May a shallow magnitude 4.3 earthquake caused minor damage near Omarama. The damage was quite localised because the earthquake was very shallow. On 27 August a shallow magnitude 5.5 earthquake located 134km east-north-east of Whitianga was felt in the Coromandel and in Auckland.

On 14 and 19 September two swarms of earthquakes occurred within a few kilometres of Rotorua. The largest event was only of magnitude 3.2, but events of this size can cause significant shaking because they are usually very shallow (in this case about 3km deep).

While 1999 was a quiet year for New Zealand, this was not true globally. Large devastating earthquakes occurred in Turkey, Taiwan, and Mexico. An examination of catalogues of global earthquakes shows that large earthquakes were no more frequent in 1999; it is just that some occurred by chance in populated areas.

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 Institute of Geological and Nuclear Sciences (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 it calculates the locations 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 1,600km 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 ‘micro-climates’ 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.

The Dominion
Pedestrians battle with Wellington's wind, which gusted to 135km/hr on 28 October 1998.

Weather in 1999

1999 was notable for extreme variations and for being the second warmest year since records began in the mid-1850s. Climatic extremes included severe drought in Otago, Canterbury and Southland last summer, and heavy flooding in Northland in January and in the Southern Lakes/Central Otago region in November.

It was the most anticyclonic year on record. More anticyclones than normal occurred over the South Island and to the east of New Zealand resulting in few characteristic ‘roaring forties’ westerly gales and more frequent easterlies over the North Island.

The year started with a strong La Niña climate pattern, which continued through autumn, and then became weak through winter and early spring, only to strengthen again towards the end of the year. However, as the year progressed warm seas around New Zealand and more anticyclonic conditions were the most important features determining New Zealand's winter and early spring climate.

Rainfall. 1999 was one of the driest years since records began in 1932 in parts of Buller and south Canterbury, with rainfall totals about 80 percent or less of normal. It was also very dry in parts of western Bay of Plenty. Other drier than average areas were Auckland, Coromandel, Gisborne, Westland, and coastal Otago. These areas all recorded less than 90 percent of normal rainfall. Arapito, on the north-western corner of the South Island, registered its lowest rainfall since records began (in 1979), with only 73 percent of its average rainfall recorded in 1999.

In contrast it was wetter than average in northern areas of Northland, scattered parts of Hawke's Bay, north Canterbury, Southern Lakes, and the far south-west of the South Island. Rainfall in these regions ranged from 105 to 115 percent of normal.

Of the four main centres, Dunedin was the driest with 591mm, and Wellington was the wettest with 1,273mm. Auckland received 1,191mm, and Christchurch 675mm. Alexandra in Central Otago was the driest location the National Institute of Water and Atmospheric Research Ltd (NIWA) measured in New Zealand, with only 408mm. North Egmont was the wettest location in 1999 measuring 6,909mm.

Temperatures. The national average temperature, calculated by NIWA, was 13.3° C, which was 0.8° C above normal. 1999 was the second warmest year since recordings began in 1853. Other unusually warm years were 1998 with 13.4° C, 1971 with 13.3° C, and 1989 and 1990 both with 13.2° C.

Mean temperatures were between 0.5 and 0.9° C above average throughout much of the South Island, as well as many northern, western, and southern areas of the North Island. There was record warmth in the west and south of the South Island, with mean temperatures at least 1.0° C above average. The warmest centre nationally was Kaitaia, with a mean temperature for 1999 of 16.3° C.

Alexander Turbull Library Observing a weather balloon, Meteorology Office, Wellington, 1948.

WEATHER

Temperatures were nearer normal, however, in the central North Island, and many eastern regions from Gisborne to north Canterbury.

February through March, and May through July periods, were much warmer than average. Warmer than normal sea surface temperatures persisted throughout the year in the mid and north Tasman Sea, contributing to the very warm conditions.

The highest extreme temperature for the year was 37.0° C recorded at Alexandra in hot north westerly conditions on 8 February. The lowest recorded temperature for the year was minus 9.8° C, measured at Tekapo on the morning of 6 July.

Sunshine. 1999 had more than normal sunshine in many southern arid western areas, with hours between 105 and 115 percent of normal. In contrast, below average sunshine hours occurred from the Waikato north. Invercargill had its sunniest year, since records began in 1932, with 278 hours more than average.

Nelson was the sunniest centre in 1999, recording 2,540 hours, followed by Blenheim with 2,477 hours, and Tauranga with 2,427 hours. Of the four main centres, Wellington was the sunniest with 2,161 hours, and then Christchurch with 2,037 hours.

Table 1.6. SUNSHINE HOURS 1999

CityTotal hoursNormal (hours)Departure from normal (hours)Comments

1Estimated from solar radiation.

Source: NIWA

Auckland1,9132,035-122Below average
Wellington2,1732,049+124Above average
Christchurch2,0372,057-20Near average
Dunedin11,6611,613+48Above average
Invercargill1,8431,565+278Highest

Floods and storms. There were at least 16 flood-producing events during 1999, some of which were severe.

Rainfall totalled almost 100mm at Napier Airport (with higher totals at some inland sites) in the 18-hour period to 9am on 18 January, resulting in surface flooding in some areas. Rainfall was also heavy in Dargaville with thunderstorms and surface flooding.

High intensity rainfall in parts of Northland resulted in severe flash flooding in a number of Hokianga settlements, such as Panguru and Omapere on 21 January. Rainfall totalling 211mm was reported in five hours at Opononi. Flood waters were extensive, with massive land slips, and many roads and bridges washed out. The same weather system also produced extremely high intensity rainfall and serious flooding in Pukekohe, where rainfall totalled 135mm in four hours, and as much as 50mm in an hour that night. About 80 elderly residents were evacuated.

Thunderstorms with lightning affected parts of Wellington and Wairarapa during the evening of 12 March, with surface flooding overnight at some Hutt Valley and Kapiti Coast locations.

A mix of high intensity rainfall in the Dargaville catchment, combined with low pressure and a very high tide on 17 April resulted in severe flooding in the township and local farmland.

Extremely high rainfall lashed parts of the Northland region again on 25–26 April, with flash flooding, landslips, and widespread flooding in some low-lying areas. The Kaeo area of the Bay of Islands was severely affected, with rainfall totals of more than 200mm in 48 hours.

A low to the west of northern New Zealand produced further high intensity rainfall in northern New Zealand on 30 April. Some locations in Whangarei had rainfall totals of 120mm in three hours.

Extremely heavy rainfall deluged Rotorua on 1 May. Rainfall totalling 214mm fell in the 12-hour period to 1pm (with 47mm in one hour). This flooded low-lying areas of the city as well as causing slips and washing out roads around the lake. There was also severe lightning and surface flooding that evening in parts of Auckland. The thunderstorms produced localised downpours, with firefighters called out to pump water from 60 flooded basements.

Further heavy rainfall occurred in the Wanganui high country on 16 May, with the Whanganui River in flood, running 6m above normal, as well as surface flooding slips in some areas, including the Awakino Gorge and Uruti. Rainfall totalling 470mm was recorded in the 72 hours to 5pm at the North Egmont Visitor Centre.

Heavy rainfall accompanied by thunderstorms occurred in Hawke's Bay during the night of 4–5 June, with 100mm reported in parts of the Heretaunga Plains over a few hours. Napier City recorded 70mm in the 24 hours to 9am on 5 June, with surface flooding in many suburban streets. Water lapped at doorsteps in parts of Havelock North. Ohiti, at Roy's Hill recorded 120mm between midnight and 9am.

Significant rainfall occurred throughout Banks Peninsula, and north Canterbury on 17 July, with rainfall totalling 122mm at Le Bons Bay in the 24 hours to 9am on 18 July, and 51mm in Christchurch City during the same period. The Avon River overflowed in some areas. The heavy rain and an unusually high tide resulted in some streets in Kaiapoi being under a metre of water, but no houses were evacuated.

Significant rainfall occurred in Buller on 5 October with some slips and flood damage in the region. Rainfall in the 24-hour period was as high as 142mm at Westport Airport.

Heavy rainfall totalling more than 200mm occurred at The Hermitage, Mt Cook Village, between 9pm 31 October and 3pm 1 November.

The Dominion Floodwaters swamp a house and car at Waimana, Whakatane, 3 July 1998.

Further high rainfall occurred in Northland on 3 November and then in Auckland, Coromandel, and Bay of Plenty on the 4–5 November, with a 2-day rainfall total of 182mm measured at Waihi, and 100mm in other areas.

Additional rainfall occurred on 10–11 November totalling 50 to 60mm in many parts of Northland, Coromandel, and Bay of Plenty, with surface flooding in many areas. The worst affected areas were the Hokianga township of Panguru, and eastern Bay of Plenty's Waimana (where rainfall was much higher, and at least nine farms were flooded). High rainfall also drenched Golden Bay, with a total of 170mm measured at Upper Takaka on 10 November.

Moist northwesterlies and continuous electrical storms produced torrential rainfall in Fiordland, south Westland, and the Southern Alps from 14–16 November with rainfall totalling 400mm at the Homer Tunnel, and at least 100mm in Queenstown in the 48 hours to 9am on 16 November. The Queenstown total of 205mm over a three-day period was the highest in records going back to 1871. Southern Lake levels ran extremely high, with Lakes Wakatipu and Wanaka both flooding their foreshores. Lake Wakatipu reached its highest level on record since Pākehā settlement, and Lake Wanaka since September 1878. The flood waters from these lakes and surrounding rivers caused the Clutha River to be in high flood (flowing at six times its normal volume). The Mataura River, in Southland, was also in flood.

A mix of high rainfall and high tidal conditions resulted in further surface flooding, this time from south Taranaki to Manawatu, (including Wanganui) from 27–29 November, with rainfall between 75 and 100mm in many areas, and more than 150mm around Normanby. The flooding was worst in the Kopane area, where the Oroua River breached its banks.

Cyclones. Unlike some La Niña years, 1999 was relatively ‘quiet', with only one cyclone of tropical origin just brushing the country. The remains of tropical cyclone ‘Frank’ brought rainfall to many areas on 26–27 February. Rainfall totals ranged from 20 to 80mm in Canterbury, providing temporary relief from very dry conditions.

Snowfalls. Bitterly cold southerlies brought snowfalls to high country regions (including Te Anau and Porters Pass) on 16–17 April and resulted in a temporary closure of the North Island's Desert Road.

Cold southerlies brought low temperatures to eastern regions on 5 May and snowfall to the North Island's Desert Road (resulting in its closure between Waiouru and Rangipo). Snow also covered the ranges about Hawke's Bay, and fell in the Rimutakas.

The western Otago/Southern Lakes region experienced the heaviest snowfalls on record on 2–3 July. More than a metre of snow was measured at Coronet Peak, with depths to 40cm reported in some low-lying rural areas. A large number of residents were without power.

Cold southerlies brought snow to low levels in the south and east of the South Island from 26 July. Snow depths of 2.5cm occurred in Christchurch. Depths up to 25cm were reported in parts of Southland and Otago. Showers of sleet and hail (with some isolated heavy falls) occurred in the south of the North Island, with heavy snowfalls in the Wairarapa high country. The Ruapehu area received its first significant snowfall of the winter, with the Desert Road closed by snow and ice from 26–29 July. Snow also settled on the Rimutaka Hill road north of Wellington.

Bitterly cold southerlies occurred on 17–18 August with snowfall in high country areas of the South Island, and significant falls in most North Island ski areas.

Snow fell to low levels on Banks Peninsula (up to 7cm depth in hilly areas), leaving some vehicles stranded for a period.

Hailstorms. A thunderstorm with marble-size hailstones occurred just before the Ruapuna tornado. Thunderstorms with hail reached Hawke's Bay on 13 May and damaged apple orchards.

Severe hailstorms hit parts of Auckland and Waikato. Snow-like drifts of hail lay for some time in Panmure and Mt Wellington and several buildings in Auckland were flooded. Hail was especially heavy about Te Awamutu and SH5 on the Mamaku Plateau where it lay up to 7cm in depth.

SOUTHERN OSCILLATION INDEX Air pressure recordings from Tahiti and Darwin

Hail occurred during thunderstorms in Coromandel from 4.20pm on 28 November, with hail still lying on the ground at 9pm.

Tornadoes, gales and high winds. A tornado was seen near Te Aroha, in the Waikato, on 17 January during the afternoon.

A tornado, with a diameter of about 100m, was reported at about 2.30pm on 11 March in the Ruapuna district (west of Ashburton). This lifted an apple tree, dropping it some distance away.

Gale-strength northwesterlies buffeted eastern regions of the South Island on 16 May, being particularly severe in parts of Banks Peninsula, causing a number of trees to fall, and power outages.

Hurricane-force northwesterlies affected the south-west of the country on the 26 May, with gusts to 172km/h recorded at both Puysegur Point and South West Cape.

On 6 May gale-force southerlies and high seas affected Wellington and Cook Strait (where 165km/h winds were reported), with swells averaging 6m, and peaking at 11m, resulting in the cancellation of Cook Strait ferry crossings. In Wellington a container ship broke its moorings.

Severe, damaging northwesterlies occurred on the morning of 2 July. Violent wind gusts to 150km/h were reported in the Tuatapere and Middlemarch areas, with significant property damage. Gusts to 133km/h were recorded at Lauder (near Alexandra).

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.

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 3m tall) became extinct in pre-European times, but many other large flightless birds still remain including kiwi, the nocturnal kākāpō (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.

Table 1.7. SELECTED GROUPS OF NATIVE AND INTRODUCED SPECIES

GroupNumber of speciesPercentage endemic1
IntroducedNative

1Native species not found anywhere else.

2 Estimated.

Source: Department of Conservation

Marine algae322900243
Bryophytes-
mosses851621
liverworts525252..
Ferns and allies2618946
Conifers2820100
Flowering plants184221,81384
Earthworms40178100
Land snails/slugs12520299
Spiders/harvestmen602500290
Insects1,1009460290
Freshwater fish2322785
Amphibians372100
Reptiles-
land362298
marine..6..
Birds-
land/freshwater418454
marine08720
Mammals-
land333100
marine1346

Alexander Turnbull Library
Takahē were thought to be extinct until Dr Geoffrey Orbell (right) discovered a small colony of the flightless birds in the Murchison Monutains in 1948.

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 a 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 types of species here have exploited habitats from valley floor to mountain tops. Kauri, true forest giants, dominate only in the warmer climes to the north.

Some of the most specialised 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 (e.g. takahē/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, nine 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.

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 2am (NZST) on the first Sunday in October, until 2am (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, National Institute of Water and Atmospheric Research Limited (NIWA); New Zealand Speleological Society.

  • 1.2 Institute of Geological and Nuclear Sciences Limited; Landcare Research New Zealand Ltd.

  • 1.3 NIWA.

  • 1.4 Department of Conservation.

  • 1.5 Industrial Research Limited.

Special articles

Institute of Geological and Nuclear Sciences (IGNS); MetService Ltd; NIWA.

Further information

Archeology

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

Climate

Johnson, KF 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.

NIWA operates an extensive climatological database and publishes the Monthly Climate Digest, as well as regional climatologies, maps and other publications.

Geography

Bateman, D and McKinnon, M (eds) in association with Historical Branch, Department of Internal Affairs 1997. Bateman New Zealand Historical Atlas: Ko Papatuanuku e takoto nei. Bateman.

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

Topographical maps of the whole country can be obtained from Terralink Ltd.

Geology

Aitken, JJ and Lowry MA 1995. More Earthquakes Explained. Institute of Geological and Nuclear Sciences.

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

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

Forsyth, PJ and Aitken, JJ 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.

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

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

The Institute of Geological and Nuclear Sciences publishes geological and geophysical maps covering all New Zealand, plus 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, BD and Robertson, HA 1996. The field guide to the birds of New Zealand. Viking.

King, CM 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, JT 1980. The native trees of New Zealand. Reed.

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

Chapter 2. History

Crowd at Parliament Buildings hears the declaration of war with Germany, 1914.

New Zealand in the 20th century

In 1900 New Zealand was a self-governing colony of the United Kingdom, which had reassumed sovereignty in 1840 after Captain James Cook had claimed it in 1769. Since the signing of the Treaty of Waitangi the numbers of Māori, a Polynesian people who began to settle the main New Zealand islands after 1000 AD, had fallen by about half to 46,000, while the number of Pākehā (non-Māori, at this time overwhelmingly British settlers and their descendants) had risen from a couple of thousand to three-quarters of a million. Growing numbers of New Zealanders were of mixed ethnicity.

After successful schemes for organised British settlement began in the late 1830s Aotearoa became European-dominated New Zealand. In 1800 Māori lived in mainly small communal groups, growing Polynesian crops which survived in a cooler climate, hunting birds, fish and small animals, and gathering the resources of forest and ocean. By 1900 Māori had lost most of their land through military conquest and a sale process carried out with varying degrees of unfairness. Much of the once predominantly forested landscape gave way to pasture on which grazed domesticated animals that supplied the British imperial centre with food (aided by new technologies such as refrigeration) and other raw materials. The European population of this ‘Britain of the South’ lived on large sheep runs, smaller cropping and dairy farms, or (mostly) in towns and cities. These serviced the hinterlands and manufactured goods for local consumption. Thanks to the spread of dairy farming and the growth of suburban Auckland and Wellington, the population of the North Island exceeded that of the South for the first time since the gold rushes of the 1860s.

Far from the centres of culture and knowledge (even after New Zealand and the United Kingdom were linked via Australia by an undersea telegraph cable in 1876), ‘Maorilanders', as latter 19th century white New Zealanders fondly called themselves, prided themselves on their adaptability and resourcefulness. Most of their innovations, such as mechanised ways of separating cream from milk, were motivated by pragmatism. The imagination of the South Canterbury farmer Richard Pearse, who is believed to have flown before the Wright brothers, was exceptional. New Zealanders also recognised that resourcefulness had its limits. Concern for the welfare of ageing ‘pioneers’ led to the introduction of old-age pensions for the ‘deserving poor’ in 1898; they were to be joined over the next 40 years by other worthy but narrowly defined groups, including war veterans and widows.

Although it was not fully independent, since Great Britain retained responsibility for foreign policy, New Zealand was one of the world's most ‘democratic’ countries in 1900. It was granted self-government in the mid-1850s, and by the turn of the century almost all adult citizens were entitled to vote in elections for the House of Representatives. Māori were restricted to four dedicated parliamentary seats; this number was then roughly in proportion to the Māori share of the population. Women had won the vote in 1893 but were not to be allowed to stand for Parliament until 1919. Also around the turn of the century New Zealanders reiterated their growing sense of identity by spurning an offer to join the new Australian federation.

A resolutely populist government was entrenched in office in 1900. ‘King Dick’ Seddon's Liberals were then halfway through two decades of uninterrupted power, having defeated the ‘continuous ministry’ of the conservative elite in 1890. They shared the prevailing New World belief that the state's role was to assist the ‘ordinary working man’ and his family onto the land. This offered both physical and mental health and the promise of prosperity denied in the Old World. Land was made available by buying up some of the ‘great estates’ acquired by the nineteenth-century squattocracy, and by enthusiastic purchasing of the remaining Māori-owned land. Technological advances in refrigeration and the mechanisation of farming enabled diversification away from pastoralism and allowed family-run farms to increase in size.

Alexander Turnbull Library Women in New Zealand won the vote in 1893, but only won the right to stand for Parliament in 1919.

The Liberal coalition of ‘small men’ was inherently unstable, and it began to unravel during the first decade of the new century. Farmers helped onto the land with cheap government loans and long-term leases, and helped to prosper by state-run railways, roads and shipping, now sought freehold titles, higher prices for their production, and the ability to employ labour as cheaply as possible. This cut across the interests of urban workers who had been placated by the introduction of compulsory arbitration and an award-based wage-setting system in the 1890s. While farmers joined forces with urban employers in a Reform Party led by William Massey, militant unionists increasingly withdrew from the arbitration system and the ‘Liberal-Labour’ alliance.

Social tensions came to a head in 1912–13, when Reform replaced the Liberals in power and crushed strikes led by mining and transport unions combined in a ‘Red’ Federation of Labour. As in other settler societies, class war seemed imminent. But the threat subsided by the time a world war broke out in August 1914. In October that year the main body of the New Zealand Expeditionary Force left to train in Egypt. One-tenth of New Zealand's population of one million served in the Great War; one in six of these were killed, and many more came home as invalids. At the end of the war, another 8,000–9,000 (including 2,000 Māori) were to die within the few months of the ‘Spanish Flu’ pandemic.

New Zealand's troops mostly served alongside the British armies on the Western Front. By chance, however, they participated in two of the turning points of the war. On 8 August 1915, the Wellington Regiment captured the summit of Chunuk Bair on the Gallipoli Peninsula, the key to forcing the Dardanelles, defeating Turkey and allowing aid to reach Russia. British commanders missed the opportunity to reinforce them, and the commanding heights were lost. The abandonment of Gallipoli saw the New Zealand Division redeployed in France, where many were killed on the Somme and at Passchendaele. In April 1918, however, it played a significant role in blunting the German offensive which threatened to capture Paris. New Zealand's mounted riflemen were also an important part of the British force which wore down the Turkish army in the Near East after 1916. The battlecruiser New Zealand, paid for by the Dominion's taxpayers, was one of the few British warships to take part in all three major clashes between the British and German battlefleets.

It was not the first time New Zealand had gone to war alongside Britain. Consistent with its self-image of being better Britons than the British, New Zealand was the first colony to send troops to support Britain when the South African War broke out in 1899; 6,500 men served there. In 1901 it acquired its own mini-empire of the Cook Islands and Niue and it moved quickly in 1914 to occupy German-controlled Western Samoa, which it continued to rule under an international mandate until 1962. (The Tokelau Islands were to be acquired from Britain in 1924.)

During the 1914–18 war, New Zealand enjoyed guaranteed markets in Britain for all the primary produce it could export. Afterwards, many returning servicemen were resettled on poor farming land in the backblocks. Their marginal status mirrored that of the whole country in the 1920s. Still tied firmly to Britain's imperial apron-strings, New Zealand's economy was buffeted by volatile world commodity prices. Working-class aspirations found a political voice in the Labour Party, which became an increasingly powerful opposition during the decade. After Massey's death in 1925 Reform reinvented itself under the energetic Gordon Coates, who was responsible, among other things, for the creation of producer boards to coordinate the marketing of New Zealand's major exports, state housing, and the construction of a countrywide hydro-electric system. An economic downturn saw the Liberal Party (renamed United) regain office in 1928 under the leadership of the septuagenarian Joseph Ward, who had previously succeeded Seddon as Prime Minister in 1906. The Government failed to cope with the Great Depression which struck in 1930, and from 1931 a coalition of the two parties retrenched government activity and cut wages.

Coates became the Coalition's Minister of Finance and introduced more innovations, including the government-run Reserve Bank and a Mortgage Corporation. But as elsewhere in the Western world, fiscal orthodoxy ruled: the state's books had to be balanced. While relief work was provided for many of the unemployed, who numbered up to 100,000 in the depths of the Depression, much of it was soul-destroyingly pointless activity providing only sustenance. There was less revolutionary political activity than in more industrialised societies: the riots of 1932 were expressions of anger rather than harbingers of class war. The Communist Party, formed after the Great War, failed to prosper. The beneficiaries of ‘The Slump’ were the Labour Party, many of whose leaders had been ‘Red Feds’ but who now sought change by constitutional means. Labour won office in 1935, by which time economic conditions were much improved.

Labour also sought to improve the living conditions of Māori, many of whom supported the party after it formed a political alliance with the Ratana church. While the Māori population had doubled since the turn of the century, infant mortality remained significantly higher and life expectancy lower than that of the general population. Public health officers worked to upgrade sanitation and housing, and welfare benefits became more available to Māori. Most still lived in rural areas, where land development schemes initiated by āpirana Ngata provided a sounder economic basis for many communities. The loss of land in the 19th century was a continuing grievance, although compensation was paid to some iwi following official enquiries in the 1920s.

The first Labour Government was genuinely reformist. After enacting progressive industrial legislation (a minimum wage, a standard 40-hour working week, compulsory unionism) it introduced a comprehensive system of social security which provided a safety net ‘from the cradle to the grave’ for those who needed it. A substantial state housing programme employed many of the skilled workers made idle by the Depression. Labour also articulated New Zealand's first independent foreign policy, voting differently to the British in the League of Nations on issues such as the Spanish Civil War and the Italian invasion of Abyssinia. But there were limits to independence: a balance of payments crisis in 1938, when the terms of trade turned against New Zealand's still narrow range of exports, necessitated the introduction of import and financial controls. These did have the advantage of encouraging the growth of secondary industries to supply the local market.

The outbreak of World War II was an economic godsend: the United Kingdom guaranteed to buy everything New Zealand farmers could produce, at good prices. The Dominion once again ranged itself alongside Britain and placed military forces at the Empire's disposal for the duration of the conflict. But there were subtle differences from the 1914–18 relationship. The government insisted on consultation over the deployment of the Second New Zealand Expeditionary Force, of which Lieutenant-General Bernard Freyberg had independent command. In practice, however, these troops were again subject to strategic demands. Like their Great War counterparts, they were destined for Britain, but offloaded in Egypt before being thrown into a futile campaign in the Aegean. In this case it was the doomed defence of Greece against the German invasion of May 1941. They too returned to Egypt, but only after Crete was lost following some poor decisions by New Zealand officers.

These experiences, and subsequent training in Egypt and Syria, turned the New Zealand Division into a formidable fighting force which served alongside other Commonwealth units in the North African desert campaigns of 1941–43 against Italian and then German armies, and then in Italy until the end of the war. However, New Zealand's per capita World War II casualties were less than half those of the Great War. New Zealand itself seemed threatened by the lightning Japanese advances of 1941–42. Prime Minister Peter Fraser, unlike his Australian counterpart, resisted pressure to bring troops back for home defence. Instead, the country was garrisoned by United States forces who trained here in preparation for the bloody ‘island-hopping’ campaigns which turned the tide of war in the Pacific. Their social significance was equally great: for the first time in a century, a non-British culture made a substantial impression, not least on the female inhabitants. Aided by radio, the cinema and later television, the American invasion ensured that New Zealand would not simply remain an outlier of the British Empire.

During the war, Labour's technocrats (joined in a government of national unity by the ubiquitous Coates) regulated, ‘manpowered’ (both sexes), directed and controlled people and resources to an unparalleled degree. Māori supported the war with a unanimity lacking in previous conflicts. The Maori Battalion fought with distinction as part of the New Zealand Division, and a Maori War Effort Organisation tapped the resources of hundreds of marae. For the first time, Māori moved into the cities in significant numbers. This trend was not interrupted until the 1980s, when manufacturing employment plummeted and rural life once more seemed attractive. ‘Native’ replaced ‘Māori’ in all official usage in 1947, and successive governments worked to assimilate Māori into mainstream New Zealand life.

In 1947 New Zealand belatedly adopted the Statute of Westminster, which formalised the independence of the British Dominions within the Commonwealth. New Zealand, and especially Fraser, had been active in the post-war formation of the United Nations. But foreign policy independence was soon circumscribed by the outbreak of the Cold War, during which New Zealand supported the United States nearly as enthusiastically as it had supported Britain. The ANZUS Pact of 1951, and participation in the Korean War, set a pattern that was unbroken until the 1980s. New Zealand troops backed colonial and post-colonial Malay(si)a against domestic and then foreign insurgents. While subsequent military participation in the Vietnam War aroused significant opposition, politicians ensured that involvement was on a relatively small scale and casualties were few.

As the Cold War intensified in the late 1940s, Labour was replaced in office by a National Party formed by the defeated conservative coalition partners in 1936. Like Reform, the new government began by crushing a waterfront strike, this time in 1951. Also like Reform, National in office proved ambivalent about rolling back the innovations of its activist predecessor. Some state houses were sold to their tenants; import controls were loosened. The policy of recruiting skilled immigrants introduced in the late 1940s continued. The new settlers were still mostly British, leavened by Dutch and other Europeans. New Zealand remained a largely monocultural society influenced on its margins by Māori values.

A Labour Party led by the ageing Walter Nash regained office for a single three-year term in the late 1950s. Apart from this irregularity, New Zealand politics in the third quarter of the century was dominated by National, which held power until 1972. Keith Holyoake's successful campaign slogan, ‘You’ve never had it so good', reveals much about this period. New Zealand's terms of trade soared with the demand for wool sparked by the Korean War, and were not to decline significantly until the 1970s. Technological innovations, some homegrown, intensified production of the narrow range of exports that had sustained New Zealand since 1900: wool, meat and dairy products. In this period these were supplemented only by exotic trees which had first been planted in significant quantities by Depression-era relief workers. The exporting of untreated logs, wood pulp and paper was extolled as evidence of diversification. New Zealand had one of the world's highest standards of living, but this depended on continued high prices for its largely unprocessed primary products. Domestic manufacturing expanded thanks to the continued protection of secondary industries from foreign competition.

Children and ‘teenagers’ (a new concept) made up a higher proportion of the population in the baby-boom years after 1945. Young people who grew up with British and American music, fashions and television chafed within the social confines set by the war and Depression generations. While there were jobs, homes, education and health care for all, some consumer goods remained subject to import licensing: the waiting list for new cars was years long. Family life in the postwar suburbs which had transformed areas such as West Auckland and the Hutt Valley was both satisfying and stultifying. Wider choices did become available. The ready availability of contraceptive pills and mind-altering alternatives to alcohol in the late 1960s offered the promise of new freedom and experiences. The ideas of ‘second-wave’ feminists and the need to enlarge the paid workforce combined to open up new opportunities for women. At the same time, the expansion of virtually free tertiary education opened new intellectual and employment horizons for many children of working-class parents.

The new generation flexed its muscles with the election of the third Labour Government in 1972. It was ‘time for a change', not least in New Zealanders’ attitude to their environment. Since the beginning of settlement the land's resources had been extracted enthusiastically. New knowledge and technologies were used to increase output, with little regard to long-term consequences. By the 1960s some consequences were becoming unavoidable. A century of deforestation had transformed much steep hill country into grassland for which it was ill-suited. Frequent storms saw much of this pasture and soil washed down to the lowlands, where it increased the severity of floods and clogged the artificial lakes required for hydro-electric power generation. It was demand for electricity which provoked the country's most intense environmental debate, when the Electricity Department proposed raising the level of the remote and pristine Lake Manapouri to increase output. The resulting controversy assisted the victory of Labour, which promised to abandon this scheme.

Labour was more tolerant of social diversity than National, implementing a more independent foreign policy, developing close contacts with post-colonial Africa and sending warships to protest against French nuclear testing in Polynesia. It also developed ambitious plans to control the sprawl of the main cities (Auckland's population had reached two-thirds of a million) by constructing satellite centres. But hopes of building a more flexible yet stable society were stymied by international economic forces. Britain's belated entry into the European Economic Community in 1973 foreshadowed the end of guaranteed markets for New Zealand's major exports. The Arab-Israeli war of the same year led to the creation of an effective cartel of most oil-producing countries which drove energy prices relentlessly upwards. New Zealanders suffered the first restrictions on the use of their family cars for three decades. More significantly, the terms of trade had turned against most primary products: the country could no longer ride to prosperity ‘on the sheep's back'. Full employment disappeared; it was not to return.

Both Labour and the National administration which swept into office in 1975 attempted to mitigate the new economic realities. National's most ambitious means was the ‘Think Big’ projects intended to increase the country's energy self-sufficiency. Planned hurriedly when a second ‘oil shock’ struck at the end of the 1970s, some of these were ill-conceived, others too ambitious, and all proved too expensive when oil prices soon fell and remained low. Prices for farm production did not recover, and it became harder to sell unprocessed products on increasingly open world markets. By its last three-year term National was propping up the rural sector with an unsustainable system of guaranteed minimum prices. Manufacturing boomed in the 1970s, but largely sheltered behind tariff and other barriers. The tyranny of distance made effective competition in world markets difficult, although the Closer Economic Relations agreement with Australia did enable New Zealand to trade with its nearest neighbour on more or less equal terms. Australia became New Zealand's largest trading partner.

In 1981 National was narrowly re-elected after a South African rugby tour divided the country. Sports grounds were invaded by protesters, and matches were played behind barbed wire with the assistance of paramilitary police squads. Increasing attention to the rights of black South Africans accompanied a renewed focus on the place of Māori. Having suffered disproportionately when full employment ended, Māori continued to fall behind Pākeha in education, health and other social indicators. (They were joined in relative poverty by many of the Pacific migrants who met the demand for unskilled labour in the 1960s-70s and tended to live in state housing areas such as Manukau city.) Many Māori saw a cultural renaissance as the key to empowerment: independent schools in which teaching was carried out in Māori sprang up from 1981, and Māori-language radio stations soon followed.

Māori also confronted the dominant culture more directly. Early in the century many Pākehā expected Māori to die out altogether; through its middle years both official policy and popular belief was that they would be integrated into the general population through miscegenation, speeded by an improvement in their economic and social status. Neither outcome eventuated. In 1975 long-standing grievances over the loss of land sparked a march which generated much support as it travelled the length of the North Island. In the same year, one of the Labour government's last acts was to establish a statutory tribunal to investigate breaches of the Treaty of Waitangi. Iwi won compensation in several high-profile claims relating to the pollution of natural resources by industrial development. They also occupied land they claimed had been taken unjustly by the Crown, notably on Auckland's Bastion Point in 1977–78 and at Raglan in 1981. The faces of protest were increasingly brown faces.

In its last term Robert Muldoon's government forced through legislation for the construction of a high dam on the picturesque Clutha River with minor-party support, and introduced a comprehensive wage and price freeze in an effort to curb rampant inflation. Led by the ebullient David Lange, and helped by a new free-market party which attracted many former National supporters, Labour regained office in 1984 with a broad but diffuse mandate for change. The economic and social transformation which followed was more sweeping than even most of its advocates had envisaged.

Muldoon had called the election because he was unsure of defeating a bill to make New Zealand nuclear-free. Labour's insistence on this soon led to the effective suspension of the ANZUS alliance, which for three decades had been seen as the cornerstone of New Zealand's security. An even more pressing problem confronted the new administration. Muldoon refused to devalue the New Zealand dollar, which was fixed against other currencies. The resulting outflow of capital led him to suspend foreign currency transactions, which only worsened the problem. The new Minister of Finance, Roger Douglas, accepted the inevitable; soon, the currency was allowed to find its own level, and Muldoon's price and wage controls were abandoned. Other financial controls soon followed, New Zealand's finance sector was deregulated to an unprecedented degree and the sharemarket boomed.

The next stage of reform was the restructuring of a public sector seen as being too dominant in both economy and society. The group of influential Cabinet ministers led by Douglas saw the role of the state as assuring citizens’ physical safety, providing a basic social welfare safety net, and light-handed economic regulation that did not interfere unduly with market forces. The other traditional functions of the New Zealand state, notably the provision and maintenance of the country's economic infrastructure, and employment creation, could be done better by the private sector, and should be. The results of this approach were dramatic. The wealthy, skilled and adaptable prospered as the top rate of personal income tax was halved from 66 percent. A Goods and Services Tax of 10 (later 12.5) percent on most purchases had a disproportionate impact on the poor.

Labour removed agricultural and consumer subsidies, import licences and export incentives. The government departments which ran railways, forests, farms, coal mines and power stations were turned into state-owned commercial enterprises which pursued profits and made many of their employees redundant. The social welfare system was refocused to target those in greatest need. After Labour's re-election just before the sharemarket bubble burst in October 1987, it turned to the reconstruction of the welfare state, which (including health and education) absorbed more than half of all government expenditure. Business-style management was introduced in the health sector, the control of schools was devolved to elected boards of trustees, and fees for tertiary education were greatly increased. Government superannuation payments were subjected to a means test. Many of the corporatised state agencies, including the Think Big projects, were sold into private (generally overseas) ownership, but in some cases at what were perceived to be discounted prices. The operations of both central and local government were reorganised with a view to making them more ‘businesslike'. Price inflation was curbed, but one in ten of the labour force were now unemployed.

The pain it had inflicted ensured Labour's comprehensive defeat in 1990. National promised a ‘decent society', but pursued this by continuing to implement Labour's agenda. The Employment Contracts Act, which restricted the rights of workers to bargain collectively and to strike, overturned a century of industrial legislation. Many of the state's remaining assets were sold. The separation of funding from the provision of services was extended to the health sector, in which hospitals became ‘Crown health enterprises’ run by boards of directors. State house mortgages were sold off, and entitlements to no-fault accident compensation under a world-leading scheme introduced in the 1970s were reduced. Core social welfare benefits were also reduced, medical prescription fees increased, and the cost of tertiary education soared. By 1993 the country's economic fortunes had improved sufficiently for National to narrowly win re-election. But by now many citizens felt betrayed by both major parties, which had in the last decade made radical changes for which they had received no clear electoral mandate. In 1993 voters seized an opportunity to restructure the politicians: the long-standing ‘first-past-the-post’ electoral system was rejected in favour of a mixed member proportional system, under which only about half the MPs would represent geographical constituencies, and all parties with significant support would be represented in the House in proportion to their share of the total vote.

During the 1993–96 Parliament, the politicians prepared themselves for the new system. Two minor parties already had seats: Alliance, comprising mainly left-wing groups hoping to roll back the post-1984 changes, and the populist New Zealand First Party, supported mainly by the elderly and Māori. Other groupings sought to occupy the centre ground which overseas experience suggested would hold the key to power. In the event, significant representation was achieved only by the four parties which had won seats in 1993, and the ACT Party, which advocated maintaining the impetus of Douglasite reform. New Zealand First ended Labour's 50-year grip on the Māori seats, and held the balance between right and left. After two months of negotiations, it formed a coalition government with National.

The proponents of proportional representation argued it would enhance democracy by encouraging diversity among MPs. This came about: women, Māori and other minorities were represented in unprecedented numbers among the 120 members of the 1996–99 Parliament. However, the party lists which ensured proportionality had been drawn up on the basis of many conflicting factors, and there was a perception that some of the party list MPs were unsuited to parliamentary life. A trickle of defections became a flood after the National/New Zealand First coalition broke up in 1998. The country's first woman Prime Minister, Jenny Shipley, kept her minority National Government in power until the 1999 election by attracting enough disaffected MPs to command a majority.

One effect of this more complex political environment was a return to a more ‘normal’ pace of change. Interest groups which had been imperiously swept aside now had to be courted. Some of the post-1984 changes were socially progressive, New Zealand became more tolerant of diversity. The legalisation in 1986 of homosexual acts by consenting men was one measure of this; another was the reorientation of immigration policy away from those of British stock. An explosion in tourist numbers also brought many more Asian faces onto New Zealand streets, and exports to East Asia boomed. A distinctive New Zealand culture flourished as never before. Many of the mid-century social restrictions that had outgrown their usefulness were removed. Women now undertake paid work in unprecedented numbers. Māori entrepreneurship has flourished – the rate of self-employment among Māori has doubled since 1981 – and several major iwi have significant economic clout since receiving compensation for the loss of land and other grievances taken to the Waitangi Tribunal. By 1999 the value of non-housing commercial assets owned by Māori was estimated at more than $5 billion.

But the success of the economic experiment remains in doubt. The traditional goal of ‘full employment’ remains well out of reach. The pace of technological change, and the consequent decline in the need for unskilled labour, makes it unlikely to ever return. But there is also less demand for skilled labour now that New Zealand industry is fully exposed in the global marketplace. Local manufacturers cannot hope to compete with Third World prices. With more of the country's economic activity tied to overseas ownership, it is unclear how much freedom any administration will have to radically change direction. In late 1999 a minority coalition government of the Labour and Alliance parties assumed office under the leadership of New Zealand's first elected woman Prime Minister, Helen Clark. Its economic and industrial policies promise to ameliorate rather than overturn the reforms of the previous fifteen years.

In 2000, as in 1900, significant numbers of New Zealand troops are serving overseas. Those in 1900 fought in South Africa as part of a British force, whereas those in East Timor, 100 years later, are there as an independent component of a United Nations operation. Sometimes reluctantly, New Zealand became steadily more independent during the 20th century. In 2000 the possibility of the country becoming a republic with an elected president in place of the British monarch is being seriously debated. New Zealand has separated its honours system from that of the United Kingdom, and it seems only a matter of time before the ending of the right of appeal to the Privy Council in London. New Zealanders head both the World Trade Organisation and the Commonwealth Secretariat, and the country hosted the most recent meeting of the Asia Pacific Economic Cooperation organisation. While they are more secure in their standing on the world stage, New Zealanders remain vulnerable to economic forces beyond their control and uneasy about relations between Māori and Pākehā. These two issues, along with constitutional arrangements, are likely to be key matters for debate early in the new century.

2.1 Chronology of main events in New Zealand history

c1300

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

1642

Dutch explorer Abel Janszoon Tasman discovers a land he calls Staten Landt, later named Nieuw Zeeland.

1769

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

1790s

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

1791

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

1806

First Pākehā women arrive in New Zealand.

1814

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

1815

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

1819

Raids on Taranaki and Te Whanganui-a-Tara regions by Ngāpuhi and Ngāti Toa people led by chiefs Patuone, Nene, Moetara, Tuwhare and Te Rauparaha.

1820

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

1821

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

1822

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

1823

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

1824

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

1827

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

1830

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

1831

Whaling stations established at Tory Channel and Preservation Inlet.

1833

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

1834

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

1835

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

1837

New Zealand Association formed in London, becoming the NZ Colonisation Society in 0838 and the NZ Company in 1839, under the inspiration of Edward Gibbon Wakefield. William Colenso completes printing the New Testament in Māori, the first book printed in New Zealand.

1838

Bishop Pompallier founds Roman Catholic Mission at Hokianga.

1839

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

1840

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

1841

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

1842

Main body of settlers arrive at Nelson.

1843

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

1844

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

1845

George Grey becomes Governor.

1846

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

1848

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

1850

Canterbury settlement founded.

1852

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

1853

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

1854

First session of the General Assembly opens in Auckland.

1855

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

1856

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

1858

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

1859

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

1860

Waitara dispute develops into general warfare in Taranaki.

1861

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

1862

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

1863

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

1864

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

1865

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

1866

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

1867

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

1868

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

1869

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

1870

The last imperial forces leave New Zealand. Vogel's public works and immigration policy begins. New Zealand University Act passed, establishing a federal system which lasts until 1961. Vogel announces national railway construction programme; over 1,000 miles constructed by 1879. First rugby match. Auckland to San Francisco mail service begins.

1871

Deer freed in Otago.

1872

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

1873

New Zealand Shipping Company established.

1874

First New Zealand steam engine built at Invercargill.

1876

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

1877

Education Act passed, establishing national system of primary education.

The Albion Line's sailing shipDunedinleaving Port Chalmers, 15 February 1882, with the first shipment of New Zealand meat under refrigeration.

1878

Completion of Christchurch-Invercargill railway.

1879

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

1881

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

1882

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

1883

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

1884

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

1886

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

1887

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

1888

Birth of writer Katherine Mansfield.

1889

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

1890

Maritime Strike involves 8,000 unionists. ‘Sweating’ Commission reports on employment conditions. First election on a one-man one-vote basis.

1891

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

1892

First Kotahitanga Māori Parliament meets.

1893

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

1894

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

1896

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

1897

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

1898

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

1899

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

1900

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

1901

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

1902

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

1904

Richard Pearse achieves semi-controlled flight near Timaru.

1905

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

1906

Seddon dies and is succeeded by Joseph Ward as Premier.

1907

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

1908

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

1909

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

1910

Halley's Comet sighted in New Zealand.

1912

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

1913

Waterfront strikes in Auckland and Wellington.

1914

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

1915

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

1916

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

1917

Battle of Passchendaele – 3,700 New Zealanders killed. Six o'clock public house closing introduced. Lord Liverpool becomes first Governor-General.

1918

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

1919

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

1920

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

1921

New Zealand Division of Royal Navy established.

1922

Meat Producers’ Board placed in control of meat exports.

1923

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

1926

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

1928

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

1929

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

1930

Unemployment Board set up to provide relief work.

1931

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

1932

Compulsory arbitration of industrial disputes abolished. Unemployed riot in Auckland, Dunedin and Christchurch. Reductions in old-age and other pensions.

1933

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

1934

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

1935

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

1936

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

1937

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

1938

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

1939

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

1940

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

1941

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

1942

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

1943

New Zealand troops take part in invasion of Italy.

1944

Australia-New Zealand Agreement provides for cooperation in the South Pacific.

1945

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

1946

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

1947

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

1948

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

1949

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

1950

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

1951

Prolonged waterfront dispute – state of emergency proclaimed. ANZUS Treaty signed between United States, Australia and New Zealand. Māori Women's Welfare League established.

1952

Population reaches over two million.

1953

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

1954

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

1955

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

1956

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

1957

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

1958

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

1959

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

1960

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

1961

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

1962

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

1964

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

1965

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

1966

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

1967

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

1968

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

1969

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

1970

Natural gas from Kapuni supplied to Auckland.

1971

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

1972

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

1973

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

1974

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

1975

Robert Muldoon becomes Prime Minister after National election victory. Māori land march protests against land loss. The Waitangi Tribunal is established. Second TV channel starts broadcasting.

1976

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

1977

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

1978

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

1979

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

1980

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

1981

South African rugby team's tour brings widespread disruption.

1982

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

1983

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

1984

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

1985

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

1986

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

1987

Share prices plummet by 59 percent in four months. Labour wins General Election. Māori Language Act passed making Māori an official language. Anti-nuclear legislation enacted. First Lotto draw. New Zealand's first heart transplant is performed. New Zealand wins Rugby World Cup. Significant earthquake in the Bay of Plenty.

Survivors from the sinking of the ferry Wahine reach safety at Seatoun, 10 April 1968.

1988

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

1989

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

1990

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

1991

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

1992

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

1993

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

1994

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

1995

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

1996

Imported pests – Mediterranean fruit flies and white-spotted tussock moths – cause disruption to export trade and to Aucklanders. Thirteenth National Park, Kahurangi, opens in north-west Nelson. Waitangi Tribunal recommends settlement of Taranaki land claims. First legal sports betting at TAB. A $170 million Ngāi Tahu settlement proposed. Government makes an offer to settle the Whakatōhea claim; debate continues. First MMP election brings National/New Zealand First coalition government.

1997

The Winebox Inquiry concludes with a recommendation of tighter tax laws and the finding that all allegations of fraud raised in the inquiry were unable to be substantiated. Bic Runga becomes the first New Zealand woman to top the New Zealand album charts with her debut album Drive. Scenes of widespread grief in New Zealand after news of the death of Princess Diana. The Government is forced to legalise use of the rabbit-killing Calicivirus (RCD) after discovering it has been introduced illegally. The $170 million Ngāi Tahu settlement is signed. Jim Bolger resigns as Prime Minister after a National Party coup while he is overseas; he is replaced by New Zealand's first woman Prime Minister, Jenny Shipley. Taranaki farmers drive their tractors to Parliament to protest the passage of the Māori Reserved Land Amendment Bill.

1998

Auckland city businesses are hit by a power cut which continues for over a month and results in an inquiry into Mercury Energy. The New Zealand women's rugby team, the Black Ferns, become the world champions. Mortgage rates and the New Zealand dollar both take a slide, leaving the NZ$1 below the US50c mark for the first time in 12 years. The Coalition Government is dissolved, leaving Prime Minister Jenny Shipley's National Party as a minority government. Several cases of tuberculosis are discovered in South Auckland in the worst outbreak for a decade. The Hikoi of Hope marches to Parliament calling for more support for the poor.

1999

New Zealand sends peace-keeping troops to East Timor. Auckland hosts the APEC world leaders’ conference, attended by US President Bill Clinton, provoking anti free trade protests and traffic jams. Former Prime Minister Mike Moore becomes head of the World Trade Organisation. The country mourns the All Blacks’ semifinal loss to France in World Cup Rugby. The loss is said to contribute to the defeat of the minority National Government in the November election. Labour leader Helen Clark becomes first elected woman Prime Minister, in coalition with the Alliance party and with the support of the Green party. The Greens enter Parliament for the first time with seven seats. Frantic preventative measures are stepped up to fight the Y2K computer bug, which turns out to be a damp squib when not one fault is reported world wide on New Years Day 2000.

The 1998 Hikoi of Hope march to Wellington drew attention to growing poverty in New Zealand.

Contributors

  • 2.1 Statistics New Zealand.

Special article

‘New Zealand in the 20th century', David Green, Historical Branch, Department of Internal Affairs

Further information

Bassett, J, Sinclair K, and Stenson, M 1985. The story of New Zealand. Auckland: Reed Methuen.

Bohan, E 1997. New Zealand: The story so far: a short history. Auckland: HarperCollins.

Brooking, TWH, and Enright, P 1988. Milestones: Turning points in New Zealand history. Lower Hutt: Mills Publications.

Cumberland K, 1981. Landmarks (series of video recordings). Wellington: Television New Zealand.

Keith, H 1984. New Zealand Yesterdays: A look at our recent past. Sydney: Reader's Digest Services.

McKinnon, M (ed) 1997. New Zealand historical atlas. Auckland: David Bateman in association with Historical Branch, Department of Internal Affairs.

Rice, G (ed) 1992. The Oxford history of New Zealand, 2nd edition. Auckland: Oxford University Press.

Sinclair, K 1998. A history of New Zealand, revised edition. Auckland: Penguin.

Sinclair, K (ed) 1990. The Oxford illustrated history of New Zealand. Auckland: Oxford University Press.

Chapter 3. Government

Government House, Wellington, 1912.

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.

SOVEREIGNS OF NEW ZEALAND
MonarchAccessionDiedAgeReigned (years)
1Abdicated; reigned 325 days.
House of Hanover
Victoria183719018163
House of Saxe-Coburg
Edward VII19011910689
House of Windsor
George V191019367025
Edward VIII119361972  
George VI193619525615
Elizabeth II1952   

The Crown and the Governor-General

The Governor-General is the representative of the Sovereign in New Zealand and exercises the royal powers derived from statute and the general law (prerogative powers). The powers of the Governor-General are set out in the Letters Patent 1983, and it is for the courts to decide on the limits of these powers. The Governor-General's main constitutional function is to arrange for the leader of the majority party in Parliament to form a government.

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

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

Parliamentary tradition

A feature of New Zealand's constitution is that, although it is a monarchy in form, it operates democratically because of a long political tradition of parliamentary government and a network of constitutional principles. The Government cannot act effectively without Parliament, because it cannot raise or spend money without parliamentary approval, and for most categories of expenditure this approval takes the form of an annual vote of funds to the Government. Parliament therefore has to be assembled regularly and has the opportunity to hold the Government to account. Under the two-party system, however, the Government effectively controlled proceedings in Parliament and cases of Government members voting with the Opposition were uncommon.

Table 3.1. VICE-REGAL REPRESENTATIVES

Vice-regal representative1Assumed officeRetired
1Honours are specified only if held on retirement from office.
Dependency
Lieutenant-Governor
Captain William Hobson, RN30 Jan 18403 May 1841
Crown colony
Governor
Captain William Hobson, RN3 May 184110 Sep 1842
Captain Robert FitzRoy, RN26 Dec 184317 Nov 1845
Captain George Grey18 Nov 184531 Dec 1847
Governor-in-Chief
Sir George Grey, KCB1 Jan 18487 Mar 1853
Self-governing colony
Governors of New Zealand
Sir George Grey, KCB7 Mar 185331 Dec 1853
Colonel Thomas Gore Browne, CB6 Sep 18552 Oct 1861
Sir George Grey, KCB4 Dec 18615 Feb 1868
Sir George Ferguson Bowen, GCMG5 Feb 186819 Mar 1873
Rt Hon Sir James Fergusson, Bt14 Jun 18733 Dec 1874
Marquess of Normanby, GCB, GCMG, PC9 Jan 187521 Feb 1879
Sir Hercules George Robert Robinson, GCMG17 Apr 18798 Sep 1880
Hon Sir Arthur Hamilton Gordon, GCMG29 Nov 188023 Jun 1882
Lieutenant-General Sir William Francis Drummond Jervois, GCMG, CB20 Jan 188322 Mar 1889
Earl of Onslow, GCMG2 May 188924 Feb 1892
Earl of Glasgow, GCMG7 Jun 18926 Feb 1897
Earl of Ranfurly, GCMG10 Aug 189719 Jun 1904
Lord Plunket, GCMG, KCVO20 Jun 19047 Jun 1910
Dominion
Lord Islington, KCMG, DSO, PC22 Jun 19102 Dec 1912
Earl of Liverpool, GCMG, MVO, PC19 Dec 191227 Jun 1917
Governors-General of New Zealand
Earl of Liverpool, GCB, GCMG, GBE, MVO, PC28 Jun 19177 Jul 1920
Admiral of the Fleet Viscount Jellicoe, GCB, OM, GCVO27 Sep 192026 Nov 1924
General Sir Charles Fergusson, Bt, GCMG, KCB, DSO, MVO13 Dec 19248 Feb 1930
Viscount Bledisloe, GCMG, KBE, PC19 Mar 193015 Mar 1935
Viscount Galway, GCMG, DSO, OBE, PC12 Apr 19353 Feb 1941
Marshal of the Royal Air Force Sir Cyril Louis Norton Newall, GCB, OM, GCMG, CBE, AM22 Feb 194119 Apr 1946
Realm
Lieutenant-General the Lord Freyberg, VC, GCMG, KCB, KBE, DSO17 Jun 194615 Aug 1952
Lieutenant-General the Lord Norrie, GCMG, GCVO, CB, DSO, MC2 Dec 195225 Jul 1957
Viscount Cobham, GCMG, TD5 Sep 195713 Sep 1962
Brigadier Sir Bernard Fergusson, GCMG, GCVO, DSO, OBE9 Nov 196220 Oct 1967
Sir Arthur Espie Porritt, Bt GCMG, GCVO, CBE1 Dec 19677 Sep 1972
Sir (Edward) Denis Blundell, GCMG, GCVO, KBE, QSO27 Sep 19725 Oct 1977
Rt Hon Sir Keith Jacka Holyoake, KG, GCMG, CH, QSO26 Oct 197727 Oct 1980
Hon Sir David Stuart Beattie, GCMG, GCVO, QSO, QC6 Nov 198010 Nov 1985
Most Reverend Sir Paul Alfred Reeves, GCMG, GCVO, QSO20 Nov 198529 Nov 1990
Dame Catherine Tizard, GCMG, GCVO, DBE, QSO13 Dec 19903 Mar 1996
Rt Hon Sir Michael Hardie Boys, GNZM, GCMG21 Mar 1996 

Recent constitutional reform

Electoral reform. The Electoral Referendum Act 1991 provided for an indicative referendum on electoral reform. The referendum was divided into two parts. The first part asked voters to choose between electoral reform or maintaining the 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 registered electors) 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 (about 85 percent of the registered electors) chose between the first past the post (FPP) system and mixed member proportional representation. FPP received 884,964 votes (46.1 percent of the total vote) and MMP 1,032,919 votes (53.9 percent). 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 amalgamated the Race Relations Act 1971 and the Human Rights Commission Act 1977 and added 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 modified procedures to assist with the resolution of complaints. The Human Rights Commission was restructured to include a Complaints Division dealing 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. When a complaint cannot be settled and proceedings commence 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 a further right of appeal to the Court of Appeal on a question of law.

The Chief Justices leave Parliament Buildings, 1953, after the official opening of Parliament.

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. The Parliament 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; however 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 is 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. The session is either discontinued without being dissolved, or terminated, as is now usually the case, directly by dissolution of the Parliament. Unless there is a new session, at the commencement of business in the second and third years of the parliamentary term, the Prime Minister's statement reviews public affairs and outlines the Government's legislative and other policy intentions for the year ahead.

The Speaker, elected by the House, is the principal presiding officer, maintaining order in proceedings and ensuring the standing orders are complied with. The Speaker is assisted by the Clerk of the House of Representatives who notes all proceedings of the House and of any committee of the House, and provides advice on parliamentary law and custom.

Standing orders. On 20 December 1995, the House of Representatives adopted new Standing Orders, or rules of procedure, and these were brought into force on 20 February 1996. The 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 have subsequently been made in August 1996 (Parl paper I.18B, 1996) and in September 1999 (Parl paper I.18B, 1999).

Role of parties. It has traditionally 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 in the past 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 current 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.

Table 3.2. SEATS HELD BY POLITICAL PARTIES AFTER GENERAL ELECTIONS

ElectionTotalLiberal ConservativeLabourACTNZ FirstAllianceGreenOthersIndependent

1Country Party.

2Rātana.

3Social Credit/Democrats.

4New Labour.

5Includes Speaker of the House.

6United.

18907438 25      7
18937451 13      6
18967439 25      6
18997449 19      2
19028047 19      10
19058058 16      6
     Reform      
19088050 261     3
19118033 374     6
19148033 416     0
19198021 478     4
19228022 3717     4
19258011 5512     2
19288027 2719    116
   Coalition        
193180 51 24    114
   National        
193580 19 53+22    214
193880 25 53     2
194380 34 45     1
194680 38 42      
194980 46 34      
195180 50 30      
195480 45 35      
195780 39 41      
196080 46 34      
196380 45 35      
196680 44 35    13 
196984 45 39      
197287 32 55      
197587 55 32      
197892 51 40    13 
198192 47 43    23 
198495 37 56    23 
198797 40 57      
199097 67 29    14 
199399 50 455 22   
1996120 445 3781713 16 
1999120 39 499510716 

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 general election held on 12 October 1996, the first under MMP, 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. Following termination of the coalition agreement, a National-led Ministry was reconstituted on 31 August 1998.

In the first House of Representatives to be elected under the mixed member proportional system (MMP), there were: 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); and United New Zealand (1 electorate).

When Parliament dissolved on 18 October 1999 the state of the parties recognised for parliamentary purposes was:

National 44; Labour 36; Alliance 9; New Zealand First 9; ACT New Zealand 8; Mauri Pacific 5; Green Party 2; Christian Heritage 1; Mana Wahine Te Ira Tangata 1; Te Tawharau 1; United New Zealand 1; Independents 2; vacant (formerly Labour) 1.

The general election held on 27 November 1999 resulted in the formation of a minority coalition Government consisting of Labour and the Alliance. The new Ministry was sworn in on 10 December 1999.

In the second House of Representatives to be elected under MMP there are: Labour 49 (41 electorate, 8 party list); National 39 (22 electorate, 17 party list); Alliance 10 (1 electorate, 9 party list); ACT New Zealand 9 party list; Green 7 (1 electorate, 6 party list); New Zealand First 5 (1 electorate, 4 party list); United New Zealand (1 electorate).

Legislative procedures, Proposed laws are presented to the House of Representatives in the form of draft laws known as ‘bills'. Classes of bills are: Government bills, which deal with matters of public policy and which are introduced by a minister; Members’ bills, which deal with matters of public policy and which are introduced by a member of Parliament, who is not a minister; 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 first reading is limited to four, chosen by ballot.

Under the current Standing Orders, a Government bill is introduced by the Leader of the House informing the Clerk of the House on any working day or by 1pm on a sitting day of the Government's intention to introduce the bill. A member's bill or a local bill is introduced after notice of intention to introduce it is given and the bill's introduction has been announced to the House. A private bill is introduced by presentation of a petition for the bill to the House. The bill is then set down for first reading on the third sitting day following. Debate on the first reading is limited to 12 speeches in the case of a Government bill, or six speeches of 10 minutes each for other bills, and allowing the member in charge a five minute right of reply.

After its first 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. Government bills may be introduced on working days, as well as sitting days. Private, local and members’ bills in certain circumstances may be introduced while the House is adjourned, deemed read a first time and referred directly to a select committee for consideration.

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 six 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 second reading 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 be read a second time. The second reading of a bill is directed to the principles and objects of the bill.

A bill which the House gives a second reading 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 46th New Zealand Parliament was called following the General Election of 27 November 1999, and began sitting on 20 December 1999.

The swearing-in of the new Cabinet, 1975.

Parliamentary Service: Te Ratonga Whare Pāremata. The Parliamentary Service provides administrative support services to members of Parliament and the House of Representatives, and is responsible to the Speaker as Chairman of the Parliamentary Service Commission and Vote Minister. The Parliamentary Service is controlled by the Parliamentary Service Commission, but the role and function of this body is being reconsidered as part of the Parliamentary Service Bill which has been introduced in Parliament.

Under the current Parliamentary Service Act 1985 the Parliamentary Service Commission consists of: the Speaker of the House of Representatives, as Chairman; the Leader of the House of Representatives, or a representative; the Leader of the Opposition, or a representative; four other members of the House of Representatives agreed to by the House, of whom at least two shall be members of the Opposition; and two further members who are appointed as observers on behalf of other parties.

The services provided by the Parliamentary Service are:

  • Personal staff to assist Members of Parliament in the Parliamentary complex and in their out-of-Parliament offices.

  • Parliamentary information services – library services and computing facilities to members of Parliament and their staff.

  • Catering services (Bellamy's) for members, staff, and guests.

  • Buildings operations and maintenance and associated support services within the Parliamentary complex.

  • Personnel, finance and administrative services to members of Parliament and other agencies operating within the Parliamentary complex, including the Office of the Clerk of the House of Representatives and the Parliamentary Counsel Office.

  • Administering the determinations of the Higher Salaries Commission as they relate to the salaries and allowances payable to members of Parliament.

  • Policy advice to the Speaker and to the Parliamentary Service Commission.

The Parliamentary Service is responsible for the funding and accommodation arrangements of the country's second MMP Parliament.

Table 3.3. PARLIAMENTARY SESSIONS

ParliamentPeriod of session
Source: Clerk of the House of Representatives
Forty-first15 August 1984–12 December 1985
26 February 1986–21 July 1987
Forty-second16 September 1987–12 December 1989
14 February 1990–6 September 1990
Forty-third29 November 1990–18 January 1991
22 January 1991–30 September 1993
Forty-fourth21 December 1993–6 September 1996
Forty-fifth12 December 1996–18 October 1999

Table 3.4. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 Calendar year
19901199121991–9331993–9641996–995

1Second session, 42nd Parliament.

2First session, 43rd Parliament.

3Second session, 43rd Parliament.

444th Parliament.

545th Parliament.

Source: Clerk of the House of Representatives

Sitting days561022420399
Government bills
Introduced4312150139191
Referred to select committees339124117152
Enacted1299442418371
Members’ bills
Introduced3-313561
Referred to select committees4-322926
Enacted--654
Local bills
Introduced5-25189
Referred to select committees5-25189
Enacted7-21188
Private bills
Introduced3-11117
Referred to select committees3-11117
Enacted3-8119

Salaries and allowances of parliamentarians. These are set by the Higher Salaries Commission and are shown in table 3.5. A constituency allowance is paid at a rate dependent on the nature of each member's electorate, e.g. urban, rural, or semi-rural, and ranges from $8,000 to $20,000. Every member is paid an allowance of $7,000 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 $150 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 $8,500. Travel allowances are set out in the Parliamentary Salaries and Allowances Determination 1999 (S.R. 1999/374), published in the statutory regulations series.

Table 3.5. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

 Annual salary or allowance payable from 1 July 1999 to 30 June 20001

1Parliamentary Salaries and Allowances Determination (S.R. 1997/306). In its explanatory note, the Higher Salaries Commission records that the ‘Commission is all too keenly aware that any increase in the salaries of parliamentarians could create a degree of public disapproval. It is possible that the performance of a few is at least partly responsible for a popularly held view that politicians should not get an increase.'

Source: Clerk of the House of Representatives

Salaries -$
Members of the Executive
Prime Minister216,300
Deputy Prime Minister161,000
Minister of the Crown in Cabinet145,400
Minister of the Crown outside Cabinet129,250
Parliamentary Under-Secretary104,500
Officers of the House of Representatives
Speaker145,400
Deputy Speaker106,400
Assistant Speaker90,000
Chairpersons of Select Committees89,100
Leader of the Opposition and other party leaders -
Leader of the Opposition145,400
Leader of other parties (depending on number of MPs)90,000+
Deputy leader of party with 35 MPs or more99,500
Salaries -
Whips -
Senior Government Whip95,500+
Other Whips (depending on number of MPs)89,100+
Other Members of Parliament -
Member of Parliament83,000
Allowances -
Prime Minister29,500
Deputy Prime Minister13,000
Minister of the Crown12,000
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
Leaders of other parties (depending on number of MPs)7,000–10,000
Deputy Leader – basic expenses allowance7,000
additional allowance2,000
Constituency Members – basic expenses allowance7,000
constituency allowance (depending on classification of electoral district)8,000–20,000
List Members7,000

Table 3.6 lists members of the House of Representatives during the 46th Parliament. The final results of the 1999 General Election are to be printed in the report The General Election (printed as Parl paper E.9).

Table 3.6. HOUSE OF REPRESENTATIVES, FORTY-SIXTH PARLIAMENT

Prime Minister – Rt Hon Helen Clark
Leader of the Opposition – Rt Hon Jenny Shipley
Speaker – Rt Hon Jonathan Hunt
Deputy Speaker – Geoffrey Braybrooke
Clerk of the House – D G McGee
Member*Year of birthPrevious occupationElectorate/listParty

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

Source: Clerk of the House of Representatives

Anderton, Hon Jim1938Company directorWigramAlliance
Ardern, Shane1960FarmerTaranaki/King CountryNational
Awatere Huata, Donna1949Māori development consultantlistACT
Barker, Rick1951Trade unionistTukitukiLabour
Barnett, Tim1958Vol. sector managerChristchurch CentralLabour
Benson-Pope, David  Dunedin SouthLabour
Beyer, Georgina  WairarapaLabour
Bradford, Hon Max1942Administrator, consultantlistNational
Bradford, Sue  listGreen
Braybrooke, Geoff1935Sales managerNapierLabour
Brown, Peter1939Company directorlistNZF
Brownlee, Gerry1956TeacherIlamNational
Bunkle, Phillida1944University lecturerlistAlliance
Burton, Mark1956Community educ. organiserTaupoLabour
Campbell, Kevin  listAlliance
Carter, Chris  Te AtatuLabour
Carter, David1952Businessman, farmerlistNational
Carter, John1950Local government officerNorthlandNational
Chadwick, Steve  RotoruaLabour
Clark, Rt Hon Helen1950University lecturerMt AlbertLabour
Cosgrove, Clayton  WaimakaririLabour
Creech, Rt Hon Wyatt1946AccountantlistNational
Cullen, Hon Dr Michael1945University lecturerlistLabour
Cunliffe, David  TitirangiLabour
Dalziel, Hon Lianne1960Trade unionistChristchurch EastLabour
Donald, Rod1957Vol. sector administratorlistAlliance
Donnelly, Hon Brian1949School principallistNZF
Dunne, Hon Peter1954Deputy chief executive officerOhariu/BelmontUnited
Duynhoven, Harry1955TeacherNew PlymouthLabour
Dyson, Hon Ruth1957Employment consultantBanks PeninsulaLabour
Eckhoff, Gerrard  listACT
English, Hon Bill1961FarmerClutha/SouthlandNational
Ewen-Street, Ian  listGreen
Field, Taito Phillip1952Trade unionistMangereLabour
Fitzsimons, Jeanette1945Organic farmer, environment consultantCoromandelGreen
Franks, Stephen  listACT
Gallagher, Martin  Hamilton WestLabour
Gillon, Grant1954EngineerlistAlliance
Goff, Hon Phil1953University lecturerMt RoskillLabour
Gordon, Liz1955University lecturerlistAlliance
Gosche, Hon Mark1955Trade unionistlistLabour
Harré, Hon Laila1966Barrister and solicitorlistAlliance
Hartley, Ann  NorthcoteLabour
Hasler, Marie1948BusinesswomanlistNational
Hawke, Joe1940Marae worker, housing consultantlistLabour
Hawkins, Hon George1946TeacherManurewaLabour
Heatley, Philip  WhangareiNational
Herlihy, Gavan1947FarmerOtagoNational
Hide, Rodney1956Economic consultantlistACT
Hobbs, Hon Marian1947TeacherWellington CentralLabour
Hodgson, Pete1950VeterinarianDunedin NorthLabour
Horomia, Hon Parekura  Ikaroa-RawhitiLabour
Hunt, Rt Hon Jonathan1938TeacherlistLabour
Hutchison, Dr Paul  Port WaikatoNational
Jackson, Willie  listAlliance
Jennings, Owen1945FarmerlistACT
Keall, Judy1942ConsultantOtakiLabour
Kedgley, Sue  listGreen
Kelly, Graham1941Trade unionistManaLabour
Kidd, Hon Doug1941Barrister and solicitorlistNational
King, Hon Annette1945Chief executive officerRongotaiLabour
Kyd, Warren1939Barrister and solicitorHunuaNational
Laban, Winnie  listLabour
Lee, Hon Sandra1952Local authority memberlistAlliance
Locke, Keith  listGreen
Luxton, Hon John1946FarmerKarapiroNational
Mackey, Janet1953Real estate agentMahiaLabour
McCully, Hon Murray1953Public relations consultantAlbanyNational
McKinnon, Rt Hon Don1939Real estate agentTe Tai HauauruNational
Maharey, Hon Steve1953University lecturerPalmerston NorthLabour
Mahuta, Nanaia1970Archivist librarianTe Tai HauauruLabour
Mallard, Hon Trevor1954Executive assistantHutt SouthLabour
Mapp, Dr Wayne1952Law lecturerNorth ShoreNational
Mark, Ron1954Businessman, ex army officerlistNZF
Neeson, Brian1945Real estate agentWaitakereNational
Newman, Dr Muriel1950Tertiary and secondary teacher, business managerlistACT
O'Connor, Damien1958Tourism operatorWest Coast/TasmanLabour
Okeroa, Mahara  Te Tai TongaLabour
Peck, Mark1953Trade unionistInvercargillLabour
Peters, Rt Hon Winston1945Barrister and solicitorTaurangaNZF
Pettis, Jill1952Education administratorWanganuiLabour
Power, Simon  RangitikeiNational
Prebble, Hon Richard1948Barrister and solicitorWellington CentralACT
Rich, Katherine  listNational
Ririnui, Mita  WaiarikiLabour
Robertson, H V Ross1949Industrial engineerManukau EastLabour
Robson, Hon Matt1950Barrister and solicitorlistAlliance
Roy, Eric1948Farmer/company directorlistNational
Ryall, Hon Tony1964AccountantBay of PlentyNational
Samuels, Hon Dover1939Company directorlistLabour
Scott, Lynda  KaikouraNational
Shipley, Rt Hon Jenny1952FarmerRakaiaNational
Shirley, Hon Ken1950Executive directorlistACT
Simcock, Bob1946Deer farmerlistNational
Simich, Hon Clem1939General managerTamakiNational
Smith, Dr the Hon Lockwood1948Managing directorRodneyNational
Smith, Hon Nick1964EngineerNelsonNational
Sowry, Hon Roger1958Retail managerlistNational
Steel, Tony1941TeacherHamilton EastNational
Sutton, Hon Jim1941FarmerAorakiLabour
Swain, Hon Paul1951Trade unionistRimutakaLabour
Tamihere, John  HaurakiLabour
Tanczos, Nandor   list Green
te Heuheu, Georgina1943Consultant, advocate Treaty issueslistNational
Tich, Lindsay  KarapiroNational
Tizard, Hon Judith1956Electorate secretaryAuckland CentralLabour
Tolley, Anne  listNational
Turia, Hon Tariana1944Iwi development workerlistLabour
Upton, Rt Hon Simon1958Student, teacherlistNational
Vernon, Belinda1958Financial controllerMaungakiekieNational
Webster, Penny  listACT
Williamson, Hon Maurice1951Planning analystPakurangaNational
Wilson, Margaret  listLabour
Wong, Pansy1955AccountantlistNational
Woolerton, R Doug1944FarmerlistNZF
Worth, Richard  EpsomNational
Wright, John1945Motor mechaniclistAlliance
Yates, Dianne1943Education officerlistLabour
Young, Annabel1956Business advisorlistNational

Hard on the heels of the triumphs for women's suffrage won at the 1893 General Election, the country's first elected woman mayor, Elizabeth Yates, won leadership of the Onehunga Borough council in December 1893.

WOMEN IN PARLIAMENT

Table 3.7. WOMEN IN THE HOUSE

NameElectorateDate electedAge when first elected PartyParty

1died.

2defeated.

3resigned.

4retired.

5replaced MP who resigned.

Elizabeth McCombsLyttelton1933–35160Labour
Catherine StewartWellington West1938–43257Labour
Mary DreaverWaitemata1941–43254Labour
Mary (Grigg) PolsonMid-Canterbury1942–4345National
Mabel HowardChristchurch East/Sydenham1943–6949Labour
Hilda RossHamilton1945–59161National
Iriaka RatanaWestern Māori1949–6944Labour
Ethel McMillanNorth Dunedin/Dunedin North1953–7551Labour
Esme TomblesonGisborne1960–72243National
Rona StevensonTaupo1963–7252National
Whetu Tirikatene-SullivanSouthern Māori1967–96235Labour
Dorothy JelicichHamilton West1972–75244Labour
Mary BatchelorAvon1972–8745Labour
Marilyn WaringRaglan/Waipa1975–8423National
Colleen DeweLyttelton1975–78245National
Ann HercusLyttelton1978–8736Labour
Margaret ShieldsKapiti1981–90240Labour
Helen ClarkOwairaka/Mt Albert198131Labour
Fran WildeWellington Central1981–92332Labour
Ruth RichardsonSelwyn1981–94330National
Anne (Fraser) CollinsEast Cape1984–90232Labour
Judy KeallGlenfield/Horowhenua/Otaki1984–902, 199341Labour
Annette KingHorowhenua/Miramar/Rongotai1984–902, 199339Labour
Katherine O'ReganWaipa/List1984–99238National
Margaret AustinYaldhurst1984–96251Labour/United New Zealand
Sonja DaviesPencarrow1987–93463Labour
Jenny KirkBirkenhead1987–90243Labour
Jenny ShipleyAshburton/Rakaia198735National
Elizabeth TennetIsland Bay1987–96434Labour
Lianne DalzielChristchurch Central/List199030Labour
Christine FletcherEden/Epsom1990–99435National
Marie HaslerTitirangi/Waitakere/List1990–932, 199642National
Gail McIntoshLyttelton1990–93235National
Joy (McLauchlan) QuigleyWestern Hutt/List1990–9942National
Margaret MoirWest Coast1990–93249National
Judith TizardPanmure/Auckland Central199034Labour
Ruth DysonLyttelton/List/Banks Peninsula199336Labour
Pauline GardinerWellington-Karori1993–96246National/United New Zealand
Sandra LeeAuckland Central/List199341Alliance (Mana Motuhake)
Janet MackeyGisborne/Mahia199340Labour
Jill PettisWanganui/Whanganui199341Labour
Suzanne SinclairTitirangi1993–96247Labour
Jill WhiteManawatu/List1993–98352Labour
Dianne YatesHamilton East/List199350Labour
Donna Awatere HuataList199647ACT
Rev. Ann BattenList1996–99252NZ First/Independent
Jenny BloxhamList1996–99247NZ First
Phillida BunkleList199652Alliance (Green)
Pam CorkeryList1996–99440Alliance (NLP)
Jeanette FitzsimonsList/Coromandel199651Alliance (Green)/Green
Dr Liz GordonList199641Alliance (NLP)
Laila HarréList199630Alliance (NLP)
Marian HobbsList/Wellington Central199649Labour
Manu Alamein KopuList1996–99253Mana Wahine Te Ira Tangata, elected as Alliance (Mana Motuhake)
Robyn McDonaldList1996–99245NZ First
Nanaia MahutaList199626Labour
Deborah MorrisList1996–98326NZ First/Independent
Dr Muriel NewmanList199646ACT
Patricia SchnauerList1996–99454ACT
Georgina te Heu HeuList199653National
Tariana TuriaList199652Labour
Belinda VernonMaungakiekie199638National
Pansy WongList199641National
Annabel Young5List199740National
Helen DuncanList1998 Labour
Georgina BeyerWairarapa1999 Labour
Sue BradfordList1999 Green
Steve ChadwickRotorua1999 Labour
Ann HartleyNorthcote1999 Labour
Sue KedgleyList1999 Green
Luamanuvao Winnie LabanList1999 Labour
Katherine RichList1999 National
Lynda ScottKaikoura1999 National
Anne TolleyList1999 National
Penny WebsterList1999 ACT
Margaret WilsonList1999 Labour

New Zealand's first woman Member of Parliament, Elizabeth Reid McCombs, who was MP for Lyttelton from 1933 to 1935.

Table 3.8. PREMIERS AND PRIME MINISTERS

Premier/Prime Minister1Term(s) of office
1Honours are specified only if held on retirement from office.
Premiers
Henry Sewell 7 May 1856–20 May 1856
William Fox 20 May 1856- 2 Jun 1856
12 Jul 1861– 6 Aug 1862
28 Jun 1869–10 Sep 1872
3 Mar 1873- 8 Apr 1873
Edward William Stafford 2 Jun 1856–12 Jul 1861
16 Oct 1865–28 Jun 1869
10 Sep 1872–11 Oct 1872
Alfred Domett 6 Aug 1862–30 Oct 1863
30 Oct 1863–24 Nov 1864
21 Apr 1882-25 Sep 1883
Frederick Aloysius Weld 24 Nov 1864–16 Oct 1865
George Marsden Waterhouse, MLC 11 Oct 1872- 3 Mar 1873
Sir Julius Vogel, KCMG 8 Apr 1873- 6 Jul 1875
15 Feb 1876- 1 Sep 1876
Daniel Pollen, MLC 6 Jul 1875–15 Feb 1876
1 Sep 1876–13 Sep 1876
Sir Harry Albert Atkinson, KCMG 13 Sep 1876–13 Oct 1877 (ministry reconstructed)
25 Sep 1883–16 Aug 1884
28 Aug 1884- 3 Sep 1884
8 Oct 1887–24 Jan 1891
Sir George Grey, KCB 13 Oct 1877- 8 Oct 1879
John Hall 8 Oct 1879–21 Apr 1882
16 Aug 1884–28 Aug 1884
3 Sep 1884- 8 Oct 1887
John BallanceLiberal24 Jan 1891-d 27 Apr 1893
Rt Hon Richard John SeddonLiberal1 May 1893-d 10 Jun 1906
Prime Ministers
William Hall-JonesLiberal21 Jun 1906- 6 Aug 1906
Rt Hon Sir Joseph George Ward, Bt, KCMGLiberal6 Aug 1906–28 Mar 1912
United10 Dec 1928–28 May 1930
Thomas MacKenizeLiberal28 Mar 1912–10 Jul 1912
Rt Hon William Ferguson MasseyReform10 Jul 1912–12 Aug 1915
National12 Aug 1919-d 10 May 1925
Sir Francis Henry Dillon Bell, GCMG, KC, MLCReform14 May 1925–30 May 1925
Rt Hon Joseph Gordon Coates, MCReform30 May 1925–10 Dec 1928
Rt Hon George William ForbesUnited28 May 1930–22 Sep 1931
Coalition22 Sep 1931–6 Dec 1935
Rt Hon Michael Joseph SavageLabour6 Dec 1935-d 27 Mar 1940
Rt Hon Peter Fraser, CHLabour1 Apr 1940–13 Dec 1949
Rt Hon Sidney George Holland, CHNational13 Dec 1949–20 Sep 1957
Rt Hon Sir Keith Jacka Holyoake, GCMG, CHNational20 Sep 1957–12 Dec 1957
12 Dec 1960- 7 Feb 1972
Rt Hon Walter Nash, CHLabour12 Dec 1957–12 Dec 1960
Rt Hon John Ross Marshall (later Sir)National7 Feb 1972- 8 Dec 1972
Rt Hon Norman Eric KirkLabour8 Dec 1973-d 31 Aug 1974
Rt Hon Wallace Edward Rowling (later Sir)Labour6 Sep 1974–12 Dec 1975
Rt Hon Sir Robert David Muldoon, GCMG, CHNational12 Dec 1975–26 Jul 1984
Rt Hon David Russell LangeLabour26 Jul 1984- 8 Aug 1989
Rt Hon Geoffrey Winston Russell Palmer (later Sir)Labour8 Aug 1989- 4 Sep 1990
Rt Hon Michael Kenneth MooreLabour4 Sep 1990- 2 Nov 1990
Rt Hon James Brendan BolgerNational2 Nov 1990–12 Oct 1996
Coalition12 Oct 1996–8 Dec 1997
Rt Hon Jennifer Mary ShipleyCoalition8 Dec 1997–10 Dec 1999
Rt Hon Helen ClarkLabour10 Dec 1999-

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.

Able to vote for the first time after reaching the age of 21, a young woman has her name checked on the electoral roll, 1930s.

Office of the Prime Minister Current and first elected woman Prime Minister Helen Clark.

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 coordinates the work of ministers. The Cabinet has a system of committees which can examine subjects in detail and recommend specific policy measures to Cabinet.

The proceedings of the Cabinet are informal and confidential, and decisions are usually made by consensus. By convention the Cabinet accepts collective responsibility for its decisions, which ensures that once a decision is made it will be publicly supported by all members of the Government. The Cabinet Office provides support services for the Cabinet and its committees. The current Secretary of the Cabinet is also the Clerk of the Executive Council.

Table 3.9. NEW ZEALAND GOVERNMENT, AT 21 DECEMBER 1999

Source: Cabinet Office
Governor-General:
His Excellency The Rt Hon Sir Michael Hardie Boys, GNZM, 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, cvo.
The Cabinet:
1 Rt Hon Helen Clark, Prime Minister, Minister for Arts, Culture and Heritage, Minister Responsible for Ministerial Services, Minister in Charge of the NZ Security Intelligence Service.
2 Hon Jim Anderton, Deputy Prime Minister, Minister for Economic Development, Minister for Industry and Regional Development, Minister in Charge of the Public Trust Office, Minister in Charge of the Audit Department.
3 Hon Dr Michael Cullen, Treasurer, Minister of Finance [Includes responsibility for the Government Superannuation Fund], Minister for Accident Insurance, Minister of Revenue, Leader of the House.
4 Hon Steve Maharey, Minister of Social Services and Employment, Associate Minister of Education (Tertiary Education), Minister for the Community and Voluntary Sector.
5 Hon Phil Goff, Minister of Foreign Affairs and Trade, Minister of Justice.
6 Hon Annette King, Minister of Health, Minister for Racing.
7 Hon Sandra Lee, Minister of Conservation, Minister of Local Government. Associate Minister of Māori Affairs.
8 Hon Jim Sutton, Minister of Agriculture, Minister for Trade Negotiations, Minister for Rural Affairs.
9 Hon Trevor Mallard, Minister of Education, Minister of State Services, Minister for Sport, Fitness and Leisure, Associate Minister of Finance, Minister Responsible for the Education Review Office, Minister for Adult and Community Education.
10 Hon Pete Hodgson, Minister of Energy, Minister of Fisheries, Minister of Forestry, Minister of Research, Science and Technology, Minister for Crown Research Institutes. Minister for Small Business, Associate Minister for Economic Development. Associate Minister for Industry and Regional Development, Minister Responsible for Timberlands West Coast Ltd.
11 Hon Margaret Wilson, Attorney-General, Minister of Labour, Minister in Charge of Treaty of Waitangi Negotiations, Associate Minister of Justice, Associate Minister of State Services.
12 Hon Dover Samuels, Minister of Māori Affairs, Associate Minister of Fisheries, Associate Minister of Tourism.
13 Hon Matt Robson, Minister of Corrections, Minister for Courts, Minister for Disarmament and Arms Control, Associate Minister of Foreign Affairs and Trade (Official Development Assistance).
14 Hon Lianne Dalziel, Minister of Immigration, Minister for Senior Citizens, Associate Minister of Education.
15 Hon George Hawkins, Minister of Police, Minister of Civil Defence, Minister for Ethnic Affairs.
16 Hon Mark Burton, Minister of Defence, Minister of Internal Affairs, Minister for SOEs, Minister of Tourism, Minister of Veterans’ Affairs, Deputy Leader of the House.
17 Hon Paul Swain, Minister of Commerce, Minister of Communications. Minister for Information Technology, Minister for Land Information, Minister of Statistics, Associate Minister of Energy, Associate Minister of Justice.
18 Hon Marian Hobbs, Minister for the Environment, Minister for Biosecurity, Minister of Broadcasting [includes responsibility for Television New Zealand Ltd, Radio New Zealand Ltd, and NZ on Air], Minister Responsible for the National Library, Minister Responsible for National Archives, Associate Minister of Communications.
19 Hon Mark Gosche, Minister of Transport, Minister of Housing [includes responsibility for Housing New Zealand Ltd and Housing Corporation], Minister of Pacific Island Affairs, Minister Responsible for Civil Aviation.
20 Hon Laila Harré, Minister of Women's Affairs, Minister of Youth Affairs, Associate Minister of Commerce, Associate Minister of Labour.
Ministers outside Cabinet:
21 Hon Judith Tizard, Associate Minister for Arts, Culture and Heritage, Associate Minister of Transport, Minister assisting the Prime Minister on Auckland Issues.
22 Hon Ruth Dyson, Minister for Disability Issues, Associate Minister for Accident Insurance, Associate Minister of Health, Associate Minister of Social Services and Employment.
23 Hon Tariana Turia, Associate Minister of Māori Affairs (Social Development). Associate Minister of Corrections, Associate Minister of Health, Associate Minister of Housing, Associate Minister of Social Services and Employment (Social Services).
24 Hon Phillida Bunkle, Minister of Customs, Minister of Consumer Affairs, Associate Minister for Economic Development, Associate Minister for the Environment. Associate Minister of Women's Affairs.
25 Hon Parekura Horomia, Associate Minister of Māori Affairs (Economic Development), Associate Minister of Social Services and Employment (Employment), Associate Minister of Education.

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.

Māori may make the choice: (1) the first time they enrol or (2) the time of the five-yearly Māori Option Exercise, which occurs normally during the time of a census. There will be a Māori option exercise in 2001. At that time, all registered and identified Māori electors are sent a form for the purpose of exercising their choice. They have four months to make a change using the form at that time. The electoral rolls are maintained by the Electoral Enrolment Centre, a division of New Zealand Post.

Table 3.10. VOTING PATTERNS: 1981–1999

YearElectors on Master RollValid votesInformal votesSpecial votes disallowedVotes cast to electors on Master Roll

1Party votes rather than electorate votes.

2There were 2,047, 473 valid electorate votes cast in 1999, and 37,908 informal electorate votes.

Source: Ministry of Justice

19812,034,7471,801,3038,99850,26391.44
19842,111,6511,929,2017,56542,03293.71
19872,114,6561,831,77711,18440,43389.06
19902,202,1571,824,09210,18042,84385.24
19932,321,6641,922,79611,36443,93285.20
19962,418,587207235918183154,63388.28
19992,509,365206549412198871241,38284.75

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 people 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 Kökiri and two Māori who are not public servants and who are selected by the parties. These two individuals are nominated by Parliament to represent the Government and the Opposition.

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

Table 3.11. GENERAL ELECTIONS – VOTES FOR POLITICAL PARTIES

Political partyValid votesPercentage of total valid votes
19871990199319961199919871990199319961999

1Party votes.

2Christian Conlition 1996.

Source: Ministry of Justice

ACT---126,442145,493---6.107.04
Alliance--350,064209,347159,859--18.2110.107.74
Christian Heritage2--38,74989,71649,154--2.024.332.38
Democrats105,09130,455---5.741.67---
Green-124,915--106,560-6.85--5.16
Labour878,448640,915666,759584,159800,19947.9635.1434.6828.1938.74
Mana Motuhake9,78910,869---0.530.60---
National806,305872,358673,892701,315629,93244.0247.8235.0533.8430.50
New Labour-94,171----5.16---
New Zealand First--161,481276,60387,926--8.4013.354.26
United New Zealand---18,24511,065---0.880.54
Other26,83850,40931,85166,53275,3061.462.761.663.213.64
            Total valid votes1 8317771,824,0921,922,7962,072,3592,065,494100.00100.00100.00100.00100.00
Informal votes11,18410,18011,3648,18319,887     
Total1,842,9611,834,2721,934,1602,080,5422,085,381     

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 865.676, the South Island general electorate quota was 54,105, resulting in 45 North Island general electorates (quota 53,690) and 6 Māori electorates (quota 56,166). All electorates have an allowance of 5 percent above or below their electoral population quota.

General election results. A triennial election of members of Parliament was last held on 27 November 1999. The previous election was held on 12 October 1996. The total number of electors on the master roll for the 1999 election was 2,509,365. A total of 2,085,381 votes were cast, representing 84.7 percent of electors on the master roll.

1998 GENERAL ELECTORAL DISTRICTS

A 1992 electoral referendum saw 70 percent of voters support changing the voting system to MMP.

General licensing poll. In 1990 the national triennial liquor licensing poll was abolished. Three local restoration poll votes were held at the same time as the 1999 General Election, in Eden, Roskill and Tawa. Local restoration received a majority in all three no-licence districts.

Table 3.12. GENERAL ELECTION RESULTS1

Political partyNumber of MPs
1984198721990199319961999

1The election dates were: 14 July 1984, 15 August 1987, 27 October 1990, 6 November 1993, 12 October 1996. 27 November 1999.

2Includes 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----89
Alliance---21310
Democrats2-----
Green Party-----7
Labour565729453749
National374067504439
New Labour--1---
New Zealand First---2175
United New Zealand----11

Table 3.13. POLITICAL PARTIES IN THE 1999 GENERAL ELECTION

 Constituency seats contestedParty list candidates
Source: Ministry of Justice
ACT New Zealand6165
Alliance6660
Aotearoa Legalise Cannabis Party1117
Freedom Movement540
Future New Zealand3625
Green Party5054
Independent37-
Labour Party6765
Mana Māori Movement528
Mana Wahine Te Ira Tangata12-
Mauri Pacific2022
McGillicuddy Serious1665
Natural Law Party3053
New Zealand First Party6740
National Party6564
Libertarianz-30
United NZ1222
Other5446
            Total candidates679760

VOTER TURNOUT
Percentage of enrolled electors1 voting at general elections

3.3 State sector

The state sector includes the New Zealand Public Service, which is made up of 38 government departments, plus Crown entities and state-owned enterprises (SOEs). Certain agencies, notably the New Zealand Police, the New Zealand Defence Force, the Parliamentary Service, Office of the Clerk and the Parliamentary Counsel Office are departments in terms of the Public Finance Act 1989, but are not part of the Public Service under the State Sector Act 1998. Officers of Parliament – the Office of the Ombudsmen and the Parliamentary Commissioner for the Environment – are not part of the Executive, although they report under the Public Finance Act 1989 as if they were departments. The Reserve Bank is another very significant organisation that lies within the broadest definitions of the state sector but is not a department under either act.

The Public Service is defined by section 27 of the State Sector Act 1988 as ‘. . . the Departments specified in the First Schedule to this Act'. New departments can be added to the schedule, by Order-in-Council, but may only be removed from the schedule (abolished) by legislation.

At 30 June 1999, the number of staff employed in the Public Service Departments (excluding therefore Crown entities and SOEs) was 29, 463 (calculated on a full-time equivalent basis). When the reform of the state sector began in the 1980s, about 70,000 people were permanent employees in government departments. Many of the jobs which were in government departments have shifted to Crown entities, SOEs, or the private sector. Today the Public Service is characterised by relatively small departments which have quite sharply defined roles in policy advice, service delivery, regulatory, or sectoral funding functions. Some bigger departments perform a combination of roles.

The State Services Commissioner and the State Services Commission

The State Sector Act 1988 provides for a State Services Commissioner, who shall be appointed by the Governor-General in Council on the recommendation of the Prime Minister. Under the State Sector Act 1988 the State Services Commissioner is required to:

  • Review the machinery of government including the allocation of functions between departments, the need for new departments and the amalgamation or abolition of departments, and the coordination between departments.

  • Appoint chief executives of departments and negotiate their conditions of employment

  • Review the performance of departments and their chief executives.

  • Provide and maintain, in association with chief executives, a senior executive service for the Public Service.

  • Negotiate conditions of employment for Public Service employees.

  • Promote and develop personnel policies and standards of personnel administration for the Public Service.

  • Promote, develop and monitor equal employment opportunities (EEO) policies and programmes for the Public Service.

  • Advise on training and career development of public servants.

  • Provide advice on management systems, structures and organisations.

  • At the direction of the Prime Minister, exercise other functions in relation to the administration and management of the Public Service.

In a number of cases, the Commissioner has delegated authority to others to fulfil a particular responsibility. For example, negotiating conditions of employment for Public Service staff has been delegated to Public Service chief executives, and negotiating conditions of employment for education sector staff has been delegated to the Secretary for Education.

The State Services Commission exists to assist the State Services Commissioner to fulfil the commissioner's statutory functions.

The Commission:

  • Assists the State Services Commissioner in appointing Public Service chief executives, and operates the chief executive performance management system.

  • Provides advice and business analysis to the Minister of State Services and other ministers with ownership responsibilities in respect of public service departments.

  • Advises the Government about collective state sector ownership issues, including public management systems, the machinery of government and human resources requirements.

  • Promotes appropriate values and standards of behaviour for the Public Service.

Table 3.14. CHIEF EXECUTIVES OF GOVERNMENT DEPARTMENTS1

DepartmentTitleName

1As at 1 March 2000.

Source: State Services Commission

Agriculture and Forestry, Ministry ofDirector-GeneralProf Bruce Ross
Audit DepartmentController and Auditor-GeneralDavid Macdonald
Child, Youth and Family Services, Department ofChief ExecutiveJackie Brown
Conservation, Department ofDirector-GeneralHugh Logan
Corrections, Department ofChief ExecutiveMark Byers
Courts, Department forChief ExecutiveWilson Bailey
Crown Law OfficeSolicitor-GeneralJohn McGrath QC
Culture and Heritage, Ministry ofChief ExecutiveMartin Matthews (Acting)
Customs Service, New ZealandComptrollerRobin Dare
Defence, Ministry ofSecretaryGraham Fortune
Economic Development, Ministry ofSecretaryPaul Carpinter
Education, Ministry ofSecretaryHoward Fancy
Education Review OfficeChief ExecutiveDr Judith Aitken
Environment, Ministry for theSecretaryDenise Church
Fisheries, Ministry ofChief ExecutiveWarwick Tuck
Foreign Affairs and Trade, Ministry ofSecretaryNeil Walter
Health, Ministry ofDirector-GeneralDr Karen Poutasi
Housing, Ministry ofChief ExecutiveDavid Smyth
Inland Revenue DepartmentSecretaryGraham Holland
Internal Affairs, Department ofSecretaryDr Roger Blakeley
Justice, Ministry ofSecretaryColin Keating
Labour, Department ofSecretaryJohn Chetwin
Land Information New ZealandChief ExecutiveDr Russ Ballard
Māori Development, Te Puni Kōkiri, Ministry ofChief ExecutiveDr Ngatata Love
National LibraryNational LibrarianChristopher Blake
Pacific Island Affairs, Ministry ofChief ExecutiveLes McCarthy
Prime Minister and Cabinet, Department ofChief ExecutiveMark Prebble
Public Trust OfficePublic TrusteeDavid Hutton
Research, Science and Technology, Ministry ofChief ExecutiveDr James Buwalda
Serious Fraud OfficeDirectorDavid Bradshaw
Social Policy, Ministry ofChief ExecutiveMargaret Bazley
State Services CommissionState Services CommissionerMichael Wintringham
Statistics New ZealandGovernment StatisticianLen Cook
Transport, Ministry ofSecretaryAlistair Bisley
The TreasurySecretaryDr Alan Bollard
Valuation New ZealandValuer-GeneralRob Hutchison
Women's Affairs, Ministry ofChief ExecutiveJudy Lawrence
Work and Income, Department ofChief ExecutiveChristine Rankin
Youth Affairs, Ministry ofChief ExecutiveAnne Carter (Acting)

Functions of government departments

The functions of central government are under a continual process of review. The following account of departments was correct at March 1999. Internet site addresses are given where available at the time of going to press.

Agriculture and Forestry, Ministry of: Te Manatū Ahuwhenua, Ngaherehere. The new Ministry of Agriculture and Forestry (MAF) came into being on 1 March 1998, following the merger of the Ministries of Agriculture and Forestry. The core MAF consists of nine business groups: Policy. Operations, Forest Management, Corporate Services, Human Resources, Corporate Finance, Information Management, MAF Food Assurance Authority, MAF Biosecurity Authority.

MAF exists to create opportunity for, and manage risk to, New Zealand's food, fibre, forestry and associated industries. MAF's roles are: to provide policy advice on the trading environment, sustainable resource use and the regulation of product safety, biosecurity and related matters; to administer the regulation of product safety, biosecurity and related matters; to provide services where necessary.

MAF's programmes aim to protect New Zealand's competitive advantage as an export nation by monitoring and protecting its animals, plants, forests and seafood against the introduction of exotic pests and diseases. See chapters 18: Agriculture and 19: Forestry, [www.maf.govt.nz]

Audit New Zealand: Te Mana Arotake. See ‘Controller and Auditor-General’ further on in this section. [www.oag.govt.nz]

Child, Youth and Family: Te Tari āwhina I te Tamaiti, te Rangatahi, tae atu ki te Whānau. The department of Child, Youth and Family Services (Child, Youth and Family) has statutory responsibility for children and young people whose family circumstances put them at risk of abuse and neglect, offending behaviours and poor life outcomes.

The department was established on 1 October 1999 following the 1 January 1999 integration of two Department of Social Welfare business units: the Children, Young Persons and Their Families Service and the New Zealand Community Funding Agency.

Child, Youth and Family's statutory role is defined by the Children. Young Persons and Their Families Act 1989 (CYP&F), the Adoption Act 1955, the Adult Adoption Information Act 1986, the Adoption (Inter-country) Act 1997, and the Guardianship Act 1968.

Child, Youth and Family provides direct services for children and young people in need of care and protection, who commit offences, or are involved in adoption processes. Child, Youth and Family also approves and contracts with community organisations for social services for the protection and well-being of children, young people and their families.

Commerce, Ministry of: Te Manatū Tauhokohoko. See Ministry of Economic Development.

Conservation, Department of: Te Papa Atawhai. The Department of Conservation (DOC) administers most of the Crown land in New Zealand protected for scenic, scientific, historic or cultural reasons, or set aside for recreation. This is almost a third of New Zealand's land area, including national, forest and maritime parks, marine reserves, nearly 4,000 other reserves, river margins, some coastline and many offshore islands.

Its aim is to conserve New Zealand's natural and historic heritage for the public to enjoy.

DOC's work with natural heritage includes saving threatened native species, managing threats like possums and weeds, ecosystem restoration, caring for marine life and protecting natural heritage with help from landowners. It also looks after historic heritage on public conservation land. Providing for recreation is a major part of DOC's core work and covers family picnic sites to rugged backcountry tracks. In all areas, DOC works with local communities, other organisations and iwi where it can. [www.doc.govt.nz]

Consumer Affairs, Ministry of: Manatū Kaihokohoko. The purpose of the ministry is to promote a fair and informed marketplace for consumers so they can participate effectively in it. This is achieved by the provision of policy advice to the Government on issues affecting consumers in the marketplace; the provision of information and advice to consumers and traders; and the administration of consumer legislation for the benefit of consumers and traders. The ministry is organised into three sections: policy, consumer information service (incorporating consumer education programmes), and trading standards service (which is responsible for weights and measures and consumer safety).

The ministry's key priorities are:

  • A balance between the rights and interests of consumers and business.

  • Markets that operate under fair rules and ethical practices.

  • Redress and enforcement mechanisms that meet the needs of consumers and business.

  • Safe products and their safe use.

  • Appropriate, accurate and accessible information, education and advice for consumers and business.

  • Minimisation of transaction costs.

Corrections, Department of. The Department of Corrections manages all custodial and community-based sentences and orders imposed by the courts. This includes prison sentences, periodic detention, home detention, community service and supervision.

The Department of Corrections has over 4,500 full- and part-time staff responsible for managing offenders. The department's operations include providing work programmes and activities to help reduce re-offending; giving specialist psychological advice and assistance with offenders’ needs; providing information to judges to assist them in sentencing offenders; administering 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: the Public Prisons Service; the Community Probation Service; the Psychological Service; the Service Purchase and Monitoring Group; the Strategic Development Group; the Finance Group, including Corrland (which manages farms and forests owned by the department); and the Internal Audit Group. See section 10.3: Corrections system. [www.corrections.govt.nz]

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 Courts’ Business Unit (responsible for the administration of courts and tribunals and for providing support to the Judiciary); Collections (responsible for the enforcement of financial court orders); Māori Land Court (responsible for the administrative support of the Māori Land Court and the Māori Appellate Court and for the administration of Māori land records of ownership and title); and Waitangi Tribunal (responsible for administrative support to the Waitangi Tribunal). See chapter 10: Justice and law. [www.courts.govt.nz]

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. See section 10.1: Legal system. [www.crownlaw.govt.nz]

Culture and Heritage, Ministry for: Te Manatū Taonga. The ministry provides advice to the Government on culture and heritage matters and assists Government in its provision and management of cultural resources for the benefit of all New Zealanders. See chapter 12: Arts. [www.cultureandheritage.govt.nz]

Customs Service, New Zealand: Te Mana Arai O Aotearoa. The service is responsible for the policy, administration and enforcement of the Customs and Excise Act 1996, and for administering border-related policies prescribed by other legislation, relating to: facilitating the legitimate movement of goods, craft and people (see section 25.1: Customs and 13.2: Tourism); (see section 28.2: Taxation), [www.customs.govt.nz]

Defence, Ministry of: Manatū Kaupapa Waonga. The Ministry of Defence is the government's principal source of advice on defence policy. It also carries out audits and assessments on the performance of the defence organisations and manages procurement projects which entail a significant change to New Zealand's defence capability. In many matters the ministry works jointly with the New Zealand Defence Force. See section 4.4: Defence. [www.defence.govt.nz]

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. The force must also be capable of contributing to collective efforts where our wider interests are involved. See section 4.4: Defence. [www.navy.mil.nz] [www.army.mil.nz] [www.airforce.mil.nz]

Economic Development, Ministry of: On 29 February 2000, the Ministry of Commerce became the Ministry of Economic Development. This signals a change in focus for the ministry which will now play a more active role with government in fostering business and lifting the New Zealand economy. The ministry will be aided in this by the creation of Industry New Zealand, which will be a Crown entity to deliver industry and regional development policy. A private sector board will manage Industry New Zealand. The ministry continues to have advisory, programme and administrative functions in business development, competition policy, business and intellectual law, tariff policy, trade remedies, communications, regional development, energy and resources, and consumer affairs.

It services the portfolios of Economic Development (including Business Development), Industry and Regional Development, Government Superannuation Fund, Information Technology, Communications (including some broadcasting policy advice), Energy, Commerce, and Consumer Affairs. [www.med.govt.nz]

Education, Ministry of: Te Tāhuhu o te Mātauranga. The ministry is responsible for providing policy advice to the government on early childhood, compulsory and post-compulsory education, including employment-related education and training; ensuring the effective, efficient and equitable implementation of the government's policies; advising on the optimal use of resources allocated to education; and providing an education policy perspective to a range of economic and social policy issues. See chapter 9: Education. [www.minedu.govt.nz]

Education Review Office: Te Tari Arotake Mātauranga. The Education Review Office (ERO) reports publicly on the quality of education in all New Zealand schools and early childhood centres, including private schools, kura kaupapa Māori (Māori language immersion schools) and ngā kōhanga reo (Māori language early childhood groups). ERO actively supports and promotes high quality decision making on the education provided for New Zealand's young people. See section 9.1. [www.ero.govt.nz]

Emergency Management, Ministry for: Te Rākau Whakamarumaru. In July 1998, the existing Ministry of Civil Defence and the Emergency Management Policy and Establishment Unit merged into one organisation following the appointment of a new Director of Emergency Management and Civil Defence. The Ministry for Emergency Management (MEM) was established with effect from 1 July 1999 and was formed out of the Ministry of Civil Defence. The new name is a clear indication of the Government's intention to provide strong leadership through the development of an integrated risk-based approach to emergency management in New Zealand. The Department of Internal Affairs (DIA) is the ministry's host department, providing core administrative services. DIA's Chief Executive is the Secretary for Civil Defence.

REPRESENTATION OF EEO GROUPS IN
THE PUBLIC SERVICE AND LABOUR FORCE (1995 – 1999)
EEO GroupsPublic Service (%)1Labour Force (%) 1999
19951996199719981999EmployedTotal (including Unemployed)

1Data on ethnicity and disability has not been recorded for all staff in the Public Service. Over the period covered in the table, there was ethnicity data for approximately 80 percent of staff and disability data for 60–75 percent of staff.

2Public Service EEO representation data allows for dual ethnicity, and this results in some double counting, e.g. a person who identifies as being Māori and Samoan will be counted in both the Māori and Pacific Islands peoples categories. HLFS data does not double count dual ethnicities but records them using a priority system with Māori given the highest priority.

3Data on staff of Asian ethnicity was not collected prior to 1998.

4This year for the first time the definition of disability used by Statistics New Zealand was adopted for the survey.

Sources: State Services Commission and Statistics New Zealand's Household Labour Force Survey (HLFS) for June 1999

Māori11.111.411.013.114.07.68.6
Ethnicity2 Pacific Islands4.34.34.35.05.44.04.3
Asian3---2.62.6--
Disability People with Disabilities414.811.112.010.710.1--
Gender Women54.154.754.054.256.345.445.3

The Ministry for Emergency Management exists to promote a ‘resilient New Zealand’ with communities that are able to manage and reduce their vulnerability to hazards. This objective is directly connected to the government's overarching goal of ‘ensuring a strong foundation of safety and security from threats of harm'.

Environment, Ministry for the: Te Manatū mō te Taiao. The ministry advises the Government on the health of the environment and the way that laws and policies affect the environment. It also works with others to develop proposals and tools for achieving effective environmental management.

The ministry is responsible for government policies covering resource management; land, air and water quality; waste, hazardous substances and contaminated sites; protection of the ozone layer; and climate change. Local government, particularly regional councils, deals with most day-to-day environmental management. The ministry is working with other agencies, including local government, to develop a new system for reporting on the state of the environment.

Besides the Environment Act 1986 under which it was set up, the ministry is responsible for the Soil Conservation and Rivers Control Act 1941, the Resource Management Act 1991, the Hazardous Substances and New Organisms Act 1996, and the Ozone Layer Protection Act 1996. See section 16.2: Environmental and resource management. [www.mfe.govt.nz]

Fisheries, Ministry of: Te Tautiaki i ngā tini a Tangaroa. The Ministry of Fisheries (MFish) is responsible for the sustainable use of fisheries. This involves managing the resource so that it provides for the social, economic and cultural well-being of New Zealanders. The ministry: advises the Government on the development of fisheries policies; develops laws to manage fisheries; administers the Quota Management System that regulates New Zealand's commercial fishing activity; gives effect to the principles of the Treaty of Waitangi as they relate to fisheries. See section 19.3: Fisheries. [www.fish.govt.nz]

Foreign Affairs and Trade, Ministry of: 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 48 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. See chapter 4: International relations. [www.mft.govt.nz]

Health, Ministry of: Manatū Hauora. The ministry is the principal advisor to Government on health and disability. It provides advice on how to advance the health status of New Zealanders and reduce disparities in health status between Māori and other groups. It also administers health sector legislation and monitors the performance of the Health Funding Authority and other Crown agencies. The ministry advises on the protection and improvement of New Zealand's biosecurity and on the health impact of measures used to control biosecurity.

Building a new sewerage tunnel for the Auckland Metropolitan Drainage Board, c1913.

The ministry has five branches: The Policy Branch provides advice on issues relating to health sector strategy, funding and regulation. The Safety and Regulation Branch administers regulation and enforces health and safety legislation (including mental health) and biosecurity. It includes the Public Health Group which has statutory responsibilities of its own. The Māori Health Branch provides policy advice on the overall strategy for achieving improved Māori health. The Performance Management Branch manages the government's purchase and ownership interests in specific Crown entities, including the Health Funding Authority. The branch is responsible for accountability and performance in respect of these Crown entities. The Corporate Branch is concerned with the internal operation of the ministry and includes the business units – the New Zealand Health Information Service, the National Radiation Laboratory and Medsafe. The ministry is currently being restructured. See chapter 8: Health and safety. [www.moh.govt.nz]

Housing, Ministry of: Te Whare āhuru. The ministry's main functions are the provision of efficient and effective tenancy bond and dispute resolution services across New Zealand. See chapter 22: Housing. [www.minhousing.govt.nz]

Inland Revenue: Te Tari Taake. The main function of the Inland Revenue Department is to assess and collect various taxes and duties. Inland Revenue collects over 90 percent of the New Zealand Government revenue. Along with taxes such as income tax, goods and services tax, fringe benefit tax and resident withholding tax, Inland Revenue also collects levies and premiums from employers, self-employed and employees to fund aspects of the compulsory accident compensation scheme that continue to be administered by the Accident Compensation Corporation (ACC). Inland Revenue also administers the family assistance, child support and student loan repayment programmes. See section 28.2. Taxation. [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, NZ Gazette, Waitangi Day Commemorations and Tourism); (b) building stronger communities (includes – Ethnic Affairs, Emergency Management, 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, Ministerial Information Technology, VIP Transport, Visits and Ceremonial, Administration of Commissions of Inquiry.) [www.dia.govt.nz]

Justice, Ministry of: Te Manatū Ture. The ministry provides leadership across the justice sector, policy advice on various justice related matters for ministers and other departments, purchase advice during the Government's annual budget round, research and evaluation, and policy advice and negotiation on the settlement of Treaty of Waitangi claims. Through the Chief Electoral Office, the ministry is responsible for the conduct of parliamentary elections and referenda. For the Attorney-General, the ministry provides advice on the consistency of proposed legislation with the New Zealand Bill of Rights Act 1990, and provides advice on appointments to the judiciary. The ministry monitors and provides advice (including advice on appointments) to the Minister of Justice on the eight Crown entities and other bodies funded through Vote Justice. The ministry is also responsible for the administration of 140 acts and numerous regulations. See chapter 10: Justice and law. [www.justice.govt.nz]

Labour, Department of: Te Tari Mahi. The department is the government's principal labour market agency which: provides analysis on the operation of the labour market; provides accident rehabilitation and compensation insurance policy advice; develops, implements, monitors and reviews the regulatory framework for industrial relations; develops a regulatory framework and delivers strategies to promote occupational safety and health; develops and implements immigration policy and legislation concerning the entry of migrants and visitors to New Zealand; and manages the government's relationship with the International Labour Organisation and other international institutions with an interest in the labour market.

Among the legislation administered by the department are the Accident Insurance Act 1998; Employment Contracts Act 1991; Equal Pay Act 1972; Health and Safety in Employment Act 1992; Holidays Act 1981; Immigration Act 1987; and Minimum Wage Act 1983. [www.dol.govt.nz]

Land Information New Zealand: Toitū te whenua. This department, established in July 1996, is responsible for the land-related policy, regulatory and core government service delivery functions.

Land Information New Zealand advises the government, administers the Crown's interests in land and makes government-held information available to the public. Its areas of responsibility are land titles (land registration and search facilities), survey system (administration of the survey infrastructure), Crown property (administration of Crown land and disposal of surplus Crown land), topography/hydrography (provision of digital databases, core topographic mapping and hydrographic charts) and rating valuations (standard setting for rating valuations). See chapter 16: Land and environment. [www.linz.govt.nz]

Māori Development, Ministry of: Te Puni Kōkiri. Te Puni Kōkiri was established as a policy ministry on 1 January 1992 and replaced Manatū Māori (the Ministry of Māori Affairs) and Te Tira Ahu Iwi (the Iwi Transition Agency). The ministry is the 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, hapū, 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, hapū and Māori, on policies affecting Māori, and the development of the relationship between the Crown and Māori. Te Puni Kōkiri is organised into eight branches: Treaty Compliance; Economic Development; Social Policy; Monitoring and Evaluation; Legal; Law Reform; Corporate Services; and Regional Development, which has a unit in the Wellington head office and 13 offices throughout the country. See section 6.4: Māori society. [www.tpk.govt.nz]

National Library of New Zealand: Te Puna Mātauranga o Aotearoa. The unique role of the National Library is to collect and maintain literature and information resources that relate to New Zealand and the Pacific, to make this information readily available, and to preserve the documentary heritage of this country for future generations. The National Library creates better access to information for New Zealanders by supporting the activities of other New Zealand libraries, including public, university and school libraries, and by collecting and preserving the material which is the ‘memory’ of New Zealand. The library gives policy advice to the government on access to information in New Zealand. See section 12.3: Books and libraries. [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. National Provident Fund has been closed to new members since 1991. The fund comprises 16 separate superannuation schemes.

Office of Treaty Settlements: Te Tari Whakatau Take e pā ana ki te Tiriti o Waitangi. The office provides policy advice to the government on issues concerning Treaty of Waitangi claims and on specific claims; negotiates Treaty claims; and implements settlements. It also acquires, manages, transfers and disposes of Crown-owned land for Treaty claim and related purposes. See section 6.4: Māori society.

Pacific Island Affairs, Ministry of. The ministry exists to promote the development of Pacific Islands peoples in New Zealand in a way that reflects Pacific cultural values and aspirations, so that Pacific Islands peoples can participate and contribute fully to New Zealand's social, cultural and economic life.

It contributes to this through the provision of policy advice on significant issues; encouraging government agencies to take responsibility for meeting the aspirations of Pacific Islands peoples; influencing and monitoring the implementation of policies; and disseminating information and consulting with Pacific communities. See section 6.5: Pacific Islands population. [www.minpac.govt.nz]

Police, New Zealand: Ngā Pirihimana o Aotearoa. The Police serve the community by meeting the following strategic goals: to reduce the incidence and effects of crime; to reduce the fear of crime; to reduce the road toll; to reduce disorder and other threats to public safety; and to improve public trust and confidence in the police. They also strive to improve the way staff and resources are managed.

The Police's 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. See chapter 10: Justice and law.

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 coordination 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 Prime Ministerial Taskforce on the Year 2000. See section 3.2: Parliament and the Cabinet. [www.dpmc.govt.nz]

Public Trust. The Public Trust Office (known as Public Trust) is a self-funding government department which provides a wide range of financial services and services as trustee, executor, manager, and attorney. It is also required to provide a number of statutory services. More information on this office appears further on in this chapter.

Research, Science and Technology, Ministry of: Te Manatū Pūtaiao. Established in October 1989, the ministry's primary role is to advise the government on the overall policy framework, priorities and funding for research, science and technology and to provide contract management services to the minister for the implementation of science funding. The ministry has a role in ensuring that the development of public policy is well informed by science and technology, and that science and technology interests are well coordinated and linked. It is also responsible for gathering and disseminating statistics and descriptive information on research, science and technology activities and for administering intergovernmental science relations. See chapter 15: Science and technology. [www.morst.govt.nz]

Serious Fraud Office: Te Tari Hara Tāware. The Serious Fraud Office, which became an operational department on 26 March 1990, has the primary role of detecting and investigating cases of serious or complex fraud and expeditiously prosecuting 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 Policy, The Ministry of: Te Manatū mō ngā Kaupapa Oranga Tangata. The ministry was formed on 1 October 1999 through the integration of the Department of Social Welfare's Corporate Office and the Social Policy Agency. On the same date, the department's other business unit, the Children Young Persons and Their Families Agency, became a stand alone Department of Child, Youth and Family Services.

Functions of the Ministry of Social Policy include: providing the Ministers of Social Services, Department of Work and Income, and Senior Citizens with strategic policy and independent purchasing and monitoring advice across a wide range of social policy, housing and social equity issues; liaison and cooperation with other organisations and individuals engaged in social services activities; responsibility for the management of the ministry's information technology infrastructure (used by the Department of Work and Income New Zealand and Child, Youth and Family Services). See chapter 7: Social welfare. [www.msp.govt.nz]

State Services Commission: Te Komihana O ngā Tari Kāwanatanga. See ‘State Services Commissioner’ earlier in this section. [www.ssc.govt.nz]

Statistics New Zealand: Te Tari Tatau. 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 coordinated 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. Cooperation 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'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, the Aviation Security Service, Transit New Zealand, Transfund New Zealand and the Transport Accident Investigation Commission. It also monitors the government's contract for weather services with MetService New Zealand Limited and manages the Motor Vehicle Registry and Revenue Management business. Development of any legislation for the transport sector is the ministry's responsibility. Its other significant function is to formulate and implement policy relating to the development of New Zealand's international air transport links. It also advises the government in relation to the Crown's interests in joint venture airports operated in partnership with local authorities. See chapter 23: Transport.

Treasury, The: Kaitohutohu Kaupapa Rawa. The Treasury manages the Crown's finances and is the government's principal economic advisor. It manages the government's expenditure and revenue flows, including its borrowing requirements; disburses funds to other government departments and monitors their spending; monitors significant Crown assets; manages the Crown's public debt; advises on the Budget and prepares documents required by the Fiscal Responsibility Act; and produces the Crown financial statements. The Treasury also provides wide-ranging policy advice (including advice on tax policy), reports on most expenditure proposals being considered by the government, and monitors and analyses developments in New Zealand and international economies. See chapter 28: Public sector finance. [www.treasury.govt.nz]

Valuation New Zealand. Valuation New Zealand was replaced in July 1998 by the Crown entity Quotable Value New Zealand Ltd (see Section 16.1) and the Office of the Valuer General. The Office of the Valuer General is a statutory office of the Crown created under the Rating Valuations Act 1998. It is located within the structure of Land Information New Zealand (see Section 16.1 Land Information New Zealand). [www.quotable.co.nz]

Women's Affairs, Ministry of: Te Minitatanga mō ngā Wāhine. The Ministry of Women's Affairs provides gender specific advice on social and economic issues affecting women. This includes advice on all aspects of policy development and implementation. Policy work includes: strategic policy; economic autonomy; safety-Justice; and well-being. The Ministry also administers a nominations service which recommends suitably qualified women for positions on government-appointed boards, with the aim of increasing the number of women in decision making roles. See chapter 6: Social framework. [www.mwa.govt.nz]

Mabel Bowden Howard became the first woman Cabinet minister in 1947.

Work and Income, Department of: Te Hiranga Tangata. Established on 1 October 1998, the Department of Work and Income promotes independence through supporting people into work and providing income support.

It aims to increase the wealth and well-being of New Zealanders and to support the strengthening of families and communities by working to:

  • Enable independence through work.

  • Break the cycle of disadvantage.

  • Close the social and economic gap of Māori through work, education and training.

  • Increase the department's ability to address immediate and future challenges.

For more information see the department website www.winz.govt.nz

Youth Affairs, Ministry of: Te Tari Taiohi. Established in 1989, the ministry informs government on its involvement with young people aged 12 to 25 years. In supporting this task it provides policy advice and has operational roles.

The ministry aims to facilitate the direct participation of young people in New Zealand life and to promote opportunities where they may actively and responsibly contribute to the cultural, social and economic policies and services affecting the development of their country.

Youth Affairs promotes the development of young New Zealanders by providing policy advice, by showing how to involve young people in decisions that affect their lives, and by promoting the Youth Services Corp and the Conservation Corps development programmes, in partnership with other organisations. www.youthaffairs.govt.nz

Non-departmental public bodies

Crown entities are organisations or offices listed in the Fourth Schedule of the Public Finance Act 1989. The Fourth Schedule can be amended to add, remove, or change the name of a Crown entity by Order-in-Council.

The Public Finance Act establishes financial management and accountability provisions for the array of bodies set up by the Government or by legislation that depends wholly or partly on public funds. There are about 3,000 Crown entities, including school and reserve boards.

Crown entities generally have regulatory, purchasing and service provision functions. Most are run by boards, which appoint chief executives with responsibility for settling terms and conditions for employees.

Some Crown entities are companies and are subject both to the Companies Act 1993 and to monitoring on the Government's behalf by the Crown Company Monitoring Advisory Unit (CCMAU).

See the separate article for a list of Crown entities from the Fourth Schedule of the Public Finance Act 1989 and for known website addresses (Crown research institutes; fish and game councils; hospital and health services; reserve boards; school boards of trustees; tertiary institutions; and transferee companies are not listed separately). See also the New Zealand Government's Internet address www.govt.nz

State-owned enterprises. State-owned enterprises (SOEs) are Government-owned organisations operating on commercial lines and are companies under the Companies Act 1993. They are required under statute to operate as successful businesses and, to this end, to be as profitable and efficient as comparable businesses in the private sector. The Government's interest in these is substantially in their ownership. The Government may purchase services from SOEs, but generally will do so on the same basis as other purchasers.

The State Owned Enterprises Act 1986 specifies principles governing the operation of SOEs, authorises the formation of companies, and establishes accountability requirements. The Government's shareholding interests are supported by CCMAU which is part of Treasury. SOEs are named in the First Schedule to the Act. Since 1986 there have been numerous changes to the First Schedule as new SOEs have been added and as others have been sold. See the separate article for a list of SOEs as at 1 November 1999 and known website addresses (see also www.govt.nz).

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.

CCMAU. The increasing number and diversity of limited liability companies owned by the Crown led it to establish the Crown Company Monitoring Advisory Unit (CCMAU) as a centre of expertise in the monitoring of these entities. CCMAU advises and supports primarily the:

  • Minister for State-owned Enterprises

  • Minister for Crown Research Institutes

  • Minister of Health (in relation to the Crown's ownership interests in Hospital and Health services).

The shareholding ministers of other Crown companies (such as Radio New Zealand, Housing New Zealand, Animal Control Products, and the airport companies) receive advice from the unit in their role as monitors of the Crown's ownership interest, as does the Minister of Finance, who as a shareholding minister receives unit advice via the responsible minister and in joint reports from the unit and the Treasury.

CCMAU was established on 1 July 1993 from its predecessor organisations the State-owned Enterprises Advisory Unit and the Crown Research Institutes Implementation Steering Committee. On 1 October 1993 it incorporated the Crown Health Enterprise Monitoring Unit.

CCMAU's mission is ‘to provide high quality advice that enables the shareholding ministers to hold boards of Crown companies accountable for their performance in maintaining and enhancing shareholder value and meeting the other objectives and requirements of the empowering acts'.

One of the unit's chief functions is the provision of advice to shareholding ministers relating to the performance of Crown companies against their objectives and associated statement of corporate intent/statement of intent targets (including market, financial, investment and enterprise-specific objectives) and the appropriateness of those objectives and targets.

Other functions include the provision of administrative support, including:

  • Analytical and administrative support for external advisors.

  • Facilitation of information flows between the shareholding ministers and Crown company boards.

  • Coordination of the Crown company monitoring regime, including operating processes and facilitating the contribution of advice by other advisors.

The unit, while independent for advice purposes, is attached to the Treasury for administrative purposes. Its executive director is accountable to the Treasurer, through the Secretary of the Treasury, for the management of the unit, and appointment, remuneration and performance of staff.

Table 3.15. CCMAU EXPENDITURE, YEAR ENDED 30 JUNE:

Vole19981999
1Crown Health Enterprises (CHEs) became Hospital and Health Services (HHSs) in 1998.
 ($000)
CRIs681687
SOEs1,4591,431
HHSs13,6263,939

Some of the principal issues facing the unit are:

  • The need for advice from a commercial perspective to assist ministerial decision making in relation to Crown companies.

  • Issues of shareholder and director accountability.

  • Changes in information management and monitoring methodologies.

  • The long-term creation of shareholder value.

  • Pressures from Crown companies to expand or change their activities and, as a consequence, changing the Crown's ownership risk profile.

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 1999 approximately 81 percent (by audit hours) of the annual audit portfolio was subject to tendering out on a competitive basis between private sector auditors and the operational arm of the Audit Office.

David Lange, Prime Minister, 1984 to 1989.

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 whether if the information is released it will 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, hospital and 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 Anand 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.

Table 3.16. COMPLAINTS TO THE OMBUDSMEN, 19991

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

1Year ended 30 June.

Source: Office of the Ombudsmen

Declined, no jurisdiction106161
Declined or discontinued (section 17)69711010
Resolved in course of investigation23829062
Sustained, recommendation made473
Sustained, no recommendation made2071
Not sustained19321118
Formal investigation not undertaken, explanation, advice, or assistance given183642384
Complaints transferred to:
    Privacy Commissioner6482
    Health & Disability Commissioner7--
Police Complaints Authority33--
Still under investigation as at 30 June42526529
            Total3,5651377210
Total 19983,7161435203

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.

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 Cooperation and Development (OECD) 1980 Guidelines on the Protection of Privacy and Transborder Flows of Personal Data. The act established 12 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 the public and private sectors.

The 12 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 some victims of domestic violence to have their whereabouts held confidentially on public registers, with the Privacy Commissioner having an oversight function.

The Privacy Commissioner has the power to issue codes of practice which may modify the information privacy principles by prescribing different standards or by exempting one of their actions. Codes of practice can also prescribe how any of the information privacy principles are to be applied or complied with. Codes replace the principles in particular contexts. The most important code issued by the commissioner is the Health Information Privacy Code 1994, which provides stringent controls on the collection, use and disclosure of medical and health information by agencies throughout the health sector.

The Privacy Act also lays down information matching rules controlling statutory matching programmes in the public sector. Information matching involves one government department comparing personal information collected for specific purposes with databases of personal information in another government department held for different purposes. The primary purpose of information matching is to deter and detect welfare fraud or abuse. An example is the matching of social welfare beneficiaries’ records with information lists of people departing from New Zealand. The act requires notice to be given to the affected individual before adverse action is taken on the basis of the successful match.

During 1997–98 the Privacy Commissioner considered a new information matching programme involving the matching of names and addresses between the Department for Courts and the Inland Revenue Department in order to trace fines defaulters. He also drew attention to the problem of inaccuracies in the list of overstayers used in the Electoral Act information match in a report to the Minister of Justice.

The Privacy Commissioner investigates complaints alleging the breaches of the principles, codes of practice and information matching rules. The investigation process emphasises conciliation, the success of which can be seen in the large number of complaints which are resolved without a final opinion.

If a complaint cannot be settled, the Privacy Commissioner may refer it to the Proceedings Commissioner, who may in turn issue proceedings before the Complaints Review Tribunal. If either of the commissioners do not do so, the aggrieved individual may issue proceedings before the tribunal. The tribunal has the power to award a number of remedies, including a declaration that an action has caused interference with privacy, orders, damages and costs.

In 1997–98 the Privacy Commissioner referred seven complaints to the Proceedings Commissioner. Eleven complainants commenced proceedings on their own initiative.

Table 3.17. COMPLAINTS TO THE PRIVACY COMMISSIONER

 Year ended June
19971998
Source: Office of the Privacy Commissioner
New complaints received12001082
Complaints current at start of year604790
Number of complaints under process18041872
Number of complaints closed during year870804
No jurisdiction1839
Complaints resolved without final opinion719644
Final opinion (substance 28 – no substance 93)133121

The Privacy Commissioner performs a general ‘watch-dog’ role over privacy. In 1998 he made a number of reports to the Minister of Justice and public statements on a range of issues affecting individual privacy. The commissioner peruses new legislation and prepares reports on privacy issues. He also appears before Parliamentary Select Committees considering bills.

In 1997–98, the Privacy Commissioner reported to the Minister of Justice on a number of bills including the Taxation (Remedial Provisions) Bill, the Interpretation Bill, the Radiocommunications Amendment Bill, the Health Occupational Registration Bill, and the Land Transport Bill relating to photo driver licences.

Dame Cath Tïzard, Governor-General 1990 to 1996.

Submissions were made on the Harassment and Criminal Associations Bill, the Evidence (Witness Anonymity) Amendment Bill, and the Rating Valuations Bill.

The Commissioner provided comment to the Ministry of Justice on the disclosure of executive remuneration, on sentencing policy and guidance, on criminal disclosure, and on telephone analysers and call data warrants. He commented to the Law Commission on insurance law reform, to the Inland Revenue Department on simplifying taxpayer requirements, and to the Ministry of Transport on electronic road tolls.

The Official Information Act 1982 and the Local Government Official Information and Meetings Act 1987 require the ombudsmen to consult with the Privacy Commissioner in relation to review of official information access requests where privacy is a possible ground for withholding information. During the 1997–98 year 77 formal consultations under the two acts were completed.

The commissioner hosts an annual Privacy Issues Forum attracting both local and overseas speakers and registrants.

The website for the Privacy Commissioner is www.privacy.org.nz

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 Pāremata was also created in response to significant public demands for an independent authority to review and publicly report on the environmental effects of central and local government works and policies.

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

The principal functions of the commissioner comprise:

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

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

The commissioner is also responsible for carrying out inquiries requested by the House of Representatives and for providing reports on proposed legislation, petitions and other matters of environmental significance under consideration by the House. 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.

Table 3.18. REPORTS AND PAPERS BY THE COMMISSIONER

 1995–961996–971997–981998–99
Source: Parliamentary Commissioner for the Environment
Investigation reports66333458
Information transfer papers or presentations414387278306
            Total480420312364

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 significant 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 1998–99 investigations were initiated on issues related to local government environmental management and to environmental management overviews of the urban and marine environments.

Three investigations on national issues were initiated: marine environmental management, energy efficiency and renewable energy; and urban water management. One environmental management audit was completed: Side Agreements in the Resource Consent Process: Implications for Environmental Management; and another was close to completion at the end of the financial year: Local Government Environmental Management – A Study of Models and Outcomes. There was one major citizen's concern investigation undertaken on sand extraction and four evaluations of the success of previous investigations. Reports for these are titled Timberlands West Coast Ltd Beech Management Prescriptions; The Management of Urban Vegetation in North Shore City; Public Response to the 1993 Water Supply Grading System; and Pasture Irrigation in Northland.

The commissioner also initiated a new category of output during the 1998–99 year – the environmental management audit. This year there were seven items within this category, including the reports Rabbit Calicivirus Disease (RCD) Saga and Towards Sustainable Development – the role of the RMA, as well as involvement in a number of workshops, strategy planning sessions and responses to policy statements.

The Commissioner gave considerable assistance to parliamentary select committees during 1998–99, in particular the Transport and Environment Committee, offering advice on the Energy Efficiency Bill, assisting the committee during an inquiry into the environmental effects of road transport and offering advice on petitions.

During 1998–99 the commissioner responded to a total of 364 communications from citizens, non-governmental organisations, select committees, public authorities and international correspondents, requesting the Parliamentary Commissioner for the Environment's assistance to resolve an environmental issue or provide information.

Public Trust

Public Trust, the first of its kind in the world, was launched in 1873 by an act of Parliament. It is a self-funding government department now operating under the Public Trust Office Act 1957. The Public Trustee is a Corporation Sole.

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.

With more than 40 outlets around the country, Public Trust administers around 50,000 estates, trusts, funds and agencies. On behalf of individuals it has a trustee role in relation to approximately $2 billion of assets, of which $ 1 billion is managed funds. In the corporate trustee area. Public Trust has a supervisory or trustee responsibility in relation to approximately $10 billion of assets. Public Trust's Common Fund stands at about $420 million, its Group Investment Funds at around $300 million and the retail Public Trust Investment Funds at about $280 million.

Public Trust also holds the statutorily-required deposits of insurance companies. Most of Public Trust's activities are commercial in nature but it is also required to provide a number of statutory services which may not be income earning. These are of a regulatory, quasi-judicial, trustee of last resort, trustee-guardian and representative (that is, in the case of legal incapacity) nature.

3.4 Local government

New Zealand has a system of local government that is largely independent of the central executive government. This system 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 and one (Infrastructure Auckland) is constituted under the Local Government Act.

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 Government Official Information and Meetings Act 1987; the Local Authorities (Members’ Interests) Act 1968; and the Local Elections and Polls Act 1976.

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

Under Parliamentary Standing Orders, local authorities can promote legislation about matters affecting areas within their jurisdiction which they are not empowered to deal with already. When 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.

Last meeting of the Legislative Council, Wellington, 1950.

Under a 1992 amendment, the Minister of Local Government may appoint a review authority when 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 Environment Court.

PROVINCES

Local government organisation

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

  • 12 regional councils

  • 74 territorial authorities

  • 147 community boards

  • 7 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 permitted to corporatise or privatise their trading activities. Local authorities may consider putting out the delivery of all services to competitive tender as an alternative to using in-house business units.

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.

Table 3.19. REGIONAL COUNCILS

RegionCouncil members1

1Based on October 1998 elections.

Source: Local Government New Zealand

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

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; liquor licensing; building consents; 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

These are territorial authorities, which also have 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 proposals submitted to the Local Government Commission.

Table 3.20. TERRITORIAL AUTHORITIES

Cities/districtsCouncil members'

1 Includes regional council chairs but not mayors. Based on October 1998 elections.

2 Unitary authority.

Source: Local Government New Zealand

North Island
North Shore City16
Waitakere City15
Auckland City20
Manukau City21
Hamilton City14
Napier City13
Palmerston North City16
Porirua City14
Upper Hutt City11
Hutt City13
Wellington City19
Far North District11
Whangarei District14
Kaipara District11
Rodney District13
Papakura District13
Franklin District15
Waikato District15
Waipa District13
Otorohanga District8
Waitomo District11
Thames-Coromandel District10
Hauraki District13
Matamata-Piako District12
South Waikato District11
Taupo District13
Tauranga District14
Western Bay of Plenty District13
Rotorua District13
Whakatane District16
Kawerau District9
Opotiki District11
Gisborne District215
Wairoa District11
Hastings District15
Central Hawke's Bay District11
New Plymouth District17
Stratford District12
South Taranaki District13
Ruapehu District14
Wanganui District13
Rangitikei District12
Manawatu District14
Horowhenua District11
Tararua District9
Kapiti Coast District14
Masterton District11
Carterton District9
South Wairarapa District10
South Island
Nelson City213
Christchurch City25
Dunedin City15
Invercargill City13
Tasman District214
Marlborough District213
Kaikoura District8
Buller District12
Grey District9
Westland District13
Hurunui District10
Waimakariri District15
Selwyn District14
Banks Peninsula District10
Ashburton District13
Timaru District13
Mackenzie District11
Waimate District12
Waitaki District16
Queenstown-Lakes District12
Central Otago District14
Clutha District15
Southland District13
Gore District12
Chatham Islands Council8

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 delegated by the territorial authority, but cannot include such powers as levying rates, appointing staff, or owning property.

Community boards are partly elected by the community and partly appointed by the territorial authority from among its own members, or are 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 reorganisation scheme. Community boundaries often coincide with those of wards (divisions of the district for electoral purposes). These boards have between four and 12 members each.

Special purpose local authorities

In 1989 the number of special purpose local authorities was greatly reduced. Catchment boards, harbour boards, pest destruction boards and land drainage boards (among others) disappeared, with their functions reallocated either to regional councils or, to a lesser extent, to territorial authorities. The categories remaining include scenic and recreation boards. 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; the Masterton Lands Trust; the Greytown Lands Trust; and Infrastructure Auckland.

Infrastructure Auckland. This replaced the Auckland Regional Services Trust on 1 October 1998 and was created to help address the Auckland Region's land and passenger transport and stormwater problems. As successor to the Trust, Infrastructure Auckland inherited all the assets of the trust except Watercare Services Ltd which was transferred to Auckland local authorities. Infrastructure Auckland's assets are estimated to be worth around $900 million and include 80 percent of the shares in Ports of Auckland Limited and 100 percent of America's Cup Village Limited and Northern Disposal Systems Limited. The mandate for this wealth as defined by legislation is to benefit the community as a whole by making grants to land and passenger transport and stormwater projects.

Jenny Shipley, New Zealand's first woman Prime Minister 1997 to 1999.

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

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

When Infrastructure Auckland was initially set up it was controlled by nine members; six were former members of the Auckland Regional Services Trust, and three were appointed by the Electoral College. From 1 July 1999 that number was reduced to seven members and from 1 January 2000 the Electoral College has had sole power to appoint all members and the Chairperson. The Electoral College consists of eight members made up of one member from each of the seven territorial authorities in the Auckland region and one from the Auckland Regional Council. Both members representing Manukau and Auckland City Councils have three votes and both members representing Waitakere and North Shore City have two votes with the other four council representatives each having one vote. Apart from appointing (and discharging) the members and chairperson of Infrastructure Auckland they must also, amongst other things, monitor Infrastructure Auckland's performance.

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 2001. 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 have the option of deciding whether members will 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 provides for objections and appeals by the public and when necessary final decisions are 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 is now universal. 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 Amendment 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 of local authorities on proposed boundary alterations.

  • 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.

Secondly, the commission has responsibilities relating to the consideration and processing of reorganisation proposals for the union or constitution of districts or regions.

The commission may also carry out investigations of particular matters affecting local government and reports on them to the Minister of Local Government.

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 3.21. ENGLISH AND MāORI 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 ngā 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 whero, kiri ma, Iwi Māori Pākehā Repeke katoa, Nei ka tono ko ngā 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 ngā whawhai. Ngā 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.

Election night 1931, Willis Street, Wellington.

Contributors

  • 3.1 Ministry of Justice.

  • 3.2 Office of the Clerk of the House of Representatives; Ministry of Justice; Cabinet Office; Department of Internal Affairs; Land Information New Zealand.

  • 3.3 State Services Commission; government departments as listed; Office of the Controller and Auditor-General; Crown Company Monitoring Advisory Unit; Office of the Ombudsmen; Office of the Privacy Commissioner; Office of the Parliamentary Commissioner for the Environment; Public Trust; Crown Company Monitoring Advisory Unit.

  • 3.4 Local Government Commission; Department of Internal Affairs; Local Government New Zealand.

  • 3.5 Department of Internal Affairs.

Special articles

Ministry of Justice; Cabinet Office; Clerk of the House of Representatives; State Services Commission; Department of Internal Affairs; Dr Henare Broughton; Ko Huiarau (The United Tribes of New Zealand and Crown of England), Puriri Press, 1991.

Further information

Constitution

Burrows J F 1999. 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. 3rd 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.

Palmer Geoffrey and Palmer Matthew 1997. Bridled Power: New Zealand Government under MMP. Oxford University Press. Auckland.

Parliament and the Cabinet

Cabinet Office 1996. The Cabinet Office Manual. Wellington.

Electoral Commission December 1997. The New Zealand Electoral Compendium. (includes detailed 1996 election results).

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

Law Commission 1996. The Law of Parliamentary Privilege in New Zealand: A reference paper. Miscellaneous Paper 5. 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. Oxford University Press.

Miller, Raymond (ed) 1997. New Zealand Politics in Transition. Oxford University Press, Auckland.

Office of the Clerk of the House of Representatives 1997: Booklets on select committees (3) and on petitioning Parliament.

Parliamentary Bulletin. Compiled in the Office of the Clerk of the House of Representatives. Legislation Direct (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 1986 (Parl paper H.3)

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

Standing Orders of the House of Representatives. September 1999.

State Services Commission 1995. Public Service Principles. Conventions and Practice.

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

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Parliamentary Counsel Office (annual).

State sector

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

Bassett, M 1997. The mother of all departments. AUP and Historical Branch, Department of Internal Affairs.

Boston, J et al 1996. Public Management: The New Zealand Model. Oxford University Press.

Boston, J (ed) 1995. The State Under Contract. Bridget Williams Books.

James, Colin 1997. Under New Sail: MMP and Public Servants. Institute of Policy Studies, Wellington.

Reports of the Controller and Auditor-General (Parl paper B.28 and B.29 series).

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).

The New Zealand Government Directory. February 2000. Ministry of Justice.

Treasury 1995. Fiscal Responsibility Act 1994: An Explanation. Wellington.

Treasury. Putting it Simply: an Explanatory guide to Financial Management Reform. Wellington.

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 (2nd edition). Auckland University Press.

Hammond J 1997. Local government in New Zealand. Enterprise Trust.

Howell R et al 1996. The unfinished reform in local government. Massey University.

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

Local authority election statistics 1998. 1999. Department of Internal Affairs.

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

A young casualty of Papua New Guinea's 1998 tsunami receives medical care from a Kiwi army medic.

4.1 Relations with other countries

In 1943 the New Zealand Government established the then Department of External Affairs and a career foreign service, and began to station its own diplomatic representatives overseas. Today. New Zealand has 47 diplomatic and consular posts located in 41 countries and territories, and 46 honorary consulates. Multiple accreditation allows New Zealand representatives to cover 76 other countries from their bases.

On behalf of the Government, the Ministry of Foreign Affairs and Trade (MFAT), Te Manatū Aorere, is responsible for all major policy functions related to New Zealand's external relations. 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.

The ministry also operates and administers the diplomatic and consular posts that represent and pursue New Zealand's interests overseas. The posts 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 and Consular List.

This and more information can be found on the ministry's website at www.mft.govt.nz

South Pacific

New Zealand enjoys a close association with South Pacific nations, with 10 diplomatic missions in the region and accreditation to a further eight Pacific Islands countries. A special relationship exists between New Zealand and the Cook Islands, Niue, and Tokelau. The Cook Islands became a self-governing state in free association with New Zealand in 1965, and Niue in 1974. Tokelau is a non self-governing territory of New Zealand under the purview of the United Nations Committee on Decolonisation. Cook Islanders, Niueans, and Tokelauans are New Zealand citizens.

Trade with the South Pacific, though small in comparison to other regions, is important to New Zealand. Exports to the region totalled $662 million for the year ending June 1999, and imports for the same period amounted to $124 million. Imports from South Pacific countries have duty-free and unrestricted access on a non-reciprocal basis to the New Zealand and Australian markets under the South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA).

New Zealand has developed extensive links with regional organisations. New Zealand was a founding member of the South Pacific Forum, formed in 1971 to promote regional cooperation, particularly in trade and economic development. Renamed in 1999, the Pacific Island Forum now comprises 16 Pacific countries, and provides an opportunity to discuss other issues of relevance to island nations such as the environment, climate change, fisheries and economic development. An important aspect of the forum's work is the annual Forum Economic Minister's Meeting (FEMM). Since the first meeting in 1995, ministers have agreed on an action plan covering accountability principles, public sector reform initiatives, tariff reform and investment reform. The 1999 Forum endorsed a proposal for a free trade area (FTA) between Forum Island Countries.

Some other regional organisations of which New Zealand is a member include the Forum Fisheries Agency (FFA), which assists members with the management and conservation of the region's marine resources; the South Pacific Regional Environment Programme (SPREP), which focuses on the protection and management of environment resources; the Pacific Forum Line (PFL), which facilitates regional trade through improved shipping links; the Pacific Community which is primarily a technical assistance organisation that helps promote the economic and social welfare of the South Pacific peoples; and the South Pacific Applied Geoscience Commission (SOPAC), which assists countries in the assessment, exploration and development of mineral and other non-living resources.

New Zealand has other links with the South Pacific covering Official Development Assistance, Defence and Disaster Coordination. The France, Australia, New Zealand Agreement (FRANZ) is an important element in the provision of rapid emergency assistance to the region in the event of a natural disaster such as a tropical cyclone.

Australia

New Zealand has been represented in Australia since 1880. The Trans-Tasman Travel Arrangement enables New Zealand citizens to travel to live and work in Australia, and Australian residents to receive reciprocal access to New Zealand. There are at present over 300,000 New Zealanders living in Australia, and 50,000 Australians resident in New Zealand. Well over one million Australians and New Zealanders cross the Tasman in short term visits each year.

Australia is New Zealand's most important trading partner and New Zealand is in turn Australia's largest market for manufactured exports. The Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER for short), signed in 1983, is the main instrument governing trade and economic relations between the two countries. Complete free trade in goods was achieved five years ahead of schedule on 1 July 1990. CER also includes a range of non-tariff measures such as customs issues, standards and business law. In 1995 the Joint Food Standards Treaty was signed, heralding a third generation of CER issues in the regulatory area. In 1996, CER was further expanded to include the Trans-Tasman Mutual Recognition Arrangement, the Arrangement on Food Inspection Measures and arrangements for a single aviation market.

Australia is also New Zealand's closest and most important security partner. Our alliance with Australia, founded in the Canberra Pact (1944) and formalised in the ANZUS Treaty (1952), remains central to New Zealand's defence policy. Both countries have been involved for some two years in the Bougainville Peace Monitoring Group and more recently in the Coalition of Cooperation in East Timor.

Asia

New Zealand has strong links with the countries of Asia and with regional organisations. New Zealand maintains missions in Bangkok, Beijing, Ha Noi, the Hong Kong Special Administrative Region, Jakarta, Kuala Lumpur, Manila, New Delhi, Osaka, Singapore, Shanghai and Tokyo.

New Zealand is one of the original dialogue partners of the Association of Southeast Asian Nations (ASEAN). Cooperation with ASEAN is maintained in a range of regional trade facilitation and economic development activities. New Zealand also takes part in the ASEAN Regional Forum, which provides ministers from throughout the Asia Pacific region with a unique opportunity to focus collectively on regional security issues. The New Zealand Defence Force has defence cooperation programmes with a number of ASEAN countries. The Five Power Defence Arrangements bring together Malaysia, Singapore, Britain, Australia and New Zealand.

When the Asia Pacific Economic Cooperation (APEC) forum was established in 1989, New Zealand was one of its founding members, and plays an active part in meetings. New Zealand hosted APEC in 1999. At the non-governmental level, New Zealand participates in the Pacific Economic Cooperation Council which brings together business people, academics and officials from all the region's main trading partners. Shared economic interests provide a basis for New Zealand to cooperate with Asian countries in international bodies, including the World Trade Organisation (WTO) and the specialised agencies of the United Nations (UN).

The growth in bilateral trade with Asian economies through the 1990s was affected by the economic crisis of 1997–98. New Zealand took part in international efforts to respond to the crisis, including a loan offer to Korea and technical assistance to Thailand. A fall in New Zealand's exports, particularly to Japan, Korea, Indonesia, Thailand and Malaysia, was offset by an increase in sales to North America and Europe. In the year to June 1999, Asian markets accounted for 33 percent of exports (down from 35 percent in the year to June 1998) and 31 percent of imports. On the other hand, Asian economies still rank in the top twenty New Zealand export destinations, with Japan in third place, Korea fourth and China sixth. Asia remains an important source of tourists, migrants and investment.

New Zealand's long-term commitment to the Asian region was demonstrated in 1991 with the establishment of the Asia 2000 Programme, which became the Asia 2000 Foundation. It aims to increase the familiarity of New Zealanders with Asia, so that the political, economic and cultural relationship can grow and flourish. The Foundation has a network of ‘honorary advisers’ in the region and receives support from both the public and private sectors. Its major activities in 1999 included the Festival of Asia and an Asia Forum which brought a range of experts on Asia to New Zealand.

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. Cooperation 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 cooperate 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 Cooperation Agreement (TEC) which provides for, among other things, regular consultation on trade issues.

Latin America and the Caribbean. New Zealand has embassies in Latin America in Mexico, Chile and Argentina. The ambassador in Mexico is cross-accredited to Venezuela and Guatemala. The ambassador in Santiago is accredited to Peru and Colombia and the ambassador in Buenos Aires is accredited to all of the Mercosur group (Argentina, Brazil, Uruguay and Paraguay). In addition to honorary consuls in Bogota, Lima, Caracas and Montevideo a New Zealand Consulate General was opened in Sao Paulo in 1999. The High Commissioner in Ottawa is accredited to the Caribbean countries of Barbados, Guyana, Jamaica and Trinidad and Tobago.

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 cooperation.

Europe

Western Europe. The European Union (EU) is New Zealand's second largest economic partner after Australia. It is the largest market for a broad range of primary produce – butter, sheepmeat, apples, kiwifruit and leather. While the outcome of the Uruguay Round trade negotiations significantly improved allowable quantities and the overall stability of this traditional market, some restrictions on access and related conditions have continued. New Zealand had to initiate a WTO dispute settlement action in 1997 on an EU decision that some New Zealand butter (spreadable and Ammix) was not eligible for tariff quota access: this has now been settled amicably. Other primary produce, such as wine exports, face technical restrictions. Beyond New Zealand agricultural exports, trade flows with the EU are largely unhindered.

The EU has become a significant market for New Zealand tourism. The UK and Germany rank as major visitor sources to the Pacific rim. The countries of the EU are important partners for New Zealand in investment and as a source of technology and expertise. Bilateral agreements covering the mutual recognition of veterinary procedures and standards have been secured. In May 1999, a Joint Political Declaration was signed, setting out the future direction of the New Zealand/European Union relationship.

New Zealand has resident embassies in Berlin (transferred from Bonn in 1999), Madrid, Paris, Rome and The Hague, and a High Commission in London. From these posts there are cross-accreditations to all other EU member states. Close regular contact is maintained by New Zealand's network of posts with individual EU member states, and with the European Commission in Brussels, on a range of economic and political issues.

Central and Eastern Europe. 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. Poland, Hungary and the Czech Republic have joined the North Atlantic Trade Organisation (NATO) and these countries, together with Slovenia, the Slovak Republic, Bulgaria and Romania, are candidates for membership of the European Union. Thus their economic importance for New Zealand is increasing.

Responsibility for New Zealand's government-to-government relations with the Czech Republic, Hungary, Poland and Slovakia lies with the New Zealand Embassy in Berlin, and for Bosnia, Croatia and Slovenia with the Embassy in Rome. (Commercial relations with Central and Eastern Europe are handled by the Trade New Zealand office in Milan.)

Russia, Commonwealth of Independent States (CIS) and the Baltics. Trade remains the central component of New Zealand's relations with the states that formerly made up the Soviet Union, the Russian Federation being our principle partner. Despite Russia's economic and financial problems it remains an important, although diminished, market for New Zealand dairy products and the long-term potential for trade with some regions, notably the Russian Far East, is great.

VSA worker Brian Monk gets close to a boa constrictor from a snake farming project he helped Vietnamese villagers set up. Bred for the Chinese market, the snakes are sold for their meat and skins.

New Zealand also cooperates with Russia on a range of international issues, in regional bodies such as APEC and the ASEAN Regional Forum, and is heavily involved in negotiations for the accession of Russia to the World Trade Organisation. These negotiations are the key point of contact with several other states in the CIS and Baltics.

New Zealand has an embassy in Moscow which is accredited to Belarus, Estonia, Kazakhstan, Kyrgyzstan, 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 food, technology and agricultural exports and an important source of crude oil. In the year ended June 1999, New Zealand exports to the region totalled $766 million. Imports for the same period were $841 million. New Zealand has embassies in Tehran, Riyadh and Ankara, and cross-accreditations to Bahrain, Egypt, Israel, Jordan, Kuwait, Oman, Pakistan, Qatar and the 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. 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 border between Egypt and Israel 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.

Overseas Representation

Africa

Contact between New Zealand and Africa has increased significantly in recent years. 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 non-compliance with Commonwealth principles in some African countries. The Minister of Foreign Affairs, Right Hon Don McKinnon is currently Vice-Chair of the Ministerial Group.

New Zealand has two missions in Africa. The New Zealand High Commission in Harare, Zimbabwe, was opened in 1986 and carries accreditations to Tanzania, Zambia, Kenya and Mauritius. The New Zealand High Commission in Pretoria, South Africa was opened a decade later in 1996. The High Commissioner in Pretoria is accredited to South Africa, Botswana, Mozambique and Namibia. New Zealand posts in London, Madrid and Paris are responsible for relations with Nigeria, Morocco and Algeria respectively. Trade and political contacts with South Africa were strengthened in August 1996 with the visit of the Prime Minister to South Africa, the opening of a High Commission in Pretoria in the same year, and the visit by the Minister for International Trade and a business mission in August 1997. The Minister of Tourism and Sport led a tourism mission to South Africa in August 1998 to explore opportunities in South Africa's tourist market.

New Zealand has a long-standing involvement in development cooperation in Africa through its Official Development Assistance (NZODA) programme. The Africa programme focuses on the nine countries to which New Zealand is accredited: Botswana, Kenya, Mauritius, Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe. The 1999/00 budget is $4,080,000, with $920,000 tagged specifically for South Africa. The emphasis of the programme is mainly on primary and non-formal education, with provision also being made for short-term technical assistance, small rural projects, assistance to New Zealand Non-Governmental Organisations (NGOs) to supplement their contributions to partner agencies in Africa and support for Volunteer Service Abroad's programme in South Africa.

New Zealand is also participating in UN peacekeeping and determining missions in Angola, Mozambique, Western Sahara and Sierra Leone.

Trade with African countries accounts for only a small percentage of New Zealand's global trade. Exports were valued at $404 million in the year ending June 1999. Among the major exports to the region are dairy products, fish and electrical equipment. Imports from Africa (valued at $231 million) include machinery, tobacco, phosphates and textile fibres. In 1999 Egypt and Algeria 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 countries, 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 Cooperation Division of MFAT 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 1999/00 financial year these are:

  • $212,722 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.

  • $15,079 million for ODA Management, funded as one of the MFAT output classes.

Some other activities or transfers that meet the OECD definition of Official Development Assistance are funded from other government sources. The total disbursement on NZODA currently amounts to nearly 0.26 percent of New Zealand's Gross National Product (GNP). This is above the current weighted average for OECD countries as a whole and a considerable increase from just over 0.20 percent in 1990.

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

The bilateral schedule. The bilateral schedule is dominated by direct assistance on a one-to-one, country-to-country basis, comprising in most cases a wide range of developmental projects in 20 major partner countries in the South Pacific, South-East Asia, China and Southern and Eastern 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 covered the full range of New Zealand expertise -agriculture, communications, conservation and environment, education and training, energy, fisheries, forestry, tourism, transport, and gender and development programmes. Global environmental concerns now take a higher profile in NZODA, and that list now includes nature conservation, national parks management, land use planning, soil conservation and environmental education. New Zealand participates in projects by contributing technical assistance, grants, material supplies and training.

Second lieutenant Charles Upham was awarded the Victoria Cross in 1941 for valour at Galatos and Crete. He won the Bar in 1945 for service at the Western Desert in 1942.

Distinguished military leader Sir Bernard Freyberg VC served in both world wars and later became Governor-General.

New Zealand's development cooperation with Pacific Islands countries focuses strongly 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 Pacific Community and the South Pacific Regional Environment Programme, amongst others. The Pacific Islands Investment and Development Scheme (PUDS) targets the private sector and helps to promote investment and other linkages between New Zealand and Pacific Island companies.

New Zealand is extending its development cooperation 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 project aimed at addressing some of the specific training needs of the greater Mekong Basin sub-region has been developed in cooperation 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 1999–00

Programme$(000)
Source: Ministry of Foreign Affairs and Trade
Bilateral schedule
        South Pacific Programmes –
            Samoa7,700
            Niue6,500
            Tokelau6,500
            Cook Islands6,200
            Papua New Guinea11,000
            Tonga5,600
            Fiji5,000
            French Polynesia175
            New Caledonia375
            Micronesia825
            Wallis & Futuna75
            Vanuatu5,200
            Solomon Islands5,250
            Kiribati3,100
            Tuvalu2,150
        South Pacific regional programmes12,120
        South Pacific Head of Mission funds930
        Total South Pacific programmes79,250
Other bilateral programmes
        ASEAN and other Asia programmes31,800
        Americas/Africa programmes5,530
        Emergency and disaster relief4,500
        Voluntary agencies14,655
        Education and training (cross-regional scholarships)25,450
        Good Government programme1,000
        Total other bilateral programmes82,395
        Total bilateral schedule162,185
Multilateral schedule
        International financial institutions22,200
        South Pacific agencies11,315
        United Nations agencies11,150
        Commonwealth agencies2,956
        Other organisations2,916
        Total multilateral schedule50,537
        Total Official Development Assistance212,722

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 (NGOs) working at grass-roots level in developing countries. Emergency and disaster relief is allocated as the need arises. When natural disasters occur in neighbouring countries of the Pacific, New Zealand is often able to send supplies, medical teams or other skilled people to directly help recovery work. A trilateral arrangement involving New Zealand, Australia and France in the South Pacific ensures a rapid response, effective coordination, and efficient use of resources in an emergency. When disaster strikes in more distant countries, New Zealand usually responds by making 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; United Nations agencies; Commonwealth agencies; and various regional development organisations, such as the Forum Secretariat and the 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 Cooperation 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 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, the protection of human rights, reliable legal frameworks, bureaucratic transparency and effective public sector management. The NZODA Good Governance Programme offers assistance to projects which promote, sustain and support human development by promoting good government at all levels.

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 cooperation 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 plays an active part in the United Nations. New Zealand is currently serving as a member of the UN Economic and Social Council (ECOSOC) for the period 1998–2000. New Zealand diplomat Denise Almao has completed her term 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.

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 0.221 percent of the regular budget, resulting in annual dues in 1999 of NZ$4.5 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 0.221 percent. In 1998–99, these dues amounted to more than NZ$2.9 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. 1998 marked the 50th anniversary of the Universal Declaration of Human Rights and various functions were held in New Zealand to commemorate the event. In that year New Zealand presented its combined third and fourth reports under the United Nations Convention on the Elimination of All Forms of Discrimination against Women.

In 1998, New Zealand continued to give financial support in the field of human rights, including funds to assist national human rights institutions and advisory services for indigenous populations. At the Commission on Human Rights and the Third Committee of the General Assembly (which deals with social, cultural and humanitarian issues) New Zealand supported resolutions addressing a wide range of current international human rights concerns, in particular mainstreaming of women's issues within the United Nations system, indigenous issues, and the development of human rights commissions in the Asia Pacific region.

Issues relating to the human rights of women and children continued to be a priority for New Zealand. New Zealand participated 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. The latter was agreed in March 1999. 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, 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 third meeting of the intergovernmental working group considering a Draft Declaration on the Rights of Indigenous People.

NET OFFICIAL
DEVELOPMENT ASSISTANCE
Percentage of GNP, 1996 and 1998

Second lieutenant Te Moananui-a-Kiwi Ngarimu won a Victoria Cross posthumously in 1943 for valour in Tunisia.

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 cooperation through education, science and culture. New Zealand is currently serving on the Governing Body of the International Labour Organisation for the period 1999–2002.

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 has been elected to the Executive Board of UNDP for a three year term which began 1 January 2000, and to the Governing Council of UNEP for the period 2000–2002.

MFAT and the Environment

In 1990, in response to the rapid increase in attention to global environment issues, an Environment Division was established in the Ministry of Foreign Affairs and Trade. The division's role is to coordinate New Zealand's international response to these issues.

The Environment Division's responsibilities include issues such as climate change, ozone depletion, biodiversity and endangered species, hazardous wastes, marine pollution, the conservation of whales and other marine living resources, and a range of sustainable resource management issues including forestry. The current staff is a director, eight policy officers and two support staff.

The range of issues covered reflects the international environment agenda, focusing on matters of importance to New Zealand's interests or which may pose a threat to New Zealand's environment.

The division works closely with other government departments with responsibility for environment and conservation issues in New Zealand, in particular the Ministry for the Environment and the Department of Conservation, and with a wide range of agencies responsible for various aspects of resource management policy. It also consults with a range of public interests, including nongovernmental organisations, business representatives and Māori.

The Environment Division manages New Zealand's participation in the work of international environment agencies, including the Commission for Sustainable Development (CSD), the United Nations Environment Programme (UNEP), the Global Environment Facility, the South Pacific Regional Environment Programme (SPREP), the International Whaling Commission (IWC), and related treaties. The division provides support for New Zealand attendance at regional and international meetings on environment issues and handles negotiations on related international legal instruments.

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. Former New Zealand Prime Minister Mr Mike Moore was appointed Director-General of the WTO in 1999. Mr Moore will serve a three year term which began on 1 September 1999.

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.

World Bank. The World Bank consists of five closely associated financial institutions: the World Bank – comprising the International Bank of 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 (ICSID). 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 value of loans in non-accrual status has increased from US$19.1 billion at the end of the 1998 financial year to US$20.3 billion as at 30 June 1999. The IDA provides highly concessional resources to low-income countries worth an average of about US$6 billion a year.

New Zealand also makes contributions to the periodic replenishments of the IDA. In 1998. New Zealand made a commitment of NZ$32 million to the latest replenishment, amounting to a 0.12 percent of total donor funding plus a supplementary contribution of NZ$6.4 million. New Zealand also agreed to an accelerated payment schedule which would see the money paid within six years.

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. In 1997 New Zealand agreed to contribute NZ$33.54 million to the fund, to be drawn over the next 11 years and representing 0.65 percent share of the total donor fund, plus a supplementary payment of $7.4 million.

Commonwealth

The Commonwealth has 54 member countries representing 1.7 billion people from across the globe. New Zealand is a founding member of the Commonwealth, dating back to its entry in 1931, and has long been involved in the wide range of Commonwealth activity: on three occasions the Commonwealth Games have been held in New Zealand.

The apex of the association's activities is the two-yearly meeting of Commonwealth Heads of Government, when the policy and activities of the Commonwealth are decided. South Africa hosted the last meeting in Durban, in November 1999. Most activities are executed by the Commonwealth Secretariat, based in London and led by the Secretary-General. The Right Hon Don McKinnon was elected to the position of Secretary-General in 1999.

Today New Zealand is the sixth largest contributor to the Commonwealth Secretariat budget, as well as a major supporter of the Commonwealth Foundation, which promotes professional and nongovernmental linkages within the Commonwealth. On a per capita (GDP) basis, New Zealand is the largest financial supporter of the Commonwealth's principal institutions.

New Zealand has been active in promoting the Commonwealth's core beliefs and principles, and has held the Vice-Chairmanship of the Commonwealth Ministerial Action Group since its inception in 1995. Since 1992, New Zealanders have also participated in 13 missions to observe elections in member countries.

Organisation for Economic Cooperation and Development

The Organisation for Economic Cooperation 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 communiqué, is considered a crucial barometer of Western economic policy coordination, 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 APEC).

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 cooperation policy is reviewed regularly by the OECD's Development Assistance Committee.

The monitoring and analysis of agricultural policies is an important area of New Zealand participation of OECD work. Other areas 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.

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 92km from Atafu and 64km from Fakaofo. Western Samoa is 480km 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 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 underway enables the base of the 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 18 members, remains Tokelau's paramount political institution, while the key operational relationship is between the three Faipule acting as ministers within the Council of Faipule and the senior staff of the public service. The Council of Faipule's head is the Ulu o Tokelau (Leader of Tokelau), a post which rotates on a yearly basis.

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. This power has been used primarily for the purpose of the management of the major economic activities in Tokelau, and for financial management of Tokelau's accounts.

The Faipule are leaders of their respective villages (one on each atoll), and the ministerial function represents an extension of their formal responsibility. Traditionally each village has been largely autonomous. This was confirmed by the Tokelau Village Incorporation Regulations 1986, giving legal recognition to each village and granting it an independent law-making power.

Each village holds elections on a three-yearly basis. The most recent elections took place in January 1999. Earlier practice was to elect the Faipule and Pulenuku (mayor equivalent). From 1999 the arrangement was expanded in order that each village could elect, for three-year terms, its six General Fono delegates. Previously delegates were chosen through a process of selection.

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 5 to 10 years. It is also reflected 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.

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 cooperation, 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: carrying out the functions and duties of the NZDF; the general conduct of the NZDF; managing its activities and resources; 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 NZDF.

Defence policy

The Defence White Paper, The Shape of New Zealand's Defence, was released in November 1997. It concluded that the defence policy laid out in the 1991 White Paper, The Defence of New Zealand, remained the best framework for guiding New Zealand's defence effort in a security environment which is largely benign and stable, but contains a number of uncertainties. This framework has three principal elements:

  • Defending New Zealand against low-level threats such as terrorism and incursions into our Exclusive Economic Zone.

  • Contributing to regional security, which includes maintaining our key relationships with Australia and our Five Power Defence Arrangements partners, Malaysia and Singapore.

  • Contributing to the maintenance of international peace and security by taking part in global security efforts, particularly peacekeeping.

As discussed in this policy, our physical distance from other land masses provides a unique natural barrier. With little chance of a serious threat to our territory, New Zealand's plans for defence include the capability to deter and respond to such threats as the illegal use or poaching of resources, terrorism and infringements of our Exclusive Economic Zone.

The nature of our geostrategic position means that beyond the immediate south-west Pacific region, defence planning is about security interests, rather than security needs. New Zealand's well-being is dependent on secure and stable trade markets, and secure trade routes in the Asia Pacific region and around the world, both for our exports and the import of vital commodities such as oil.

The Asian economic crisis has now largely abated and nations are moving down the path of recovery. It has been a difficult two years for the region, but the security implications of the crises were modest. The regional security environment is relatively benign, but security concerns do remain, such as the situation on the Korean Peninsula, the relationship between China and Taiwan, and the proliferation of weapons of mass destruction.

Territorial engineers construct a Bailey raft, 1965.

The call to military training, 1911.

There have also been increased demands on the NZDF to contribute to collective endeavours in support of our regional and global security interests, with the missions in Bougainville, East Timor and the Persian Gulf being prime examples.

International defence relationships

Australia. The defence relationship that New Zealand has with Australia is our most important one. In 1991, recognition of the natural coincidence of our defence and strategic interests led to the adoption of the policy of Closer Defence Relations. This acknowledged that a threat to one country would inevitably be a threat to the other, and that a more effective contribution to regional security could be made by working together.

The Five Power Defence Arrangements. The Five Power Defence Arrangements grew out of a statement in a communique following a meeting of ministers from New Zealand, Australia, Singapore, Malaysia and Great Britain in 1971. The focus of the arrangements is to provide support to Malaysia and Singapore should either of those countries come under external threat. The number of exercises and contacts which New Zealand has with Malaysia and Singapore and other partners is an important part of the NZDF's training programme and one which has expanded significantly since the end of the Cold War.

Mutual Assistance Programme. Most Association of South-East Asian Nations (ASEAN) and South Pacific countries participate in NZDF's Mutual Assistance Programme. The programme is a practical demonstration of New Zealand's commitment to regional security. Through training cooperation and advisory assistance, the programme contributes to the effectiveness of defence and paramilitary forces in New Zealand's South Pacific neighbourhood.

The programme also supports development projects in the South Pacific by using the engineering and trade skills of the armed forces. Commonly, training is provided in New Zealand and training and technical teams are deployed overseas. Military instructors are attached to other armed forces for periods of up to two years in exercises in Fiji, Cook Islands. Tonga, Papua New Guinea, Vanuatu and Malaysia.

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 many of New Zealand's diplomatic missions, with some of those representatives also accredited to other countries. A number of countries have service representatives attached to their diplomatic missions in Wellington or have service attaches accredited to, but not resident in, New Zealand.

Armed forces overseas as at 31 December 1999

Bougainville Peace Monitoring Group (PMG). This mission was first established as the Peace Monitoring Group in 1997. New Zealand has continued to support the Australian-led PMG throughout 1999. New Zealand provides 31 defence personnel directly to the PMG and financially supports 20 Vanuatuan and 15 Fijian personnel.

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 had 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 1979 peace treaty between Egypt and Israel. Nine countries contribute to MFO, which includes a 26-strong New Zealand contingent comprising a training and advisory team, a heavy transport section, engineers and staff officers.

United Nations Observer Mission in Angola (MONUA). New Zealand contributed six personnel to this mission as military observers, and staff a determining school.

Former Yugoslavia. The NZDF contributes seven staff officers to fill a range of appointments on the British headquarters within the Stabilisation Force (SFOR) in Bosnia. A deployment of 20 Royal New Zealand Infantry and Armoured personnel (SFORA) served with the British forces on a six-month tour and returned to New Zealand in April 2000. NZDF also maintains three military liaison officers and observers in the former Yugoslavia. One observer and the chief military observer are deployed in Croatia with UNMOP. One military liaison officer is deployed in Kosovo with UNMIK.

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 was completed and the mission moved on to its long-term monitoring phase. New Zealand participation in UNSCOM ended at the beginning of 2000.

Cambodian Mine Action Centre (CMAC). The Cambodian Government set up this demining training centre with the assistance of outside agencies. New Zealand provides a military logistics technical adviser and a military training technical adviser to the programme.

Mozambique Accelerated Demining Program (MADP). New Zealand provides two military demining experts to the MADP, including the chief technical adviser.

Unexploded Ordnance Programme Laos (UXDL). New Zealand provides a military logistics technical adviser and a military training technical adviser to the programme.

United Nations Mission in Sierra Leone (UNAMSIL). New Zealand has contributed two military observers to this mission and its predecessor (UNOMSIL) since June 1998.

United Nations Mission in East Timor (UNAMET). In mid-1999 the Indonesian Government agreed to hold a plebiscite in East Timor to decide the fate of the region. UNAMET was established to oversee the election process, and New Zealand provided police and 10 military liaison officers (MLOs) to East Timor.

International Force East Timor (INTERFET). Following the failure of UNAMET to stop violence in East Timor the UN agreed to sanction a multinational force, INTERFET, to restore order until a UN-mandated force could be established. New Zealand sent 830 ground troops, an Air Force helicopter detachment, the frigate Te Kaha and the fleet replenishment tanker HMNZS Endeavour. The New Zealand ground component of INTERFET was subsumed into the UN-mandated United Nations Territorial Authority in East Timor (UNTAET) in January 2000.

Combined Task Force – Kuwait (CTF – K). New Zealand continues to support this US-led mission by providing one staff officer to the VTF-K Headquarters.

PEACEKEEPING COMMITMENTS
Since 1952, including current commitments

Peace-keeping troops in Bosnia receive Christmas parcels from home, December 1995.

Exercises

The NZDF continues to complete a wide variety of exercises with other forces. Many of the international and priority exercises are with the Australian defence force, reflecting the nature and intentions of Closer Defence Relations (CDR) agreements.

Activities with Five Power Defence Arrangements (FPDA) nations include the maritime exercises STARDEX (conducted in two of every three years) and the annual Exercise SUMAN WARRIOR, a land command-post exercise.

The NZDF's main joint and combined exercise in New Zealand is MATAKIREA, which is held biennially. MATAKIREA now includes the major RNZN exercise formerly known as TASMANEX, and involves all three NZDF Services.

Key exercises in the South Pacific include TROPIC ASTRA (RNZAF deployment), TROPIC TWILIGHT (NZ Army and RNZAF deployment for civil aid tasks), and CROIX DU SUD, the major exercise of the French armed forces in New Caledonia. Bilateral exercises with regional partners include land exercises such as TAIAHA TOMBAK and KRIS MERE with Malaysia, CROSSED SWORDS and AZAM BERSAMA with Brunei, and SILVER COBRA, KIWI TEMASEK and LION HEART with Singapore.

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

Community assistance

Hydrographic survey. The Navy, under contract to Land Information New Zealand, 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 Hydrographic Office also provides tidal analysis data and predictions. During 1996–97 survey work was undertaken off the west coast of the North Island and off Fiordland. A new hydrographic and oceanographic vessel, HMNZS Resolution, entered service and commenced operations in 1998.

Fisheries protection. Air Force Orion aircraft patrol the New Zealand 200-mile exclusive economic zone. 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 numerous patrols in the New Zealand area and 10 patrols of the South Pacific in 1998–99.

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 assist in extensive sea searches, while the Army and the Air Force assist police in land searches and rescues. The Air Force also carry out emergency medical evacuations throughout New Zealand and the South Pacific.

Antarctic support. Defence Force support for the New Zealand Antarctic Programme in 1998–99 included 12 return flights to McMurdo Base by Hercules aircraft. Two Iroquois helicopters were stationed at McMurdo from October 1998 to February 1999. For the 1999–00 season, the Hercules support flights will be increased to 15, but owing to commitments in East Timor, only one Iroquois was in Antarctica from October to December 1999.

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 Cadet Corps Association of New Zealand, community organisations and the New Zealand Returned Services Association. There were 101 active cadet units at 30 June 1999 with a total strength of 4,170.

Limited Service Volunteer Scheme. Limited Service Volunteer training courses began in 1993. Since 1995 the courses have been run by the Army at Burnham Camp and, since 1998, staffing support has also been provided by the Navy and Air Force. The programme provides young unemployed volunteers with six weeks of residential training in outdoor activities and general life skills. A total of 486 volunteers successfully completed the training course in the year ended 30 June 1999.

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.

New Zealand soldiers teach mine clearance techniques to Cambodian military personnel.

Defence expenditure

Defence funding is voted by Parliament 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
19981999
Source: New Zealand Defence Force, Ministry of Defence
 $(000)$(000)
Personnel524,534531,541
Operating348,793336,761
Depreciation180,424186,236
Capital charge356,051354,730
Other expenses-5,000
            Total output expenses1,409,8021,414,268
Less-
Revenue(62,182)(33,770)
Surplus/(deficit)3,649-3,940
            Subtotal58,53337,710
Crown revenue provided1,351,2691,376,558

Table 4.3. NUMBER OF DEFENCE PERSONNEL

As at 30 JuneNavyArmyAir ForceTotalCivilians (NZDF & MOD)
Source: New Zealand Defence Force, Ministry of Defence
19942,1884,5163,36810,0722,513
19952,1524,5103,2969,9582,024
19962,0744,3493,1889,6112,103
19972,0804,3912,9919,4622,243
19992,0384,3782,8859,3011,912

Table 4.4. INTERNATIONAL COMPARISON OF DEFENCE EXPENDITURE

 Percentage of GDP
1995199619971998199920001

1Estimated.

2Year ended 30 June.

3Year ended 31 March.

4Year ended 30 September.

*Using NATO definition, excluding GST, Capital Charge and War Pensions.

Source: New Zealand Defence Force

Australia22.22.12.01.9  
Canada31.61.51.31.2  
New Zealand21.41.31.41.41.13*1.13*
Sweden22.62.52.32.3  
United Kingdom33.43.13.02.7  
United States of America43.93.43.23.0  

Canterbury-born Rewi Alley devoted his life to the people of China.

DEFENCE FORCE LOCATIONS

Royal New Zealand Navy

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

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 and Ammunition Depot. Within the base is the naval dockyard, a comprehensive engineering facility for the support of naval vessels. The dockyard is managed by Babcock New Zealand Limited. HMNZS Tamaki is the naval training establishment at Devonport. The RNZN Armament Depot is located at Kauri Point and the RNZN Hydrographic Office is at Takapuna. HMNZS Wakefield, in Defence Headquarters, 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 4.5. STATE OF THE NAVY

FrigatesHMNZS 
Source: New Zealand Defence Force
(ANZAC class)Te Kaha 
Te Mana (commissioned 10 December 1999)Naval Combat
(Leander class)Wellington (decommissioned 5 May 2000)Force
Canterbury
Fleet tankerEndeavourNaval Logistic
Military sealift shipCharles Upham (chartered until the end of 2000)Support Force
Survey shipResolutionHydrographic/
Inshore survey craftTarapungaOceanographic
TakapuForce
Diving support vesselManawanui
Inshore patrol craftWakakura
HinauMaritime Mine
KiwiWarfare Force
Moa
Training tenderKahuSea Training
Kaman Seasprite SH-2F Helicopters x 4 (Interim while awaiting delivery of SH-2G)Naval
Kaman Seasprite SH-2G Helicopters x 5 (to be progressively delivered from Aug 2000)Aviation

Table 4.6. STRENGTH OF THE NAVY

CategoryAt 30 June
19951996199719981999
Source: New Zealand Defence Force
Regular forces -
    Officers395391395393391
    Ratings1,7571,6831,6851,7111,706
            Total2,1522,0742,0802,1042,080
Royal New Zealand Naval Volunteer Reserve (all ranks)370367395397401
            Total Uniformed2,498
    Civilians524
            Total Navy3,022

New Zealand Army

The Army is organised, equipped and trained to provide a flexible range of units and sub-units up to a deployable battalion group. It can respond to lower-level contingencies in the region or serve as a New Zealand contribution to a collective force, including a UN force.

Command and administration. The Chief of General Staff (CGS) commands the Army General Staff. Army General Staff remains concerned primarily with development of policy and the management of logistic and support functions.

The Army has a single operational-level command. Headquarters Land Command, based at Trentham, manages the training of land forces and their operational commitments. Second Land Force Group, with headquarters at Linton, and 3rd Land Force Group, with headquarters at Burnham, command all regular and Territorial Force units in the North Island and South Island respectively, with the exception of specialist Army units. These units, based at Auckland and Trentham, include a Special Air Services Group, a Force Intelligence Group, and a Military Police Company.

State of the Army. Major operational units include two Regular Force infantry battalions, six Territorial Force infantry regiments, an armoured regiment, an artillery regiment, an engineer regiment, a signals squadron, three logistics battalions and a medical unit. Major equipment includes seventy-one armoured personnel carriers (all types), twenty-two 105mm light guns, forty-five 81mm mortars and five very low-level air defence (VLLAD) launchers.

Table 4.7. STRENGTH OF THE ARMY

CategoryAt 30 June
19951996199719981999
Source: New Zealand Defence Force
Regular forces -
Officers627612715725652
Other ranks3,8833,7373,6763,7063,765

Gunners of 163 Battery, 16th Field Regiment, on an exercise at the Waiouru Plateau, c1961.

Vietnam War veterans were formally recognised in 1998 with a homecoming parade in Wellington – 26 years after their return from the conflict.

Royal New Zealand Air Force

Command and administration. The RNZAF is structured to provide an Air Combat Force, a Maritime Patrol Force and a Fixed and Rotary Wing Transport Force. The Chief of Air Staff, supported by the Air Staff, commands the RNZAF.

Organisation. The RNZAF 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 coordinated 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

 AircraftLocation
Source: New Zealand Defence Force
Maritime patrol6 Orions 
Transport2 Boeing 727s 
5 Hercules 
Helicopters5 SiouxRNZAF Base Auckland
12 Iroquois 
4 Seasprites (operated by RNZN) 
2 IroquoisNo. 3 Squadron detachment, Christchurch
Air attack6 SkyhawksHMAS Albatross, Nowra, NSW
13 Skyhawks 
Flying training17 Aermacchi 
13 Air TrainersRNZAF Base Ohakea
3 King AirsRNZAF Base Auckland

Table 4.9. STRENGTH OF THE AIR FORCE

CategoryAt 30 June
19951996199719981999
Source: New Zealand Defence Force
Regular forces:
    Officers619620640642619
    Other Ranks2,6762,5682,3512,3492,266
            Total3,2953,1882,9912,9912,885
Civilian Staff:
    Territorial Air Force101170180163163

4.5 Intelligence and security

The Inspector-General of Intelligence and Security advises each minister responsible for an intelligence and security agency in the oversight and review of those agencies. In particular, the Inspector-General is responsible for assisting the minister to ensure that the activities of New Zealand intelligence and security agencies comply with the law, and that complaints relating to these agencies are independently investigated.

Security Intelligence Service

The New Zealand Security Intelligence Service (NZSIS) is a small government agency (approx 120 staff), with a head office in Wellington and regional offices in Auckland and Christchurch. The Head of the Service is the Director of Security, currently Richard Woods.

The principle functions of the NZSIS are to obtain, correlate and evaluate intelligence relevant to security and to advise ministers on security matters. These functions are set by legislation: the New Zealand Security Intelligence Service Act 1969, and its amendments in 1977, 1996 and 1999. The legislation specifies that the Act does not limit the right of people to engage in lawful protest, advocacy or dissent, and that it is not a function of the Service to further or harm the interests of any political party.

The NZSIS reports directly to a minister (the minister in charge of the NZSIS), and the Director is required by legislation to also consult regularly with the Leader of the Opposition, to keep him or her informed about matters relating to security.

The Service is subject to oversight and review by an Inspector-General of Intelligence and Security, and a committee of parliamentarians (the Intelligence and Security Committee).

Table 4.10. EXPENDITURE ON INTELLIGENCE AND SECURITY AGENCIES

Year ended 30 JuneEABNZSISGCSB
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
19972,27410,51419,092
19982,28710,68319,083
19992,29210,76918,841

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. The GCSB is subject to oversight and review under the Intelligence and Security Committee Act 1996 and the Inspector-General of Intelligence and Security Act 1996. 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.

Marlborough Express
These ‘giant puffballs’ are intelligence-gathering antenna at the Waihopai satellite station near Blenheim, 1998.

  • 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, Waihopai, Blenheim.

External Assessments Bureau

Part of the Department of Prime Minister and Cabinet, the External Assessments Bureau (EAB), Te Ranga Tātari Take Tāwāhi, produces intelligence assessments of events and trends overseas to support informed decision-making 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, biographic, strategic and scientific matters.

Contributors

  • 4.1–4.3 Ministry of Foreign Affairs and Trade.

  • 4.4 New Zealand Defence Force.

  • 4.5 Department of the Prime Minister and Cabinet; 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; Department of Internal Affairs; Military museums as listed.

Further information

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

Air Force News. Royal New Zealand Air Force (monthly).

Army News. New Zealand Army (fortnightly).

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

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

Departmental Forecast Report of the New Zealand Defence Force for the year ending 30 June 2000, New Zealand Defence Force, 1999.

Development Business. Development Cooperation Division, Ministry of Foreign Affairs and Trade.

Diplomatic and Consular List. Ministry of Foreign Affairs and Trade (twice-yearly).

Holmes, Sir Frank 1996. The trans-Tasman relationship. Institute of Policy Studies.

Information Bulletins. Ministry of Foreign Affairs and Trade.

Navy Today: RNZN News. Royal New Zealand Navy (monthly).

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 (every two months). 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).

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

The shape of New Zealand's defence: A White Paper 1997. New Zealand Government, Wellington, United Nations Handbook. Ministry of Foreign Affairs and Trade (annual).

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.

The Navy, Army and Air Force each have their own websites on the Internet which contain detailed information on their respective services (www.navy.mil.nz, www.army.mil.nz, www.airforce.mil.nz).

Chapter 5. Population

Rugby crowd at Athletic Park, 1978.

Population

Historical trends

Introduction. The demographic landscape of New Zealand has altered radically over the last 100 years. At the beginning of the 20th century, the country had just 800,000 inhabitants. Our population growth rate was fairly high, and immigration (primarily from the British Isles) contributed about one-third of that growth. The transition from relatively large to small families had already begun, although mortality, especially childhood mortality, was quite high by today's standards. A newborn child could expect to live less than 60 years. In demographic terms we were a very young population. Children out-numbered the elderly (aged 65 years and over) by 8 to 1 and while urbanisation was increasing more New Zealanders still lived in rural areas than in towns and cities. The Māori population made up only 5 percent of all New Zealanders, numbering about 46,000.

A century later, we are nearing the four million population mark. We have witnessed some remarkable shifts in types of families, mortality patterns, external migration flows and the spatial distribution of population. Most of us live in the North Island, and still more of us live in urban centres. In addition we're older, living considerably longer, have smaller families and are more ethnically diverse. By international standards we're highly mobile and are more likely to emigrate, particularly across the Tasman.

This article gives an overview of major demographic developments in New Zealand during the last 100 years, including changes in population size, structure and dynamics, and describes and discusses future prospects.

Population growth. During the 20th century, New Zealand has witnessed periods of steady population growth interrupted by the two world wars. New patterns of growth emerged after World War II. The 30-year period 1947–76 saw the longest sustained increase in population, averaging 46,000 people, or 1.9 percent, a year. The first million was reached in 1908, and the second million 44 years later in 1952. The population reached 3 million in 1973, and latest estimates put New Zealand's population at just over 3.8 million. Overall, the rate of population growth was 1.6 percent a year during the 20th century. However, low fertility and an ageing population have raised the prospect of much slower growth in the future.

Natural increase. The two components of population change are natural increase (excess of births over deaths) and net external migration (the difference between arrivals and departures). Natural increase during the 20th century has added on average around 25,000 people per year to our population (or 84 percent of total growth – the other 16 percent contributed by migration). A record natural increase added over 43,000 people in 1961. There are three major phases in natural increase over the century. In the first period up to the end of World War II, natural increase generally added fewer than 20,000 people per year to the population. The second phase corresponds to the well known post-war baby boom (1946–65), when fertility reached record levels. The third period, in the last three decades, has witnessed a significant decline in births and increase in deaths. The gap between births and deaths now stands at about 30,000 per year.

Fertility. Three major fertility trends have dominated family formation in New Zealand during the last 100 years. The demographic transition from relatively large to relatively small families was already under way when the 20th century began. Average family size, as implied by annual birth rates, fell to an historic low of 2.2 births per woman during the 1930s depression. This was due partly to the postponement of marriages and childbearing, because of widespread unemployment and unfavourable economic circumstances.

The downward trend ceased in 1935, when government initiatives to take the country out of economic depression started to take effect. Fertility leaped ahead from 1945 onwards, coinciding with the return of New Zealanders from overseas service. The ensuing baby boom lasted about two decades. Dramatic shifts to early and near universal marriage and early childbearing pushed the annual fertility rate to a peak of 4.3 births per woman in 1961. Around 65,400 births were registered in that year. The median age of first-time brides fell from 23.7 years in 1945 to 21.3 years in 1964. The ages 20–24 became most common for childbearing, and the median age of mothers at first birth fell from 25.5 years to 22.9 years over the same period. Fewer New Zealand women remained childless.

BIRTHS AND TOTAL FERTILITY RATE

Although the baby boom in New Zealand is usually taken to have lasted until 1965, there was a short drop in both the fertility rate and the number of births during the early 1960s. Children born in the late 1940s caused births to rise again as they themselves had children. The peak of births in 1971 amounted to 64,500 – only slightly fewer than the 1961 high. Births again peaked in 1990 (60,200) and significant numbers of these were of either Māori or Pacific Islands ethnicity. Since then, however, the annual fertility rate has continued to drop, reaching a current low of around 2.0 births per woman. Less than 58,000 births were registered in 1999.

SEX DISTRIBUTION OF
TOTAL POPULATION

LIFE EXPECTANCY AT BIRTH

In the last three decades, there has been a significant trend towards later marriage and delayed childbearing. Fewer New Zealand women now have a child in their teens and twenties. The average age of women giving birth is now 29.2 years, compared with 25.4 years in 1974. The proportion of women aged 25–29 and 30–34 who have never married jumped from 12 percent and 6 percent respectively, in the mid-1970s, to 51 percent and 28 percent respectively, in 1996. These trends have been influenced by changing social norms, the growing participation of women in tertiary education and paid employment, the rise of de facto unions, a shift to older parenting and the availability of more effective methods of contraception (especially the contraceptive pill).

Ethnic differentials in childbearing have helped maintain the fertility rate close to replacement level. Māori and Pacific Islands women have consistently had more children, on average, than European and Asian women. In 1996 the non-Māori total fertility rate was 1.8 births per woman (i.e. lower than the replacement level of 2.1) while the Māori fertility rate was about 2.6 births per woman.

Mortality. The events which stand out when the record of mortality is examined are World War I (17,000 extra deaths), the 1918 flu epidemic (6,700 extra) and World War II (12,000 extra). Infectious and epidemic diseases were major causes of death at the beginning of the century. At the century's end, degenerative diseases predominated.

Life expectancy at birth increased by about 20 years during the 20th century. According to the 1995–97 life tables, New Zealand men can now expect to live over 74 years, and women about 80 years. International comparisons suggest that New Zealand was a world leader in longevity prior to World War II. Since then other countries have passed us, but we remain in the top 20 in the longevity stakes. More recently, significant gains in life expectancy have brought us closer to those nations with the highest expectations of life.

In New Zealand gains in life expectancy have been achieved by reducing mortality rates at all ages. In 1900 nearly one child in 10 died in the first year of life and it was reductions in infant and childhood mortality rates that contributed to the large gain in life expectancy during the 20th century. More recent gains have mainly been due to falling mortality at late-working and retirement ages. Improvements in public health, medical care and living standards have all contributed to longevity gains. There is still room for improvement, however, as heart disease and cancer currently take a heavy toll on adults.

Women live longer than men and have lower mortality rates than men at every age. This gap in longevity has varied over time, peaking at 6.4 years in 1976. Some of the increasing gap between male and female life expectancy after World War II may have been due to trauma experienced by war combatants. The gap has closed in the last two decades to 5.3 years, as male mortality rates have decreased more than female mortality rates.

The difference in life expectancy between Māori and non-Māori has also narrowed substantially in recent decades, but non-Māori still tend to live longer than Māori. Life tables based on 1995–97 mortality data indicate a Māori male child can expect to live for 67 years and a Māori female child about 72 years. A newborn non-Māori girl can expect to outlive her Māori counterpart by 9 years. For newborn boys, the non-Māori advantage is 8 years. Factors contributing to higher Māori mortality include a higher prevalence of smoking and diabetes among Māori, and their socio-economic disadvantage.

Age-sex structure. The age-sex structure of a population at any time represents the combined effects of past changes in fertility, mortality and migration. Today's population is very different from that at the beginning of the century. This is illustrated by the population pyramids, which show the population make-up by age-sex groups at different time intervals.

The slight waviness on the male side of the 1901 pyramid echoes the surges of European migration during the 19th century. Effects due to the two world wars and the 1930s depression can be discerned in the most recent pyramid. People born in the 1920s were aged in their twenties in the 1940s, and were subject to higher mortality because of service overseas during World War II. Both World War II and the 1930s depression years show indents due to fewer births. Finally, the peaks known as the baby boom peak (1961) and the baby blip peak (1990) are prominent.

In 1901 the New Zealand population was young, with a median age of about 23 years (half the population was younger and half the population was older than the median age). Children outnumbered the elderly by eight to one. The median age increased steadily to over 30 years by 1945. The post-World War II baby boom interrupted the upward trend, but only temporarily. The median age dropped to about 26 years in 1971, but since then it has been on the rise again, as a result of fertility decline and the movement of the babyboomers up the age scale. In 1999 the median age was 34 years. This reflects the population ageing New Zealand and other countries are now experiencing.

In 1901 men outnumbered women at every age, with an overall ratio of 90 women per 100 men. In 1999 the sex ratio stood at 103 women per 100 men. The switch from an excess of men to an excess of women took place in the late-1960s. It arose as the population began to rely on natural growth. Women live longer than men although more males are born than females. Over time, the male numeric advantage is lost.

External migration. Migration has opened the way towards greater cultural diversity. It has also affected the size, growth, age-sex structure, and ethnic composition of our population. In 1901, when European settlement of New Zealand was still in progress, about one-third of residents had been born overseas. However, by the 1996 Census only about one-sixth of residents were not New Zealand born (partly due to the post-World War II baby boom). In 1901, about one-quarter of New Zealand residents identified the United Kingdom as their place of birth, with only about 2 percent born in places other than British colonial possessions. In contrast, by 1996 about 6 percent were born in places other than former British colonies.

During the 20th century, immigration added over half a million people to New Zealand's population, as well as boosting natural increase. There were dramatic shifts in the size and direction of the external migration balance, particularly in comparison with natural increase. Migration gains are affected by many factors, including perceived employment prospects (here and elsewhere, particularly Australia) and the immigration policies of both donor and recipient countries. Migration volatility has been more pronounced since the late 1960s when international travel, made more accessible by the advent of affordable air links and increased disposable income, encouraged the international movement of people, including that by New Zealanders.

External migration added to New Zealand's population in most years of the 20th century with an average net gain of about 5,000 people a year. Periods of loss were few. The first sizeable loss of population through external migration occurred during the depression and post-depression years of 1931–35 when there was a net loss of 12,000 people. From 1946 until 1966, the population gained 223,000 from migration – which dwarfed earlier losses. The last three decades have all seen both years of loss (mainly as a result of economic recession and unemployment in the 1970s and 1980s) and years of gain.

Until the 1970s, the main source of immigrants to New Zealand was the United Kingdom and Ireland. These immigrants (some attracted by assisted passage schemes) made significant contributions to the country's growth after World War II. Immigration of Pacific Islands people into the country increased substantially in the 1960s and following decades. Changes to immigration policy in 1986 paved the way for immigration from non-traditional source countries. In the 1990s Asia became an important source of immigrants.

Ethnic composition. Inter-marriage between Māori and European settlers was an early feature of colonial New Zealand. Nevertheless, turn-of-the-century New Zealand was very much a society of two distinct cultures, and individuals of mixed Māori-European ethnicity were usually viewed as belonging to one or other community, depending on their chosen lifestyle.

Changes in immigration policy, refugee immigration following World War II and more recent refugee arrivals from world trouble spots, have resulted in a waxing and waning of the flows of various new ethnic populations to New Zealand. Perhaps the most notable inflows are the arrival of Pacific Islands people during 1960–1980 and Asian people in the 1980s and 1990s.

In general, once established in New Zealand, ethnic communities have not remained isolated, and inter-ethnic marriage is common. This is reflected in a general shift in the meaning of the term ‘ethnicity’ from biological lineage to cultural affiliation. There is an increasing awareness that an individual may belong to a number of ethnicities, and that the ethnicities of individuals may change over time. Understandably, overlaps between ethnic groups, particularly at younger ages, can be quite marked.

The 1996 Census showed that about two-fifths of Māori and Pacific Islands people identified with more than one ethnicity. For Asians and Europeans, the figure was less than one-fifth. Overall, 83 percent of the New Zealand population were European, 15 percent were Māori, 6 percent were Pacific Islands people, and 5 percent were Asian (the overlaps between these groups mean the percentages add to more than 100).

At the beginning of the 20th century, the Māori population was about 46,000 and their number was still declining. They made up about 5 percent of the total population at the time. The last 100 years have witnessed remarkable growth in Māori numbers. The 1996 Census recorded over half a million people identifying with the Māori ethnic group (523,000).

Pacific Islands people now number 202,000 – two-fifths the size of the Māori population. The 1996 Census recorded 102,000 Samoans, 47,000 Cook Islands Maori, 31,000 Tongans, 18,000 Niueans, 7,500 Fijians and 5,000 Tokelauans. About two-thirds of Pacific Islands people in New Zealand live in the Auckland region.

The latest census also recorded 174,000 Asians living in New Zealand. The largest groups were Chinese (81,000), followed by Indian (42,000), Koreans (13,000), and Sri Lankans (4,500) (because people can identify with more than one ethnicity, the individual Asian and Pacific Islands groups will not sum to the total).

Geographical distribution and redistribution. In 1901, the North Island had just taken over from the South Island as the more populous island. It was home to 431,000 people or 53 percent of all New Zealanders, compared to 47 percent for the South Island. Urbanisation was on the march, but more people (54 percent) still lived in rural areas than in urban centres (46 percent). There were only five boroughs, namely Auckland, Wellington, Christchurch, Sydenham and Dunedin, with more than 10,000 people. With a population of 43,638 Wellington was the most populous centre.

Changes in the population's geographical spread have followed changes in the nature of employment. As the century began, work was predominately agricultural. At the 1901 Census one-third of people were working in agriculture, while by 1996, fewer than one in 10 were so employed. As employment opportunities shifted from rural areas to cities, people followed. Thus 86 percent of New Zealanders now live in urban areas (centres of population with 1,000 or more people) and nearly 70 percent in main urban areas (with populations of 30,000 or more) compared to 28 percent in 1901. Large scale and rapid Māori migration from rural to urban areas in the decades after World War II contributed to urbanisation.

EXTERNAL MIGRATION AND NATURAL INCREASE

Today, New Zealand is one of the most urbanised countries in the world, behind countries such as Singapore, Israel and the United Kingdom. New Zealanders are highly mobile – roughly half of us changed location between the 1991 and 1996 Censuses. Those aged in their twenties are the most mobile as they set out after education and work opportunities.

Over the 20th century, the redistribution of population was characterised by a ‘drift north’ with the proportion of New Zealanders living in the North Island increasing from one-half to three-quarters. A drift north has also been at work in the North Island, with the northern North Island (Northland, Auckland, Waikato and Bay of Plenty Regions) increasing its population share to over 50 percent by 1998.

At the end of the 20th century two recent features of our geographical distribution stood out. Auckland had joined the league of urban centres with more than 1 million residents, and there was a turnaround in the rural to urban drift of population. Also, between 1986 and 1996, the South Island gained more people from the North Island than the North Island gained from the South, thus reversing the historical pattern.

Future demographic prospects

Future population trends are difficult to predict, because demographic changes affect and are in turn influenced by social, economic and other circumstances. However, some broad trends and structural changes can be identified. For example, population ageing and sub-replacement fertility have raised the prospects of a slow or no growth environment in the coming decades. The entry of babyboomers into retirement ages after 2010 will result in a burgeoning elderly population. The New Zealand workforce will also age. In addition, latest projections point to greater ethnic diversity in the future, with the Māori, Pacific Islands and Asian populations all expected to increase their share of the New Zealand population. The regional distribution of the population will continue to change, with the northern North Island expected to increase its share.

Resident population projections. The results in this section draw on the medium series (series 4) of the 1999-base national population projections. These projections assume that: (a) New Zealand women will average just under two births each, (b) life expectancy at birth will increase by about 7 years for males to reach 82.0 years and by about 6 years for females to reach 86.5 years and (c) there will be a net migration gain of 5,000 people a year.

NEW ZEALAND POPULATION, MEDIUM SERIES
Measure19992050
Owing to rounding, individual figures may not always sum to the stated totals.
Population (000)
    All ages3,8114,633
    0–14 years875737
    15–64 years2,4902,715
    65-plus years4461,180
Births (000)5748
Deaths (000)2756
Annual population change (000)18-3
Median age (years)3445
Dependency ratio (per 100 people aged 15–64 years)
    Child (0–14 years)3527
    Elderly (65-plus years)1843
    Total (0–14, 65-plus years)5371

The New Zealand population is projected to pass the 4 million mark within the present decade and then peak at 4.6 million around 2044. This is an increase of 800,000 on the 1999 figure of 3.8 million. However, the pace of growth will not be uniform, and the rate is projected to slow down significantly from 0.8 percent in 2002 to 0.1 percent in 2039. This is due partly to the narrowing gap between births and deaths. Following the peak around 2044, the New Zealand population is projected to decline slowly, as the number of deaths exceed the combined total of births and migration gain.

The age structure of New Zealand's population will undergo significant changes as a result of past and likely future change in fertility, improvement in longevity and a change in migration patterns. Overall, the population will take on an older profile. The median age is projected to rise from 34 years in 1999 to 38 years by 2010, and further to 45 years in 2050 as the babyboomers enter retirement ages.

The number of children (0–14 years) is projected to drop by about one-sixth to around 740,000 by 2050. They will then make up a much smaller share of the population (16 percent) than in 1999 (23 percent). In contrast there will be an unprecedented growth in the number of New Zealanders in retirement ages (65 years and over). Their number will more than double, from 450,000 in 1999 to 1.2 million in 2050. By then, 25 percent of the population (or one in four) will be aged 65 years and over, up from 12 percent in 1999. In 1999 there were about two children for every person aged 65 years and over; by the early 2020s there will be about equal numbers of children and older people, but by 2050 there are projected to be about three older people for every two children.

The 65-plus age group itself will age. The number of New Zealanders aged 85 years and over is projected to grow more than five-fold, from 45,000 in 1999 to 290,000 by 2050. Then they will make up one-quarter of elderly New Zealanders compared with 10 percent in 1999. Improvement in life expectancy and the baby boom impact could also mean more centenarians (100-plus years); 12,000 in 2050 compared to 300 at present.

The working-age population (15–64 years) is projected to increase by 9 percent to 2.7 million by 2050. But its share of the total population will shrink significantly from 65 percent to 59 percent over the same period. The workforce will take on an older profile in the future. In 1999, those aged 40–64 made up 44 percent of the working-age population, a figure projected to rise to about 51 percent in 10 years. The median age of the working-age group is likely to increase from 37 years in 1999 to about 41 years in 2011, and then remain unchanged over the subsequent four decades.

ESTIMATED POPULATION AND POPULATION GROWTH
Statistics New Zealand

As in other countries experiencing population ageing, there has been much public debate in New Zealand about the likely financial implications of the burgeoning elderly population on the public expenditure on superannuation and health. Such discussions draw on the demographic dependency ratio, which relates the number of people in dependent age groups (defined as 0–14 years and 65-plus years) to the working-age population (15–64 years). However, this is a crude measure because it does not take into account that some people aged 15–64 years may not be in the workforce and some people aged 65-plus years may still be gainfully employed. The child dependency ratio (the ratio of children under 15 to the working-age population) is projected to drop by about one-quarter over the next half-century. In contrast the total dependency ratio (child plus elderly) is expected to increase from 53 per 100 in 1999 to 71 per 100 in 2050. This largely reflects the sharp upturn in the numbers of elderly people, which will more than double from 18 elderly people per 100 working-age people to 43 per 100 over the 50-year period.

ALTERNATIVE POPULATION SERIES
By fertility rate1
Series Identifier:ABCD

1These series assume medium mortality and 5,000 annual net migration.

2These series assume medium fertility (1.90 births per woman) and medium mortality.

3Half the population is older and half the population younger than this age.

4Population aged 0–14 years per 100 population aged 15–64 years.

5Population aged 65-plus years per 100 population aged 15–64 years.

YearTotal fertility rate (births per woman)
 1.651.902.152.50
Population (million)
19993.83.83.83.8
20504.24.65.15.8
Median age (years)3
199934343434
205049454238
Population aged 0–14 years (percent)
199923232323
205013161822
Population aged 15–64 years (percent)
199965656565
205059595858
Population aged 65-plus years (percent)
199912121212
205028252320
Child dependency ratio4
199935353535
205023273137
Elderly dependency ratio5
199918181818
205048434035
By migration level2
Series Identifier:EFGH
YearAnnual net migration
 05,00010,00020,000
Population (million) 
19993.83.83.83.8
20504.34.65.05.7
Median age (years)3
199934343434
205046454544
Population aged 0–14 years (percent)
199923232323
205016161617
Population aged 15–64 years (percent)
199965656565
205058595960
Population aged 65-plus years (percent)
199912121212
205026252523
Child dependency ratio4
199935353535
205027272728
Elderly dependency ratio5
199918181818
205045434239

Alternative growth scenarios. Given the uncertainty about future demographic events, Statistics New Zealand does not predict the future population but compiles alternative demographic scenarios using different combinations of assumptions on future fertility, mortality and migration. These furnish a range within which the future population size and structure may lie if the stated assumptions are met. They allow users to assess changes under different scenarios. For example, how would the population change if the annual migration level was 10,000 a year, instead of 5,000 a year or if the long-term fertility rate was above replacement level instead of 1.90 births per woman (the medium variant)?

MāORI, PACIFIC ISLANDS AND ASIAN POPULATION PROJECTIONS
YearTotal New ZealandMāoriPacific IslandsAsian1

1The Asian projections only extend to 2016 because of uncertainty about the future level of Asian migration.

2Half the population is older than this age.

Population (000)
19963,714548213186
20164,258728339370
20504,633987591-
Population change 1996–2050 (percent)2580177-
Median age (year)2
199633222127
201639262434
2050453229-

Alternative fertility scenarios were charted using both our post-war experience and recent international reproductive norms as a guide. Low fertility (series A), which assumes that New Zealand women would average 1.65 births each during the projection period, results in a smaller and much older population. The population peaks at 4.4 million in the mid 2030s and then declines slowly to 4.2 million by 2050. In contrast, high fertility (series D), which assumes 2.50 births per woman, results in 5.8 million people by 2050 and a more youthful population.

The size and direction of New Zealand's external migration balance has fluctuated significantly over the last 100 years, averaging gains of about 5,000 people a year. Four different migration levels have been assumed here, ranging from no gain (series E) to a net gain of 20,000 a year (series H). Overall, larger migration gains would result in larger populations, but are unlikely to significantly retard the ageing process.

Growing ethnic diversity. The ethnic mosaic of New Zealand's population is changing, with minorities (Māori, Pacific Islands and Asian) making up a growing proportion of the population. In part, this reflects the past and existing differentials in fertility, as well as the impact of growing inter-marriage and changes in immigration policy. It may also be attributed to the fact that the Māori, Pacific Islands and Asian populations have more youthful age structures and thus a greater built-in momentum for growth than the European population.

The 1996-base ethnic population projections presented here are based on the concept of self-identification. Accordingly, each ethnic group excludes people who have the same ancestry but do not identify with that ethnic group; but includes people who identify with that ethnic group either solely or with other ethnic groups as well. Some people are counted in two or more ethnic groups and therefore the Māori, Pacific Islands and Asian populations discussed here are not mutually exclusive.

The Māori, Pacific Islands and Asian populations are all projected to grow at a faster pace than the total New Zealand population. The number of Māori people is projected to roughly double by 2050, reaching nearly 1 million. Over the same period, the Pacific Islands population in New Zealand will grow nearly three-fold to reach about 600,000. The Pacific Islands population's faster growth is accounted for by immigration, whereas for Māori the projections assume a small net emigration. The Asian population is projected to double in two decades and reach 370,000 by 2016. The shorter projection period for the Asian population reflects the volatility of Asian migration levels in recent years, and the uncertainty of future immigration policy.

Diversity in fertility and migration patterns means that each ethnic group will age differently in the coming decades. With a median age of 34 years in 1996, Europeans are the oldest group in New Zealand. The Māori and Pacific Islands groups have a far more youthful structure, with median ages of 22 and 21 years respectively. Despite significant ageing, the median age of the Māori (32 years) and Pacific Islands populations (29 years) in 2050, will still be lower than the median age of the total New Zealand population (34 years) in 1999.

Subnational population projections. New Zealanders are highly urbanised, highly mobile by international standards and disproportionately concentrated in the North Island, especially its northern regions.

According to latest (1996-base) projections, about 90 percent of population growth in New Zealand during the 25-year period to 2021 will occur in the North Island, primarily in the four northern-most regions – Northland, Auckland, Waikato and Bay of Plenty. Their combined population will increase by about one-third, from 1.8 million in 1996 to 2.4 million in 2021. The population in the remainder of the North Island – Gisborne, Hawke's Bay, Taranaki, Manawatu-Wanganui and Wellington Regions – is expected to drop slightly to 956,000 by 2021. The South Island's population is projected to increase by just 7 percent to reach 980,000. As with the North Island, the fastest rates of growth in the South Island will occur in the northern areas – Nelson, Marlborough and Tasman Regions.

Given these growth differentials, the northern North Island will be home to 55 percent of all New Zealanders by 2021, up from 49 percent in 1996. In contrast, the southern North Island's share will drop from 26 to 22 percent and that of the South Island from 25 percent to 23 percent.

Among the 15 main urban areas (population over 30,000), Tauranga is projected to experience the greatest growth (up 46 percent) during the period 1996–2021, followed by Auckland (up 38 percent), Nelson (up 26 percent) and Hamilton (up 22 percent). The Auckland Urban Area is projected to have the greatest numerical increase, up from 1.0 million to 1.4 million – equivalent to adding the current Auckland City population to the area over the 25-year period. By 2021, Auckland will be home to one-third (33 percent) of all New Zealanders, up from 28 percent in 1996.

Growth rates are projected to vary among the 15 cities and 59 districts. According to 1996-base projections, leading growth areas are likely to include: Rodney, Queenstown-Lakes, Franklin, Tauranga and Western Bay of Plenty Districts, Manukau City and Waimakariri District, all with growth rates in excess of 40 percent during 1996–2021. In contrast, Invercargill City, Gore, Southland, South Waikato, and Kawerau Districts are all projected to experience decreases in population of about 20 percent.

Overall then, New Zealanders will become more urbanised in the next two decades and more will live in the northern North Island. It will be interesting to monitor what impact population ageing will have on the geographical distribution of population.

PROJECTED POPULATION CHANGE, 1996–2021
For selected territorial authority areas (15 highest and 10 lowest growth rate areas)

Conclusion

The demographic legacy of the 20th century is quite diverse in its scope and dynamics. Although fertility was below the replacement level for most of the last 20 years and is likely to remain so in the foreseeable future, New Zealand's population will continue to grow for some time. This is because our current age structure has a built-in momentum for further growth. Slow growth aside, there will be profound shifts in population composition, including further ageing of the population, a burgeoning elderly population, growing ethnic diversity and possible geographical redistribution of population (especially within territorial authorities). These demographic developments will add new dimensions to policy choices, in an age which is likely to witness extraordinary technological progress.

Further reading

Cook, Len 2000. Looking Past the 20th Century. Statistics New Zealand.

Cook, Len 1997. New Zealand's Current and Future Population Dynamics. A paper presented at the Population Conference held on 13 and 14 November. Statistics New Zealand.

Cook L, Didham R, Khawaja, MA 1999. On the Demography of Pacific People in New Zealand. Statistics New Zealand.

Demographic Trends. Statistics New Zealand (annual).

Khawaja, MA 2000. Population Ageing in New Zealand in Key Statistics, January/February 2000. Statistics New Zealand.

New Zealand Life Tables 1995–1997. 1998. Statistics New Zealand

New Zealand Now: Ageing and Retirement. 1997. Statistics New Zealand.

New Zealand Now: Baby Boomers. 1995. Statistics New Zealand.

5 Population

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

Family formation patterns have changed radically, the divorce rate has soared, and de facto unions have become common. The average family size has shrunk to less than half of what it was and is now at a 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, highlighting modern trends in New Zealand's demography.

Table 5.1. TOTAL NEW ZEALAND POPULATION, 1858–1996 CENSUSES

Census12Total populationIntercensal increase
NumberPercentAverage annual (percent)

1Omits censuses of 1861, 1864, 1867 and 1871 as censuses of Māori population were not taken in these years.

2Data from 1981 onwards has been revised and is now based on the resident population concept, rather than the de facto population concept which has been used in the past.

Source: Statistics New Zealand

1858, 24 December115,462---
1874, 1 March344,984---
1878, 3 March458,007113,02332.767.33
1881, 3 April534,03076,02316.605.10
1886, 28 March620,45186,42116.183.07
1891, 5 April668,65148,2007.771.49
1896, 12 April743,21474,56311.152.13
1901, 31 March815,86272,6489.771.89
1906, 29 April936,309120,44714.762.75
1911, 2 April1,058,312122,00313.032.52
1916, 15 October1,149,22590,9138.591.50
1921, 17 April1,271,668122,44310.652.27
1926, 20 April1,408,139136,47110.732.06
1936, 24 March1,573,812165,67311.771.13
1945, 25 September1,702,330128,5188.170.83
1951, 17 April1,939,472237,14213.932.37
1956, 17 April2,174,062234,59012.102.31
1961, 18 April2,414,984240,92211.082.12
1966, 22 March2,676,919261,93510.852.11
1971, 23 March2,862,631185,7126.941.35
1976, 23 March3,129,383266,7529.321.80
1981, 24 March3,143,30740,0421.290.26
1986, 4 March3,263,284119,9773.820.76
1991, 5 March3,373,927110,6433.390.67
1996, 5 March3,618,302244,3757.241.41

POPULATION GROWTH
Percentage annual increase

Lambton Quay pedestrians, Wellington, 1977.

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, and the third was 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 3.62 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 40,042 during 1976–81, 119,977 during 1981–86, 110,643 during 1986–91 and 244,375 over the latest intercensal period, 1991–96.

Enumerating our population

Results from the 1996 Census Post Enumeration Survey reveal that 45,000 New Zealand residents (1.2 percent of the population) were not enumerated by the 1996 Census. Likewise, at the time of the 1996 Census, 40,000 New Zealand residents were temporarily overseas and thus did not complete a census return. Since these people pay taxes, use health and educational facilities, vote, etc, they are for most purposes part of our administrative population base. Traditional ways of measuring the population, based on the de facto population concept, have excluded these people but included tourists temporarily visiting New Zealand. The 1996 Census enumerated 63,000 temporary visitors in New Zealand on census night.

In order to ensure that estimates more accurately reflect the population which resides in an area, Statistics New Zealand has adopted the ‘resident’ population concept as a standard for producing official population estimates and projections. The resident population estimates make adjustments for the estimated net undercount at the 1996 Census and for the estimated number of New Zealand residents temporarily overseas on 5 March 1996.

Table 5.2. ESTIMATED POPULATION, 1885–1998

YearTotal population at 31 DecemberMean population for year ended 31 December

P = Provisional; R = Revised.

Source: Statistics New Zealand

De facto population
1885619,323613,862
1886631,355624,275
1887645,330638,343
1888649,349647,340
1889658,021653,685
1890667,477662,749
1891676,051671,776
1892692,426684,239
1893714,258703,342
1894728,121721,190
1895740,699734,410
1896754,016746,288
1897768,910761,463
1898783,317776,114
1899796,359789,838
1900808,132802,246
1901830,800821,111
1902851,072840,936
1903875,648863,360
1904900,682888,165
1905925,605913,144
1906956,457943,325
1907977,215966,836
19081,008,373992,794
19091,030,6571,019,515
19101,050,4101,040,534
19111,075,2501,063,887
19121,102,4711,088,861
19131,134,5061,118,488
19141,145,8381,140,172
19151,152,6381,149,238
19161,150,3391,149,225
19171,147,4481,148,893
19181,158,1491,152,798
19191,227,1811,192,665
19201,257,6111,242,396
19211,292,7171,276,652
19221,318,8841,305,126
19231,343,0211,328,193
19241,370,4031,352,618
19251,401,2301,384,428
19261,429,7001,413,800
19311,522,7001,514,200
19361,584,6001,575,200
19391,641,6001,628,500
19401,633,6001,637,300
19411,631,2001,630,900
19421,636,4001,639,500
19431,642,0001,635,600
19441,676,3001,655,800
19451,727,8001,694,700
19461,781,2001,759,600
19471,817,5001,798,300
19481,853,9001,834,700
19491,892,1001,871,700
19501,927,7001,909,100
19511,970,5001,947,600
19522,024,6001,996,200
19532,074,7002,048,800
19542,118,4002,094,900
19552,164,8002,139,000
19562,209,2002,182,800
19572,262,8002,232,500
19582,316,0002,285,800
19592,359,7002,334,600
19602,403,6002,377,000
19612,461,3002,426,700
19622,515,8002,484,900
19632,566,9002,536,900
19642,617,0002,589,100
19652,663,8002,635,300
19662,711,3002,682,600
19672,745,0002,727,700
19682,773,0002,753,500
19692,804,0002,780,100
19702,852,1002,819,600
19712,898,5002,864,200
19722,959,7002,915,600
19733,024,9002,977,100
19743,091,9003,041,800
19753,143,7003,100,100
19763,163,4003,131,800
19773,166,4003,142,600
19783,165,2003,143,500
19793,163,9003,137,800
19803,176,4003,144,000
19813,194,5003,156,700
19823,226,8003,180,800
19833,264,8003,221,700
19843,293,0003,252,800
19853,303,1003,271,500
19863,313,5003,277,000
19873,342,1003,303,600
19883,345,2003,317,000
19893,369,8003,330,200
19903,410,4003,362,500
Resident population
19913,498,1003,477,900
19923,534,4003,515,000
19933,579,9003,555,800
19943,630,4003,603,700
19953,688,7003,657,900
19963,743,4003,715,700
19973781300R3,762,300
19983,805,6003,793,200
19993825700P3812800P

Original settlers at Norsewood attend their Golden Jubilee, 1922.

The latest population estimates show New Zealand's resident population has grown by more than 120,000 since the 1996 Census to reach 3,825,700 at 31 December 1999.

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 grow at a greater rate, and its share of the total population has continued to increase. In 1956, the North Island was home to 69 percent of all New Zealanders; by 1976 this figure had risen to over 72 percent and in 1996 was almost 75 percent.

Table 5.3. POPULATION OF NORTH AND SOUTH ISLANDS, 1858–1996 CENSUSES

Census1North IslandSouth IslandTotal populationCensus1North IslandSouth IslandTotal population

1Data from 1981 onwards has been revised and is now based on the resident population concept, rather than the de facto population concept which has been used in the past.

2Includes no fixed abode/not specified. Note: The North Island includes the population of Kermadec Islands and people on oil rigs. The South Island includes the populations of the Chatham Islands District and Campbell Island.

Source: Statistics New Zealand

185887,15028,312115,46219361,018,038555,7741,573,812
1874155,472189,512344,98419451,146,315556,0151,702,330
1878199,523258,484458,00719511,313,869625,6031,939,472
1881234,648299,382534,03019561,497,364676,6982,174,062
1886290,009330,442620,45119611,684,785730,1992,414,984
1891321,247347,404668,65119661,893,326783,5932,676,919
1896377,954365,260743,21419712,051,363811,2682,862,631
1901431,471384,391815,86219762,268,393860,9903,129,383
1906521,899414,410936,309 
1911610,599447,7131,058,31219812,303,985837,42931433072
1916695,396453,8291,149,22519862,412,660850,6233,263,286
1921791,918479,7501,271,66819912,520,348853,5783,373,926
1926892,679515,4601,408,13919962,718,189900,1143,618,303

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 1991–96, 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 REGIONS, 1991–1996

RegionsUsually resident population aged 5 years and over at 1996 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
Northland125,40617,92218,04535,967-123-0.34
Auckland983,24464,90859,964124,8724,9503.96
Waikato321,08742,62742,91285,539-291-0.34
Bay of Plenty205,72833,22224,66057,8828,57114.81
Gisborne41,5625,1696,67511,844-1503-12.69
Hawke's Bay131,31013,93216,62030,552-2685-8.79
Taranaki98,3198,70312,60021,303-3900-18.31
Manawatu-Wanganui210,79827,98131,43459,415-3444-5.80
Wellington382,59934,52741,06475,591-6534-8.64
Tasman35,1997,6925,77813,4701,91714.23
Nelson37,5758,1127,50015,6125973.82
Marlborough35,7126,6635,40012,0631,26310.47
West Coast29,9104,8125,41810,230-600-5.87
Canterbury436,65637,17931,38368,5625,8058.47
Otago173,11521,99920,67942,6781,3233.10
Southland89,7937,51512,84620,361-5346-26.26

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.

Table 5.5. URBAN-RURAL POPULATION, 1881–1996 CENSUSES1

Census2UrbanRural
numberpercentnumberpercent

1Excludes shipping.

2Data from 1981 onwards has been revised and is now based on the resident population concept, rather than the de facto population concept which has been used in the past.

3Boroughs and cities vs counties (including town districts).

4Urban areas and towns with over 1,000 population vs remaining population.

5Based on boundaries as at 5 March 1996.

Source: Statistics New Zealand

Non-Māori population3
1881194,98140.1291,23859.9
1886245,61242.9327,32857.1
1891270,34343.4352,09756.6
1896307,29444.0391,73556.0
1901350,20245.6417,59654.4
1906424,61448.1458,79751.9
1911505,59850.4496,77949.6
1916585,30653.9501,25946.1
1921681,98856.2530,85243.8
Total population4
1926953,17368.0448,50132.0
19361,065,22867.9503,88532.1
19451,227,06972.2472,07627.8
19511,406,51672.7527,07827.3
19561,600,80873.8568,80626.2
19611,840,20276.4569,21723.6
19662,119,08579.3553,02320.7
19712,328,87681.5528,60918.5
19762,614,11983.6511,00416.4
198152,629,88483.76510,00316.24
198652,779,38085.21482,33714.79
199152,883,36085.48489,93314.52
199653,090,41185.44526,56314.56

Urban areas

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.

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 (places with between 10,000 and 29,999 people) 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.

Table 5.6. POPULATION OF 20 LARGEST URBAN AREAS AT SELECTED CENSUSES

Urban area188611911119361961198623199123199623

1Excludes Māori.

2Boundaries as at 5 March 1996.

3Data from 1986 onwards has been revised and is now based on the resident population concept, rather than the de facto population concept which has been used in the past.

Source: Statistics New Zealand

Auckland33,161102,676226,366448,365816,927878,235991,797
Wellington25,94570,729159,357249,532323,373324,162334,050
Christchurch29,65580,193133,515220,510295,749303,411325,251
Hamilton12013,54220,09650,505138,645146,148158,046
Dunedin23,24364,23785,607105,003107,361107,523110,802
Tauranga114813465,80824,65962,37670,29382,287
Palmerston North260610,99124,37243,18566,95170,23673,860
Hastings15046,28617,92032,49056,71857,21958,494
Rotorua 2,3908,89925,06852,52452,12554,297
Napier7,68011,73619,17032,71648,85550,77252,953
Nelson7,3158,23413,49325,32143,72545,87650,691
Invercargill8,25115,85825,91241,08852,81851,54049,404
New Plymouth3,0935,23818,59732,38747,37047,65548,870
Whangarei 2,6649,86821,79044,19644,34645,891
Wanganui4,90114,70225,75035,69440,51241,10041,097
Gisborne2,1948,19615,87825,06532,01931,40132,607
Kapiti 10685,36712,30523,04027,34530,288
Timaru3,75411,28018,77126,42428,74327,78627,324
Blenheim3,0943,7715,03611,95622,99823,78725,713
Masterton 5,1829,09615,12119,35319,76719,689

GROWTH OF URBAN AREAS
Average annual intercensal growth rates for main urban areas

Population of local government areas today

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

The new Napier tramway system opens, 1913.

URBANISATION, 1996
Selected countries and continents

URBAN DRIFT
Ratio of urban to rural population

Table 5.7. RESIDENT POPULATION OF TERRITORIAL AUTHORITY AREAS

Cities/districtsEstimated population at 30 JuneAnnual rate of population change June 1998–19994
1996199811999

1Figures have been rounded.

2The population base for these estimates is the number of New Zealand residents in New Zealand on Census night, 5 March 1996, adjusted for the estimated undercount at the 1996 Census (45,000) and for the estimated number of New Zealand residents temporarily overseas on 5 March 1996 (40,000).

3Revised.

4A minus sign indicates a decrease in population.

5Includes persons on shipboard, and the population of Campbell, Kermadec, Mayor and Motiti Islands (not within city or district boundaries), and people on oil rigs. Note: Owing to rounding, individual figures may not always sum to give the stated totals.

Source: Statistics New Zealand

Citiesnumberpercent
North Shore178,400185,700187,7002,0001.1
Waitakere160,200167,500170,6003,1001.9
Auckland361,900377,900381,8003,9001.0
Manukau264,200277,400281,8004,4001.6
Hamilton111,100115,700117,10014001.2
Napier54,60054,80054,500-300-0.5
Palmerston North74,90075,00075,2002000.3
Porirua47,80047,70047,600-100-0.2
Upper Hutt37,50037,40037,300-100-0.3
Lower Hutt98,30098,50098,100-400-0.4
Wellington162,700165,800166,7009000.5
Nelson41,10041,40041,400-0.0
Christchurch316,700322,600324,20016000.5
Dunedin120,300119,900119,600-300-0.3
Invercargill5,40051,90050,700-1200-2.3
            Total cities2,083,7002,139,3002,154,30015000.7
Districts
Far North54,10056,00056,6006001.1
Whangarei68,00069,70070,0003000.4
Kaipara17,70017,75017,800500.3
Rodney6,80072,30073,80015002.1
Papakura40,80041,60041,8002000.5
Franklin48,90051,40052,2008001.6
Thames-Coromandel25,20026,30026,6003001.1
Hauraki17,70017,75017,700-50-0.3
Waikato40,00040,60041,0004001.0
Matamata-Piako30,20029,80029,600-200-0.7
Waipa39,60040,10040,3002000.5
Otorohanga9,9009,9709,950-20-0.2
South Waikato25,70025,00024,400-600-2.4
Waitomo9,9609,7109,540-170-1.8
Taupo31,40032,40032,5001000.3
Western Bay of Plenty35,70037,70038,6009002.4
Tauranga79,20085,00087,1002,1002.5
Rotorua66,10067,20067,200-0.0
Whakatane33,90034,10033,900-200-0.6
Kawerau8,0507,7407,510-230-3.0
Opotiki9,6009,7609,820600.6
Gisborne46,90046,70046,600-100-0.2
Wairoa10,15010,0009,890-110-1.1
Hastings67,70068,20068,100-100-0.1
Central Hawke's Bay13,25013,10013,000-100-0.8
New Plymouth69,40068,80068,200-600-0.9
Stratford9,7009,4209,240-180-1.9
South Taranaki29,70028,80028,300-600-1.7
Ruapehu17,20016,90016,650-250-1.5
Wanganui45,80045,30044,900-400-0.9
Rangitikei16,65016,30016,000-300-1.8
Manawatu28,60028,60028,600-0.0
Tararua19,40018,75018,400-350-1.9
Horowhenua30,70030,60030,400-200-0.7
Kapiti Coast39,30040,60041,2006001.5
Masterton23,20023,00022,700-300-1.3
Carterton6,9106,7606,690-70-1.0
South Wairarpa9,1108,9208,860-60-0.7
Tasman38,60039,50040,0005001.3
Marlborough39,00039,70039,9002000.5
Kaikoura3,5703,5803,620401.1
Buller10,70010,55010,350-200-1.9
Grey13,95013,95013,900-50-0.4
Westland8,4108,3708,270-100-1.2
Hurunui9,5709,7409,810700.7
Waimakariri32,90034,60035,4008002.3
Banks Peninsula7,7307,8007,9001001.3
Selwyn25,40026,80027,3005001.9
Ashburton25,60025,60025,500-100-0.4
Timaru43,30042,80042,500-300-0.7
Mackenzie4,1604,2404,240-0.0
Waimate7,7607,6207,520-100-1.3
Chatham Islands750750740-10-1.3
Waitaki21,90021,50021,100-400-1.9
Central Otago15,15014,90014,650-250-1.7
Queenstown-Lakes14,75015,70016,0503502.2
Clutha18,35018,10017,900-200-1.1
Southland31,10030,60030,200-400-1.3
Gore13,45013,20013,000-200-1.5
            Total districts1,629,4001,652,2001,655,4003,2000.2
            Total New Zealand53,714,1003,792,4003,810,70018,3000.5

Table 5.8. RESIDENT POPULATION OF REGIONS12

RegionEstimated population at 30 June
1996199831999Annual rate of population change June 1998–19994

1Figures have been rounded.

2The population base for these estimates is the number of New Zealand residents in New Zealand on Census night, 5 March 1996, adjusted for the estimated undercount at the 1996 Census (45,000) and for the estimated number of New Zealand residents temporarily overseas on 5 March 1996 (40,000).

3Revised.

4A minus sign indicates a decrease in population.

5Includes the population of Kermadec Islands and people on oil rigs.

6Includes the populations of Chatham Islands District and Campbell Island.

Source: Statistics New Zealand

North Islandnumberpercent
Northland139,900143,400144,40010000.7
Auckland1,109,1001,159,8001,175,50015,7001.4
Waikato358,000365,300366,80015000.4
Bay of Plenty229,300238,300240,8002,5001.0
Gisborne46,90046,70046,600-100-0.2
Hawke's Bay145,800146,200145,600-600-0.4
Taranaki108,500106,800105,500-1300-1.2
Manawatu-Wanganui233,400231,700230,400-1300-0.6
Wellington424,900428,700429,2005000.1
            Total, North Island52,795,8002,866,9002,884,80017,9000.6
South Island
Tasman38,60039,50040,0005001.3
Nelson41,10041,40041,400-0.0
Marlborough39,00039,70039,9002000.5
West Coast33,10032,90032,600-300-0.9
Canterbury478,600487,300489,9002,6000.5
Otago188,600188,200187,400-800-0.4
Southland98,50095,70094,000-1700-1.8
            Total, South Island6918,300925,500925,9004000.0>
Total, New Zealand3,714,1003,792,4003,810,70018,3000.5

Christchurch Karitane Hospital nurses and their charges, 1943.

5.3 Components of population change

Population change has two main components, natural increase (the excess of births over deaths) and net migration (the difference between arrivals and departures). 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 three five-year periods (1941–45, 1966–70 and 1981–85), it contributed less than one-tenth of the total population growth, while in a further three periods (1931–35, 1976–80 and 1986–90) because of a net population outflow, its contribution was negative.

The volatility of migration trends contrasted with the upward trend in natural increase until 1961. The rise in natural increase has been prodigious. In 1861–65, births exceeded deaths by only 16,610. By 1961–65, the margin had soared to 205,164. Since then, the gap between births and deaths has tended to diminish because of a significant 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, a result of an upturn in births.

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

Fertility

Changing levels of fertility have played a major role in determining the size and structure of New Zealand's population over the years.

In 1935 the fertility rate in New Zealand fell to a low of 2.2 births per woman. This low rate is attributed to fewer and later marriages, and family limitation within marriage exerting their influence. Fertility started to recover, once the worst years of the economic depression were over. With the demobilisation of forces after World War II and the resulting increase in marriages and births, the fertility rate reached 3.6 births per woman in 1947.

Table 5.9. FERTILITY TRENDS AND PATTERNS

Year ended 31 DecemberTotal live birthsCrude birth rate2Total fertility rate3Gross reproduction rate45Net reproduction rate56Ex-nuptial birth rate57

1Non-Māori population only.

2Per 1,000 estimated mean population.

3Average number of births a woman would have during her reproductive life using the fertility rates characteristic of various childbearing age groups in that year.

4Average number of daughters a woman would have during her reproductive life, assuming that the age-of-mother-specific birth rates experienced during that year continue to apply.

5Figures before 1966 are for non-Māori population.

6Average number of daughters that a woman would have during her reproductive life, assuming that the age-of-mother-specific birth rates and mortality rates experienced during that year continue to apply.

7Ex-nuptial births per 1,000 estimated mean number of not-married women aged 15–49 years. (Before 1966, rates are based on census counts of not-married women aged 15–44 years.)

8Births and fertility rates for 1998 are lower than expected because of a small change to the rate at which births were registered during 1998.

Note: Births and fertility rates for 1991 onwards are based on the resident population concept, replacing the de facto population concept that has been used in the past.

Source: Statistics New Zealand

1881118,73238.00    
1886119,29933.14    
1891118,27329.01   9.38
1896118,61226.35   9.44
1901120,49126.34   9.04
1906124,25227.08   9.92
1911126,35425.99   8.93
1916128,50925.93   9.24
192129,62323.24   9.21
192629,90421.152.88  9.92
193128,86719.062.56   
193628,39518.032.301.040.976.71
194139,17024.022.931.371.27 
194647,52427.013.451.591.4711.67
195149,80625.573.601.641.5814.85
195656,53125.903.981.841.7717.79
196165,39026.954.312.031.9624.14
196660,00322.373.411.661.6136.92
197164,46022.513.181.551.5144.39
197655,10517.602.271.091.0736.86
198150,79416.092.010.980.9638.81
198652,82316.121.960.960.9439.80
198755,25416.732.030.980.9642.44
198857,54617.352.101.021.0045.85
198958,09117.442.121.041.0148.83
199060,15317.892.181.071.0450.95
199159,91117.232.101.021.0050.33
199259,16616.832.070.990.9850.06
199358,78216.532.050.990.9750.31
199457,32115.911.990.970.9548.68
199557,67115.771.990.960.9450.21
199657,28015.421.960.950.9449.72
199757,60415.311.970.970.9649.05
1998855,34914.591.910.920.9147.11

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 ‘babyboomers'.

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. This drop had a great impact on the annual number of births. 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.

MEDIAN AGE OF CHILDBEARING
Based on live confinements1

After 1983 there has been a minor resurgence in fertility to 2.10 in 1991, subsequently the total fertility rate dropped to 1.91 in 1996 and further to 1.94 in 1998. 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 deferment of childbearing by young women, or is a long-term trend, reflecting a permanent shift to smaller families.

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 parenthood. (See also section 6.2: Marriage.)

Between 1971 and 1986, the first marriage rate for women aged 20–24 years dropped by about two-thirds, from 314 to 113 marriages per 1,000 never-married women aged 20–24 years. By 1996, the first marriage rate for women aged 20–24 years had dropped to 48 per 1,000. New Zealand women are marrying for the first time, on average, nearly six years later than those who married for the first time in 1971. The average age at first marriage in 1998 for women was 27.5 years and 29.5 years for men. This compares with 21.7 and 24.2 years, respectively, in 1971.

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 over 24,000 in 1997. Ex-nuptial births comprised 12 percent of all births registered in New Zealand in 1966, and 42 percent in 1997. Changing social norms have contributed to this increase.

BIRTHS OUTSIDE MARRIAGE
Ex nuptial birth rate1

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.

The transition in Māori fertility from relatively large to small families is of more recent origin. Latest demographic measures indicate that there is still a significant ethnic differential in fertility levels in New Zealand. In 1996, the fertility rate for Māori women was 2.7 births per woman and for Pacific Islands women 3.5 births, compared with 1.8 births for European women.

IMPLIED FAMILY SIZE
Total fertility rate1

Mortality

New Zealand has been quite successful in raising the average life expectancy of its population over the past hundred years. A temperate climate, low population density, lack of heavy industry and good nutrition gave New Zealand an early advantage over other nations in terms of health conditions.

From the middle of the nineteenth century until the 1930s, New Zealand had the lowest mortality rates in the world.

A large part of this improvement in longevity occurred prior to the 1930s, and was due to the saving of life at younger ages. The infant mortality rate fell steadily in association with a major reduction in infectious diseases (and respiratory diseases), which were previously the main causes of death in New Zealand.

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

Since 1970–72, there has been a gain of 5.7 years in the life expectancy at birth of men and 5.0 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 live births in 1939 to 20.5 per 1,000 in 1962, and further to 5.5 per 1,000 in 1998, it is still high compared with some European countries, particularly its post neo-natal component (that is, the 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 about 3 years. By 1950–52 the female advantage had increased to 4 years, and by 1975–77, it was 6.4 years. However, because males have made greater longevity gains than females in the past two decades, the male-female difference in mortality has narrowed to 5.3 years in 1995–97.

Life expectancy also varies according to ethnicity. Non-Māori generally have lower mortality rates than Māori. As a result, life expectancy at birth for non-Māori was greater than that for Māori by 8.1 years for males and 9.0 years for females, according to the latest 1995–97 life tables. It is not possible to compare these latest Māori and non-Māori life tables with earlier life tables because of a change to the ethnicity question on the death registration form that was introduced in 1995.

According to the 1995–97 life tables a newborn Māori girl can expect to live 71.6 years, and a newborn Māori boy can expect to live 67.2 years, a difference of 4.4 years. For the non-Māori, life expectancy at birth was 80.6 years for females and 75.3 years for males, a difference of 5.3 years.

Table 5.10. VITAL STATISTICS SUMMARY

Year ending 31 DecemberTotal live births (a)Total deaths (b)Natural increase (a)-(b)Average age at death2Male(years)Female

1Excludes Māori population.

2Figures before 1950 exclude Māori population.

3Births for 1998 are lower than expected because of a small change to the rate at which births were registered during 1998.

Note:The figures in the above table for 1991 onwards are based on the resident population concept, replacing the de facto population concept that has been used in the past.

Source: Statistics New Zealand

1885119,6936,08113,612 57.2 
1890118,2785,99412,284 58.1 
1895118,5466,86311,683 60.0 
1900119,5467,20012,346 60.6 
1905123,6828,06115,621 61.8 
1910125,9849,63916,345 63.5 
1915127,8509,96517,885 64.2 
1920129,92112,10917,812 65.4 
192529,86911,84418,025 66.3 
193028,82213,14515,677 67.7 
193527,15013,66413,486 68.5 
194036,94515,87521,070 69.1 
194541,53417,68623,848 70.6 
195049,33118,08431,24760.0 61.8
195555,59619,22536,37160.7 64.3
196062,77920,89241,88762.2 65.9
196560,04722,97637,07162.9 68.0
197062,05024,84037,21063.2 68.8
197556,63925,11431,52563.4 69.5
198050,54226,67623,86665.7 71.0
198551,79827,48024,31866.4 72.8
199060,15326,53133,62266.5 73.3
199159,91126,38933,52267.0 73.7
199259,16627,11532,05167.8 74.3
199358,78227,10031,68268.1 74.3
199457,32126,95330,36868.7 74.7
199557,67127,81329,85868.8 74.8
199657,28028,25529,02568.9 75.1
199757,60427,47130,13368.9 75.3
1998355,34926,20629,14369.1 75.5

LONGER LIVES
Average age at death

Pensioners, 1978.

Table 5.11. HISTORICAL LIFE EXPECTANCIES: INTERNATIONAL COMPARISON

Expectation of life at birth, in years
CountryYear/PeriodMalesFemalesCountryYear/PeriodMalesFemales

1Non-Māori population only.

Source: Statistics New Zealand

New Zealand1901158.160.6New Zealand1980–8270.476.4
Australia1901–1055.258.8Australia198171.478.4
Denmark1895–190050.253.2Denmark1981–8571.577.5
Japan1899–190337.838.2Japan198073.378.8
Norway1891–190050.454.1Norway1981–8272.679.4
United Kingdom190648.051.6United Kingdom198170.876.8
New Zealand1950–5267.271.3New Zealand1990–9272.978.7
Australia1953–5567.172.8Australia199375.080.9
Denmark1951–6070.173.2Denmark1991–9272.477.8
Japan1950–5259.663.0Japan199276.182.2
Norway1951–5571.174.7Norway199274.280.3
United Kingdom195166.271.2United Kingdom199073.078.5
New Zealand1970–7268.674.6New Zealand1995–9774.379.6
Australia1975–7769.576.4Australia1994–9675.281.1
Denmark1971–7570.976.5Denmark1995–9672.978.0
Japan197069.374.7Japan199677.083.6
Norway1971–7571.477.7Norway199675.181.1
United Kingdom197168.875.0United Kingdom1994–9674.179.4

BIRTH AND DEATH RATES1
For total population2

LIFE EXPECTANCY
At birth for selected periods1

Table 5.12. DEATH RATES: SUMMARY

Year ended 31 DecemberUnder 121–45–1415–2425–3435–4445–5455–6465–7475 and over

1Figures for non-Māori only, as age group figures for Māori not available for these years.

2Per 1,000 live births.

Note: Death rates for 1991 onwards are based on the resident population concept, replacing the de facto population concept that has been used in the past.

Source: Statistics New Zealand

rates per 1,000 of mean population in each age group
Males
1901178.606.811.893.523.976.1611.9423.1250.59141.67
1921153.104.781.852.443.565.559.6119.9646.17128.60
194143.654.391.362.532.933.959.2021.1347.44140.27
196125.861.340.491.281.472.687.3919.6547.33126.31
198113.010.950.351.531.352.266.5717.3043.39114.11
198512.090.540.361.541.381.945.8616.7542.20120.09
198612.490.860.341.711.532.125.7116.0641.72111.40
198710.560.590.391.751.541.905.6315.4940.73110.43
198812.130.650.311.681.542.085.0715.8838.85111.33
198911.730.660.341.851.532.015.0714.4537.57106.64
19909.640.730.291.801.511.934.6814.0836.07101.75
19919.570.490.321.481.342.064.5113.1633.9597.76
19928.230.530.311.521.441.844.5713.5334.25104.10
19937.690.450.191.571.262.014.3112.4532.43101.28
19947.170.500.241.201.441.774.0811.8132.39100.82
19956.830.370.251.451.441.624.2511.8932.06101.42
19967.540.430.221.341.411.564.0111.8731.0999.12
19977.300.500.221.271.381.753.9210.8330.1194.82
19986.510.420.261.121.301.773.4410.5527.6088.04
Females
1901163.875.501.643.584.726.7010.6219.4443.32127.98
1921142.314.491.312.343.384.468.0014.8836.81120.23
194137.753.841.201.942.443.506.9015.0438.60118.92
196119.501.160.350.530.871.954.5911.2229.89104.74
198110.220.640.230.670.641.513.949.1923.7384.67
19859.470.580.290.570.691.393.859.4423.4489.59
19869.870.480.260.550.691.273.429.3822.3984.02
19879.450.520.230.620.701.283.859.2623.2883.85
19889.350.490.250.610.701.283.448.3021.8583.42
19898.580.390.200.600.571.273.588.6021.0380.64
19906.930.370.170.590.651.243.668.8421.0775.60
19916.840.370.180.490.631.353.228.1319.6075.61
19926.120.340.230.510.521.153.107.5219.1275.46
19936.600.480.190.510.571.132.977.9919.0875.85
19946.810.330.140.510.561.082.837.6318.4374.46
19956.480.380.160.550.601.143.107.3718.5975.71
19966.650.370.210.560.600.952.977.4018.7777.36
19975.750.340.160.490.640.992.756.8517.4872.29
19984.450.310.170.470.551.062.466.7916.3767.97
Both sexes
1901171.406.171.773.554.336.4011.3721.6347.87135.71
1921147.824.641.582.393.475.108.8517.5941.90124.84
194139.814.121.282.222.673.728.0218.1643.04129.15
196122.761.250.420.911.182.316.0015.4137.67114.01
198111.650.800.291.110.991.895.2913.1532.6795.41
198510.810.560.331.061.031.664.8713.0631.86100.69
198611.210.680.301.141.111.694.5812.7131.0994.15
198710.030.550.311.201.121.594.7512.3731.1093.70
198810.770.570.281.151.121.684.2612.0929.4793.72
198910.190.530.271.231.041.644.3411.5228.5590.28
19908.310.560.231.201.071.594.1711.4627.9385.26
19918.250.430.250.980.981.703.8710.6526.1883.82
19927.220.440.271.010.971.493.8310.5226.1286.19
19937.160.460.191.040.911.573.6410.2225.3085.24
19947.000.410.190.850.991.423.469.7124.9884.45
19956.660.380.201.001.011.383.679.6224.9585.21
19967.110.400.210.950.991.253.499.6224.6285.44
19976.540.430.190.881.001.363.348.8323.5280.94
19985.510.370.210.800.921.412.958.6621.7575.50

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 social services of the country.

RSA street appeal collector, 1974.

Polish refugees arrive in Wellington on board the General Randall, 1933.

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.

New Victoria University graduate Abdilahi Hussein lends his mortarboard to his baby son after his graduation ceremony, 1998.

The 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 2.8 million during the year ended 31 March 1999. 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 106 people per annum. However, in the year ended 31 March 1997, arrivals exceeded departures by 37,779. This was followed by a net emigration (excess of departures over arrivals) during the year ended 31 March 1999, 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). Permanent and long-term departures 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.

Table 5.13. EXTERNAL MIGRATION: SUMMARY

Period ended 31 MarchTotalPermanent and long-termShort-term
 Arrivals DeparturesNetArrivalsDeparturesNetArrivalsDeparturesNet
Source: Statistics New Zealand
Five-yearly
188098,87730,37668,501      
188573,86144,77629,085      
189075,06379,747-4684      
1895101,50888,06713,441      
190093,03784,3988,639      
1905141,67899,50142,177      
1910190,772146,78343,989      
1915202,087165,28636,801      
192098,47390,5327,941      
1925199,791151,28548,506      
1930192,606167,34625,26053,98816,08137,907138,618151,265-12647
1935111,933118,076-614313,46614,830-136498,467103,246-4779
1940171,424159,51411,91022,87119,2673,604148,553140,2478,306
194535,00332,4142,5896,5979,241-264428,40623,1735,233
1950158,637135,43923,19851,48730,02021,467107,150105,4191731
1955306,837239,14867,689116,51037,41979,091190,327201,729-11402
1960395,218347,02148,197115,30851,16964,139279,910295,852-15942
1965737,703676,13761,566156,46275,05581,407581,241601,082-19841
19701,278,8671,273,4095,458155,008127,81427,1941,123,8591,145,595-21736
19752,506,7142,400,234106,480274,842196,99377,8492,231,8722,203,24128,631
19803,793,4833,874,575-81092204,867319,964-1150973,588,6163,554,61134,005
19854,772,2574,766,9935,264213,059247,712-346534,559,1984,519,28139,917
19907,359,3407,394,389-35049226,420306,653-802337,132,9207,087,73645,184
19959,773,4299,711,64161,788280,508220,47360,0359,492,9219,491,1681753
Annual
19871,321,7291,317,3724,35744,36058,629-142691,277,3691,258,74318,626
19881,554,9921,555,949-95747,84463,469-156251,507,1481,492,48014,668
19891,669,6371,687,935-1829846,23370,941-247081,623,4041,616,9946,410
19901,701,0561,702,689-163352,00156,019-40181,649,0551,646,6702,385
19911,772,5241,757,94814,57657,08845,47211,6161,715,4361,712,4762,960
19921,809,8851,806,9472,93849,01044,7234,2871,760,8751,762,224-1349
19931,898,7691,890,6898,08049,56242,7146,8481,849,2071,847,9751232
19942,057,0052,041,21215,79357,25741,67015,5871,999,7481,999,542206
19952,235,2462,214,84520,40167,59145,89421,6972,167,6552,168,951-1296
19962,464,7322,436,10628,62680,28850,45629,8322,384,4442,385,650-1206
19972,726,8972,689,11837,77976,89655,94820,9482,650,0012,633,17016,831
19982,651,6212,650,86275962,92860,2212,7072,588,6932,590,641-1948
19992,756,2342,770,326-1409256,58066,779-101992,699,6542,703,547-3893

COMPONENTS OF POPULATION CHANGE
Annual net migration and natural increase

The 1990s saw 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. This figure dropped to 20,948 in 1997 and further to 2,707 in 1998. During the year ended March 1999, permanent and long-term departures once again exceeded arrivals by 10,199. This is the largest outflow of migrants recorded since 1989. In 1999, there were net losses of population to Australia (20,069), the United Kingdom (4,779), and the United States and Canada (779).

Immigration from the South Pacific countries, although small in amount, is continuing. Net migration from Asia increased significantly between 1988 and 1996, but has since begun to fall. In 1988, net permanent and long-term migration from Asian countries was 3,998. It peaked in 1996 at 23,489, but fell to 9,994 in the year ended 31 March 1999.

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 1,777,464 males and 1,840,839 females resident 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 through the age structure. However, migration gains and 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 aging of the smaller group of people born during the Depression years meant a smaller proportion of workers (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 (the number of persons aged 0–14 years and 65 years and over per 100 persons aged 15–64 years) lifted sharply to 0.72.

CHANGING AGES
Median age of the total population1

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.

AGE-SEX DISTRIBUTION
Total population at selected census years

At the 1996 Census, there were 832,080 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 2,363,556 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 people have more youthful populations, commonly characteristic of developing nations. At the 1996 Census, they contained almost twice the proportion of children under 15 years as their European or Asian counterparts (22 and 26 percent respectively for the latter as against 38 and 39 percent for the former); about two-thirds of their populations are under 30 years, and their median ages are about 13 years lower than their European counterparts. At the other end of the age scale, only 3 percent of all Māori, Asian and Pacific people are 65 years or over, compared with 13 percent for the European population.

Table 5.14. SEX OF THE POPULATION, 1858–1996 CENSUSES

Census1MalesFemalesTotal populationSex ratio2

1Data from 1981 onwards has been revised and is now based on the resident population concept, rather than the de facto population concept which has been used in the past.

2Number of males per 100 females.

Source: Statistics New Zealand

185865,38750,075115,462130.6
1874195,765149,219344,984131.2
1878254,936203,071458,007125.5
1881293,973240,057534,030122.5
1886335,061285,390620,451117.4
1891355,738312,913668,651113.7
1896393,033350,181743,214112.2
1901429,112386,750815,862111.0
1906496,546439,763936,309112.9
1911558,385499,9271,058,312111.7
1916577,715571,5101,149,225101.1
1921651,155620,5131,271,668104.9
1926719,642688,4971,408,139104.5
1936799,091774,7211,573,812103.1
1945832,877869,4211,702,29895.8
1951973,968965,5041,939,472100.9
19561,093,2111,080,8512,174,062101.1
19611,213,3761,201,6082,414,984101.0
19661,343,7431,333,1762,676,919100.8
19711,430,8561,431,7752,862,63199.9
19761,562,0421,567,3413,129,38399.7
19811,562,5531,580,7543,143,30798.8
19861,616,6701,646,6163,263,28698.2
19911,662,5551,711,3743,373,92697.1
19961,777,4641,840,8393,618,30396.6

Ethnic and cultural diversity

The islands of New Zealand have been ethnically and culturally connected to Polynesia for at least 1,000 years. Less than 200 years ago, its population and cultural heritage was wholly that of Polynesia, but now New Zealand is dominated by cultural traditions that are mainly European, emanating especially from Britain.

About four-fifths of New Zealanders are of European origin, predominantly from the British Isles, but also including people from the Netherlands, Yugoslavia, Germany and other nations. The indigenous 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 Islands 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.

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. 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 is that the Māori population is now susceptible to inward migration, both from return migration and 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. By 1990, the total fertility rate had dropped to 2.19 births per woman. The ethnic question on the birth registration form changed in September 1995. The introduction of this new question and the resultant differences (biological versus self-identification) mean that the new birth data by ethnicity is not directly comparable with the old series. The total fertility rate for the Māori population was 2.60 in 1996 and 2.47 in 1998.

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, 12.4 percent lived in the South Island while 24.9 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 1996 had risen to 21.4 compared with 32.3 years for the total resident population. 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 1996, 59.4 percent of Māori were in the working ages – closer to the 65.3 percent of the total resident population. Within the working age group, however, a higher proportion of Māori were in the 15–29 age group (45.7 percent of Māori compared with 24 percent of the total resident population).

Although the Māori population is moving towards a more elderly age structure it is still younger than the non-Māori population. In 1996 there were larger proportions of Māori than non-Māori in each age group under 34 years.

See also section 6.4: Māori society.

Ngāti Poneke club members welcome the Māori Battalion on its return to New Zealand, 1945.

Pacific Islands Polynesians. Since the early 1960s the cultural and ethnic diversity of New Zealand has been enhanced by the inflow of people from the Pacific Islands 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 Islands 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 saw a temporary reversal of this trend, but since 1995 arrivals have continued to exceed departures.

See also section 6.5: Pacific Islands 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. Assyrian, Ethiopian. Bosnian and Somali 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.

Contributors

  • 5.1–5.4 Statistics New Zealand.

Special articles

‘Population', Demography, Statistics New Zealand; Department of Internal Affairs; Statistics New Zealand; Australian Bureau of Statistics.

Further information

A full list of 1996 Census of Population and Dwellings publications can be found in the Statistics New Zealand publications catalogue (which is also on the website, at www.stats.govt.nz).

Demography, vital statistics, and migration

All About Women in New Zealand. 1993. Statistics New Zealand.

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). 1996. Statistics New Zealand.

Briefing papers for the 1997 Population Conference. 1997. Population Studies Centre, University of Waikato.

Demographic Trends. Statistics New Zealand (annual).

External Migration Statistics. Statistics New Zealand (annual).

Fetal 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. 1990 (out of print). Report of the Inter-departmental Committee on Population Policy Guidelines, Department of Statistics.

Inter-regional Migration in New Zealand, 1971–1981. 1986 (out of print). Department of Statistics.

Key Statistics. Statistics New Zealand (monthly).

New Zealand Life Tables 1990–92. 1994. Department of Statistics.

New Zealand Now series. 2nd ed, 1998. Statistics New Zealand.

New Zealand Sub-national Population Projections 1986–2006. 1985 (out of print). Department of Statistics.

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.

Report on the 1996 Post Enumeration Survey. 1998. Statistics New Zealand.

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

Vital Statistics. Statistics New Zealand (quarterly).

Chapter 6. Social framework

State houses, Oranga, Auckland, c1947.

Social framework

Introduction

At the beginning of the 20th century. New Zealand society was still emerging from the settler colonial era. It was just 60 years since the signing of the Treaty of Waitangi, less than three decades since the end of the New Zealand Wars, only seven years since women had received the vote. The century that followed brought great change: a growing sense of nationhood and independence from Britain, industrialisation and urbanisation. It also saw the birth of information technology, the increasing emancipation of women, the renaissance of Māori, the growth of ethnic minorities, the development of health and education services, the welfare state, liberalisation of social mores and a redefining of family.

While towns and cities were growing, New Zealand remained essentially agrarian and rural in character. At the turn of the century non-Māori greatly outnumbered Māori, who, severely depleted by disease and warfare in the preceding century, numbered just 46,000 in 1901. The non-Māori population was no longer a settler community as such, with two-thirds being New Zealand born. The makeup of the immigrant population, however, clearly reflected the fact that New Zealand had been a British colony, with nine out of ten overseas-born people hailing from the United Kingdom or other ‘British’ countries such as Australia. The only other group of significance was the Chinese community of around 2,900.

Standards of health and education were relatively poor by today's standards but were improving. In 1901, life expectancy was much lower than today and the infant mortality rate high. Major causes of death which are uncommon today included phthisis (tuberculosis), pneumonia, bronchitis and marasmus (a condition of chronic undernourishment).

Although women were participating in the workforce in greater numbers than before, only 27 percent were employed in paid work in 1901 and 44 percent of those workers were employed in domestic occupations. Women were also participating in education in greater numbers. In 1901–02, 218 women graduated from New Zealand universities, though few gained their honours in the professional fields of law, medicine and science.

This picture of society would alter radically over the next 100 years as New Zealand was transformed from a rural colonial society to an industrialised, modernised nation.

Families

The shape and size of the New Zealand family has changed in response to prevailing social and economic circumstances. Historically, marriage was seen as a necessary prerequisite to family formation, but the link between marriage and childbearing has weakened, giving rise to more varied and complex family types. Improvements in life expectancy, delayed childbearing, reduced rates of legal marriage and increased levels of separation and divorce mean people are likely to live in different family circumstances to those of their parents and grandparents. Contemporary families cover a wide range of family types – from blended and step-families to one-parent, extended and same-sex couple families – with the ‘traditional’ nuclear family of two married parents and their children becoming less common.

The dominant pattern of early and almost universal marriage during the late 1960s and early 1970s was not characteristic of marriage patterns across the century. In fact, in 1901 almost one in two New Zealanders aged 16 and over had never been married, compared with only one in four at the peak of the ‘marriage boom’ years in 1971. Since the early 1970s the proportion of the population who have never been married has risen consistently to reach one in three in 1996, as more New Zealanders reject or delay marriage. There are many reasons behind the fall in marriage rates such as changing social values and attitudes, growth in de facto unions, increasing numbers of women in paid work and higher education, and greater control over when to start childbearing.

The average age at marriage has also varied. In 1997 the average age for bridegrooms was 34 years, with brides around three years younger, compared with a low of 26 years and 23 years respectively in 1971. In contrast the average age for bridegrooms at the turn of the century was 30 while brides were five years younger. The rising age at marriage in recent years can be partly attributed to the increasing proportion of marriages involving divorced people. Through the first half of the century divorce was relatively uncommon, but from the mid-1960s the divorce rate climbed and there was a sharp increase after the introduction of the Family Proceedings Act in 1980, which provided for no-fault dissolution of marriage. By 1998 the divorce rate was 13 per 1,000. However, many family break-ups involve couples who have never married, or who separate without obtaining a divorce.

PEOPLE WHO HAVE NEVER MARRIED1
Percentage of people aged 16 years and over who have never been married

One-parent families have become more common in the latter part of the century, increasing from 9 percent of all families in 1976 to 18 percent in 1996. At the beginning of the century the majority of sole parents were widows, whereas one-parent families today are most likely to be formed through separation and divorce. The most common family is still the traditional combination of two parents and one or more children, making up 45 percent of families, although this has fallen from 62 percent in 1976. Couple-only families have increased to 37 percent of all families in the last two decades. This can be attributed to two main trends: the move to delayed childbearing or choosing not to have children, and the ageing of those babyboomers whose children have left home.

The current trend towards fewer and later marriages is reflected in delayed parenthood and smaller families. In 1999, the average age of women giving birth was around 29 years, compared with a low of 25 years in 1972. Early this century, the average family size was just over three births per woman, but during the baby-boom years the number of births soared, peaking in the early 1960s at an average of around four births per woman. However, this was an aberration within a longer-term downward trend that began before the turn of the century and resumed with a sharp decline at the end of the baby-boom era. In 1999, the average was around two births per woman.

Women

The economic and social position of women today reflects a century of change in family formation patterns, laws and policies, employment, educational opportunities and attitudes of society towards women. New Zealand women led the world when they became the first to win the right to vote in general elections in 1893, but it was another 40 years before the first woman was elected to Parliament. Despite the relative isolation of women in the home and the prevailing ‘cult of domesticity’, which reinforced women's role as wife and mother, the women's movement slowly gained momentum. Over the early decades of the 20th century, a wide range of women's organisations lobbied for change, but the second wave of feminism in the 1970s really brought women's rights to the fore, putting issues such as equal pay and abortion on the political agenda.

Women have always contributed to the economy through their unpaid labour, but the last century has seen significant change in paid labour characteristics. One hundred years ago, young women were the most likely to have paid jobs but few remained in the labour force beyond their mid-twenties; only 27 percent of women were employed in paid work in 1901, compared with 53 percent in 1996. During World War II, they entered the workforce in unprecedented numbers, taking over jobs left vacant by soldiers serving overseas during the war. Increasing numbers of married women re-entered the labour force at this time. Post-war economic expansion saw a continuing demand for female labour in the cities. Childcare options grew, and the trend towards having fewer children gained momentum. In addition women began to have their children later in life, which also led to increased participation in paid work.

SIZE OF THE FAMILY
Total fertility rate1

The nature of women's paid work has changed over the century but women still work in a narrow range of occupations compared with men. The 1901 Census showed 44 percent of all female workers were in domestic service and a further 26 percent worked in industrial occupations, mostly in the clothing industry. In 1996 just under half of all employed women worked as either clerks (25 percent) or sales and service workers (21 percent). More women work in high income/high status managerial and professional positions than before, but are still less likely than men to hold positions of power; in the public service women filled only 32 percent of senior management and 19 percent of chief executive positions in 1999. The earnings gap between the sexes has always been present. Women today still earn less than men, although since the introduction of the Equal Pay Act in 1972, their average hourly pay as a proportion of men's has risen from 74 percent in 1974 to 84 percent in 1999.

One reason for women's disadvantage in the labour market has been traditionally lower levels of education, but over the past few decades considerable progress has been made in rectifying this. More women are now staying on at secondary school beyond the compulsory age of 16, with the proportion staying at school to the age of 17 rising from 33 percent in 1986 to 65 percent in 1998. Girls aged 15–17 years are now more likely to be at school than boys of the same age and women are leaving school more qualified than in the past and better qualified than men. In 1996, 83 percent of females left with a school qualification compared with 78 percent of males. They were also likely to have a higher qualification than their male counterparts.

The tertiary education sector shows similar trends. While in 1901 only one in three university undergraduates were women, by 1997 women made up over half of all university students. Since the 1970s there has been considerable growth in the number of women studying at polytechnics and by 1997 women made up 53 percent of all enrolments, although part of this trend was due to the shift of nursing courses from hospitals to polytechnics.

Although women generally are still less likely to hold a post-school qualification than men, the reverse is true for women aged 15 to 24. There is also evidence that the traditional female pattern of study in subjects such as health, education and the social sciences is changing, with more young women qualified in subjects like business administration and computing. However, women are still more likely to hold post-school qualifications in traditional fields and remain dominant in teaching professions, making up 70 percent of the teaching workforce in 1996.

New Zealand women are also better represented in politics than in the past. Since Elizabeth McCombs entered Parliament as the first woman MP in 1933, 76 women have been elected to the House of Representatives. The change to a new voting system (MMP) in 1996 saw the number of women in Parliament increase substantially and in 1999, 37 out of 120 MPs were women. Jenny Shipley made history in 1997 when she took office as New Zealand's first female Prime Minister and Helen Clark, the first elected woman Prime Minister, succeeded her in 1999. Female representation in local government politics has also improved over the last three decades: 31 percent of elected local body members were women in 1998, compared with only 4 percent in 1968. Nineteen out of 74 mayors were women in 1998. However, most women remain concentrated at the lower end of the political spectrum.

Birthplace and ethnicity

At the beginning of the 20th century New Zealand's population was overwhelmingly European by ethnicity and British by birth or ancestry. The Māori population had fallen proportionally during the preceding century in the face of mass colonisation from Britain. With minimal immigration from outside the British empire there were few other ethnic or national groups of any size. The 20th century, however, saw the resurgence of the Māori population and recent decades have seen waves of migration from the Pacific and Asia which have transformed our social landscape.

In the 19th century warfare, disease and economic deprivation had decimated the Māori population. However, between the censuses of 1901 and 1996 Māori increased in number from 46,000 to 523,000 people, from 5 to 15 percent of the total population. In the early part of the century the absence of warfare, growing immunity to introduced diseases and improved standards of health care, combined with high birth rates, stimulated a recovery which gathered pace in the 1920s and 1930s. Between 1916 and 1945 the Māori population grew by 86 percent. After World War II. Māori migrated in huge numbers from rural tribal areas to the cities and towns where employment and other opportunities beckoned. In 1936, 83 percent of Māori were living in rural areas; today 83 percent are urbanised. Migration also brought Māori and non-Māori into closer contact and the Māori population was boosted by a growing number of births of Māori children to mixed couples.

BIRTHPLACES OF NEW ZEALANDERS BORN OVERSEAS, 1901 AND 1996

The non-Māori population became more diverse over the century as immigrants from various parts of the world added to our ethnic mix. By 1900 the era of mass colonisation had ended, and from the turn of the century to the onset of the depression in the 1930s, net migration gains averaged under 7,000 a year. New Zealand continued to look to Britain for its new migrants while restricting immigration from other parts of the world, particularly Asia. After World War II, the demand for new immigrants increased with the demand for labour in a booming and Industrialising economy. While British immigrants were still favoured, increasing numbers from continental Europe were also admitted, including refugees from eastern Europe, Dutch people encouraged by assisted immigration, and southern European migrants with relatives already in New Zealand. By 1996 almost 56,000 people from continental Europe lived in New Zealand, including over 23,000 from the Netherlands. This number was, however, dwarfed by the 230,000 immigrants from Britain and Ireland who made up almost 7 percent of our population.

Migration from the Pacific Islands gathered pace in the 1960s and early 1970s. People from the Cook Islands, Niue and Tokelau had unrestricted entry rights to New Zealand, while there were special provisions for Western Samoans. Many Samoans, Tongans and Fijians also took up residence after entering as temporary migrants. Despite subsequent changes in policy which have disadvantaged Pacific migrants, many people with families in New Zealand or rights of residence continue to migrate today. By 1996 there were over 42,000 people of Western Samoan birth living in New Zealand, along with almost 14,000 people from the Cook Islands and a similar number of Tongans. As these groups have settled in New Zealand and had children and grandchildren, the Pacific Islands ethnic groups have grown at an even faster rate. By 1996 there were over 202,000 people of Pacific Islands ethnicity in New Zealand, making up nearly 6 percent of the population.

Migration from Asia remained low throughout most of the century. However, in the late 1980s and 1990s the preference for migrants from ‘traditional source countries’ was officially abandoned. The doors to relatively large-scale Asian migration were opened, with particular emphasis on recruiting skilled professionals and business investors. By 1996 there were almost 118,000 people of Asian birth living in New Zealand, including almost 20,000 from China. Together, people of Asian ethnicity made up nearly 5 percent of our total population.

ETHNIC COMPOSITION1 OF THE NEW ZEALAND POPULATION
Total responses2, 1926, 1966 and 1996
EthnicityPercent of Population
192619661996

- Total is less than one percent.

1Changes in the definition and collection of ethnicity may have affected the comparability of this data over time.

2People who specified more than one ethnicity are counted more than once, therefore percentages will not sum to 100.

European969483
Māori5915
Pacific Islands--6
Asian-15 
Other---

LIFE EXPECTANCY
Life expectancy at birth, total population1

The growth of New Zealand's non-European communities has stirred many social and political issues. The resurgence of the Māori population, particularly following the urbanisation of the post-War era, was accompanied by a growing politicisation that has seen issues surrounding the Treaty of Waitangi, biculturalism and social justice take a prominent place on the national stage. Despite attempts to address these issues, which have brought improvements in some areas, Māori today, as throughout the century, suffer from disparities in employment, income, housing, health, education and justice. Similar disadvantage is experienced by the Pacific Islands communities and this too is becoming a more prominent issue in the public arena.

Health

Before 1900, public health services in New Zealand were minimal. Local authorities did what they could, with little or no guidance from government. Responsibility for the welfare of the sick or disabled fell largely on the family or to charitable institutions. In 1901, the threat of widespread bubonic plague led to the establishment of a Department of Public Health, which took over responsibility for controlling infectious diseases and improving public sanitation. To some extent, New Zealand's isolation minimised the effects of major disease epidemics that struck other countries across the century. The 1918 influenza epidemic was New Zealand's worst natural disaster, claiming over 6,700 lives.

By the mid-1920s, with infectious diseases largely under control, the focus of the Department of Health moved to personal health. The passing of the 1938 Social Security Act led to a range of free and universal health benefits, such as hospital and maternity care, although general practitioners retained the right to charge patients a ‘fee for service’. Since the 1940s, the New Zealand health system has been a mix of public and private provision, with 77 percent of total health care expenditure being publicly funded in 1998. The rapid growth of private health care in recent years is reflected by its share of total health care expenditure, up from 12 percent in 1980 to 23 percent in 1998.

INFANT MORTALITY
Deaths of children under 1 year

The 1901 Yearbook noted that New Zealand Europeans had the lowest death rate compared with other Australasian colonies and Europe, and New Zealanders’ life expectancy has increased markedly since then. In 1903, non-Māori life expectancy was around 61 years for females and 58 years for males. By comparison females born in New Zealand in 1995–1997 could expect to live to almost 80 years on average, while the comparative figure for males was 74 years. However, life expectancy in New Zealand has not kept pace with increases in many other OECD countries in recent years, and is now lower than that of several comparable countries, including Australia.

Historically Māori life expectancy has been much lower than non-Māori, but this gap has narrowed considerably overtime. Māori females born in 1891 had an estimated life expectancy of only 25 years and Māori males 28 years, whereas Māori females born in 1996 could expect to live for 72 years on average compared with 67 years for males.

The two leading causes of death for both Māori and non-Māori are cancer and ischaemic heart disease, which collectively accounted for half of all deaths in 1996. New Zealand males are much more likely than females to die from suicide, heart disease, motor vehicle crashes, or lung and stomach cancers. In the early 1900s cancer and diseases of the heart were also common causes of death. On the other hand, phthisis (now known as pulmonary tuberculosis), which was a major cause of death at that time, is uncommon today.

The chances of a newborn baby surviving its first year of life have improved dramatically since 1900, when one in 13 babies died before reaching their first birthday, compared with around one in 180 babies in 1998. Although Māori infant mortality rates declined substantially after World War II they are still higher than for non-Māori, mainly because of comparatively high numbers of deaths in the post-neonatal period (between 28 days and under one year).

Over the last 20 years or so, the focus of health care has moved away from the medical model towards health promotion and community involvement. Māori health, as well as Pacific Islands peoples’ health, has also become an important issue. A range of health policies and initiatives have targeted high risk activities such as tobacco smoking, alcohol and drug abuse, unsafe sex and poor dietary habits. Specific interventions to improve and protect the health status of New Zealanders have included cervical and breast cancer screening, hepatitis B vaccination programmes, smokefree legislation and water fluoridation.

Education

Our present national system of free, secular and compulsory education is based largely on the Education Act of 1877, although participation in education today is vastly different to what it was at that time. Attendance at primary school became compulsory for European children aged 7 to 13 from 1877 and from 1903 Māori children were required to attend a state school if there was no ‘native village school’ nearby. Literacy rates increased accordingly; by the beginning of the 20th century 93 percent of the European population could read and write, up from 83 percent in 1874.

Although primary education in New Zealand was free, secondary school pupils were charged fees, and as few occupations required more than basic literacy and numeracy skills, most children did not go on to secondary level. However, demand for education increased steadily and, from 1936, secondary education was provided free for all children under 19. By 1939, two-thirds of all children between the ages of 12 and 18 attended some form of secondary education, compared with around 8 percent in 1900.

The main function of post-primary education at this time was to equip children for the workforce, and technical schools offered alternatives for those not seeking white-collar occupations or university degrees. Relatively few school pupils proceeded to university and the majority of those who did graduated with a Bachelor of Arts. In 1900 there were 880 students attending New Zealand universities, but this had grown to almost 4,000 by 1925 with faculties of arts, science, commerce and law established at each of the four universities. Since then, the depth and breadth of university courses and degrees has expanded to meet the growing and diverse needs of society.

Although there were some major changes to the nature and delivery of education services over the century, most New Zealanders received their education from the centralised state system administered by the Department of Education. In 1940, only 12 percent of primary students and 16 percent of secondary students studied in private schools, and the progressive integration of private schools into the state system after 1975 saw private enrolments drop to 3 percent of all school-age students by 1998. Schools can now offer a wider choice of curriculum subjects, but curriculum guidelines and national qualifications are still set at national level. Education administration was reviewed in the late 1980s, resulting in the decentralisation of school administration to local boards of trustees of individual schools, run by parents and the community. Similar reforms occurred in the early childhood sector.

The increasing emphasis on educational qualifications as a prerequisite to employment has seen young people staying at school longer and gaining higher qualifications than in the past. An estimated 86 percent of 16 year-olds (the minimum school leaving age) were at school in 1998, and less than one in five students left school with no formal qualification, compared with one in three students 20 years earlier. Female students now out-perform males in formal exams, as discussed earlier. Māori participation in education has also increased in recent years, but Māori attainment levels have not improved at the same rate as those for other ethnic groups, and Māori students are still leaving school earlier and with fewer qualifications than non-Māori.

In 1999 there were eight universities, 25 polytechnics, four colleges of education and three wānanga (Māori tertiary institutions) that, together with a large number of private training establishments, provided a huge range of programmes from degree qualifications through to life skills. Participation in tertiary education has also increased over the years, with much of the growth due to increased female participation. In the 10 years from 1987 to 1996, tertiary participation of 16–24 year olds increased by 50 percent and almost one in four people in this age group now undertake some form of post-secondary education. Māori and Pacific Islands enrolments have increased since the mid-1980s but their participation rates continue to be lower than rates for European and Asian students.

Over the century, changes in society have generated a demand for higher educational standards and young adults are now entering the workforce with more qualifications than their parents and grandparents. At the 1996 Census, around four out of five New Zealanders aged 20 to 24 years held a formal qualification, compared with only one in two aged 55 and over. The demand for higher education is likely to continue into the 21st century, as New Zealand moves towards an increasingly knowledge-based society.

Social welfare

The provision of welfare in New Zealand before 1900 was left largely to families and individuals, although a mix of public and private institutions dispensed charitable aid to the ‘deserving poor’ and destitute. The main recipients of charity were those more obviously unable to fend for themselves: single women, children and the aged. The introduction of old-age pensions (1898), widows’ pensions (1911) and family allowances (1926) were first steps in the state provision of income support to individuals and families. Widespread poverty and unemployment during the depression demonstrated the inadequacy of existing welfare provisions, and when the first Labour Government swept into office in 1935, they were already committed to the expansion of the welfare state.

The 1938 Social Security Act heralded a new era in the history of social welfare in New Zealand, providing a wide-ranging system of cash benefits for those unable to provide for themselves, such as the sick, aged, widowed, orphaned and unemployed. The system was funded from a special social security levy on all income. Initially most benefits were means-tested, with the exception of the old age pension for those aged 65 and over, but in 1946 the family benefit became universal, regardless of means or income. In addition, a range of free medical services such as hospital, specialist, pharmaceutical and maternity care were introduced during the decade following the act.

By the end of the depression the country's housing stock had deteriorated and the appalling conditions in which many New Zealanders were living had reached crisis point. Two main government initiatives were introduced to address the problem. The State Advances Corporation provided finance for private housing construction and the state set up a rental housing scheme, building over 15,000 homes between 1937 and 1944. Large-scale state housing development continued into the next two decades, and New Zealanders were encouraged to either rent state houses through subsidised rents or buy their rental houses from the state at attractive terms of sale.

Social reform continued despite the intervention of World War II, which in itself brought a new class of beneficiary – the returned serviceman. Welfare was extended to provide rehabilitation and support to the men and their families. In the post-war period through to the 1970s, the economy was buoyant and there was little need for changes to welfare provision, apart from increases in benefit levels and income thresholds. The 1945 Employment Act had been established to ‘promote and maintain full employment’ and until the 1970s this was considered an achievable goal.

New legislation in the early 1970s brought about some major changes in social welfare provision. The Accident Compensation Act (1972) set up a system of comprehensive, no-fault insurance cover, financed from contributions rather than taxation, for accident-related injuries and disabilities. In 1973, the domestic purposes benefit (DPB) provided payments to sole parents, who were mainly women. In 1976, the old age pension was replaced by National Superannuation, paid to all New Zealanders aged 60 and over irrespective of means or other income.

Washing lines on the roof of Wellington's Dixon Street flats, 1943.

By 1990, the number of cash benefits paid by the Department of Social Welfare had grown to over 1.2 million at a cost of over 8 billion dollars annually, with National Superannuation accounting for over half the total expenditure. The number unemployed had increased steadily from a mere handful during the 1960s to a peak of over 170,000 by 1992. The burgeoning cost of welfare and concerns about the ageing population provided the impetus for government to move towards more targeted welfare spending in the early 1990s. The value of the universal family benefit had been eroded over time and was abolished in 1991, although selective family assistance remained. Subsidised state housing rents were progressively replaced by market rents, offset by an accommodation supplement for low-income households. In 1990, the government announced that the age of eligibility for National Superannuation would rise progressively to 65 over the next decade, and changes were made to tighten the entitlement criteria to other benefits such as the unemployment benefit and DPB. As New Zealand enters the new millennium, the underlying philosophy of ‘cradle to grave’ welfare which characterised the latter half of the century has been replaced by a focus on reducing welfare dependency.

Future prospects

At the beginning of the 20th century no one could have foreseen the radical transformations that were to occur in New Zealand society over the following 100 years. Many of today's social realities – the incidence of de facto relationships and marital dissolution, the number of women in the workforce, the diverse ethnic mix of our population, the vastly improved levels of health and education, the scale of the welfare state – would have been inconceivable to most New Zealanders in 1900. It would therefore be foolish to make long-term predictions about the 21st century. Nevertheless, recent trends do give some indication of where we may be headed in the near future.

One of the key themes emerging from the late 20th century is increasing diversity in: life-styles, family and living arrangements and ethnic and national backgrounds. Nowhere is this better illustrated than in the most fundamental of social units, the family. In recent decades, the once typical nuclear family of married parents and children in a one-family household has become less dominant. Our conceptions of family life are less rigidly prescriptive than in the past and we can anticipate further diversity as people adapt their family and living arrangements to fit a wide variety of personal circumstances and lifestyle choices.

New Zealand will also become more ethnically diverse. Population projections show that by 2050, Māori may number almost one million and make up 22 percent of the population, with 13 percent of New Zealanders belonging to Pacific Islands groups. Growth of the Asian population is more difficult to predict, given the uncertainty of migration patterns, but by 2016 people of Asian ethnicity may make up 9 percent of the population. Consequently, ethnic relations issues may achieve still greater prominence than today. Biculturalism, Treaty issues and questions of social justice for Māori will remain uppermost on the social agenda in this country, but issues concerning the growing Pacific Islands and Asian communities will also become more prominent. Redressing the social and economic disparities faced by Māori and Pacific Islands people is one of the key challenges facing New Zealand and, if this challenge is successfully met, we can expect these groups to be better represented throughout all levels of society.

Similarly, the social position of women will continue to be an important issue. The redefining of women's lives, particularly their increasing participation in education and employment, has been one of the most notable social transformations of the 20th century. But despite this, women's incomes remain lower than men's and they remain under-represented in non-traditional work and some higher status occupations. While many barriers were broken down in the 20th century, others remain, and as issues such as equal pay, childcare and parental leave continue to be addressed we can expect women to build on earlier advances.

The development of health, education and welfare in the 20th century have been subject to changes in government policy and ideology, and this will continue to be the case. The once benevolent state which nurtured the public health, education and social welfare systems has latterly attempted to pass much of the responsibility back to individuals, communities and private enterprise. But, as extensive as these reforms have been, the last century should teach us not to discount a return to earlier philosophies. We can expect that a social welfare system of sorts will continue, although it is unlikely to be as generous or as comprehensive as in the past, particularly given the costs involved in supporting an ageing population.

While the future role of the state in health and education is uncertain, it is likely that overall standards will improve in the near future, as they have throughout the past century. Advances in medical science and preventative health care should continue to lower mortality and raise life expectancy. The so-called knowledge economy and an increasingly competitive labour market should demand greater participation and attainment in education. The challenge of the 21st century is to ensure the benefits of better health, education and other forms of social progress are available to all regardless of social class, ethnic background or gender.

TOTAL SOCIAL WELFARE BENEFITS IN FORCE

Newly-built state flats in Grey's Avenue, Auckland, 1958.

Selected bibliography

Department of Internal Affairs (1998), Local Authority Election Statistics 1998, Department of Internal Affairs, Wellington.

Department of Social Welfare, (1998) Statistics Report for the year ending 1998.

Dunstall, G (1981) ‘The Social Pattern’ in WH Oliver (ed) The Oxford History of New Zealand, Oxford University Press, Oxford.

Economic and Social Commission for Asia and the Pacific (1985), Country Monograph Series No. 12: Population of New Zealand, United Nations, New York.

Ministry of Education (1998), Education Statistics News Sheet, Volume 7, No. 11, Ministry of Education, Wellington.

Ministry of Education (1999), New Zealand Schools 98: A report on the compulsory schools sector in New Zealand, Ministry of Education, Wellington.

Ministry of Health (1998) Health Expenditure Trends in New Zealand 1980–98, Ministry of Health, Wellington.

Oliver WH (1977) ‘The Origins and Growth of the Welfare State’ in A Trlin (ed), Social Welfare and New Zealand Society, Methuen, Wellington.

Oliver WH (1988) ‘Social Policy in New Zealand: An Historical Overview’ in The April Report Volume 1: New Zealand Today, Royal Commission on Social Policy, Wellington.

Olssen E (1981) ‘Towards a New Society’ in WH Oliver (ed) The Oxford History of New Zealand, Oxford University Press, Oxford.

Pool I (1991), Te Iwi Māori: A New Zealand Population Past, Present and Projected, Auckland University Press, Auckland.

State Services Commission (1999), Yearly Employment Survey of Public Service Departments and Selected State Sector Organisations, as at 30 June 1999.

Statistics New Zealand, Censuses of Population and Dwellings, various volumes.

Statistics New Zealand, Demographic Trends series.

Statistics New Zealand, New Zealand Now Series Two publications.

Statistics New Zealand, New Zealand Official Yearbooks, various editions.

Thorns, David P and Sedgwick, Charles P (1997), Understanding Aotearoa/New Zealand: Historical Statistics, Dunmore Press, Palmerston North.

6.1 Households

There were 1,276,332 households living in private dwellings in New Zealand at the 1996 Census. This was an increase of 98,667 households (or 8.4 percent) over the 1,177,665 recorded at the 1991 Census.

Table 6.1 describes the number of households by type counted at the 1991 and 1996 censuses. ‘One family only’ households still remain predominant, although the share of households in this category fell from 65.9 percent in 1991 to 63.0 percent in 1996. ‘One person households’ are easily the next most common type, comprising 20.1 percent of all households in 1996, compared with 20.0 percent in 1991.

Table 6.1. USUAL HOUSEHOLD COMPOSITION

Type1991 Census1996 CensusIntercensal percentage change
NumberPercentage of totalNumberPercentage of total

1Includes visitor-only households.

Source: Statistics New Zealand

One family only775,55765.9803,99463.03.7
One family plus other people66,3875.678,9096.218.9
One family, not further classifiable......21......
Two or more families (with or without other people)19,8181.732,1932.562.4
Other multi-person household68,8205.866,3605.2-3.6
One-person households235,98620.0256,57220.18.7
Not elsewhere classified111,0970.938,2833.0245.0
        Total1,177,665100.01,276,332100.08.4

Dwellings

The number of dwellings occupied on census night increased from 1,185,396 in 1991 to 1,283,991 in 1996, a rise of 98,595, or 8.3 percent.

Table 6.2 shows that the total number of permanent and temporary private dwellings increased during the 1991–1996 intercensal period. However there was a 23.3 percent decline in the number of flats or houses joined to a business or shop and a 62.7 percent decline in the number of baches, cribs or other holiday homes.

In contrast, there was a 0.9 percent decline in the number of non-private dwellings at the time of the census.

Table 6.2. TYPES OF DWELLINGS

TypeNumber of dwellingsIntercensal percentage change
19911996

1In the 1991 Census, bach, crib or hut (not in a work camp)

Source: Statistics New Zealand

Occupied dwellings -
        Permanent private dwellings -
          Separate house950,6461,050,14410.5
          Two houses or flats joined together110,103115,8125.2
          Three or more flats or houses joined together91,17993,3482.4
          Flat or house joined to a business or shop9,2797,119-23.3
          Bach, crib or other holiday home16,8762,565-62.7
          Not specified2,385......
            Total permanent private dwellings1,170,4681,268,9918.4
        Temporary private dwellings7,1977,3382.0
        Total private dwellings1,177,6651,276,3328.4
        Non-private dwellings7,7317,662-0.9
            Total occupied dwellings1,185,3961,283,9918.3
Unoccupied dwellings -
            Total unoccupied dwellings122,711123,8370.9
Dwellings under construction9,60510,4498.8

The percentage increase in occupied dwellings was not significantly different from that of the usually resident New Zealand population, leading to no significant change in the average number of usual household members per occupied dwelling. The average number of usual household members per private dwelling was 2.7 in both 1991 and 1996.

Table 6.3 shows the number and distribution of occupied private dwellings by number of usual household members on census night in 1991 and 1996. Changes in distribution of dwellings by number of usual household members 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.

HOUSEHOLD SIZE
Persons per dwelling

Table 6.3. NUMBER OF OCCUPANTS OF PRIVATE DWELLINGS

Number of usual household members1991 Census1996 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage

Source: Statistics New Zealand

None11,0940.98,2350.6-25.8
One235,98620.0264,36320.712.0
Two381,51332.4420,02732.910.1
Three200,43017.0215,67016.97.6
Four195,21016.6201,95115.83.5
Five98,7698.4102,4088.03.7
Six35,1153.038,8923.010.8
Seven11,2561.013,7761.122.4
Eight or more8,2860.711,0100.932.9
        Total1,177,662100.01,276,332100.08.4

Tenure of dwellings. A comparison of the 1991 and 1996 Census data shows changes in the tenure of private dwellings. These can be seen in table 6.4.

Occupied private dwellings owned with a mortgage decreased by 1.5 percent during the intercensal period to 449,394 in 1996. This category decreased its share of total private dwellings from 39.4 percent to 35.2 percent.

There was a small increase (of 0.1 percent) in the number of occupied dwellings owned without a mortgage during this period although the share of the total dwellings with this tenure status fell from 34.2 percent in 1991 to 31.0 percent in 1996.

The census also reported a 9.4 percent increase in the number of private dwellings rented or leased and an 18.3 percent increase in the number of private dwellings provided rent free.

Table 6.4. TENURE OF PRIVATE DWELLINGS

Tenure1991 Census1996 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage

Source: Statistics New Zealand

Owned with mortgage456,44739.4449,39435.2-1.5
Owned without mortgage396,04234.2396,24931.00.1
Owned, mortgage not specified......18,4171.4...
Rented or leased267,34523.1292,34722.99.4
Provided rent free39,8043.447,1063.718.3
Not owned, rental status not specified......21,8011.7...
Not specified18,024...51,0154.0183.0
        Total1,177,665100.01,276,332100.08.4

Table 6.5 shows a continued decline in the servicing of the rental housing market by government departments including Housing New Zealand (the former Housing Corporation) and local authorities.

In contrast to this, dwellings rented or leased from individuals and companies increased by 21.2 percent during the 1991–1996 intercensal period.

This remains the most common category, comprising 72.2 percent of rented dwellings in 1996, increasing from 63.7 percent in 1991.

The share of rented dwellings provided by Housing New Zealand declined sharply from 25.0 percent in 1991 to 19.3 percent in 1996.

Table 6.5. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS

Category of landlord1991 Census1996 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage

1Housing Corporation in 1991.

Source: Statistics New Zealand

Rented or leased from -
Private person/company163,24263.7197,85072.221.2
Housing New Zealand163,90325.052,81819.3-17.3
Other central government agencies13,4375.28,4723.1-37.0
Local authority15,5466.114,8505.4-4.5
Landlord not specified11,217-18,357--
        Total rented or leased267,345100.0292,347100.09.4

Māori and Pacific Islands households and dwellings

Composition of households. There was a total of 202,893 permanent private households in which at least one person of New Zealand Māori ethnicity was usually resident at the 1996 Census of Population and Dwellings.

The corresponding figure for Pacific Islands households living in permanent private dwellings was 62,559.

In 1996 a New Zealand Māori dwelling (and, by definition, household) was defined as a dwelling with at least one usually resident person of New Zealand Māori ethnicity. Pacific Islands 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 Islands dwelling either because different people in that household may have different ethnicities or because any individual in the household may be of both Pacific Islands and New Zealand Māori ethnicity.

Table 6.6 shows the usual household composition of New Zealand Māori and Pacific Islands households at the 1996 Census.

A significant feature of this table is that the percentage distribution of Pacific Islands households is weighted towards the ‘one family plus other people’ and ‘two families and other people’ categories. Of all Pacific Islands households 29.3 percent are in the above categories compared to 19.6 percent of New Zealand Māori households.

Table 6.6. USUAL COMPOSITION OF MĀORI AND PACIFIC ISLANDS HOUSEHOLDS, 1996 CENSUS1

Household typeNew Zealand MāoriPacific Islands
NumberPercentage of totalNumberPercentage of total

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Māori ethnicity’ or ‘Pacific Islands ethnicity’.

2Includes visitor-only households.

Source: Statistics New Zealand

One family only130,05064.136,74158.7
One family plus other people26,48113.110,77017.2
One family not further classifiable9..6..
Two families (with or without other people)13,1346.57,58412.1
Three or more families (with or without other people)10770.59361.5
Other multi-person households13,9806.93,3725.4
One-person households17,7518.43,0484.9
Not elsewhere classified24140.21110.2
        Total202,893100.062,559100.0

Number of usual household members. The distribution of New Zealand Māori and Pacific Islands dwellings by number of usual household members at the 1996 Census (see table 6.7) reinforces the patterns evident in the usual composition of households by these two ethnicities. Whereas 55.6 percent of New Zealand Māori dwellings have three or fewer usual household members, only 39.9 percent of Pacific Islands dwellings do.

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

Table 6.7. NUMBER OF OCCUPANTS OF MĀORI AND PACIFIC ISLANDS DWELLINGS, 1996 CENSUS1

Number of usual household membersNew Zealand MāoriPacific Islands
DwellingsPercentage of totalDwellingsPercentage of total

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Māori ethnicity’ or ‘Pacific Islands ethnicity’.

Source: Statistics New Zealand

None- - 
One17,8238.83,0604.9
Two50,25924.810,22116.3
Three44,71822.011,68518.7
Four41,51420.512,45919.9
Five25,53012.69,93315.9
Six12,7326.36,57910.5
Seven5,5052.73,9036.2
Eight or more4,8122.44,7167.5
        Total202,893100.062,559100.0

Table 6.8. TENURE OF MĀORI AND PACIFIC ISLANDS DWELLINGS, 1996 CENSUS1

TenureNew Zealand MāoriPacific Islands
DwellingsPercentage2DwellingsPercentage2

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Māori ethnicity’ or ‘Pacific Islands ethnicity’.

2Calculated in terms of specified cases only.

Source: Statistics New Zealand

Owned with a mortgage72,13835.620,30432.5
Owned without a mortgage30,13814.96,36310.2
Owned, mortgage not specified2,1571.06931.1
Rented or leased80,83839.828,56345.7
Provided rent free8,4214.22,3133.7
Not owned, rental status unspecified5,5143.02,8534.6
Not specified3,6811.814672.3
        Total202,893100.062,559100.0

Tenure. Patterns of tenure and category of landlord shown in the 1996 Census data reflect the household income and demographic structures of New Zealand Māori and Pacific Islands ethnicities. Table 6.8 shows that Pacific Islands people tend to be more reliant on rented or leased housing than New Zealand Māori, who, in turn, are almost twice as reliant on rental housing as the general population.

For New Zealand Māori dwellings, 50.5 percent were owned with or without a mortgage compared with 42.7 percent of Pacific Islands dwellings.

Woman handwashing.

TENURE OF PRIVATE DWELLINGS

HOME OWNERSHIP
By ethnic composition

Table 6.9. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS, 1996 CENSUS1

Category of landlordNew Zealand MāoriPacific Islands
DwellingsPercentage2DwellingsPercentage2

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Māori ethnicity’ or ‘Pacific Islands ethnicity’.

2Calculated in terms of specified cases only.

3Housing Corporation in 1991.

Source: Statistics New Zealand

Rented or leased from -
Private person/company48,52860.011,92841.8
Housing New Zealand321,65427.012,98745.5
Other central government agencies3,0273.76872.4
Local authority19172.47142.5
Landlord not specified5,7127.02,2477.9
        Total rented or leased80,838100.028,563100.0

Household transport

At the 1996 Census of Population and Dwellings 1,073,721 households, or 88 percent of households, had the use of one or more motor vehicles for private transport. This was an increase of 64,635 over the number of private households (1,009,086) with use of vehicles at the 1991 Census.

The share of households with two or more increased from 40.9 percent to 45.1 percent during the intercensal period, while there was a related decline in the percentage of one-vehicle households and households without a vehicle.

Table 6.10. HOUSEHOLD TRANSPORT

Number of motor vehicles11991 Census1996 CensusIntercensal percentage change
HouseholdsPercentage of total2HouseholdsPercentage of total2

1Includes 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.

2Calculated on specified cases only.

Source: Statistics New Zealand

None143,23212.4146,75712.02.5
One538,22746.7522,33642.8-3.0
Two356,81431.0408,21333.414.4
Three or more114,0459.9143,17211.725.5
Not specified25,347...55,854...120.4
        Total1,177,665100.01,276,332100.08.4

Household income and expenditure

The New Zealand Household Economic Survey is conducted every three years 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 the currency of selected parts of the index's weighting base.

In the following tables, the aggregate survey of income or expenditure has been averaged over all households in the survey, rather than over only those households which reported income or expenditure on particular items. This has the effect of reducing some statistics to a level below that which would normally be expected (e.g. expenditure on rent).

Table 6.11. INCOME DISTRIBUTION OF HOUSEHOLDS, 1997–981

Annual incomeApproximate equivalent weekly incomeNumber of householdsAverage weekly income per household

1As estimated by Household Economic Survey.

Source: Statistics New Zealand

$$(000)$
Under 13,900Under 267114.7171.40
13,900–19,899267 to 382120.2332.20
19,900–24,799382 to 476114.0424.60
24,800–31,399476 to 602115.5541.00
31,400–39,199602 to 752117.5674.10
39,200–48,099752 to 923116.0837.80
48,100–58,699923 to 1,126116.81,019.60
58,700–71,5991,126 to 1,373115.81,232.80
71,600–93,0991,373 to 1,786116.11,560.80
93,100 or over1,786 or over116.12,651.20
        Total...1162.5944.10
        Total for 1996–97...1178.5883.10

Table 6.12. AVERAGE WEEKLY EXPENDITURE FOR SELECTED FAMILY TYPES, 1997–98

Expenditure groupYoung one-person householdOlder one-person householdYoung couple with no childrenOlder couple with no childrenCouple with one childCouple with two children
 $
Food55.7051.70120.00104.60139.90160.70
Housing119.6069.70265.5083.50116.50133.60
Household operations78.3059.30112.9092.70107.00117.20
Apparel11.9012.1029.4019.8031.3040.00
Transport74.3055.40155.20123.80158.80182.50
Other goods59.3033.50107.7070.50106.30108.60
Other services78.8061.00130.50113.30154.00171.30
        Total expenditure477.80342.70921.10608.30813.80913.90
Expenditure groupCouple with three or more childrenOne parent with childrenFamily with othersNon-family householdsAll family types

Source: Statistics New Zealand

Food174.1083.90147.70117.50113.50
Housing195.70133.90141.10161.50128.10
Household operations120.2074.80109.7097.4094.90
Apparel39.7021.0038.1037.1026.50
Transport133.7075.60143.00146.90122.50
Other goods104.7056.70103.30113.5081.00
Other services151.9063.70120.60140.10116.50
        Total expenditure920.10509.50803.40814.00683.10

Table 6.13. HOUSEHOLD AMENITIES

Amenity in dwellingPercentage of all surveyed households1
1995–961996–971997–98

1Household Economic Survey.

Source: Statistics New Zealand

Electric range or wall oven95.095.793.7
Gas, coal or oil-fired range10.59.110.9
Microwave oven74.677.280.0
Telephone96.095.996.0
Cellular phone13.218.021.3
Clothes-washing machine97.697.797.7
Clothes dryer63.665.665.4
Separate refrigerator30.429.129.6
Combination refrigerator/freezer79.079.780.3
Separate deep-freeze unit56.154.853.3
Dishwashing machine30.331.833.3
Colour television (owned)95.896.696.3
Television (hired or rented)2.11.40.9
No television (owned, hired or rented)3.32.73.3
Subscriber TV decoder13.715.619.7
Video recorder (owned)77.979.879.0
Video recorder (hired or rented)0.20.40.3
Home computer (mains operated, with keyboard)24.827.632.9
Portable electric heater79.676.074.9
Electric night store heater fixed in place10.510.010.5
Other electric heater fixed in place30.030.130.9
Portable gas heater24.128.430.6
Gas heater fixed in place10.811.713.1
Open fire24.022.920.0
Slow-combustion fire33.934.733.4
Portable kerosene heater2.21.80.8
Wet-back fire of any kind19.518.717.6
Central heating of any kind4.85.04.3

AVERAGE HOUSEHOLD SPENDING 1997–98

GroupOf a dollarPer week
Source: Statistics New Zealand
Housing19 cents$128
Food17 cents$114
Health, education, insurance and other services17 cents$117
Transportation18 cents$123
Running and equipping the home14 cents$95
Books, newspapers, tobacco, alcohol and other goods12 cents$81
Clothing and footwear4 cents$27

The Human Development Index (HDI)

The HDI has been created by the UN Development Programme (UNDP) as a composite index to measure socio-economic progress. It has three components – longevity (based on life expectation); knowledge (educational attainment, measured by adult literacy and mean years of schooling); and income (standard of living, based on real GDP per capita in PPP$).

The index can be used to measures changes to the socio-economic level of a country over time, and also allows comparisons between countries. The UNDP publishes a ranking for all countries, in which New Zealand lay at 15th place in 1990 and 9th place in 1998 (see below).

HDI rank 1998HDI rank 1990
1 Canada2
2 France10
3 Norway6
4 USA7
5 Iceland3
6 Finland13
7 Netherlands8
8 Japan9
9 New Zealand15
10 Sweden4
11 Spain20
12 Belgium16
13 Austria17
14 United Kingdom11
15 Australia9

Table 6.14. INDICATORS OF LIVING STANDARDS

ItemUnitYearNew ZealandAustraliaJapanSwedenUnited KingdomUnited States

11996.

21995.

31994.

41993.

5Sewerage services included under industry.

6Repair services of consumer durables other than clothing included under services.

7Sanitary and similar services included under industry.

8Includes government enterprises.

9November.

* Figures sourced from the OECD website (www.oecd.org).

Source: OECD

Areasq km (000)1997268.77686.8377.8450.0244.89372.6
Populationmillion persons19973.718.5126.28.959.0266.9
        Densitypersons per sq km199714.02.0334.020.0241.028.0
Vital statistics
        Infant mortality rate*per 1000 live births19976.95.33.74.05.97.81
        Life expectancy at birthmale199674.375.277.076.574.472.7
 female199679.881.183.681.579.379.4
Gross Domestic Product
US$ billion at current prices and exchange rates199852.4349.93797.2228.81362.38178.8 
        Average annual volume changepercentage1997–980.23.6-2.62.82.73.5
        GDP per capitaUS$ per person at current prices and exchange rates199813,75618,65630,02525,85223,00630,514
Contribution by sector
        Agriculturepercentage of GDP19967.433.21.92.031.721.87,8
        Industrypercentage of GDP199626.0326.2537.927.5327.52,626.87,8
        Servicespercentage of GDP199666.6370.6560.270.5370.82,671.47,8
Employment by sector
        Agriculture, forestry and fishingpercentage of civilian employment19978.55.25.32.81.92.7
        Industrypercentage of civilian employment199723.822.133.126.026.923.9
        Servicespercentage of civilian employment199767.672.761.671.371.373.4
Energy
        Total final energy consumptiontonnes of oil equivalent (million)199712.467.6340.535.7157.21,445.
        Total productiontonnes of oil equivalent (million)199714.2199.2107.033.1269.01,683.8
External commodities trade
        Imports (cif)US$ billion at current prices and exchange rates199714.561.8338.862.9290.3869.6
        Exports (fob)US$ billion at current prices and exchange rates199713.962.8421.081.2268.4643.2
Social and natural environment        Doctors per 1000 of mean population19942.12.241.83.01.62.6
        Expenditure on health (total)percentage of GDP19967.48.67.28.66.913.6
        Expenditure on public educationpercentage of GDP19965.34.53.66.64.65.0
        Expenditure on pollution controlpercentage of GDP1995..0.81.61.21.41.6
        Road accident fatalitiesper 100,000 of population1997141096616
Consumer pricespercentage changeDec 1997–980.491.690.6-1.12.81.6
Long-term interest ratepercentDec 19985.445.011.494.254.505.29
Comparative price levelUS$ to buy same basket of goods and services costing $100 in US1996103106159148104100

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.

6.2 Marriage

Marriages in New Zealand 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.

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. People under 20 years of age, not being widowed, require the consent of parents or guardians. In case of their refusal, the consent of a District Court judge may be sought.

Table 6.15. MARRIAGE RATES

December year1Number of marriagesMarriage rate
Crude2General3

1Figures for 1991 onwards are based on the resident population concept, replacing the de facto population used in the past.

2Per 1,000 mean population.

3Per 1,000 mean not-married population aged 16 years and over.

Source: Statistics New Zealand

198823,4857.08R23.36R
198922,7336.83R22.18R
199023,3416.94R22.19R
199121,8416.2819.76
199220,8045.9218.44
199320,8025.8518.04
199420,5875.7117.48
199520,4525.5916.96
199620,4535.5016.54
199719,9535.3015.78
199820,1355.3115.66

Marital status of the population

Table 6.16 shows the usually resident New Zealand male and female populations by marital status and age group at the 1996 Census of Population and Dwellings. The numbers ‘never married’ and ‘married’ in each age group reflect long-term changes that have taken place in the average age at marriage, the marriage rate and the age-sex distribution of the population.

A young Hindu couple celebrate their marriage in Dunedin, 1998.

Table 6.16. MARITAL STATUS BY AGE GROUP, 1996 CENSUS1

 Never marriedFirst marriageRemarriedMarried (not separated)Separated2DivorcedWidowedNot specifiedTotal

1Usually resident New Zealand population.

2Includes persons who are still married but permanently separated.

Source: Statistics New Zealand

Males
15–19123,3841836573330189,858133,575
20–24114,4506,957423426151833012,222134,832
25–34131,043101,1003,7683,3218,0617,01421620,376274,905
35–4443,410145,92319,3565,34014,05819,43187616,335264,732
45–5415,633122,03124,9965,36710,61120,2742,18412,501213,600
55–648,40387,64516,2244,0024,95611,4154,4409,117146,205
65–746,72669,42911,2683,3302,3016,0339,4988,355116,946
75+3,39030,6725,9191890702175214,7606,09065,169
Total446,439563,94081,58223,64941,33766,13232,02294,8601,349,964
Females
15–19120,3156819607218158,235129,405
20–24107,69715,6939956116444266610,737136,926
25–34106,902128,7847,3893,83414,28911,73981618,126291,882
35–4433,150151,10722,4135,55018,21326,9223,03915,123275,520
45–5410,938120,32122,5064,92911,03425,3237,89911,361214,308
55–645,86583,12712,5013,5644,20912,78617,4638,145147,666
65–745,82656,9168,0702,83817286,66038,7458,907129,690
75+7,05020,3583,66614285192,60464,90810,329110,862
Total397,746576,99076,65622,76751,71186,478132,95190,9661,436,259
Total844,1851,140,927158,23846,41693,048152,610164,973185,8262,786,220

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

Table 6.17. DISTRIBUTION OF PEOPLE AGED 15 YEARS AND OVER BY LEGAL MARITAL STATUS1

Marital status1991 Census1996 CensusIntercensal increase or decrease
NumberPercentageNumberPercentageNumberPercentage

1Usually resident New Zealand population.

2Married for 1996 includes first marriage and married not further defined.

3Includes people who are still married but are permanently separated.

Source: Statistics New Zealand

Males
Never married433,81834.4446,43933.112,6212.9
Married2591,14146.8587,58943.5-3552-0.6
Remarried79,3746.381,5826.02,2082.8
Separated350,0554.041,3373.1-8718-17.4
Divorced54,0094.366,1324.912,12322.4
Widowed34,6412.832,0222.6-2619-7.6
Not specified18,9601.594,8607.075,900400.3
        Total1,262,085100.01,349,964100.087,8797.0
Females
Never married368,88027.8397,74627.728,8667.8
Married2596,06744.9599,75741.83,6900.6
Remarried74,4065.676,6565.32,2503.0
Separated359,1874.551,7113.6-7476-12.6
Divorced71,0015.386,4786.015,47721.8
Widowed140,97610.6132,9519.3-8025-5.7
Not specified17,6791.390,9666.373,287414.5
        Total1,328,196100.01,436,259100.0108,0638.1

Betty (84) and Tom Heafey (86) after their wedding in Oamaru, 1998.

The outcome of these changes during the 1991–96 intercensal period, in table 6.17, shows the numbers of males and females in each marital status category and the percentage distribution of the population by marital status at the 1991 and 1996 censuses. There was a considerable increase in the percentages of both males and females ‘never married’ between the 1991 and 1996 censuses. In contrast, the corresponding percentages for the ‘married’ group showed a compensating decline. Also evident is a percentage increase in the number of people recorded as divorced during the period, while there are significant decreases in those separated and widowed.

Table 6.18 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. In 1996, this included people living in a same-sex relationship.

Table 6.18. DE FACTO RELATIONSHIPS1

Age group (years)1991 Census11996 Census1Intercensal increase or decrease
NumberPercentageNumberPercentageNumberPercentage

1Usually resident New Zealand population.

Source: Statistics New Zealand

Males
15–192,5623.23,0332.647118.4
20–2416,26020.019,89016.93,63022.3
25–3432,73940.446,92640.014,18743.3
35–4416,95920.925,56321.88,60450.7
45–548,0619.914,24712.16,18676.7
55–643,2674.05,3044.52,03762.4
65–749991.21,9411.794294.3
75+2670.34950.422885.4
        Total81,111100.0117,396100.036,28544.7
Females
15–196,8618.56,9395.8781.1
20–2421,50726.626,87122.65,36424.9
25–3429,51736.645,16838.015,65153.0
35–4414,37917.823,29519.68,91662.0
45–546,0547.512,11710.26,063100.1
55–641,6682.13,2072.71,53992.3
65–745850.71,0470.946279.0
75+1800.23570.317798.3
        Total80,745100.0119,004100.038,25947.4

At the 1996 Census, 236,397 people were living in de facto relationships, an increase of 74,541, or 46.1 percent since 1991. Of the people in this category, 78.7 percent of males and 80.1 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 1998 40,270 people married (20,135 marriages), indicating a continuing decrease.

The average ages of those marrying rose to 33.8 years and 31.2 years for men and women respectively in 1998. This rise is a continuation of the upward trend in average age at marriage evident since the early 1970s, as shown in table 6.20. 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.

MEDIAN AGE1 AT FIRST MARRIAGE

The rise in the average age at marriage for both men and women has been mainly driven by the rise in age at first marriage. The average age for people marrying for the first time in 1998 was 29.5 years for men and 27.5 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 1998.

Table 6.19. AGES OF PEOPLE MARRIED IN 1998

Age of bride, in yearsAge of bridegroom, in yearsTotal bridegrooms
Under 2020–2425–2930–3435–3940–4445 and over

Source: Statistics New Zealand

Under 2010271621--182
20–243511980539105321233,022
25–2913518673,06465916840185,951
30–34385301808139339596354,295
35–3913153558901594219932,531
40–443521793133942771591377
45 and over22410020737449115792,777
Total brides6444,6776,2543,58019581135188720,135

Table 6.20. AVERAGE AGE OF PEOPLE MARRYING

Year1BridegroomsBrides
BachelorsDivorcedWidowersTotalSpinstersDivorcedWidowsTotal

1Figures for 1991 onwards are based on the resident population concept, replacing the former de facto concept.

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
199127.841.859.931.925.638.052.729.1
199227.942.360.532.225.838.353.229.5
199328.242.459.232.526.139.053.329.7
199428.543.059.932.726.439.053.730.0
199528.843.259.933.226.839.453.830.4
199629.143.560.033.427.039.553.530.7
199729.343.960.033.727.440.254.031.1
199829.543.761.033.827.539.953.531.2

Divorce

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 simpler procedures than other courts.

Table 6.21. DIVORCE RATES

December yearNumber of DivorcesDivorce rate1

1Per 1,000 estimated existing marriages.

Source:Statistics New Zealand

19919,15212.0
19929,11411.9
19939,19312.0
19949,21311.9
19959,57412.3
199610,00912.7
19979,75412.3
199810,03712.7

MARRIAGE AND DIVORCE RATES

Table 6.22. DURATION OF MARRIAGES ENDING IN DISSOLUTION BY AGES OF HUSBANDS AND WIVES AT MARRIAGE, 1998

Duration of marriage (in years)1Age (in years) at marriageTotal
Under 2020–2425–2930–3435–3940–4445 and over (including not stated)

1Duration of marriage calculated from both month and year of dissolution.

Source: Statistics New Zealand

Husbands (all petitions and applications)
Under 526321426253119741051324
        5– 9577818974172141091442,619
10–144175861030115579802,024
15–19656453921557441471419
20 and over22615575991605328282,651
          Total4154,0622,924128661533140410,037
Wives (all petitions and applications)
Under 5974903761538075531324
        5– 91861157683297139100572,619
10–1421297545718611148352,024
15–19303700225974824221419
20 and over8571375285852613102,651
          Total16554,6972,02681840426017710,037

Other important family legislation

Matrimonial Property Act 1976. This act provides for the just division of matrimonial property between 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 their children, 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.

Child Support Act 1992. This act 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 Work and Income. The Social Security Act continues only in relation to arrears of contributions.

Inland Revenue Child Support assesses the amount of child support to be paid by parents according to a specific formula. It 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 for 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 being to protect human rights in New Zealand in accordance with United Nations human rights covenants and conventions.

An important 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 to the Complaints Review Tribunal, an independent tribunal administered by the Department for Courts.

Other functions of the commission include promoting human rights in New Zealand by education, research and publicity, issuing public statements on human rights matters, making submissions on human rights aspects of any legislation before Parliament, and issuing guidelines to assist compliance with the act. The commission has published guidelines on advertising, pre-employment practices, superannuation and insurance.

The commission also has an educational function, with a focus on providing public and private sector educators with human rights training.

The commission seeks to supply effective and culturally appropriate services to Māori. It provides translation services and iwi education.

Source: Evening Post

Greek people meet at the Pan Hellenic Club rooms, Wellington, 1949.

The commission has three offices: in Auckland, Wellington and Christchurch. Its head office is in Auckland, as the majority of complaints of unlawful discrimination arise within the greater Auckland area. The commission's Internet address is www.hrc.co.nz and it also operates an InfoLine that provides information about the Human Rights Act and the commission's complaints resolution service. The commission also publishes a free quarterly newsletter, Tirohia.

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 not only for their personal attributes, but also for 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. 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. There were 10,509 enquiries received in the year ended 30 June 1999, compared with 9,923 in 1998. The largest number concerned workplace disputes (889), disability (542), age (463) and sexual harassment (458).

Complaints. There were 300 formal complaints opened in the year ended 30 June 1999, compared with 334 in 1998. The greatest number of complaints were sexual harassment in the area of employment (68), sex discrimination in employment (32), disability discrimination in employment (36) and age discrimination in employment (23).

The commission received a government grant of $4.39 million for the 1999/00 year.

Office of the Race Relations Conciliator: Te Tari Whakawhanaunga a Iwi

The Office of the Race Relations Conciliator derives its statutory mandate from the Human Rights Act 1993. The act makes it unlawful to discriminate on 13 grounds. The conciliator administers on the grounds of race, colour, and ethnic or national origin (which includes nationality or citizenship).

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

The conciliator has a wide range of powers under the act. These include education and publicity to promote a positive climate in race relations, and making public statements about any matter affecting race relations. The conciliator also has to promote an understanding of, and compliance with, the Human Rights Act.

The conciliator can receive representations from the public on matters affecting race relations, consult with other people and organisations concerned with the protection of race relations, and also inquire into any matter where race relations are, or may be infringed as a result.

The conciliator reports 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 government policy the conciliator considers may affect race relations.

Under the Human Rights Amendment Act 1999, the Minister of Justice is required to report to Parliament at six monthly intervals, regarding progress made towards addressing legislative inconsistencies. The reports are to be made available to the conciliator for comment on any implications for race before they are presented to the House.

Equal Employment Opportunities Trust

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

The EEO Trust, based in Auckland, commissions, monitors and promotes projects on equal employment opportunities in New Zealand. The Board of Trustees has both public and private sector representatives. The EEO Trust liaises closely with private and public sector organisations with an interest in equal employment opportunities, individuals and groups who express interest, EEO designated target groups, employers’ associations, and complementary organisations in New Zealand and overseas.

The EEO Trust launched the EEO Employers Group in June 1997 to help organisations demonstrate their commitment to equal employment opportunities, and value diversity in their workplaces. Members of the EEO Employers Group commit to its charter and receive the use of the EEO Employers Group logo as a mark of their commitment to excellence in equal employment opportunities. To date more than 280 organisations have joined the EEO Employers Group. All EEO Employers Group members must be, or become, financial members of the EEO Trust.

The Work & Family Awards are held annually to profile and champion those who have succeeded in creating a balance between work and family in their organisation. The 2000 EEO Trust Work & Family Awards will be held in September 2000. The EEO Trust produces the annual EEO Trust Diversity Index to monitor diversity progress in New Zealand. All organisations with over 50 employees, and all organisations associated with the EEO Trust, are sent a survey in preparation for the compilation of the Index. Employers use the index data to benchmark their EEO progress.

The EEO Trust also maintains an extensive EEO Referral Database with a wealth of information about equal employment opportunities issues, policies and practices, trainers and consultants. The EEO Trust provides customised search reports for its clients from the database, which has over 4,000 listings on EEO.

The EEO Trust's Internet address is www.eeotrust.org.nz

Women's issues

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

The Ministry of Women's Affairs provides policy advice to the Government on issues where there is significant disparity between women and men that disadvantages women, and where significant disparity exists between Māori women and non-Māori women that disadvantages Māori women. The ministry has two policy units, one of which, Te Ohu Whakatupu, is responsible for advice relating to Māori women.

The ministry contributes to policy advice by promoting the use of gender analysis, and by providing sex-disaggregated data on the differences between women's and men's lives. Guidelines on gender analysis and information about statistics and surveys are available from the ministry and on the ministry's website www.mwa.govt.nz

In 1999/2000, the ministry is striving to:

  • improve women's life-time earnings by reducing labour market disparities and enhancing the earning capacity of low income women

  • improve Māori women's participation in society

  • increase the number of women and Māori women in decision making positions.

APEC Women Leaders Network. The ministry coordinated the fourth APEC Women Leaders Network meeting and the related Indigenous Women in Exporting Business seminar, both held in June 1999. Recommendations from the meetings were presented to APEC Ministers’ and the APEC Leaders’ meetings, enabling women's issues to be heard and considered. A framework for the integration of women in APEC, coordinated by the ministry during 1999, was endorsed by APEC Leaders and is being implemented in 2000.

Time use survey. In July 1999, data collection for New Zealand's first time use survey was completed by Statistics New Zealand on contract to the ministry. Analysis of the results of the survey will continue through 2000.

Youth issues

The Ministry of Youth Affairs provides Government and other agencies with advice on young people and their future. This includes researching and reporting on young people's issues, and contributing to other matters affecting young people. Its advice aims to:

  • improve the ability of all young people to reach their full potential

  • identify effective models for providing services for young people

  • offer solutions for young people who are particularly ‘at risk’.

The ministry consults young people and those who work with them so that the Government has a sound understanding of the issues influencing young people's lives.

The ministry provides information to young people, and those who work with them, about research and developments in similar areas and about any changes in policies and practices relating to young people.

The ministry administers Youth Corps Programmes, which aim to help young people contribute to their communities. The programmes include personal development, skill acquisition and recreational and educational activities. The Conservation Corps involves young people in conservation activities and the Youth Service Corps in community service.

The five key areas of young people's lives where Youth Affairs concentrates its work are: learning; working and earning; wellbeing; families and youth at risk; and citizenship.

In July 1999 the Ministry of Youth Affairs Te Tari Taiohi celebrated its 10th anniversary. Youth Affairs was set up in 1989 to advise Government on issues affecting young people aged 12–25.

Youth Affairs gives young people a way to participate in New Zealand life. It helps the Government to better understand the needs and concerns of New Zealand's young people.

Youth Affairs work involves keeping up-to-date on key issues affecting young people. It actively seeks and promotes opportunities for them to contribute to the cultural, social and economic policies and services that affect New Zealand's development. Over the last 10 years Youth Affairs has been providing opportunities for young people to have their say and take part in decision making.

Student representatives. Youth Affairs actively encourages student representation and involvement in schools and in policy making. The Student Representative Scheme in schools started in 1993 and so far over 2,500 people have taken part. The representatives are an important way for Youth Affairs to keep in contact with hundreds of young people. This helps Youth Affairs find out what young people think about issues affecting them.

Youth Parliament. Every three years, Parliament opens its doors for Youth Parliament. Youth Parliament lets young people find out what it's like to be an MP and see how Parliament works. Youth MPs get involved in the things that real MPs do, like debating in the House, asking Ministers questions in Parliament and taking part in select committees. They also get a chance to be in the Youth Parliamentary Press Gallery and act as the Speaker of the House. The next Youth Parliament is being held in 2000.

Prime Minister's Youth Advisory Forum. The Prime Minister's Youth Advisory Forum was set up in 1998. Its 15 members, who are aged between 13 and 24, come from a variety of backgrounds. The forum involves two days of discussion and meetings with the Prime Minister and Ministers. Issues discussed at its meetings have included decriminalising marijuana, lowering the drinking age and ways to strengthen families.

Conservation Corps and Youth Service Corps. Since it started in 1988, 11,800 young New Zealanders have taken part in over 900 Conservation Corps projects. The Youth Service Corps has had 1,100 people take part in over 70 projects since 1995. Each year Corps members contribute over one million hours to conservation projects all around New Zealand and a further 100,000 hours to community projects. On average 80 percent of those who have taken part in programmes have moved into work or other eduction and training within six months of leaving a project.

Youth suicide prevention. Youth Affairs led the development of the National Youth Suicide Prevention Strategy that helps government, communities, families/whānau and individuals act together to reduce youth suicide and suicidal behaviour. Youth Affairs published a number of youth suicide resources to help people: SPIN (a resource to help young people deal with feeling depressed); Helping Troubled Young People (a resource for parents/caregivers); and Te Āwhina i Ngā Rangatahi e Raru Nei (a resource for Māori parents, caregivers and whānau).

Other areas that Youth Affairs has actively worked in are drugs and alcohol, and young men's sexual health. Over the past ten years, Youth Affairs has developed policy on drugs and alcohol and provided advice and training to people who work with young New Zealanders who have drug and alcohol problems. Youth Affairs has undertaken significant work recently in young men's sexual health. The focus is on prevention and encouraging young men to take more responsibility for improving the sexual health of young New Zealanders.

Religious affiliation

The 1996 Census of Population and Dwellings showed a continued decline in the number of people identifying with the major Christian denominations, and continuing growth in the major non-Christian religions and in the number of people with no religious affiliation. The four major Christian denominations of Anglican, Catholic, Presbyterian and Methodist all experienced declining numbers between 1991 and 1996, with the proportion of the population in these categories falling from 57.6 percent to 49.1 percent. Anglicans, however, remained by far the largest religious denomination, accounting for 18 percent of the population in 1996.

Pentecostals were the only major Christian group to experience significant growth between 1991 and 1996, with their numbers increasing by 55 percent. Amongst non-Christian religions, the numbers of Buddhists and Muslims more than doubled while the number of Hindus increased by almost half between 1991 and 1996, although each of these groups still make up less than 1 percent of the population.

The number of people who indicated they had no religious affiliation also increased markedly between 1991 and 1996, rising by 33 percent to make up over a quarter of the population in 1996.

Youth for Christ Capital Teen Convention, Wellington, 1977.

Table 6.23. RELIGIOUS AFFILIATIONS1

Religious affiliation1991 Census1996 CensusIntercensal percentage change
NumberPercentage of responsesNumberPercentage of responses

1Usually resident New Zealand population.

Source: Statistics New Zealand

Anglican732,04822.1631,76418.4-13.7
Catholic498,61215.0473,11213.8-5.1
Presbyterian541,05016.3458,28913.4-15.3
Methodist139,4944.2121,6503.5-12.8
Baptist70,1552.153,6131.6-23.6
Latter Day Saints/Mormon48,0091.441,1661.2-14.3
Pentecostal25,3680.839,2281.154.6
Ratana47,5921.436,4501.1-23.4
Buddhist12,7650.428,1310.8120.4
Hindu17,6610.525,2930.743.2
Brethren20,3370.619,9500.6-1.9
Jehovah's Witness19,1820.619,5240.61.8
Assemblies of God17,2260.517,5200.51.7
Salvation Army19,9920.614,6250.4-26.8
Islam/Moslem6,0960.213,5480.4122.2
Seventh Day Adventist13,0050.412,3240.4-5.2
Other specified164,6795.0273,7358.066.2
Other response including no religion672,65420.3893,91026.132.9
Object to state251,7097.6256,5937.51.9
Not specified56,286 187,881 233.8
        Total3,373,929100.03,618,303100.07.2

Ethnicity

The Census of Population and Dwellings in 1996 asked people to specify which ethnic group(s) they belong to and allowed them to specify as many as they wished. Table 6.24 shows two different ways of classifying this data, firstly using a priority recording system which allocates people to one group only; and secondly recording the total number of responses for particular ethnic groups – in which case people may be counted in more than one group.

The prioritised data shows that three-quarters of New Zealand's population belongs to the European ethnic group only. This group not only declined as a proportion of the population between 1991 and 1996 but also fell in numbers. Over the same period the other major ethnic groups increased in size and as proportions of the population. In 1996 the New Zealand Māori population made up 15 percent of the population, with Pacific Islands people and Asian people each making up 5 percent. The highest rate of growth between 1991 and 1996 was amongst the Asian population which grew by 71 percent, primarily under the impetus of increased immigration.

Table 6.24. ETHNIC GROUP OF POPULATION1

Ethnic group1991 Census1996 CensusIntercensal percentage change
NumberPercentage of responsesNumberPercentage of responses

1Usually resident New Zealand population.

2European’ includes those who specified a European group as their sole ethnic group; ‘NZ Māori’ includes all those who specified NZ Māori either alone or in combination with other groups; ‘Pacific Islands’ includes all people who specified a Pacific Islands ethnic group except those who also specified NZ Māori; ‘Asian’ includes all those who specified an Asian ethnic group except those who also specified NZ Māori or a Pacific Islands ethnic group; ‘Other’ includes all those who specified another ethnic group except those who also specified NZ Māori or a Pacific Islands or Asian ethnic group.

Source: Statistics New Zealand

European only2,657,61979.42,594,68874.8-2.4
New Zealand Māori434,84713.0523,37115.120.4
Pacific Islands152,9374.6173,1815.013.2
Asian94,0652.8160,6804.670.8
Other6,3480.214,6670.4131.0
Not specified28,113 151,716 439.7
        Total3,373,929100.03,618,303100.07.2
Total responses (selected groups)2
New Zealand European2,618,44577.62,496,55269.0-4.7
British and Irish93,9122.8407,13311.3333.5
Dutch24,7320.747,5711.392.3
South Slav (Yugoslav)2,8680.19,0060.2214.0
Italian1539-4,9140.1219.3
New Zealand Māori434,84712.9523,37414.520.4
Samoan85,7432.5101,7572.818.7
Cook Islands Māori37,8571.147,0191.324.2
Tongan23,1720.731,3890.935.5
Niuean14,4240.418,4770.528.1
Tokelauan4,1460.14,9170.118.6
Fijian5,1000.27,6950.250.9
Filipino4,9170.18,1900.266.6
Cambodian4,3170.14,4070.12.1
Chinese44,7931.381,3092.281.5
Indian30,6090.942,4081.238.5
Sri Lankan2,6280.14,7130.179.3
Japanese2,9700.17,4610.2151.2

BIRTHPLACES
Country of birth of population

Changes in the total response for each ethnic group between 1991 and 1996 were influenced by a change in the wording of the census question, which had the effect of emphasising that people may specify more than one ethnicity, and also encouraged Europeans to specify particular European groups such as British or Dutch. Hence, there were marked increases in the number of people identifying with most of the major ethnic groups, with New Zealand European being the only group to fall in size between 1991 and 1996. High growth rates among some Asian and Pacific Islands groups have also been influenced by immigration and/or relatively high birth rates due to a concentration of people in reproductive age groups.

Table 6.25 shows the age structure of the major ethnic groups in 1996. Māori, Pacific Islands and Asian populations had a younger age profile than the European population, reflecting higher fertility in the case of Māori and Pacific Islands people, and recent patterns of immigration in the case of Asian people. The Māori and Pacific Islands ethnic groups had the highest proportions of children, while the Asian ethnic group had the highest proportion of working age people, and Europeans had the greatest proportion of people in the retirement age groups of 65 and over.

Table 6.25. COMPARISON OF AGE STRUCTURE OF MAJOR ETHNIC GROUPS, 1996 CENSUS1

Age group (years)Percentage of population in age groups2
EuropeanNew Zealand MāoriPacific IslandsAsianOther

1Usually resident New Zealand population.

2European’ includes those who specified a European group as their sole ethnic group; ‘NZ Māori’ includes all those who specified NZ Māori either alone or in combination with other groups; ‘Pacific Islands’ includes all people who specified a Pacific Islands ethnic group except those who also specified NZ Māori; ‘Asian’ includes all those who specified an Asian ethnic group except those who also specified NZ Māori or a Pacific Islands ethnic group; ‘Other’ includes all those who specified another ethnic group except those who also specified NZ Māori or a Pacific Islands or Asian ethnic group.

Source: Statistics New Zealand

0–46.413.713.28.19.2
5–1412.923.821.917.119.5
15–2413.218.918.820.916.1
25–3415.116.317.818.521.9
35–4415.412.312.718.217.9
45–5413.27.37.89.79.1
55–649.44.64.54.33.4
65–748.32.22.32.22.1
75–844.80.70.80.80.7
85 and over1.40.10.10.20.2
        Total100.0100.0100.0100.0100.0

Country of birth

People who were born in New Zealand made up 82.5 percent of New Zealand's resident population in 1996, a slight decrease from 1991. Between 1991 and 1996 New Zealand's overseas-born population increased by almost 78,000 people, with 72 percent of that number having been born in Asia.

Table 6.26. COUNTRY OF BIRTH OF POPULATION1

Country of birth1991 Census1996 CensusPercentage intercensal change
NumberPercentage of responsesNumberPercentage of responses

1Usually resident New Zealand population.

Source: Statistics New Zealand

New Zealand2,812,03584.22,848,20982.51.3
Australia48,6361.554,5701.612.2
Western Samoa43,0261.342,1771.2-2.0
Fiji16,7130.518,7740.512.3
Tonga13,0680.414,0400.47.4
Cook Islands15,4110.513,7580.4-10.7
Other Oceania and Antarctica9,9270.310,6680.37.5
United Kingdom and Ireland239,1577.2230,0526.7-3.8
Netherlands24,2760.723,4300.7-3.5
Germany5,3940.27,0680.231.0
Other Europe18,5580.625,3740.736.7
Middle East and North Africa3,1860.17,2450.2127.4
Malaysia8,8200.311,8890.334.8
China9,2250.319,5180.6111.6
South Korea801-12,1830.41421.0
Hong Kong4,9290.111,7600.3138.6
Taiwan3,4110.110,9320.3220.5
India9,4560.312,8070.435.4
Other Asia25,4730.838,7061.151.9
Northern America15,3060.519,2300.625.6
Southern and Central America2,7870.13,3990.122.0
South Africa5,6550.211,3340.3100.4
Other Africa4,1010.16,1050.248.9
Not specified/born at sea34,572 165,078 377.5
        Total3,373,923100.03,618,306100.07.2

People born in the United Kingdom and Ireland remain New Zealand's largest immigrant group, making up 6.7 percent of the total population in 1996, although their numbers fell between 1991 and 1996. People born in the Pacific Islands made up 2.9 percent of New Zealand's population in both 1991 and 1996, while the proportion born in Asia increased from 1.9 percent to 3.4 percent over this period. Apart from the United Kingdom, the only individual countries to provide more than 1 percent of New Zealand's population in 1996 were Australia (1.6 percent) and Western Samoa (1.2 percent).

There were marked increases between 1991 and 1996 in the number of New Zealand residents born in North-East Asian countries such as China, Hong Kong, Taiwan and South Korea, which together accounted for an increase of almost 37,000 people. The number of New Zealand residents born in the Middle East and North Africa more than doubled over the same period as did the number born in South Africa.

Citizenship

New Zealand's current citizenship legislation is contained in the Citizenship Act 1977, the Citizenship (Western Samoa) Act 1982, and the Citizenship Regulations 1978. The 1977 act, which is the principal legislation, includes the territories of the Cook Islands, Niue, Tokelau and the Ross Dependency in the definition of ‘New Zealand’ for the purposes of New Zealand citizenship.

Under the Citizenship Act 1977, a person may be a New Zealand citizen by birth in New Zealand, or by descent from a New Zealand citizen parent, or may apply for the grant of citizenship.

Citizenship by birth. Most people born in New Zealand after 1 January 1949 are New Zealand citizens by birth.

Citizenship by descent. Most people who have been born outside of New Zealand, after 1 January 1949, to a New Zealand citizen parent, are citizens by descent. There are some limitations on this. In addition, those citizens by descent who were born on or after 1 January 1978 must register their citizenship by descent before their 22nd birthday if they wish to remain a citizen. This can be done in New Zealand through the Citizenship Office. Those resident overseas may contact their local New Zealand Embassy or High Commission. New Zealand's citizenship legislation also contains some provision for those adopted by New Zealand citizens.

The grant of citizenship. Migrants to New Zealand who wish to make New Zealand their home may apply for a grant of citizenship. The general requirements are that an applicant satisfy the Minister of Internal Affairs that they:

  • Have been ordinarily resident in New Zealand for the three years preceding their application.

  • Are entitled to remain in New Zealand indefinitely (most applicants will be required to have permanent residence status).

  • Are of good character.

  • Have a sufficient knowledge of the English language and of the responsibilities and privileges attached to New Zealand citizenship.

  • Intend to continue to reside in New Zealand, or to work overseas in Crown service, or for a New Zealand resident or established organisation.

The Citizenship Act 1977 contains special provisions for those who are or have been married to a New Zealand citizen, for minors, and for people with special circumstances.

The Citizenship (Western Samoa) Act 1982 provides for the grant of citizenship to Samoan citizens and to a small group of other people who have a special association with Samoa. To be granted citizenship under this act, a person must either:

  • Have been in New Zealand at any time on 14 September 1982.

  • Have lawfully entered New Zealand after that date and have an entitlement to remain in New Zealand indefinitely (most applicants will be required to have permanent residence status).

Applicants aged 14 and over who are approved the grant of citizenship are usually required to attend a citizenship ceremony to swear allegiance to Queen Elizabeth II, as Head of State of New Zealand. After this has been done, the grant of citizenship is complete and a citizenship certificate is provided.

A New Zealand citizen may be deprived of their citizenship if they hold another citizenship and have acted in a way contrary to the interests of New Zealand, or if their citizenship was obtained by fraud, false representation, wilful concealment of relevant information, or by mistake.

A New Zealand citizen may also choose to renounce their citizenship, if they currently hold the citizenship of another country.

Nearly 29,000 people were granted New Zealand citizenship in the year ended 30 June 1999.

CITIZENSHIP
Number of applications granted

Immigration

Immigration legislation and policy is administered by the New Zealand Immigration Service: Te Ratonga Manene, part of the Department of Labour. The role of the New Zealand Immigration Service is to manage immigration for national advantage on behalf of the Government.

Residence. Most people who wish to migrate permanently to New Zealand are considered by the New Zealand Immigration Service under one of five main categories of Government Residence Policy: General Skills (often called the ‘points system’), Investor, Entrepreneur, Family and Humanitarian.

The Government sets an annual Global Immigration Target for residence approvals. The target for the year ending 30 June 2000 was 38,000 people. The target is calculated with the aim of achieving an average net migration gain of 10,000 people each year over the medium term (5–10 years). Net migration figures are calculated by Statistics New Zealand, and include all movements in and out of New Zealand.

Who is migrating to New Zealand? Of the 30,583 people approved for residence in the year ending 30 June 1999, 22 percent were from Europe, 18 percent were from the Middle East and Africa, 16 percent from North Asia, 16 percent from the Pacific, and 12 percent from South Asia. This compares with 31,542 approved in the previous year (1997–98), of whom 24 percent were from Europe, 20 percent from North Asia, 17 percent from the Middle East and Africa, 15 percent from the Pacific and 12 percent from South Asia.

In the year to 30 June 1999. South Africans headed the list of people approved under the general skills category. A total of 14,337 people (46 percent) were approved for residence in the 1998–1999 year under the general skills category, compared with 14,025 (44 percent) in the 1997–1998 year. In terms of people, South African approvals were 21 percent of the total (3039 people), British approvals were 17 percent (2428), and Indian approvals 15 percent (2135). A new range of business immigration categories (see below), which took effect in March 1999, contributed to an increase in business migrant approvals: 258 in 1998–1999 compared with 143 in 1997–1998. Family category approvals in 1998–1999 came to 38 percent of the total (11,636 people), down slightly on the 42 percent (13,248 people) in 1997–1998.

The number of people approved for residence in the 1997–1998 year was 31,542. In the 1996–1997 year the total was 54,453; in 1994–1995 the total was 50,752 and in 1993–1994 it was 33,514.

The five main residence categories are:

General Skills – The general skills category is a points system. Applicants must meet a passmark, which is publicised at the start of each week, and applies to all applications received during that week. The weekly passmark cannot fall below 24 points, but can change so that the Government's annual global immigration target is not exceeded. Points may be awarded for various factors, including: qualifications (10–12 points, minimum of 10 points required); age (0–10 points); work experience (0–10 points); job offer (5 points). Applicants whose occupations have a statutory registration requirement in New Zealand must, in most cases, obtain that registration in order to be approved for residence.

Investor – Applicants must meet or exceed a points passmark, which is set by the Minister of Immigration. Points may be scored for age, business experience, and investment funds (from 1 point for NZ$1,000,000 to 11 points for NZ$6,000,000). Investment funds must have been earned or acquired legally. Once invested, the funds must be retained in New Zealand for two years. Residence can be revoked if this requirement is not met.

Entrepreneur – Applicants in this category may be granted residence if they have established a business in New Zealand and the business is benefiting New Zealand in some way. Successful establishment means that the applicant has established or purchased, or made a substantial investment in, a business operating in New Zealand. The applicant must have been self-employed in New Zealand in that business for at least two years. A business is considered to benefit New Zealand if it promotes New Zealand's economic growth.

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 of at least two years’ duration may qualify for residence. Marriage does not guarantee residence and as with de facto and same sex couples, the relationship must be genuine and stable. The family 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 that either they or the New Zealand relative is suffering from serious physical harm and/or serious emotional harm.

All residence applicants must meet health and character requirements. Migrants aged 16 and over in general skills, investor and entrepreneur categories must also meet a minimum standard of English. To meet the minimum standard of English, applicants must either exceed the specified score in the International English Language Testing System, or show other evidence of English ability. Those who do not meet the standard may still be granted residence, provided that they pre-purchase English language tuition, to be taken up once they arrive in New Zealand. However, this option is not available to principal applicants in the general skills category, who must meet the minimum standard of English. If migrants travel overseas, they must have a valid returning resident's visa to re-enter New Zealand.

As well as the five main residence categories, up to 1,100 Samoan citizens may be granted residence in New Zealand each year under a special quota, provided they have a job offer in New Zealand and meet other requirements. There is also a special quota for up to 750 people each year to be granted residence under the Refugee Quota Programme. This is discussed in more detail below.

Temporary entry. All travellers arriving in New Zealand, including New Zealand citizens, 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), Australian citizens, 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 may come to New Zealand as visitors if they are a tourist, seeing friends or relatives, studying for less than three months, to play sport or perform in cultural events without pay, or for a short business trip. Visitor permits are generally granted for an initial period of three months, and may be extended for up to a further six months. Citizens of over 50 countries have been granted visa waivers and therefore do not need to apply for a visa before they travel to New Zealand. Visitors from countries without visa waivers need to apply for a visitor visa prior to travelling to New Zealand. All visitors must be able to show on arrival 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, or if they are from a visa waiver country may apply for a student permit in New Zealand. Students must show an offer of a place at a recognised educational institution, evidence that any course fees have been paid, a guarantee of accommodation, the ability to support themselves, and a return ticket home (or funds to buy one). During their studies, student permit holders must attend classes and make satisfactory progress. Students undertaking some long-term courses may be granted permission to work for up to 15 hours each week. Students completing a full-time course of longer than 12 months may be permitted to work full-time during the Christmas-New Year holiday period.

Work – The objective of New Zealand's work permit policy is to protect employment opportunities for New Zealand citizens and residents, while still allowing 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, and 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 – Work permits are issued to several thousand young people (aged 18–30 years) participating in reciprocal working holiday schemes which New Zealand has established with several countries. Participants may travel to New Zealand for a holiday and undertake employment during their 12 month stay. Schemes are currently available to young people from Japan, the United Kingdom, Canada, the Republic of Ireland, Malaysia, the Netherlands, France and the Republic of Korea. New Zealand and Singapore have established a similar but more limited work exchange programme.

Long-term business visas – Three-year work permits may be granted to business people who are interested in either applying for residence under the entrepreneur category, or establishing a business in New Zealand without living permanently in New Zealand. A satisfactory business plan must be submitted, and applicants must have sufficient funds to finance their proposed business and to support themselves and their families.

Refugees. New Zealand is one of 120 signatories to the 1951 United Nations Convention and the 1967 Protocol Relating to the Status of Refugees. Under these two instruments, New Zealand is committed to working with the international community to help resolve refugee problems. The Office of the United Nations High Commissioner for Refugees (UNHCR) is the international body charged with protecting refugees. The New Zealand Immigration Service manages the Refugee Quota Programme on behalf of New Zealand.

Refugee Quota – New Zealand's refugee quota allows up to 750 refugees to resettle in this country each year. This continues the formal refugee resettlement programme, which began in 1944 with the resettlement of 733 Polish children and 105 accompanying adults.

Government policy relating to refugees has evolved in response to changing global circumstances and need. In the late 1970s and 1980s Indo-Chinese were predominant in the refugee quota. In recent years, quota refugees have come from a more diverse range of backgrounds. Following a review of the quota in 1987, the Government affirmed the admission of refugees as an ongoing part of New Zealand's immigration policy. The review resulted in the establishment of the annual refugee quota in its current form.

Since 1988–1989, all refugees coming to New Zealand under the refugee quota have attended an orientation programme for their first six weeks in New Zealand. The New Zealand Immigration Service runs this programme at its Mangere Refugee Reception Centre.

Over the years, the quota has included a number of categories for specific national, ethnic, and religious groups as well as special needs groups. Since 1992, the categories within the refugee quota have changed from national categories to world-wide categories based on current needs. This was considered a fairer and more flexible way for the Government to respond to the world's refugee crises.

The composition of the quota is set annually by the Minister of Immigration in consultation with the Minister of Foreign Affairs and Trade. The UNHCR, relevant government departments and nongovernmental organisations are also consulted. The 1999–2000 quota consists of the following categories:

  • Women at risk (75) – women who are mandated refugees and who are without the support of their traditional family protectors or community. They may be in need of additional protection for example, from abduction and sexual abuse or exploitation.

  • Medical/disabled (75) – mandated refugees who have a medical condition that cannot be treated in the country of refuge. Cases in this category may be rejected if resources and treatments are not available in New Zealand.

  • Protection (600) – mandated refugees requiring protection from refoulement, expulsion or a physical threat to their security.

These categories are ‘targets’ rather than limits. For example, if there are insufficient referrals to meet the ‘women-at-risk’ category, these places could be used for protection cases.

The New Zealand Immigration Service purchases services from the Refugee and Migrant Service to locate and maintain sponsors in the community for quota refugees. The role of the sponsor is to assist refugees to settle into their community and to link refugees to services in the community.

Refugees accepted under the quota are granted residence permits in New Zealand. This means they are entitled to live in New Zealand permanently and to enjoy the rights of New Zealand residents in matters such as education, health, employment and social welfare.

In 1998–1999, in addition to the quota, New Zealand agreed to provide safe haven to up to 600 displaced people from Kosovo.

Refugee status seekers – The New Zealand Government accepts claims for refugee status (asylum) from people who are already in New Zealand. The claims are assessed under the 1951 United Nations Convention and the 1967 Protocol Relating to the Status of Refugees, which have been incorporated into New Zealand law. Refugee status claims are assessed in the first instance by the Refugee Status Branch of the New Zealand Immigration Service. Should a claim be turned down, the claimant may appeal to the independent Refugee Status Appeal Authority. In 1998–1999, around 30 percent of refugee status claims were found to meet the definition of a refugee. In line with global trends, the number of refugee status claims in New Zealand has increased in recent years.

Removal and deportation. The Immigration Act 1987, as amended in 1999, places an obligation to leave on people who are in New Zealand unlawfully (mainly people who have not left before their temporary permits expire). Such people may appeal against removal on humanitarian grounds, but must lodge appeals within 42 days of becoming unlawful in New Zealand. Those removed from New Zealand are not eligible to return for five years from the date of their departure.

The Immigration Act 1987 also provides for the deportation of people threatening national security, and 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.

Further information. Further information about immigration policy, application forms, leaflets and fees information may be obtained from the nearest New Zealand Immigration Service branch office or from New Zealand diplomatic and consular representatives overseas. Full information is also available on the New Zealand Immigration Service's website, www.immigration.govt.nz

Māori

Introduction

At the turn of the 20th century, Māori were predominantly rural, isolated from regular contact with Pākehā, financially poor but relatively self-sufficient on low levels of subsistence. With a life expectancy severely reduced by disease, limited access to quality education and employment, and marginal involvement in the political development of the country, they faced an ongoing struggle to survive, let alone retain a sense of identity. Their future did not look bright.

But contrary to initial expectations, by the end of the 20th century Māori had made major advances in health, quality of life and lifestyle. The last 100 years were a period of huge change for Māori. Population numbers recovered remarkably and migration transformed them from a rural to an urban people. With urbanisation came advances in health and education and greater inclusion in community and national life. As the century drew to a close there was increasing recognition of the importance of te Tiriti o Waitangi (the Treaty of Waitangi). Future prospects in all spheres of Māori life are quite different from what they faced in the early 1900s.

There are still major discrepancies between what Māori have attained and enjoy compared to Pākehā. Much has still to be done to ensure Māori have parity with others in society. The issues of parity and genuine interchange between Māori and non-Māori will be a crucial and distinctive part of New Zealand's development in the 21st century.

Population

At the start of the 20th century there was much speculation as to whether Māori were a dying people. Numbers had declined from an estimated 100,000 scarcely 60 years before when organised European settlement began, to less than 46,000 in 1901. Now at the start of the 21st century, there is no doubt about the survival of Māori as a population.

During the 19th century. Māori suffered the trauma of contact and colonisation through wars, land alienation, disease, loss of mana, British ethnocentrism and the denigration of core elements of Māori culture. Combined, these had caused a rapid and steady fall in the Māori population. As the number of European settlers increased (they were to reach a million soon into the new century), so did the number of Māori decline. By the beginning of the new century, Māori were less than 6 percent of the total population and there was real concern that they would go the way of the moa and hūia (New Zealand birds) and the kurī (the Polynesian dog) and not survive. But this was not to be.

Throughout the 20th century the Māori population increased more rapidly than the non-Māori population, in spite of the latter having a robust natural increase rate and an apparently unlimited source of migrants from overseas. Māori fertility was high before western contact, but it was only by arresting their mortality rates that the population ceased to decline.

Due to census under-counting and marked under-registration of Māori births until 1946, the accuracy of Māori population figures is uncertain. However, from 1896 to 1996 the Māori population appeared to increase almost thirteen-fold. As a proportion of the national population, those who identified as Māori numbered almost 600,000 by the end of the century. Māori now represent more than 15 percent of a much larger (approaching 4 million) ethnically diverse national population.

GROWTH OF MĀORI ETHNIC GROUP

As totals have changed over time, so too have definitions of who is counted as Māori. Until the last quarter of the 20th century, definitions of Māori were based on biology or ‘blood-quantum’. Since 1974, Māori have been defined on a combination of biological, cultural and social bases, pushed by Māori assertion of their right to define themselves as the descendants of the aboriginal inhabitants of New Zealand.

The Māori population is markedly younger than the national population, with greater proportions of children and young dependants and lesser (but growing) proportions of elderly dependants. In 1996, children under 15 made up 37 percent of the Māori population, compared to 23 percent of the total population. Only 3 percent of Māori people were in the retirement age group of 65 and over in 1996, but the Māori population is ageing as a result of declining fertility over recent years and increasing life expectancy. By the middle of the 21st century around 13 percent of the Māori population are expected to be aged 65 and over.

Health

The story of the 20th century recovery of the Māori population and its spectacular growth has been the story of fight against disease. Most of the diseases which produced high mortality rates in the 19th and early 20th centuries, such as tuberculosis, pneumonia and influenza, have been or are being brought under control. Their incidence, although still higher among Māori than in the majority population, has been greatly reduced.

Health cannot be separated readily from the wider economic and social environment in which a population lives. Many social, political and environmental factors have impacts on health and well-being. Without doubt, improvements in Māori health have occurred throughout the century, but major discrepancies remain when Māori health is compared with that of Pākehā. Throughout the century. Māori life expectancy has been much less than that of non-Māori. Despite great improvements (Māori life expectancies at birth were about 30–35 years in 1901 and 67–72 years in 1996), they are still about seven years lower than the national average. Māori rates of mortality (and by implication of morbidity or illness) are higher than for non-Māori at most ages and for all major causes. This is most marked in infant and child mortality. Despite a narrowing of the gap since the mid-1950s, Māori infant mortality rates are still more than twice as high as those for non-Māori.

Mental health is also an issue for Māori well-being. Historically, non-Māori were much more likely than Māori to be admitted to psychiatric hospitals, but by the end of the 20th century that had reversed. Indeed, today, not just for mental health but for all hospital admissions, Māori rates are two to four times higher than for non-Māori. This is true for all major causes, including cancer, diabetes, stroke, pneumonia and asthma. It is argued that Māori seek medical attention at much later stages of their condition than non-Māori and are more likely to go to a hospital than a general practitioner or primary health care clinics. But there is no doubt that Māori health is much worse than the health of Pākehā. Pacific Islands peoples’ health status is similar to Māori health.

As the 20th century progressed and debilitating infections were overcome, there were shifts in causes of ill-health. Today, major causes of Māori morbidity and mortality are recognised as diet-related, alcohol and smoking induced lifestyle effects and degenerative factors, such as heart disease, asthma, diabetes, motor accidents, emphysema, arthritis, and cancers. Despite a strong anti-smoking lobby, Māori (especially women) are twice as likely to be smokers as non-Māori. At the 1996 Census, 44 percent of Māori reported that they were smokers, compared to 21 percent of non-Māori. Half of all Māori women aged between 25 and 44 were smokers. Likewise, Māori are nearly twice as likely to be obese, and consequently experience morbidity and mortality rates for related illnesses far in excess of rates for other New Zealanders.

Land

The European settlers who colonised New Zealand wanted land, and they used all kinds of means, honourable or not, to secure it. Most land alienation (20 million hectares) occurred during the 19th century. Almost all of the South Island and two-thirds of the North Island, representing all the best land, had been alienated to Crown title and European control during the 19th century.

From 1900 to 1930, Māori in the North Island lost control and title to a further 5 million hectares from their remaining 8 million hectares of land, and Parliament continued to pass laws to get the rest. Land not required or unsuitable for Māori occupancy was placed under district land councils by the Land Settlement Act of 1904. Pākehā determined what was suitable land because Māori opinion was not represented on those councils. Idle land was anathema to Pākehā and the Government, and Māori land could not be retained in Māori hands if it lay idle. In response, Apirana Ngata, Minister of Native Affairs in the Liberal Government, developed a strategy to turn remaining Māori land into productive farms. Unfortunately, economic and efficient Māori farms were very difficult to achieve, especially without sufficient finance. Much land was saved from alienation only because it was leased to Pākehā.

It was noted that in 1919, of the remaining 1,997,000 hectares of land in Māori ownership, only 755,000 hectares were actually held by the owners. The rest, comprising 1,242,000 hectares, was held under Pākehā leasehold. It was not until after 1930 that government money was made available to Māori for the development of their land.

Despite government purchases and confiscations, the major device for land alienation was the Native (later Māori) Land Court, which was required by law to individualise title. From its institution in 1865 the Native Land Court commodified land, which led to the undermining of tribal social cohesion and Māori leadership. Even now, Māori land holdings are bedevilled by the consequences of the Land Court's work – inadequacy of the extent of tribal and hapū estates, a multiplicity of individual ownership, fragmentation of holdings and a very high proportion of absentee owners.

Urbanisation

Although small numbers of Māori were already living in urban areas early in the 20th century, the recruitment of men as soldiers for both world wars and women for war-related manufacturing and service work saw the beginnings of Māori migrant communities in most of the larger urban centres of the country. By the mid-20th century the Government had instituted a comprehensive relocation plan to shift Māori from their rural pa to live and work in the city.

URBAN-RURAL DISTRIBUTION OF MĀORI POPULATION

The need to shift to the cities was predicted by the economist Horace Belshaw in 1936. He demonstrated to government that insufficient land remained in Māori hands (even if it was developed fully into viable farms) to ensure an adequate standard of living for more than a fraction of the then existing Māori population, let alone one which was known to be increasing rapidly. The estimated 5,000 farms under land development schemes would support only a quarter of the Māori population, which at that time stood at 82,300. Clearly, employment would have to be found elsewhere.

Māori experiences during the war, either overseas or doing war-related work in towns and cities, plus the depressed economics of rural Māori life, seem to have been the triggers for migration. As late as the 1961 Census, one-third of the Māori population was enumerated in rural areas but the rural to urban shift was already well under way. By 1976, the ratio of rural to urban domicile had shifted to approximately one-quarter rural and three-quarters urban. Today 83 percent of Māori live in urban areas, including 62 percent in the main urban areas (centres with populations of 30,000 or more). Urbanisation transformed Māori lives from tight-knit, kin-based communities to the less controlled and more diverse urban living which typifies the Māori population today. This transformation was among the most rapid anywhere in the world, and it had major affects on Māori society and culture.

Young adults left for the cities first and found few older Māori to help with the transition to their new life. There were few examples of Māori social and cultural institutions such as marae or kinship and social organisations to support the young migrants. Although work was plentiful, low levels of educational attainment and a narrow range of occupational skills, together with poor housing, inadequate access to legal services and general ill health, made the transition to urban living very difficult for the majority of new urbanites.

The urbanisation of the young had serious consequences for family, social and tribal cohesion in rural as well as urban areas. These social problems were exacerbated by the widespread effects of racism and discrimination, issues which were addressed by the introduction of human rights legislation which first established the Race Relations Conciliator's Office in 1971 and then the Human Rights Commission in 1981. Discrimination on the basis of race, ethnicity, national origin, gender, disability and many other factors became unlawful, and as the century progressed, anti-discrimination measures and human rights for minorities, including Māori, became more widely accepted. Even so, these changes did not come readily. Just as Māori were unprepared for urban living, so urban Pākehā residents were unprepared for the influx of Māori migrants, and for the contemporaneous migration of Pacific Islands people to the largest urban areas. This was especially so for Auckland where Māori and Pacific Islands people concentrated in low income southern and western suburbs.

MĀORI AND NON-MĀORI UNEMPLOYMENT RATES

Employment

In 1901, almost all Māori were subsistence farmers living in rural dwellings in village communities concentrated in the northern and eastern regions of the North Island. Some workers were able to augment their subsistence living by selling their labour seasonally to Pākehā farmers, timber millers and other employers. Generally, however, their lives and those of their families were stricken with poverty. The very few urban dwellers were in communities adjacent to or engulfed by the growth of European towns and cities. Fewer still were in the South Island.

Urbanisation led to a much wider range of employment opportunities for young Māori workers. However, they were restricted in their employment choices by poor educational attainment levels, few job skills and employer prejudice. Consequently many were drawn into unskilled or semi-skilled manual jobs in expanding secondary industries in towns and cities. By 1976, 37 percent of Māori males and females were working in manufacturing industries, with a further 29 percent of men working in construction or transport and communication. This pattern of employment became entrenched, and the legacy is apparent today in the occupational distribution of Māori, who are twice as likely as non-Māori workers to be in elementary occupations or plant and machinery work and considerably less likely than non-Māori to be in professional or administrative and managerial jobs.

REAL MEDIAN INCOME OF MĀORI AND NON-MĀORI MEN AND WOMEN, 1986–1996

As the New Zealand economy diversified from reliance on agricultural exports, and technology replaced manual work, Māori workers appeared to become trapped in ‘twilight’ industries such as farm work, meat processing, and semi-skilled occupations in production and service industries. The economic structural adjustments that were instituted from the mid-1980s had major consequences for Māori employment, incomes and their sense of participation in the wider community. Before restructuring began, Māori had higher participation rates in the wage economy than others. Changes over the following three years resulted in one in four Māori losing their paid employment. From 1987, Māori unemployment rates have been between two and three times higher than for non-Māori, and at the end of the century a significant proportion (36 percent of Māori compared to 14 percent of non-Māori) were reliant on government benefits as their main source of income.

Throughout the 20th century, household incomes of Māori have been 20 percent or more less than those of other New Zealanders. Furthermore, these lower incomes have had to support larger households and families with more dependants. In 1996, over 38 percent of Māori lived in households with incomes in the bottom quartile of household incomes while fewer than 13 percent lived in households in the top quartile. The median income of Māori men was 30 percent lower than that of non-Māori men. Māori women had considerably lower incomes than men; they were 12 percent lower than those of non-Māori women.

Low incomes inevitably have consequences for housing tenure and quality. Māori-occupied dwellings have more occupants than the national average; they are more likely to be overcrowded, and less likely to have a full range of modern facilities. In 1996 only half of Māori, compared with three-quarters of non-Māori, lived in owner-occupied dwellings. Low incomes and benefit dependency will have further consequences in the future for Māori by restricting their ability to invest in future superannuation. These economic and social factors – low incomes and low savings, low educational attainments, low vocational skill levels, poor housing and poor health – form a cycle of cumulative causation, with each factor reinforcing the other, leaving few pathways out of a lifetime of relative poverty.

Education

At the dawn of the 20th century Māori education was based on official assumptions that Māori had a limited capacity for formal education and that they should be schooled largely in manual and domestic skills. Only a very small number of Māori pupils progressed beyond primary schooling and a minuscule number to tertiary education. By mid-century, changes in these attitudes occurred with the establishment of Māori District High Schools and encouragement of some young Māori into teaching. Yet, as late as 1969, the newly established Māori Graduates Association could identify only about 130 living university graduates who were Māori.

OCCUPATIONAL DISTRIBUTION OF MĀORI AND NON-MĀORI, 1996

Progress in Māori education gathered momentum in the second half of the century. There were changes in official attitudes, in access, availability and uptake in secondary and tertiary education, and improvements in attainment levels. More attention is now paid in official circles to the Māori desire for a greater say in determining their own educational futures. This is based on the realisation that when it comes to education, ‘one size does not fit all’, and that we as a nation can do much better than we have in the past to provide socially and culturally appropriate educational services for young Māori.

The impetus for the change in official attitudes must come partly from the fact that Māori educational attainment, while improving, still lags behind that of Pākehā. (Pacific Islands peoples in New Zealand have educational attainment levels very similar to Māori.) While Māori are leaving school more qualified than in the past, the proportion who leave formal schooling without qualifications is twice that of non-Māori students. Māori are less likely than non-Māori to reach senior secondary school, with around four in 10 Māori students remaining at school until the age of 17 compared to around 7 in 10 non-Māori. Māori participation in tertiary education has increased rapidly in recent years, more than doubling between 1991 and 1997. However, they remain under-represented amongst both staff and students, particularly at university level where they make up less than one in 10 students. Māori student progression rates to post-graduate study are also very low – they made up less than 7 percent of post-graduate university students in 1997. As a consequence, Māori are severely under-represented in the professions, in commerce and business management – in fact all occupations that require post-compulsory education and training.

Such differentials between Māori and non-Māori in educational attainments are very costly, both in terms of education as a private good and as a public good. It costs the country much more to maintain Māori as an unemployed under-class with a narrow range of desired occupational skills, than to invest more directly in their post-compulsory education.

Te reo Māori

As formal education levels improved, Māori language fluency and use declined. The Government's urban relocation policies sought to resettle Māori households where they would be spread among non-Māori (the so-called pepper-potting policy). There Māori and Pākehā would meet and learn from each other. During the initial decades of urbanisation, this resulted in what Māori have referred to as enforced assimilation. Together with the unwillingness of schools to recognise the validity of te reo Māori (Māori language), either as a subject to be taught or as a medium to be used in teaching, assimilationist policies accelerated the loss of fluency in Māori and threatened its survival as a living language.

At the beginning of the century, more than 90 percent of Māori five year-olds spoke Māori. By the end of the century, less than 5 percent of Māori five year-olds were fluent users of the language. Only one in eight adult Māori and virtually no adult non-Māori are fluent users of Māori. The decline in use of te reo Māori has occurred despite two decades of concerted efforts to arrest the decline and promote it as a living language. This has been approached through kōhanga reo (Māori language pre-schools), kura kaupapa Māori (Māori language primary schools) and bilingual schools and units in primary and secondary schools.

As a result of the 1974 Education Development Conference and social activism from young urban Māori intellectuals, especially Ngā Tamatoa (The Young Warriors) and Te Reo Māori Society, control of Māori education had been progressively returned to iwi and Māori communities to determine. Learning and teaching through the medium of te reo Māori was sanctioned when the Government established the first bilingual schools in the 1970s and kōhanga reo from 1981. Acceptance and expansion of kōhanga reo (there are now over 600 receiving state funding) was followed by the rapid expansion of Māori education, in both the English and Māori languages.

Policies and facilities which addressed Māori needs were increasingly determined and articulated by Māori for Māori in most state and state-funded schools. Māori community management of education increased. There are now very few communities without specialised Māori educational facilities such as kōhanga reo, kura kaupapa Māori schools or Māori language immersion units. There are also three tertiary level wānanga, the first of which was established in 1985 at Otaki. Nonetheless, the era of (even small) communities of fluent, native speakers has passed forever.

Politics

Historically, Māori struggled to bring greater control over their own lives, resources and destinies, rejecting the notion of assimilation and seeking recognition of their right (plus the necessary resources) to survive and to advance as Māori. The counterpoint to this struggle were Pākehā people and their governments who had their own interests to serve.

At the start of representative government in 1851, Māori were excluded from the franchise. In 1867 Māori, who then accounted for almost half of the country's population, were granted only four of the 80 parliamentary electorates. The decision to limit the seats to four was not based on any principle of fair representation. This number remained unchanged until 1996, when it was increased to five. The continued survival of the Māori electorates has been taken by Māori to be recognition, albeit minimal, of their constitutional Treaty partnership. Earlier, in 1975, in response to repeated requests from Māori for pro rata representation in Parliament, the third Labour Government changed electoral legislation to permit Māori to enrol in Pākehā electorates. (Previously, Māori could only enrol to vote in Māori electorates.) As a consequence, from 1975 onwards, significant numbers of Māori voters shifted from the Māori roll to the general roll. About one-third of Māori electors, alienated by the nature of national politics, did not register on either roll or vote, and thus did not participate at all in general elections.

However, being represented in Parliament was not the only means to fulfil political aspirations. Many grassroots organisations had political functions. Among the most notable was the Māori Women's Welfare League (MWWL) established in 1951. With some remarkable leaders, including Whina Cooper, Hine Potaka, Mira Szaszy and Elizabeth Murchie, the league gave a credible local and national voice to Māori women on issues such as housing, health, urbanisation, education, culture and language. Many women felt they were marginalised by tribal protocols, which denied them an influence in public affairs. The league, with its local, district, regional and national structure, gave grassroots women a voice.

Another ‘representative’ four-tiered structure was the New Zealand Māori Council (NZMC). Constituted under the Māori Welfare Act 1962, they replaced already existing but moribund tribal committees. The committees were considered to be the National Government's counter to a Labour monopoly (since 1943) on the Māori parliamentary seats. The NZMC was identified with the National Party as its early leaders Turi Carroll, Henare Ngata, Pei Te Hurinui Jones and Graham Latimer were among the leaders and functionaries of that party, even though National attracted very few Māori votes.

These two national networks, despite the circumstances of their creation, and their initial Pākehā-like bureaucratic structure, were driven by the same agenda that had driven earlier Māori leaders, namely to struggle for the good of their people against the forces of colonialism and assimilation. Both organisations have survived through to the end of the century, although they are struggling to meet their objectives through lack of resources and through the revival of officially recognised and mandated iwi-based authorities.

In 1986 a royal commission on the electoral system recommended to the Government a mixed member proportional system (MMP). Although the royal commission also recommended abandoning separate Māori electoral rolls, Māori strongly opposed it and separate Māori electorates were retained. The first MMP election in 1996 resulted in 15 Māori out of 120 members of Parliament, almost three times what the previous system had delivered. All the major parties had a least one Māori MP and a predominantly Māori party (New Zealand First) entered into a governing coalition with the National party. The significance of Māori electoral power had been recognised and after being marginalised for almost 130 years, the 1999 election saw all parties actively court the Māori vote.

Treaty and community relations

Throughout the first three-quarters of the 20th century, the Treaty of Waitangi, its impact on the nation's jurisprudence and its promises of protection and equality for Māori, appear to have been non-issues with the Government and the non-Māori population. That the Treaty itself was lost in the labyrinth of the National Archives for several decades was perhaps symptomatic of its lack of status. Māori political leaders from James Carroll, Maui Pomare, Peter Buck and Apirana Ngata through to Te Puea Herangi, Wiremu Ratana and Eruera Tirikatene, all sought to have Māori grievances redressed by invoking the Treaty. Scores of deputations and petitions to Parliament in Wellington and Westminster were to no avail.

As the 1840–1940 centenary celebrations approached, Eruera Tirikatene (Rātana MP for Southern Māori), like previous Māori MPs, petitioned to have the Treaty recognised in statute and honoured by the Crown. Despite a coalition compact between the Labour Party and the Rātana movement dating from 1932, and renewed in 1935 when Labour became the Government, the best that was offered were facsimiles of the Treaty displayed in all the country's schools. Nothing concrete appeared in legislation for a further 40 years, when during the term of the third Labour Government, the Treaty of Waitangi Act 1975 established the Waitangi Tribunal.

The Labour Government, in its 1972 election manifesto, had promised statutory recognition of the Treaty of Waitangi and was spurred on by 40,000 people marching behind octogenarian Dame Whina Cooper, from Te Hapua in the far north to Wellington. The marchers presented a petition to Parliament demanding that ‘not one more acre’ of Māori land be alienated.

Matiu Rata, Minister of Māori Affairs, sponsored a bill through Parliament to establish the Waitangi Tribunal as a permanent commission of enquiry. This would hear Māori claims that they had been prejudicially affected by action or inaction of the Crown in breach of the principles of the treaty. For its first 10 years, the Waitangi Tribunal could only consider claims against the Crown involving actions occurring since 1975 when the tribunal was established. Furthermore, after reporting on a claim, the tribunal had no binding powers and could only recommend redress. It was widely considered to be a paper tiger with little or no power.

Library Pine Taiapa working on a wood carving.

In 1985 Parliament extended the tribunal's jurisdiction to investigate claims of treaty breaches from 1840. As the majority of alleged breaches involved land, and 90 percent of land alienations by the Crown had occurred in the 19th century, the tribunal's enlarged jurisdiction permitted a major increase in the number of claims laid. From 1985, Māori have placed enormous faith in the tribunal as the first permanent judicial body with power to hear treaty claims and recommend restorative justice. In 1985 Parliament amended the Waitangi Tribunal legislation to increase membership of the tribunal from three to seven, then later to 16, allowing it to hear a number of claims at once. Within two or three years, the number of claims lodged with the tribunal had ballooned to over 700.

PROJECTED GROWTH IN MĀORI ETHNIC GROUP

Separate decisions in the High Court and the Court of Appeal were also sought on forestry, fisheries and other resource claims involving assets transferred from the Crown to State Owned Enterprises (SOEs). Māori successfully sought to prevent these being sold to third parties if they were subject to tribunal claim. The tribunal was later granted limited powers to bind the Crown in respect of SOE assets.

In 1986 the Crown introduced a privatisation regime in the fisheries industry. This involved determining a total allowable catch (TAC) for each fish species and allocating this catch as Individual Transferable Quota (ITQ) to those with a history of fishing. The quota management system was designed to conserve fish stocks and make the industry self-sustaining. Representatives of the Crown and Māori fisheries claimants agreed to transfer 10 percent of the commercial catch to Māori. The Crown would also facilitate the purchase by Māori of a half share in the largest quota-holder, Sealords, and the establishment of the Treaty of Waitangi Fisheries Commission (Te Ohu Kai Moana). (See section 19.3 for the entry on Te Ohu Kai Moana.)

By 1994, however, there was tension around the amount of money being spent on compensation. Doug Graham, Minister for Treaty Settlements, announced a fiscal cap of 1 billion dollars on treaty claims – the so-called ‘fiscal envelope’. The concept was almost universally rejected by Māori. Estimates of the value of treaty claims range from 80 to 120 billion dollars and there were concerns that the fiscal envelope would result in returns to aggrieved claimants of about one cent in the dollar. Despite its rejection, the Government and Waikato-Tainui reached a $170 million settlement on the raupatu (confiscated lands) claim in 1995, following direct negotiations which did not involve the Waitangi Tribunal. The settlement amounted to approximately 1.4 cents in the dollar on the current valuation of the land confiscated.

A year later, the South Island's Ngaitahu people, whose comprehensive claim involving nine sectional claims had been heard by the Waitangi Tribunal, settled for cash and land totalling the same amount as Tainui-Waikato. Between them, these two settlements amounted to one-third of the fiscal envelope. With the Sealords settlement added, the three claims have used up half the money in the fiscal envelope, and more than 600 other claimants remain to be heard and their grievances settled. Either later claims will find that there is no more left to settle, or the fiscal cap will have to be lifted.

Looking ahead

Only in the final quarter of the century has public interest been redefined to allow for more than a token Māori dimension. Before then Māori were often the unwilling recipients of policies, practices and belief systems which sought to assimilate them to a transplanted British society.

Parliament and the electorate have had to grapple with the difficult job of balancing the need to redress Māori with the resistance of those non-Māori who feel little sense of moral or fiscal responsibility for the many breaches of the Treaty of Waitangi's principles. This balance is still being sought.

Māori people have passed from an environment of despair and depression to today's environment in which they are beginning to be recognised as a valued part of New Zealand society. From marginalised, tradition-bound, rural communities into a largely forward-looking, urban people, influenced and informed but not bound by its past, such social transition continues. Their 20th century transformation, following an even more traumatic 19th century, has been based on the peoples’ continuing genius and their determination to survive into the next century as Māori. Already one in seven of the national population, the Māori population will continue to grow. By the middle of this century Māori are expected to number a million, and make up one-quarter of the population.

New Zealand's history is replete with both adaptive ideas and survival strategies that celebrate a Māori sense of people-hood. So too will be our future. This expectation, along with the developing Māori sense of citizenship and participation in the life of a maturing, post-colonial country, helps all New Zealand. As Māori are encouraged to make their contribution to our common future, New Zealand will develop into a distinctive society that recognises and celebrates separate and shared histories and common futures. Māori inclusion is now restrained only by a desire to remain Māori, in all the myriad ways of culture and society.

Selected bibliography

Asher G and Naulls D 1987. Maori land.

Durie MH 1998. Te Mana, Te Kawanatanga the Politics of Maori Self-Determination.

Durie MH 1994. Whaiora, Maori Health Development.

King M 1992. Te Ao Hurihuri: Aspects of Māoritanga, 2nd ed.

Ministry of Health 1999. Our Health Our Future.

Pomare E and de Boer G 1998. Hauora, Maori Standards of Health.

Schwimmer E 1968. The Maori People in the Nineteen-Sixties.

Sutherland IGL 1940. The Maori People Today.

Te Puni Kokiri 1998. Progress Towards Closing Social and Economic Gaps between Maori and Non-Maori.

Walker Ranginui 1990. Ka Whawhai Tonu Matou, Struggle Without End.

Opening ceremony at Wellington Teachers College marae, 1987.

6.4 Māori society

Demography

In this section, statistics on the New Zealand Māori population from the 1996 Census are based on the concept of ‘ethnicity’ (see Ethnicity in preceding section) and are collected on the basis of personal identification, individual perception and choice.

Ethnicity statistics in 1996 are closely comparable with 1991 Census statistics.

While statistics based on ethnicity are widely used for analysing Māori population growth and distribution and are relevant to many of the present day requirements of users, it should be noted that legislation pertaining to New Zealand Māori and the concept used to measure the Māori electoral population is based on Māori descent.

People are described as having New Zealand Māori ethnicity if they have given this response as any one of their ethnicities.

Age distribution. Table 6.27 compares the Māori population usually resident in New Zealand at the 1991 and 1996 Censuses by age group.

When the intercensal change is analysed on a consistent age group basis (i.e. the age group 0–4 years, etc, at the 1991 Census, is compared with the 5–9 year age group, etc, at the 1996 Census) the contribution made by net external migration and natural increase to New Zealand Māori population growth can be seen. Another factor which affects this pattern is ethnic mobility (when a person changes ethnicity between censuses).

Table 6.27. NEW ZEALAND MĀORI POPULATION BY AGE GROUP1

Age group (years)1991 Census1996 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

1People of New Zealand Māori ethnicity usually resident in New Zealand.

Source: Statistics New Zealand

0–462,00414.371,66713.715.6
5–951,07211.767,44212.932.0
10–1449,97111.557,31811.014.7
15–1730,0216.932,2116.27.3
18–1919,8904.619,5033.7-1.9
20–2442,8559.947,3469.010.5
25–2939,5619.143,1498.29.1
30–3433,9997.841,9948.023.5
35–3926,0106.036,4057.040.0
40–4420,7484.828,0445.435.2
45–4915,4383.622,3444.344.7
50–5413,8333.216,1013.116.4
55–5910,6502.413,8572.630.1
60–647,8361.810,1821.929.9
65–695,0641.27,2151.442.5
70–742,9310.74,3710.849.1
75–7917250.42,3160.434.3
80 and over12390.319260.455.2
        Total434,847100.0523,374100.020.4

At the 1996 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 23.0 percent of the total New Zealand resident population. In contrast, only 3.0 percent of Māori were 65 years of age and over at that time, the corresponding figure for the total New Zealand resident population being 11.7 percent.

The Rātana temple at Rātana Pa, 1930s.

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.

Geographical distribution. Changes in the regional distribution of the Māori population between the 1991 and 1996 Censuses are shown in table 6.28. Māori continue to be concentrated in the North Island regions (where 87.5 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 has continued to decline since 1981.

The South Island's share of the Māori population accordingly showed an increase, from 10.7 percent to 12.4 percent, during the 1991–1996 intercensal period. Canterbury received the bulk of the increased share and contained 5.9 percent of the Māori population at the 1996 Census.

Redistribution of the New Zealand Māori population during 1991–1996 is the result of variations in the relative levels of natural increase (births less deaths) in the regions, and the impact of both internal and external migration flows.

Table 6.28. NEW ZEALAND MĀORI POPULATION BY REGION1

Region1991 Census1996 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

1People of New Zealand Māori ethnicity usually resident in New Zealand.

2Includes Chatham Islands District.

Source: Statistics New Zealand

North Island –
        Northland35,6108.241,5027.916.5
        Auckland103,58723.8126,41424.222.0
        Waikato59,98513.871,68213.719.5
        Bay of Plenty53,17512.262,74512.018.0
        Gisborne17,8204.119,3893.78.8
        Hawke's Bay28,2426.531,6506.012.1
        Taranaki12,7622.914,9852.917.4
        Manawatu–Wanganui34,5758.039,9997.615.7
        Wellington42,0789.749,6749.518.1
          North Island total387,83489.2458,03787.518.1
South Island –
        Tasman16260.42,6100.560.5
        Nelson17070.43,0150.676.6
        Marlborough2,7780.63,9090.740.6
        West Coast2,0250.52,8350.540.0
        Canterbury22,0055.131,0115.940.9
        Otago7,4101.710,9052.147.2
        Southland9,1292.110,6382.016.5
          South Island total46,68010.764,92012.439.1
        Extra-county islands and shipping23300.14140.125.1
          New Zealand total434,847100.0523,371100.020.4

Male-female ratio. At the 1996 Census, females outnumbered males in the Māori population. This repeats the pattern established in the 1991 Census. There were 258,000 males and 265,374 females in the Māori population, representing a sex ratio of 102.9 females to every 100 males.

Handing over the Waitangi Tribunal report that officially recognises the West Auckland Waipareira trust as an iwi, 1998.

Dynamics of population change. 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 6.29 shows demographic indexes based on the Māori ethnic group concept.

The Māori fertility rate fell very rapidly during the 1960s and 1970s. As a consequence, the gap between Māori and non-Māori average family size has narrowed, from a two child difference in 1962 to less than one child today. Nevertheless, the Māori fertility rate of 2.47 births per woman in 1998 remains 40 percent higher than that for non-Māori women (1.77 births per woman). In percentage terms the difference is only slightly lower than in 1962, when Māori had a total fertility rate 53 percent higher than non-Māori. Unlike non-Māori, who have sub-replacement fertility, Māori fertility remains 18 percent above ‘replacement level’. In 1998, the median age at childbearing was 25.6 years for Māori women and 30.1 years for non-Māori women.

Life expectancy. The 1995–1997 life tables, indicate that life expectancy at birth for the Māori ethnic group was 71.6 years for females and 67.2 years for males. Māori women can therefore expect to outlive Māori men by 4.4 years. For the non-Māori population, life expectancy at birth was 80.6 years for females and 75.3 for males, giving females a longevity edge of 5.3 years over males. Based on the 1995–1997 figures, a new-born non-Māori girl can expect to outlive her Māori counterpart by 9.0 years. For new-born boys the non-Māori advantage is 8.1 years.

The 1995–1997 life tables for Māori and non-Māori have been constructed using data drawn from new birth and death registration forms, and therefore are not comparable with earlier series. While Māori life expectancy figures for 1995–1997 are slightly lower than those recorded for 1990–1992, it does not necessarily imply a deterioration in Māori life expectancy because the two series are not comparable. (Earlier life tables show that the gap between Māori and non-Māori life expectancy narrowed by about 10 years over the preceding four decades.) The 1995–1997 life expectancy levels for Māori are considered a better measure of Māori longevity than those derived in the past, and should be taken as a new benchmark for future comparison.

Table 6.29. MĀORI DEMOGRAPHIC INDEXES

YearLive birthsDeathsReproduction rates
      
Number1Crude birth rate2Total fertility rate3,4NumberCrude death rate2Rate of natural increase5GrossNet

1Based on ethnicity of the child.

2Per 1,000 of mean population.

3Average 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 in that year.

4Based on ethnicity of the mother.

5Excess of births over deaths per 1,000 mean population.

Source: Statistics New Zealand

199615,80428.852.602,6264.7924.061.261.23
199716,30129.072.672,5494.5524.521.291.26
199815,23126.552.472,4474.2722.281.191.16

The Treaty of Waitangi: Te Tiriti O Waitangi

The Treaty of Waitangi was signed at Waitangi on February 6, 1840, and after nearly 160 years it is becoming the instrument the parties intended it to be in 1840. While the Treaty has always been recognised within Māori society as an affirmation of rights and highly valued as a taonga, a sacred pact, this has not always been the case for past governments or the courts. The Treaty has moved from being ‘a simple nullity’ as it was described in 1877, to holding an important influence over much of the Government's activities.

The landmark 1987 Court of Appeal ruling in the New Zealand Māori Council versus the Attorney-General case confirmed the special relationship between Māori 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 Ropu Whakamana I Te Tiriti O Waitangi

The Waitangi Tribunal was established under the Treaty of Waitangi Act 1975, at a time when Māori dissatisfaction with the Government's response to calls for the Treaty to be honoured were at boiling point.

The tribunal has exclusive authority, for the purposes of the act, to determine the meaning and effect of the Treaty of Waitangi, as embodied in the English and Māori texts, and to decide upon issues raised by the differences between them.

While the Treaty of Waitangi Act is the main statute that governs the tribunal, there are other statutes which also regulate its operation, including the Commissions of Inquiry Act 1908 and the Treaty of Waitangi (State-Enterprises) Act 1988.

The main functions of the Waitangi Tribunal are to inquire into, and make findings and recommendations to the Crown, on claims related to the Treaty of Waitangi by Māori. It comprises up to 16 members, who are appointed for their expertise in matters likely to come before the tribunal, plus a chairperson who is either a judge or retired judge of the High Court or the Chief Judge of the Māori Land Court, and a Deputy Chairperson, who is a judge of the Māori Land Court. Most members work for the tribunal on a part-time basis only. 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 Pākehā.

The tribunal may only inquire into claims by Māori concerning legislation, acts, omissions, policies and practices of the Crown, which are alleged to have caused prejudice against the claimants, and which are claimed to be inconsistent with the principles of the Treaty of Waitangi. Claims fall into the following three broad categories: historical claims (e.g. past government actions); contemporary claims (e.g. current government policies or practices); and conceptual claims (e.g. the ‘ownership’ of natural resources).

The tribunal's vision is that, having reconciled ourselves with the past and possessing a full understanding of the Treaty of Waitangi, Māori and non-Māori New Zealanders will be equipped to create a future for two peoples as one nation.

The tribunal is a permanent commission of inquiry and its administrative arm, the Waitangi Tribunal Business Unit, is part of the Department for Courts.

  • The tribunal does not settle claims, it makes recommendations to the Government on how claims could be settled. Generally, the tribunal only has authority to make recommendations. In most instances, its recommendations do not bind the Crown, claimants or third parties. However in certain limited situations the tribunal does have binding powers.

  • Claims are settled by negotiation with the Government.

  • The tribunal cannot make recommendations over the return of private land.

  • The tribunal can register the claim of any Māori with a grievance against a policy, practice, act, or omission of the Crown. The tribunal may refuse to inquire into claims that are frivolous or vexatious.

  • The tribunal can conduct its own research and inquiries. Its process is more inquisitorial and less adversarial than court procedures.

  • The tribunal's process is flexible; it is not necessarily required to follow the rules of evidence which must be followed in the courts, and it can adapt its procedures as it thinks fit. For example the tribunal can adopt ‘te kawa o te marae’ or ‘the protocols of the marae’.

  • Tribunal members are appointed by the Governor-General on the recommendation of the Minister of Māori Affairs.

By the end of the 1998–1999 year, the tribunal had registered 779 claims since 1975.

The tribunal's website is www.knowledge-basket.co.nz/waitangi

The Office of Treaty Settlements: Te Tari Whakatau Take e pā ana ki te Tiriti o Waitangi. This 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 these major functions:

  • To 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.

  • To negotiate and implement the settlement of claims.

  • To operate mechanisms to protect Māori land interests.

  • To acquire, manage and dispose of Crown-owned land for purposes related to treaty claims.

The office's director is directly responsible to the Minister in Charge of Treaty of Waitangi Negotiations for the policy advice, negotiations services and the implementation of 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 about 20 claims at negotiation, pre-negotiation or implementation stage. Four heads of agreement have been reached with three of the eight Taranaki iwi: Ngāti Awa, Te Uri o Hau and Rangitane o Manawatu. Several other negotiations are at an advanced stage.

The office's website is www.ots.govt.nz

Ministry of Māori Development: Te Puni Kōkiri

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

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

  • To provide strategic leadership advice.

  • To provide advice on sectoral issues particularly across the key sectors of education, health, employment and commerce.

  • To provide early warning of discrete issues at a community level that affect the Crown-Māori relationship.

In providing this advice, the ministry aims to achieve parity between Māori and non-Māori in key social and economic outcomes, as well as progress the fair and durable settlement of Treaty grievances.

Te Puni Kōkiri was established as a policy ministry on 1 January 1992 and replaced Manatū Māori (the Department of Māori Affairs) and Te Tira Ahu Iwi (the Iwi Transition Agency). The name Te Puni Kōkiri was proposed during a hui of kaumātua in Wellington in 1991. The name indicates a group of travellers making progress, signalling a forward direction for the ministry.

Te Puni Kōkiri's operating budget absorbs the costs of the ministry, as well as those of the Māori Development Commissions and the administration costs of the Māori Trust Office.

Te Puni Kōkiri is organised into eight branches. Their respective roles and functions follow.

Economic Development Branch – advises ministers and other government agencies on options to maximise the benefit for iwi, hapū and Māori of the commercial use of their collective and individual assets. Specific areas of work focus on enterprise and industry development, Māori tourism initiatives, land development and asset selection and financing.

Treaty Compliance Branch – provides advice on the government's settlement policies and on its biodiversity and intellectual property policies, as well as undertaking analysis of the Treaty of Waitangi's evolving meaning and application.

Social Policy Branch – examines barriers to Māori achieving parity with non-Māori in social and economic outcomes. It then develops strategies to address these barriers and advises other government agencies on how best to improve their delivery of services to Māori. In particular, the branch focuses on education, health, employment, housing, welfare and justice outcomes.

Regional Development Branch – is made up of regional offices throughout New Zealand. These 13 offices provide advice to head office in Wellington on local issues which may impact on the Crown-Māori relationship and work with local government agencies to ensure that they deliver effective services to Māori. They also advise on appropriate processes for consultation between the Crown and Māori.

Monitoring and Evaluation – monitors and evaluates agencies responsible for delivering services to Māori. The branch provides agencies with feedback on service delivery, and on how to improve performance.

Legal Services – provides legal services to the ministry.

Law reform – examines reforms to relevant laws, e.g. Reserved Lands Act.

Corporate Services Branch – designs and implements policies and practices to ensure the ministry runs effectively and efficiently.

Other services

Services to the Māori Trustee and the Māori Development Commissions – the Māori Trustee operates under its own legislation, while the Māori Development Commissions report directly to the Minister of Māori Affairs. Te Puni Kōkiri provides the trustee and the commissions with administrative and clerical support.

The ministry's website is www.tpk.govt.nz

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. Rūnanga 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 wānanga, 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. Tribal identity is enhanced and there is even greater incentive for Māori to participate in tribal affairs. Traditional institutions and networks have been revitalised and new rūnanga 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, and in Māori economic development.

Māori 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 1934–1935. These programmes are currently under review by Te Puni Kōkiri, with a view to being 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 Kōhanga Reo; and the Māori Language Commission (Te Taura Whiri i te Reo Māori).

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 kōkiri management committees.

Te Kirihaehae Te Puea Herangi, Princess Te Puea (1883–1952).

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 section 18 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, as a statutory body, is accountable to the government only for its funding. Its main purpose is to protect all Māori or part-Māori issues, such as energy, housing or land conflicts.

The council is based on the 946 marae throughout the country. It currently represents 16 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 whānau and hapū. The executive committee, consisting of the chairman of each district council, meets as often as possible.

Māori Congress: Te Whakakotahitanga o ngā iwi o Aotearoa. The Māori Congress was officially launched in July 1990, after three national Māori leaders – the late Sir Hepi Te Heuheu, Dame Te Atairangikaahu 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 include:

  • The advancement of all Māori people.

  • The 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 enabling Māori 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.

Congress is led by two presidents, and has three elected officers. Membership includes five delegates from 45 participating iwi.

Congress is involved in a range of activities relating to iwi and Māori development. There has been extensive congress 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, and working with the government and its agencies to enhance the Treaty relationship between iwi, Māori and the Crown.

Māori wardens. Māori wardens have been in existence since 1945. Their powers are conferred by the Māori Community Development Act 1962 or by regulations made under it. Wardens are nominated by a Māori Committee, and then appointed by the Minister of Māori Affairs after their nomination has been endorsed by both the appropriate District Māori Council and the Chief Executive of Te Puni Kōkiri. They are appointed for a term of three years, and may be re-appointed for further terms.

Wardens are under the control/supervision of the District Māori Council or a Māori Association to which the council delegates power. The District Māori Council can also recommend that appointments be cancelled.

There is a Māori Wardens Association which wardens may join if they wish. They hold annual conferences to keep wardens informed of developments in relation to their roles. Most wardens are affiliated to this group, but not all. Some prefer to work independently, and others prefer to be under the jurisdiction of the District Māori Council. These councils are not iwi-aligned.

The wardens, who are voluntary workers, undertake work in areas of social significance to Māori such as streetkids, kids at risk etc. They also attend court as court helpers, attend family group conferences and patrol shopping areas.

Māori wardens can warn a publican not to serve a Māori, or order him or her to leave licensed premises, or take their car keys. They also have some power regarding both Māori and non Māori at ‘Māori gatherings’, such as hui, tangi or anything on the marae where liquor is available.

There are around 800 warranted Māori wardens under the 16 District Māori Councils. The Māori Wardens Association is funded by a grant of $100,000 per annum from the Ministry of Māori Development (Te Puni Kōkiri). In 1999 the government funded a further $100,000 to Māori wardens working with youth at risk.

Māori Women's Welfare League Inc: Te Roopu Wahine Māori Toko i Te Ora is a national voluntary organisation; its philosophy is the well-being of Māori women and their families. The league has a nationwide network of 150 branches spread throughout New Zealand with a membership of 2,500. It has been actively involved with Māori families and communities since 1951 to improve health, housing, education, welfare, justice and economic development for Māori people.

Kōhanga reo. Te Kōhanga Reo is a whānau (family) base where Māori language, values and customs are naturally acquired by pre-school children from their kaumātua (elders). The movement's aim is that through the example of the whānau, children learn aroha (love, compassion), manaakitanga (caring, hospitality), and whanaungatanga (family responsibilities) through the medium of Māori language.

There are 690 Te Kōhanga Reo throughout New Zealand where 14,000 children are taught in te reo Māori. Approximately 40,000 children have passed through Te Kōhanga Reo since it was established in 1982.

The Kōhanga Reo movement provides a variety of courses and training programmes which can be accessed by the whānau through their own kōhanga reo. These courses are whānau based and have been designed to improve whānau skills and knowledge not only in te reo and tikanga Māori but also on the administration and management of the kohanga reo operation. Currently there are eight courses. Three are NZQA approved, two are being developed to NZQA approval standards and three are continuous wānanga on the curriculum (te whariki), the charter (te korowai), and professional development. There are currently 905 akonga in training in the three NZQA approved courses. Another 6,900 whānau attend wānanga throughout the year.

Kōkiri centres. Kōkiri 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 kōkiri centres are recognised or are in the process of gaining recognition as training providers. Other community programmes can also operate out of kōkiri centres, such as kōhanga reo, maatu whāngai 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.

Members of this young Haukori a Rehua marae aerobics team teach aerobics in te reo Māori.

Dame Whina Cooper, 1953.

Marae subsidies. Marae are traditional centres of Māori tribal life, the venue for major social, political and ceremonial activity. 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 150,000 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 tēmatanga o tēnei rautau; otirā, mai i te tēmatanga 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, ko te wāhi ki te pouaka whakaata Māori e tirohia tonutia ana.

Ko te ture i kēia ai 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 Waitangióe pā ana taua pwrongo ki te reo Māori me tōna tūranga i ngā whare 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 kēia te reo Māori he reo mana, ā, ka āhei hoki te tangata ki te kōrero Māori i ngā whare whakawā o te motu.

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

Kei te iwi Māori tonu te uara whakaora ake i tōna reo, inā hoki kei reira te tino mātauranga ki te reo. Ko te hunga matatau ki te reo e whakahauria ana e Te Taura Whiri i te Reo Māori kia tukua iho e rātou tēnei taonga ki te mātātahi e tupu haere nei, ki te mātāpuputu hoki kāore i te mōhio ki te reo o ōna mātua tēpuna. I tua atu i te wero atu ki te iwi Māori kia matapakitia, kia whakatutukia he kaupapa mō te reo, ko tētahi o ngā mahi a Te Taura Whiri i te Reo Māori he tito, he kohi kupu hou mai hei whakamahi mā te hunga kōrero Māori (hei tauira, ‘waea whakaahua’ facsimile device, fax). Hei whakatutuki noa i ngā tono kupu hou, ariā hou a te marea kua kitea mai e Te Taura Whiri i Te Reo Māori tōna āhua 5000–6000 nei kupu hou, ā, 600 nei ngā ingoa hou mō ngā pakihi huhua, tāngata hoki, mai i tōna whakatūranga i te tau 1987. Mai i te tau 1990, ahakoa ehara kē Te Taura Whiri i te whakahaere whakangungu kua whai wāhi atu anō ki te whakatū whakaakoranga reo Māori ki te hunga whakaako i te reo. Ko te whai a ēnei whakaakoranga ko te whakapiki ake i te pai o te tuhia me te kōrerotia o te reo Māori i waenga i te hunga whakaako i te reo Māori kia riro ai mā ēnei whakaakoranga e tino tika ai te reo e whāngaia atu ana e rātou ki ā rātou akonga.

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 wātea kua puta kē i ngā nūpepa o te motu, i ētahi atu wāhi hoki, ki ngā reo e rua, ā, kei te nui ngā pukapuka kōrero whānui kua tāngia kētia ki te reo Pākehā me te reo Māori.

E whakaohongia ana te iwi whānui ki ngā wawata o te iwi Māori mō te āhua ki te reo, tae atu hoki ki ngā kura kaupapa Māori me te pāho reo Māori. Ahakoa ka riro mā te iwi Māori anō ēnei kaupapa e whakahaere, e tika ana kia tautokona e te iwi whānui kia pūmau ai te mana o te reo mō ake tonu atu. I te tau 1998 kua whakanuitia e Te Taura Whiri i Te Reo Māori te ekenga ki te ngahurutanga o ngā tau o Te Ture Reo Māori, te tūranga o te reo Māori hei reo mana mō Aotearoa tae atu hoki ki te whakatūnga o Te Taura Whiri i Te Reo Māori, ā, ko taua whakanuitanga kua karangatia ko Te Ngahurutanga – Tōku Reo, Tōku Mana. I te tau 1995 ko He Taonga Te Reo: He Whakanui i Te Reo Māori, ā, nā ngā pūrero a te iwi whānui, nā ngā whakaaturanga motuhake a te pouaka whakaata, nā te pane kuini, nā te maheni motuhake me ētahi mahi noa atu te whakatētina kia ākona te reo, kia whānui ake hoki te kōrerotia o te reo. Ko tā Te Ngahurutanga he tiki atu i te mānuka kua takoto i te hunga whakaaro nui mai ki te kaupapa he āki anō hoki kia whakawhānuitia ake ā rātou mahi o te tau 1998. Ka whakanuitia anō hoki te whakapetonga ngoi o ngā tau kua hori me te whakatakoto whakaaro hou anō mō te ora tonu o te reo pērā i tā ō tātou pakeke i kē rā i a rātou i haere ai ki te mura o te ahi, Ake! Ake! kia kaha e!

New Zealand Māori, a Polynesian language closely related to Cook Islands Māori, Tahitian and Hawaiian, is the indigenous language of New Zealand, and according to the 1996 Census the language of some 150,000 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 kōhanga reo (Māori-language pre-school movement) and, more recently, the kura kaupapa Māori (Māori-language immersion primary and secondary schools). Many Māori radio stations have now been established and there are moves at present to look again at the establishment of 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.

Āpirana Turupa Ngata.

Tahupotiki Wiremu Ratana.

A young Hepi Te Heuheu.

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 themselves possess the essential element in the revitalisation of the Māori language and 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’. In an effort to meet public demand for new words and concepts the Māori Language Commission has coined between 5,000 and 6,000 new words and over 600 new names for various companies and individuals since establishment in 1987. Although the commission is not a training establishment, it has also been involved in the facilitation of total immersion quality Māori language courses since 1990. The aim of the courses is to raise the standard of spoken and written Māori amongst teachers of the language, thereby ensuring accurate language is transmitted.

The state sector is encouraged to respond to the language needs of its Māori-speaking clients. 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.

The general population is gradually being made aware of the language concerns of Māori people, including the need for Māori-medium schooling and broadcasting. While it is Māori themselves 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.

MĀORI IWI LOCATIONS
Traditional areas of major tribes

6.5 Pacific Islands population

Demography

The 1996 Census provides the most recent and complete data on New Zealand's Pacific Islands population. The following tables of Pacific Islands statistics are compiled on the basis of self identification, and are based on the concept of ethnicity, allowing comparisons between the 1991 and 1996 Census data. This population includes the categories of Samoan, Cook Island Maori, Niuean, Tokelauan, and other Pacific Islands groups, e.g. Hawaiian, Tahitian. People who specified themselves as belonging to one or several Pacific Islands categories are defined as having Pacific Islands ethnicity.

Age distribution. Table 6.30 compares the Pacific Islands populations at the 1991 and 1996 Censuses on an age group basis.

When intercensal population growth is analysed on a consistent age group basis (that is, the age group 0–4 years at the 1991 Census is compared with the 5–9 year group at the 1996 Census, etc) a major contribution, made by net immigration, to the increase in the Pacific Islands population during the period is evident.

In addition, the high growth of 35,160 (21.0 percent) in the resident Pacific Islands population during the 1991–1996 intercensal period was partly a result of significant natural increase (births less deaths) for people of this ethnicity.

Table 6.30. PACIFIC ISLANDS POPULATION BY AGE GROUP1

Age group (years)1991 Census1996 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

1People of Pacific Islands ethnicity usually resident in New Zealand.

Source: Statistics New Zealand

0–425,73715.430,63015.119.0
5–919,85411.926,84113.335.2
10–1419,11311.421,77710.814.0
15–1917,22610.320,33410.118.1
20–2416,69510.017,7068.86.1
25–2915,6279.417,3198.610.8
30–3413,0807.816,0567.922.8
35–3910,7886.512,9426.420.0
40–448,5475.110,5395.223.3
45–495,9973.68,2984.138.4
50–544,7102.85,8502.924.2
55–593,3392.04,7162.341.1
60–642,6221.63,3571.728.1
65–6917311.02,5531.347.4
70–7410590.616770.858.4
75–795610.39450.569.1
80 and over3900.26930.377.7
        Total167,07300.0202,23300.021.0

Pacific Islands workers set the style at this Auckland factory Christmas party in 1916.

At the 1996 Census of Population and Dwellings, the Pacific Islands population was considerably younger in age structure than the total usually resident New Zealand population. This is shown by the fact that 39.2 percent of Pacific Islands people were under 15 years of age, compared with 23.0 percent of the total population. In contrast only 3.0 percent of Pacific Islands people were 65 years of age and over at that time, the corresponding figure for the total population being 11.7 percent.

In the past, the Pacific Islands population in New Zealand had a different age structure from that of the New Zealand Māori population. This was mainly the result of consistently high external net migration levels, especially for the younger working-age group (15–24 years) during the 1970s. However, with a large increase in the incidence of inter-marriage, the ageing of the Pacific Islands population and relatively high fertility rates, the age structure had by 1996 become almost identical with the New Zealand Māori population. Two other features affect this population: first, Pacific Islands people born in New Zealand have only shown a significant increase in the past decade, the result of the growth in the population of reproductive age; and second, an increasingly large proportion of children and teenagers identify themselves as being of both Pacific Islands and New Zealand Māori ethnicities. Over one-quarter of all people under five years of age who identify themselves as of Pacific Islands ethnicity also identify with New Zealand Māori ethnicity.

Distribution of population. The distribution of the Pacific Islands population by region is shown in table 6.31. All regions experienced growth in their Pacific Islands population between the 1991 and 1996 censuses. In terms of numbers Auckland experienced the greatest increase; 19,989 (56.9 percent) of the national increase of 35,160 during the intercensal period.

Table 6.31. PACIFIC ISLANDS POPULATION BY REGION1

Region1991 Census1996 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

1People of Pacific Islands ethnicity usually resident in New Zealand.

2Includes Chatham Islands District.

Source: Statistics New Zealand

North Island –
        Northland15870.92,9221.484.2
        Auckland111,85566.9131,84465.217.9
        Waikato6,9304.19,5974.738.5
        Bay of Plenty3,2461.95,0882.556.7
        Gisborne5040.39870.595.6
        Hawke's Bay2,5171.53,7321.848.3
        Taranaki6330.410800.570.1
        Manawatu–Wanganui3,3482.04,7042.340.5
        Wellington26,13315.629,28014.512.0
          North Island total156,75393.8189,23793.620.7
South Island –
        Tasman1260.12250.178.6
        Nelson2250.14770.2112.5
        Marlborough1770.13450.296.6
        West Coast1440.11980.135.9
        Canterbury5,8383.57,7523.832.8
        Otago2,2351.32,5651.314.8
        Southland15660.914190.7-9.3
          South Island total10,3116.212,9846.425.9
        Extra-county islands and shipping29-12-..
          New Zealand total167,070100.0202,233100.021.0

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 recognises and reflects Pacific cultural values and aspirations, so that Pacific Islands people can participate in and contribute fully to New Zealand's social, cultural and economic life.

It is concerned with Pacific communities in New Zealand, while at the same time recognising the web that binds Pacific Islands people 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 Pacific peoples resident in New Zealand’. This reflects the Pacific Islands communities’ desire to; do things in a way which reflects their uniqueness; participate in deciding their future; focus on extending 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 to and consulting with Pacific communities

  • facilitating access by Pacific Islands people to mainstream services

  • forming effective strategic alliances with departments and agencies who have a major impact on outcomes for Pacific Islands people

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

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

It remains the ministry's view that programmes aimed at removing the disparities between Pacific Islands people and the general population across the full range of social and economic indicators must be culturally appropriate. It must recognise and build on the strengths and diversities of Pacific Islands communities; and foster ownership by Pacific Islands communities.

In 1997 an inter-departmental review was conducted of government resources for Pacific Islands people in New Zealand, and options for improving state sector responsiveness to the needs and concerns of Pacific Islands communities were explored. The resulting report provided the framework for refocusing the ministry, and also identified a number of ways to improve outcomes for Pacific Islands people in health, education, employment, housing, social justice and economic development. It also provided a sound direction for the ministry's future policy work.

As part of its ‘refocused approach’ the ministry has adopted a piloting role in the implementation of social and economic programmes. It has also signed protocols with key departments outlining a framework for regular consultation in strategy and policy direction. The ministry also aims to assist departments in incorporating Pacific Islands perspectives into their work.

The ministry is realigning its advisory capacity, and is also facilitating major business development projects for Pacific Islands people, particularly in the Auckland area (largest Pacific population in the world), with the development of a Pacific Islands Market concept facilitated by the Pacific Island Business Development Trust.

Current trends show that the Pacific population in New Zealand is growing 11 times faster than other population groups and is expected to double by 2031. Greater emphasis will therefore be placed on strengthening Pacific Islands families to take account of their cultural diversity, and on providing more support to women and youth.

Contributors

  • 6.1 Statistics New Zealand.

  • 6.2 Statistics New Zealand; Department for Courts; Ministry of Social Policy.

  • 6.3 Statistics New Zealand; Human Rights Commission; Office of the Race Relations Conciliator; Equal Employment Opportunities Trust; Ministry of Women's Affairs; Ministry of Youth Affairs; 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 Kōkiri); New Zealand Māori Council: Māori Congress; Māori Women's Welfare League; Kōhanga Reo; Māori Language Commission.

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

Special articles

‘Social framework’, Lang. Kate and Ongley, Patrick, Social Policy, Statistics New Zealand; ‘Maori’, Douglas, EMK, Maori Studies, University of Auckland; Ministry of Women's Affairs; National Council of Women of New Zealand (NWCNZ); New Zealand Federation of Ethnic Councils; Commissioner for Children; Te Iwi Moriori Trust Board; Nigel Murphy, Alexander Turnbull Library; Refugee and Migrant Service; Department of Internal Affairs; Waitangi Tribunal; Office of Treaty Settlements; Immigration Service.

Further information

Households

Consumer Expenditure. Statistics New Zealand (annual).

Families and Households: Housing. 1996 Census of Population and Dwellings. 1998. Statistics New Zealand.

Marriage

Demographic Trends. Statistics New Zealand (annual).

Human rights, immigration and citizenship

Annual Report of the EEO Trust (Parl paper G. 57).

Demographic Trends. Statistics New Zealand (annual).

EEO policy to 2010: Future directions of EEO in the New Zealand Public Service. 1997. State Services Commission.

Ethnic Groups. 1996 Census of Population and Dwellings. 1997. Statistics New Zealand.

New Zealand Now: Asian New Zealanders. 1995. Statistics New Zealand.

People Born Overseas. 1996 Census of Population and Dwellings. 1998. Statistics New Zealand.

Report of the Commissioner for Children (Parl paper E.65).

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 (Parl paper E.6).

Māori population

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

Demographic Trends. Statistics New Zealand (annual).

Iwi. 1996 Census of Population and Dwellings. 1998. Statistics New Zealand.

Māori. 1996 Census of Population and Dwellings. 1997. Statistics New Zealand.

New Zealand Now: Māori. 1998. Statistics New Zealand.

Report of the Māori Language Commission (Parl paper E.34).

Report of Te Puni Kōkiri – the Ministry of Māori Development (Parl paper E.47).

Te Kanohi Hou o Aotearoa-Māori. 1998. Statistics New Zealand.

Trends in Māori employment, income and expenditure. 1998. Te Puni Kōkiri.

Pacific Islands population

Cook Islands; Fiji; Niue; Samoa; Tokelau; Tonga in the series People in New Zealand. 1998. Statistics New Zealand.

Pacific Islands People. 1996 Census of Population and Dwellings. 1998. Statistics New Zealand.

Report of the Ministry of Pacific Island Affairs (Parl paper G.54).

Over the last 10 years there has been an evolution in the formulation and delivery of social services in New Zealand. The need for an independent, highly focused policy organisation to deliver advice to the Government on cross-sector social policy issues has become more and more apparent. On 1 October 1999, the transformation of the Department of Social Welfare from a large multi-functional, multi-divisional organisation to a small, focused ministry was complete.

In addition, the social service delivery agencies have gradually shown the need to be independent stand alone organisations. The first step in this devolution was the departure of Income Support on 1 October 1998 to form the Department of Work and Income New Zealand in conjunction with the New Zealand Employment Service and the Community Employment Group.

This was followed in January 1999 by the integration of the Department's business units – the Children, Young Persons and Their Families Service and the New Zealand Community Funding Agency – to form the Children, Young Persons and Their Families Agency. On 1 October, this agency became the stand-alone Department of Child, Youth and Family Services. The remaining Social Policy Agency and Corporate Office of the Department of Social Welfare integrated to become the Ministry of Social Policy.

Chapter 7. Social welfare

Although women's refuges receive some government funding, they depend on donations to help fund their services.

Over the last 10 years there has been an evolution in the formulation and delivery of social services in New Zealand. The need for an independent, highly focused policy organisation to deliver advice to the Government on cross-sector social policy issues has become more and more apparent. On 1 October 1999, the transformation of the Department of Social Welfare from a large multi-functional, multi-divisional organisation to a small, focused ministry was complete.

In addition, the social service delivery agencies have gradually shown the need to be independent stand alone organisations. The first step in this devolution was the departure of Income Support on 1 October 1998 to form the Department of Work and Income New Zealand in conjunction with the New Zealand Employment Service and the Community Employment Group.

This was followed in January 1999 by the integration of the Department's business units – the Children, Young Persons and Their Families Service and the New Zealand Community Funding Agency – to form the Children, Young Persons and Their Families Agency. On 1 October, this agency became the stand-alone Department of Child, Youth and Family Services. The remaining Social Policy Agency and Corporate Office of the Department of Social Welfare integrated to become the Ministry of Social Policy.

7.1 The Department of Work and Income

The Department of Work and Income was established in 1998 to provide income support and employment assistance to New Zealanders. The Department's mission is ‘to put independence within the reach of all New Zealanders’ by enabling people and communities to achieve self-sufficiency through work, training, income support and community development.

The department offers a range of employment programmes and services for job seekers. This includes training, work experience and programmes that help motivate and build confidence. It helps job seekers by providing an income during the initial stages of establishing a business. Employers wanting to fill vacancies are given assistance to find the right person for the job. There are a variety of ways that the department puts job seekers together with skills and with jobs.

The Department of Work and Income delivers benefits, New Zealand superannuation, war pensions and additional income support to eligible New Zealanders. The service is a substantial business distributing over $12 billion in benefits and pensions to its customers each year. Employing approximately 5,000 people in 141 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.

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 and invalids benefits; disability allowance; and child's disability allowance.

  • New Zealand superannuation and veterans benefits.

  • Work-related benefits: independent youth benefit and community wage.

  • War pensions: blinded servicemen's trust board, interest concessions land and buildings, medical treatment, other war pensions, war disablement pension and war pension concessions.

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

The weekly rates payable for cash benefits are listed in table 7.1, 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 Department of Work and Income service centres.

Rising unemployment leads more people to ask for food parcels, depleting supplies at this Lower Hutt food bank.

DEPARTMENT OF WORK AND INCOME
Percentages of people receiving different benefits

Table 7.1. CASH BENEFITS: WEEKLY RATES AT 1 APRIL 1999

BenefitBesic net benefit

Source: Department of Work and Income

$
Community wage: job seeker/sickness (granted on or after 1 July 1998) -
Without children:
Single 18–19 year at home98.58
Single 18–19 year away from home123.23
Single 20–24 years123.23
Single 25 and over147.89
Married couple (total)246.46
Married couple (each partner)123.23
With children:
Single (1 child)211.82
Single (2 children or more)231.09
Married couple with child(ren) (total)261.90
Married couple with child(ren) (each partner)130.95
Community wage: sickness (granted before 1 July 1998) -
Without children:
Single 18–24 year olds147.34
Single 25 and over153.47
Married couple (total)279.08
Married couple (each partner)139.54
With children:
Single (1 child)211.82
Single (2 children or more)231.09
Married couple (total)279.08
Married couple (each partner)139.54
Invalids and transitional retirement benefits -
Without children:
Single 16–17 year olds149.59
Single 18 and over184.85
Married couple308.08
Married couple (each partner)154.04
With children:
Single (1 child)242.83
Single (2 children or more)260.76
Married couple with child(ren) (total)308.08
Married couple (each partner)154.04
Widows and domestic purposes benefit -
Women alone/single adult154.04
Sole parent (1 child)211.82
Sole parent (2 children or more)231.09
Domiciliary care domestic purposes benefit for caregivers -
Single 16–17 year olds149.59
Single 18 and over184.85
Sole parent (1 child)242.83
Sole parent (2 children or more)260.76
Half married rate154.04
Orphans and unsupported child benefit -
Under 5 years71.86
5–9 years87.27
10–13 years94.98
14 and over102.68
Independent youth benefit -
Single 16–17 year olds123.23
New Zealand superannuation and veterans pension (gross rate) -
Single living alone212.69
Single sharing195.84
Married person162.79
Married couple: both qualify (total)325.58
Married couple: non-qualifying spouse included (total)310.42
Married couple: non-qualifying spouse (each partner)155.21

Income-tested benefits

Invalids, widows, domestic purposes, community wage (including sickness) 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 (CPI). New Zealand superannuation and veterans pensions are also adjusted annually in line with the CPI. However this adjusted rate is then compared to average wage levels to ensure that the after-tax benefit rate for couples is not more than 72.5 percent or less than 60 percent of average after-tax wages.

Basic income exemptions. For people receiving invalids, domestic purposes, emergency maintenance and widows benefits who are part-time work tested, 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 the community wage, independent youth and other full-time work tested 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 dollar.

Community wage. In October 1999 the community wage replaced the unemployment benefit, training benefit, short-term sickness benefit and the fifty-five plus benefit. It is payable to people who are unemployed, capable and willing to undertake full-time work and who have taken reasonable steps to obtain suitable employment. The number of benefits paid increased by 6.3 percent over the 1998 year. As at 30 June 1999 a total of 164,530 benefits were paid, 9,756 more than at 30 June 1998.

The community wage is also payable to persons over the age of 18 who are temporarily incapacitated for work, and as a result suffer a loss of earnings. The number of persons getting the benefit for this reason at 30 June 1999 was 33,022, a decrease of 2150 from the number of sickness benefits paid in the previous year.

People who are not full-time students, but are engaged in full-time employment-related training programmes, are also eligible for the community wage. There were 4,673 of these benefits paid as at 30 June 1999, a decrease of 3,242 on the previous year.

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 1999 was 110,067.

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 1999 was 9,213: 148 less than at 30 June 1998.

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 1999 was 51,286, an increase of 1,865 from 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.

Childcare subsidy. The childcare subsidy programme provides financial assistance to low income families with dependent children under five to obtain access to pre-school child care services. At 30 June 1999 there were 42,132 approved applications for subsidies, 1,712 more than at 30 June 1997.

OSCAR subsidy. These subsidies are for children aged five to thirteen, to help with the costs of care before and after school. In the year ended 30 June 1999, 2,815 subsidies were granted.

Orphans and unsupported child benefits. These benefits are payable to people caring for an orphan or an unsupported child. As at 30 June 1999 there were 5,408 benefits being paid, an increase of 332 from the previous year.

NUMBER OF BENEFITS

Child disability allowance. This is a non-taxable allowance payable to the parent or guardian of a seriously physically or mentally disabled child being cared for at home. There were 19,291 children receiving an allowance as at 30 June 1999, with 3,817 applications granted in the year ending 30 June 1999, an increase of 185 from the previous year.

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 1999 there were 204,011 current allowances, an increase of 5,614 on the previous year.

Community services card. The community services card is an entitlement card which people on low to middle income can use to reduce costs on doctor's fees, prescriptions and hospital outpatient charges. As at 30 June 1999 there were 132,787 current cardholders.

Special benefit. This is short-term assistance for people who have ongoing expenses related to special or unusual circumstances or financial commitments. This benefit was held by 12,189 customers as at 30 June 1999, a decrease of 5,883 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 when there are insufficient financial resources to pay for the item. For the year ending 30 June 1999, 331,124 grants were issued, a decrease of 3,019 from the previous year.

Table 7.2. BENEFITS AND PENSIONS: 1899–1938

Year ended 31 MarchOld ageWidowsWar
no£(000)no£(000)no£(000)
18997,443127.. .. 
190312,481212.. .. 
190813,569333.. .. 
191316,509412131315.. 
191819,9607412,1927414,497515
192321,1817553,41118826,4601,489
192824,8751,0104,09830820,5601,152
193334,9321,2714,68731121,1041,218
193859,9533,2354,98247124,0961,597

Table 7.3. EXPENDITURE ON BENEFITS AND PENSIONS: 1940–981

End of financial year2Unemployment3TrainingSicknessInvalidsMinersDomestic purposesWidowsOrphans & unsupported childFamily4Transitional retirement5New Zealand super -annuation6Veterans

1Summary 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.

2Prior to 1990 expenditure is for the year ended 31 March: from 1990 onwards expenditure is for the year ended 30 June.

3Includes 55 plus benefit, and from 1 December 1990 the job search allowance and the independent youth benefit.

4Family benefit was abolished from 1 April 1991.

5Transitional retirement benefit was introduced on 1 April 1994 for those nearing eligibility for New Zealand superannuation.

6To 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.

7Accrued amounts from 1995. Previous annual totals were on a cash basis.

Source: Department of Work and Income

 $(000)
1940869 4181,884185 1,57230505 13,036 
194556 7042,145149 1,971472,810 18,974 
195021 2,0172,795240 4,3206229,702 34,627 
195511 2,5543,233257 5,3295836,358 58,002 
1960380 3,4394,237226 7,8327963,584 85,502 
1965197 3,9144,830153 10,21511065,925 110,314 
19701,465 6,0736,09399 13,74215072,318 155,822 
19755,15515,88713,66584 30,15627,967381153,175 365,803 
198066,077 33,23640,92476 169,44953,342778220,854 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
199571,313,68293,584352,167163,598 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
19971,370,88297,406406,164555,2001,563,48891,24926,870 96,8195,239,12964,963 
19981,496,70197,264434,956622,157 1,654,03593,93129,831 99,8755,259,19870,414

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 1999, 285,382 advance payments had been granted.

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

Payment while in hospital. Applicants with no dependent children receive a benefit at the current rate for the first 13 weeks of hospitalisation. Thereafter they receive a reduced rate. The benefit rate is not reduced for applicants with dependent children.

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

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).

New Zealand superannuation

The current New Zealand superannuation scheme provides $255.21 a week for a single person and $384.28 a week for a married couple (or $365.02 if one spouse does not qualify). It is subject to normal taxation.

At 30 June 1999 there were 440,054 people receiving New Zealand superannuation. The qualifying age is being gradually raised from 60 to 65 by April 2001.

People who wish to supplement their New Zealand superannuation when they retire can contribute to private superannuation or insurance schemes. Private superannuation and insurance is described in more detail in section 24.3: Insurance and superannuation.

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 1999 there were 8,689 people receiving a transitional retirement benefit, an increase of 537 on the previous year.

Veterans pension. This is paid at the same rate as New Zealand superannuation, and is not income tested but is taxable. A total of 7,159 people received veterans pensions as at 30 June 1999, 28 more than at the same time the previous year. This pension replaces the former war service pension, war veterans allowance and economic pension.

War 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 War Pensions Act 1954 is administered by the Secretary for War Pensions in the office of Veterans’ Affairs. The processing and payment of war pensions is carried out by the Department of Work and Income on behalf of the Secretary. Decisions on eligibility for war pensions are made by war pension claims panels acting on delegation from the Secretary. Each claims panel consists of a Department of Work and Income officer, and a nominee from the New Zealand Returned Services Association (NZRSA). A War Pensions Advisory Board advises the Minister on war pension policy and related matters.

Prime Minister Michael Savage carries furniture into the first state house in Miramar, Wellington, 1937.

Table 7.4. NUMBER OF BENEFITS AND PENSIONS IN FORCE: 1940–991

End of financial year2Unemployment3,7Training7Sickness7Community WageInvalidsMinersDomestic purposesWidowsOrphans & unsupported childFamily4Transitional retirement5New Zealand super- annuation6VeteransTotal

1Summon 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.

2Prior to 1990, the year ended 31 March: from 1990 onwards, the year ended 30 June.

3Includes 55 plus benefit, and from 1 December 1990 the job search allowance and the independent youth benefit.

4Family 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.

5Transitional retirement benefit was introduced on 1 April 1994 for those nearing eligibility for New Zealand superannuation.

6To 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.

7From October 1999, unemployment benefits, sickness and training benefits became the community wage.

Source: Department of Work and Income

19404,053 2,565 11,811988 10,17433011,053 93,262 134,236
1945198 4,233 12,20578310,96542124,251 158,332 211,388 
195012 4,931 9,476636 14,198366254,920 186,512 471,051
195519 4,277 8,110481 12,197300298,370 199,236 522,990
1960312 4,064 8,02435313,049277343,193 204,036 573,308 
1965208 4,681 7,951184 14,529316376,824214,659 619,352 
1970983 5,876 8,34298 15,663315408,397241,772 681,446 
19752,894 7,830 9,4144517,23116,738376452,389 289,348 796,265
198020,850 7,504 15,6472137,04016,120413460,897405,834 964,326 
198135,666 7,104 16,9611639,41215,416388461,211 418,901 995,075
198232,596 7,177 17,8911643,44714,737365459,994 430,175 1,006,398
198350,744 7,669 18,7571648,12114,125362460,798 441,789 1,042,381
198450,136 9,452 20,1871353,14413,921384460,382 451,128 1,058,747
198538,419 9,627 21,4641156,54813,557365455,961 459,813 1,055,765
198642,405 9,517 21,9931062,57013,304364455,330 465,079 1,070,572
198763,922 11,116 23,0871069,14613,019496450,072 473,401 1,104,269
198886,782 13,132 24,379974,86212,8621537436,066 479,985 1,129,614
1989123,565 16,021 26,260785,61513,0262,993437,287 485,962 1,190,736
1990139,6259,45319,511 27,824694,82312,6765,239446,373 495,5003,4281,254,458
1991153,2597,48320,147 30,746397,00010,9892,931  506,0473,130831,735
1992170,3677,85724,093 31,831196,7229,8733,135  504,5615,393853,833
1993170,33910,89728,729 34,957 96,33510,2593,539  488,8936,117850,065
1994157,18212,83431,535 37,030 100,2569,0124,093 6,540477,4006,278842,160
1995139,38711,65534,037 39,686 104,0279,0074,280 7,327469,2396,380825,025
1996134,13311,38933,386 42,450 108,7899,0474,662 7,870459,9016,559818,186
1997140,62811,56734,371 46,099 112,3959,1744,816 7,958452,7597,045826,812
1998154,7747,91535,712 49,419 113,0299,3615,076 8,152447,4877,131837,516
1999   202,22551,284 110,0679,2135,408 8,689440,0547,159834,099

Table 7.5. WAR PENSIONS AT 30 JUNE 1998

Type of pensionNumber in forceAnnual value1

1The 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.

2Disablement and dependents pensions for police are recorded under police pensions.

Source: Department of Work and Income

$(000)
Disablement pensions220,99067,170
Dependents pensions4,22523,600
Police36113

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 dependents’ pensions relate to service during World War II.

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

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

INCOME SUPPORT
Percentages of people receiving support, by type of benefit

Social security agreements

Australia. 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 under the social security agreement between Australia and New Zealand. 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. However, Australian age pensions and New Zealand superannuation are reimbursable for the lifetime of the pension.

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 pensions are paid to people who have contributed to the Greek social security scheme and 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 and 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 and 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. A change to the paying arrangements for United Kingdom pensioners saw pensions paid directly to pensioners from 1 April 1996. The Special Banking Option for United Kingdom pensioners living in New Zealand was introduced on 1 April 1997. Those people wishing to take up this option consent to have their United Kingdom pensions paid to a special bank account accessible only by Department of Work and Income. In return, pensioners receive the full rate of New Zealand benefit or pension. About 32,000 British pensioners live in New Zealand. Approximately 20,000 of these pensioners have joined the Special Banking Option.

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 and who are living in New Zealand.

In 1943 pensioners collected their payments at local post offices.

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 and who are living in New Zealand.

Denmark. A new social security agreement with Denmark came into force on 1 October 1997. Under this agreement New Zealand superannuation, veterans pension, widows benefit and domestic purposes benefit for widowers are paid to former New Zealand residents living in Denmark. The rate of payment is determined proportionately in accordance with the period of the person’s residence in New Zealand. Analogous Danish pensions are paid to people who have lived in Denmark, or who have contributed to the Danish social security scheme and 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 one of the Pacific countries listed below. This occurs if they were ordinarily resident in New Zealand on the date of application, and are intending to live in one of the Pacific countries listed for more than 52 weeks. The rate of payment is determined, proportionately, in accordance with the period of the person’s residence in New Zealand.

American SamoaNorthern Mariana Islands
Cook IslandsPalau
Federated States of MicronesiaPapua New Guinea
FijiPitcairn Island
French PolynesiaSamoa
GuamSolomon Islands
KiribatiTokelau
Marshall IslandsTonga
NauruTuvalu
New CaledoniaVanuatu
NiueWallis and Futuna

7.2 Social services

Ministry of Social Policy

The Ministry of Social Policy is responsible for providing the Ministers of Social Services, Work and Income, and Senior Citizens with strategic policy advice and independent purchase and monitoring advice across a wide range of social policy, housing and social equity issues.

The ministry comprises three major groups: the policy group, the purchase and monitoring group, and the business support group.

Functions of the Ministry of Social Policy include:

  • Providing the Ministers of Social Services, Work and Income, and Senior Citizens with policy advice across a wide range of social policy issues.

  • Encouraging close liaison and cooperation with other organisations and individuals engaged in social services activities. The ministry is the lead agency in the collaborative Strengthening Families Strategy including the ministries of Health and Education and other community and government agencies.

  • Managing the IT infrastructure (the Department of Work and Income New Zealand and Child, Youth and Family use the same network and infrastructure).

The ministry is responsible for administering the following acts:

  • the Department of Social Welfare Act 1971

  • the Retirement Income Act 1993.

The ministry has responsibility for legislation management for the following acts and regulations:

  • the Children, Young Persons and Their Families Act 1989

  • the Housing Act 1955

  • the Housing Corporation Act 1974

  • the Housing Restructuring Act 1992

  • the Residential Tenancies Act 1986

  • the Social Security Act 1964

  • the Social Security (Alternative Arrangement for Overseas Pensions) Regulations 1996

  • the Social Security (Disability Services) Regulations 1993

  • the Social Security (Invalid’s Benefit) Regulations 1998

  • the Social Security (Reciprocal Obligations: Exemptions and Deferrals) Regulations 1998.

The ministry’s website address is www.msp.govt.nz

Department of Child, Youth and Family Services

The Department of Child, Youth and Family Services was established on 1 October 1999 following the 1 January 1999 integration of two Department of Social Welfare business units: the Children, Young Persons and Their Families Service and the New Zealand Community Funding Agency.

Child, Youth and Family has statutory responsibility for children and young people whose family circumstances put them at risk of abuse and neglect, offending behaviours and poor life outcomes.

Child, Youth and Family’s statutory role is defined by the following pieces of legislature:

  • Children, Young Persons and Their Families Act 1989 (CYP&F Act);

  • the Adoption Act 1955;

  • the Adult Adoption Information Act 1986;

  • the Adoption (Inter-country) Act 1997; and

  • the Guardianship Act 1968.

Child, Youth and Family provides direct services for children and young people in need of care and protection who have committed offence, or are involved in adoption processes. Child, Youth and Family also approves and contracts with community organisations for social services for children, young people and their families.

A bumper sticker produced by CYPFS to ratse awareness of child abuse.

Care and protection

The table below gives a breakdown of the number of care and protection notifications received and the number assessed requiring further investigation and action by a social worker. All cases accepted for investigation are assigned a critical rating or response category at time of intake.

Table 7.6. BREAKDOWN OF CARE AND PROTECTION NOTIFICATIONS FOR THE YEARS 1996–99

 1996/971997/981998/99
Source: Child. Youth and Family internal report
Care and protection notifications received23,24623,65227,218
C&P notifications for further investigation18,46718,25221,930
Critical – immediate response time (same day)2,5852,6593,481
Very urgent (same day + one calendar day)1,9761,9762,593
Urgent (same day + six calendar days)7,6457,2219,291
Low urgency (same day + 27 calendar days)6,1846,6106,702

In the 1998/99 year, 27,221 notifications involving children and young people under the age of 17 years were received, of which 21,931 required further investigation. Of these, some form or multiple forms of abuse and neglect were substantiated for 2,808 children ages 0–6 years and 3,392 young people aged 7–16 years.

After investigation the findings are classified and recorded under the following categories:

  • physical abuse

  • sexual abuse

  • emotional abuse

  • neglect

  • self-harm behaviour

  • problem behaviour/relationship difficulty

  • not found.

Table 7.7. ABUSE AND NEGLECT NOTIFICATIONS-INVESTIGATION FINDINGS AGES 0–171

Fiscal yearSexual abusePhysical abuseEmotional abuseNeglectBehavioural/Relationship problemsSelf-Harm/suicidalAbuse not foundTotal

1Some investigations where a notification was received for 1998/99 may still be awaiting a finding at the time this data was extracted.

Source: CYF internal report

1996/971804186810772,6934,0581116,78218,393
1997/981502167110802,3563,8561196,93717,521
1998/991375166014142,2604,0881159,54320,455

While there was a big increase in notifications in 1998/99, there was also an increase in the number of ‘non-substantiation’. Non-substantiation means an absence of substantiated abuse or neglect findings.

When on investigation it is decided that the department needs to remain involved with a child or family, direct services may be provided through:

  • family/whānau agreements

  • care agreements

  • family group conference plans

  • court plans.

An NZCFA outreach worker discusses a service contract with Maatua Whangai Social Services Trust members, Hastings.

For the year 1998/99, of all children and young people with substantiated findings of abuse and neglect, 46 percent were Māori, 34 percent were European, 11 percent were of Pacific Islands descent, 1 percent were Asian, and 8 percent came from other or unknown ethnic groupings.

Family/Whānau agreements

A family/whānau agreement provides social services to a child and its family to ensure the care and protection needs of the child are addressed. Family/Whānau agreements are negotiated by a social worker when a family agrees that there is a problem to address and agrees voluntarily to intervention. The emphasis of this intervention is on working with the family/whānau. Such an agreement may be in force for up to three months, must be formally reviewed, and may be renewed for one further three-month period. When a family/whānau agreement is not considered to be appropriate, intervention may occur through a statutorily defined process of a family group conference.

Table 7.8. FAMILY/WHĀNAU AGREEMENTS (FWAS)

 1995/961996/971997/981998/99

Source: CYF internal report

Number of FWAs signed3,2042,1372,0512,762

Management of care and protection plans and court plans

The CYP&F Act provides for a range of plans, agreements and orders relating to the care, custody and guardianship of children and young persons. The department uses these plans to provide care for the children while working towards their return to parents, family or whānau. Examples of the plans and orders are custody orders, plans resulting from FGCs, counselling orders and support orders.

Table 7.9. MANAGEMENT OF C&P PLANS AND COURT PLANS

Plans and orders per section of the actCompleted during yearIn force during year1
1997/981998/991997/981998/99

1Plan and orders that are open at this particular time.

Source: CYF internal report

FGC plans s291576154612491282
Counselling order s7415192427
Custody pending determination s789551049665704
Service order s86281228740807
Restraining order s874683203257
Interim restraining order s88-44-82
Support order s91305355652696
Interim support order s92-22-12
Custody order s1018148262,5953,096
Interim custody order s102178206165191
Guardianship order – sole/additional s1101361021930478
Guardianship order – sole/additional s110 (s2)b-360-1713
Temporary care agreement-130-50
Extended care agreement s140249226176203
Extended care agreement disabled s141-19-67
Agreement with controlling authorities for disabled s14260533
        Total4,5615,2158,4529,668

Emergency actions

The CYP&F Act provides measures for securing the safety of a child through warrant action by social workers or the Police, or through temporary care agreements with parents to provide immediate care for a child while longer-term solutions are explored.

Table 7.10. EMERGENCY ACTIONS CARRIED OUT

 1995/961996/971997/981998/99

Source: CYF internal report

Place-of-safety warrant339364390383
Warrant to remove child or young person-312727
Search without a warrant32456189
Unaccompanied child or young person376377393502
Temporary care agreement1568166917091793
        Total2,3152,4862,5802,794

Youth justice services

Youth justice services provided by Child, Youth and Family under the CYP&F Act 1989 and the Criminal Justice Act 1985 include:

  • Working with Police to find options and ensure that cases are brought into the formal system only when the public interest/safety is at issue.

  • Providing programmes and services targeted for youth at risk of offending, re-offending and poor life outcomes. This includes work with young people with conduct disorder, serious and repeat youth offenders, young sex abusers, young people with difficult to manage behaviour and those at risk of self-harm.

  • Providing appropriate placements for young people who have been arrested.

  • Providing custodial services.

Children, Young Persons and Their Families ServicePublicity material for a campaign that CYPFS ran in 1996.

Children, Young Persons and Their Family ServiceA youth justice family group conference, 1995.

Youth justice family group conferences are convened to address the offending behaviour of children and young people. They bring together, in a statutorily defined forum, members of the family or whānau with the law enforcement officer and the victims to agree how the young person will be held accountable, and to agree on appropriate intervention plans.

Table 7.11. YOUTH JUSTICE FAMILY GROUP CONFERENCE (YJFGC) REFERRALS

 1996/971997/981998/99

Source: CYF internal report

Police ‘intention to charge’2,9543,1213,043
Court-directed YJ FGCs3,6663,0913,188
        Total YJ FGC referrals6,6206,2126,231

Management of youth justice plans and court plans

The table below shows that family group conference plans predominate over court plans as a means of managing young people who come to the notice of the department through the youth justice provisions of the CYP&F Act.

Table 7.12. MANAGEMENT OF YOUTH JUSTICE FAMILY GROUP CONFERENCE PLANS AND COURT PLANS

Plans and ordersCompleted during year
1996/971997/981998/99

Source: CYF internal report

FGC plans3,4283,2453,505
Supervision order s283(k)443538555
Community work order s298133176141
Supervision with activity order s307108148166
Supervision with residence s311141137105
        Total4,2534,2444,472

Care and protection family group conferences (C&P FGCs)

Care and protection family group conferences bring together members of the family, whānau or family group with professionals and others to consider the needs of the child and to agree to recommendations for the child’s care or protection needs. Family group conferences encourage participating in the resolution of care and protection issues and often avoid the need for court involvement. Plans formulated by an FGC must be reviewed, either by reconvening the FGC or by a less formal process.

Table 7.13. CARE AND PROTECTION FAMILY GROUP CONFERENCES (FGCS)

 1995/961996/971997/981998/99

Source: CYF internal report

Number of referrals accepted/directed3,7793,6453,3113,323
Number of FGCs which reached agreement on decisions4,3333,2742,8092,929

Care services

There are two main placement options used in New Zealand for children and young persons requiring alternative care. These are either based in a home (extended family, caregivers, family home, special purpose family, specialist or group-homes) or a residential care centre (short- or extended-term, local or national residences).

International research indicates that family-based placements are more effective than other forms of placement. Children and young people are more likely to return to their usual caregivers and are less likely to be re-abused if they are placed in family-based care rather than non-kin-based care. (CYF internal report. Care Services Project: Summary Report and Recommendations, November 1999)

The CYP&F Act 1989 shifted the emphasis away from the longer term extended care placements and towards restoring usual caregiving arrangements. When alternative placements are necessary, emphasis is put on making a placement, whenever possible, within the child’s extended family or community.

Home-based care

In 1998/99 there were approximately 3,350 children and young persons in foster care at any given time. In 1998/99, 6,973 distinct children and young persons were placed in foster care compared with 6,457 in 1997/98. (CYF internal report, CYP in Care Summary Report, SWIS, September 1999).

Admission to residential care – national residences

The Department of Child, Youth and Family Services provides residential care services in Auckland, Hamilton, Palmerston North, Christchurch, and Dunedin.

In 1999, the department opened the new youth justice Lower North Residential Centre in Palmerston North (LNRC). This coincided with the completion of statutory processes for the Epuni Residential Centre in Wellington. Construction of a new care and protection residential centre at the Epuni site was scheduled to begin in November 1999. The department is planning to increase its residential care capacity from 100 to 166 beds by 2002-2003.

Table 7.14. ADMISSION TO NATIONAL RESIDENCES

 1991/921992/931993/941994/951995/961996/971997/981998/99

Source: CYF internal report

Number of admissions…7129231054151013371050989810

Adoption assessment and placement services

The Adoption Information and Services Unit (AISU) of Child, Youth and Family is responsible for statutory adoption services. Child, Youth and Family is not required to report on all adoption proposals before the New Zealand family court. Adoption orders made without involvement of the department are predominately step-parent or relative adoptions.

The department’s local and inter-country adoption services include education, preparation and assessment of prospective adoptive applicants, counselling of birth parents, approval of placements, supervision and reporting to the family court. Post-adoption services for birth and adoptive families when requested are also provided.

The chief executive of Child, Youth and Family undertakes the responsibility of the central authority under the Adoption (Inter-country) Act 1999. Inter-country adoptions by New Zealand citizens in overseas courts (under Section 17 of the Adoption Act 1955) are reported on by the Department of Internal Affairs Citizenship Division and are not included in Table 7.15.

Table 7.15. CHILDREN PLACED FOR ADOPTION

 1992/931993/941994/951995/961996/971997/981998/99

1This category of adoption is no longer identified separately and will not be reported in the future – now included in the ‘strangers’ reporting figure.

Source: CYF internal report

Final adoption court orders made369683640540661645518
Adoptions reported on by Child, Youth and Family:
Adoptions by:
Strangers113183124114131125122
One parent and spouse129221240169179174122
Relatives76151146177163116111
Close friends1982518---
Fosterparents1524126281315
Inter-country adoption under NZ legislation    7010253
        Total adoptions handled/reported on by Child, Youth and Family342587547484571530423

Adult Adoption Information Services

Adult Adoption Information Services comprise the provision of information, counselling (including for those receiving copies of their original birth certificate), and mediation to birthparents and adult adopted people.

  • There were 1356 applications for original birth certificates in the year ending 30 June 1999 (source: Office of the Registrar General).

  • In the past year 287 adult adopted people have applied for copies of the personal information held on their adoption file.

  • Under Section 8 of the Adult Adoption Information Act, for the same period 392 birthparents applied for identifying information.

  • A further 925 requests were made for non-identifying information from adoption files under the provisions of the Official Information Act.

Approval and contracting with not-for-profit providers

Child, Youth and Family is also responsible for the approval and contract management of social services, which include the allocation, delivery and ongoing management of funding and support to iwi- and community-based social and welfare services in accordance with government policies and criteria.

Each year up to 1,400 service providers are contracted to provide a variety of social services from non-department output classes such as: child and youth support and rehabilitation, counselling and therapy, coordinated family services, family/whānau home-based support, family/whānau life skill development, residential care, training in the CYP&F Act, emergency accommodation and short-term supported accommodation, and general advice.

A foster mother for a Social Welfare home cradles an abandoned baby.

ADOPTIONS

Table 7.16. BUDGET ALLOCATION FOR 1998/99 YEAR1

 1998/99

1The figures above are GST inclusive. In addition, Disability Services funding of $31,553,000 was contracted by NZCFA/CYPFA during 1998/99. This amount has been transferred in its entirety to Vote Work and Income for contracting in 1999/2000.

Services to families in need of support$000
Child and youth support and rehabilitation5,282
Counselling/therapy15,559
Coordinated family services3,376
Family/Whānau home based support8,071
Family/Whānau life skills development7,747
Residential care7,350
Training in the Children, Young Persons and Their Families Act 1989388
Services to promote Community Welfare
Emergency accommodation and short-term support accommodation1,240
General advice and information3,275
Community housing149
Refuge4,637
Industry Training
Support for the Industry Training Organisation686
        Total57,760

Contributors

  • 7.1–7.2 Department of Work and Income; Ministry of Social Policy; Department of Child, Youth and Family Services.

Special articles

Department of Work and Income; Ministry of Social Policy; Department of Child, Youth and Family Services; Office of the Retirement Commissioner; New Zealand Council of Social Services; National Collective of Independent Women’s Refuges Inc.; Citizens Advice Bureaux.

Further information

Biannual overview of benefit trends. December 1997. Department of Social Welfare.

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. Health and Safety

Staff outside their Christchurch headquarters, 1914.

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 also negotiates, manages and monitors funding agreements with the Health Funding Authority and service providers, and provides services to ministers. The ministry is currently being restructured, and there are plans to incorporate the Health Funding Authority into its structure.

Health Funding Authority. There is one national funder in New Zealand, the Health Funding Authority, a Crown agent, which funds personal health, disability support and public health services. The Health Funding Authority was established on 1 January 1998 and replaced the Transitional Health Authority, which managed the transition from the four regional health authorities (RHAs): Northern, Midland, Central and Southern, to a single national health funder.

The three primary functions of the Health Funding Authority are:

  • To monitor the need for personal health, disability support and public health services for New Zealanders.

  • To fund health and disability services for people.

  • To monitor the performance of providers with whom the Health Funding Authority enters into purchase agreements.

Personal health services are provided to people for health purposes. Disability support services involve care and support, and promote 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. The Health Funding Authority is responsible for deciding what it will purchase within each service category, subject to the Government's requirements.

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 hospital and health services (HHSs). The advice includes setting ownership objectives and targets for HHSs, the Crown's investment in this sector and on the impact on HHSs of proposed health policy options. It also monitors and advises ministers of HHSs performance against these objectives and targets; and manages for ministers the HHSs director appointment and performance assessment process.

Hospital and health services. There are 23 hospital and health services. Individual HHSs 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 to the minister.

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 Residual Health Management Unit manages residual assets and liabilities of the former area health boards and provides finance to hospital and health services (see Chapter 28).

Health Research Council of New Zealand. The HRC was established by the Health Research Council Act 1990, and is the major government agency purchasing and coordinating health research in New Zealand. The act requires the council to set guidelines for health research ethics and to accredit regional ethics committees. The HRC is also responsible for advising the Ministry of Health on the scientific merit of gene therapy proposals and clinical trials.

The council's mission is to improve human health by promoting and purchasing health research. The council purchases a broad spectrum of research, including biomedical, public health, Māori and Pacific Islands health research, and clinical research.

HRC funding is largely allocated through Vote Research, Science and Technology, with funding for ethics policy advice coming from Vote Health. Government funding for the council's work in 1999/2000 was $46.54 million, including GST.

The HRC website (www.hrc.govt.nz) includes guidelines on research with Māori and research ethics, the nine HRC topic-based research portfolios, research support services, application forms and links to other health research sites.

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 40 full-time staff and is based at the Wellington School of Medicine.

Diseases studied at Malaghan are asthma, cancer, tuberculosis and multiple sclerosis. 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, bequests and donations.

Health expenditure

Table 8.1. REAL HEALTH EXPENDITURE1

Source of funding1990–911991–921992–931993–941994–951995–961996–971997–98

1CP1 deflated.

2Expressed in 1997–98 dollars.

3$8,425 when ‘non-health’ items are included.

Source: Ministry of Health

 $(million)2
Public5,0345,0184,9765,3295,4665,5125,8296,167
Private1,0871,3321,5171,5451,6171,6761,7101,827
        Total6,1216,3506,4936,8747,0837,1887,5397,9943

Health expenditure in New Zealand amounted to an estimated $7,994 million for the financial year ended 30 June 1998. This represented 8.2 percent of New Zealand's gross domestic product and was equivalent to $2,114 expenditure per annum per head of population. An estimated 77.1 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 and 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 operating under the Medical Practitioners Act 1995. The council works to protect the health and safety of members of the public by ensuring that all doctors are competent to practise medicine. The council has 10 members and includes public participation. The main functions of the council are:

  • Registration – the council registers all doctors working in New Zealand. Doctors who complete their medical training in countries other than New Zealand or Australia must satisfy the council they meet the set standards by examination and/or assessment before registration is granted.

  • Medical education – this involves the accreditation of medical school courses and curricula and, in association with the Australian Medical Council, the accreditation of Australian medical schools. The council 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 – the council manages doctors 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. The Medical Council does, however, receive complaints and must liaise with the Health and Disability Commissioner and, as appropriate, appoint Complaints Assessment Committees.

The number of medical practitioners with general or probationary registration at 31 March 1999 was 12,894, with 9,297 holding annual practising certificates. A further 466 overseas-trained doctors were working on temporary registration.

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 1999 was 2,170.

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 1998; one complaint was dismissed. In 1999 there were three tribunal hearings (two for the same dentist). Six complaints are pending consideration by the tribunal as of March 2000.

Professional studies 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; sets standards for, and monitors, programmes leading to registration and enrolment; conducts examinations; approves programmes of nursing and midwifery; 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, and midwives; and maintains a roll for enrolled nurses. As at 15 October 1999, 46,461 nurses and midwives held annual practising certificates.

All nurses and midwives are educated through a three-year degree course leading 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 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 competence-based practising certificates. Complaints about nurses and midwives are referred to the Health and Disability Commissioner. For the year ended 31 March 1999 the Nursing Council heard 8 disciplinary matters.

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 30 June 1999 there were 1,723 registered psychologists, with 1,061 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 University of Technology. Successful completion of these qualifications is required for registration. At 30 June 1999 there were 5,093 registered physiotherapists with 2,439 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 University of Technology and Otago Polytechnic. Successful completion of a qualification from one of the institutions is required for registration.

At 30 June 1999 there were 2,172 registered occupational therapists, with 1,271 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 30 June 1999 there were 967 registered dietitians with 334 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. Optometrists are trained at the University of Auckland in a four-year, full-time degree course. Dispensing opticians are trained through a two-and-a-half year correspondence course.

At 30 June 1999 there were 817 registered optometrists, 457 of whom held annual practising certificates, and 138 registered dispensing opticians, with 87 holding annual practising certificates.

Frederic Truby King, 1938.

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) degree which is the qualification recognised for registration.

At 30 June 1999 there were 442 registered podiatrists, with 223 holding annual licenses.

Chiropractors. The Chiropractic Board is constituted under the Chiropractors Act 1982, and is concerned with the registration, education and conduct of practising chiropractors. Graduates from board-approved chiropractic colleges are eligible to take the board's competency examination and successful candidates are considered by the board for registration. The New Zealand Chiropractors’ Association established a school of chiropractic, the New Zealand Centre for Chiropractic Ltd, in Auckland in 1994. The five-year, full-time course includes a BSc. Training facilities will include a research unit.

At 30 June 1999 there were 493 registered chiropractors of whom 190 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 either the University of Auckland or 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 August 1999 there were 3,733 pharmacists on the register. At the same time there were 983 registered pharmacies (1,014 in August 1998).

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 30 June 1999 there were 2,720 registered practitioners, 1,388 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. The University of Otago, Massey University and the Auckland University of Technology offer a Bachelor of Medical Laboratory Science.

At 30 June 1999 there were 2,598 registered medical laboratory technologists, with 1,251 licensed to practise.

Clinical dental technicians and dental technicians. As at 30 November 1999, 120 clinical dental technicians and 192 dental technicians were registered with the board and held annual practising certificates.

The board is constituted under the Dental Act 1988. It has the responsibility for registering clinical dental technicians and dental technicians. It liaises with governing bodies of educational establishments in New Zealand regarding training and examination requirements. The board promotes and encourages a high standard of professional education and professional conduct among clinical dental technicians and dental technicians.

All dental technicians receive their training at the Central Institute of Technology, where after completing a three year training programme they receive a Diploma in Dental Technology.

Clinical dental technicians must first complete the above Diploma programme then, after working for a period as a dental technician, complete and pass one of two training courses:

  1. Advanced Diploma course in clinical dental technology from the School of Dentistry in Dunedin.

  2. Advance Certificate in clinical dental technology from CIT, Upper Hutt.

The board advises and makes recommendations to the minister in respect of any matter relating to the work carried out by clinical dental technicians and dental technicians.

8.2 Subsidies for health services

General practitioner subsidies

The Health Funding Authority subsidises the cost of general practitioner visits for New Zealanders with low income or high health needs, although the GP may charge a co-payment. In addition a higher subsidy ($32.50) is paid for visits to the GP by all under six-year olds which has the effect of covering the full cost charged by most GPs for an ‘office hours’ consultation to younger children. All children aged six years or older receive a partial subsidy on GP visits. Adults who are not eligible for low income or high health needs subsidies pay the full cost of a GP consultation.

The salary of practice nurses is subsidised by the Health Funding Authority, and all GP patients access services provided by the practice nurse.

General practitioners are therefore reimbursed partly by government subsidy and partly by the patients directly, either as a co-payment on a subsidy or full payment of fees. Government subsidies may be paid either for each individual consultation, or as a bulk funding payment.

People on low incomes access the government subsidy for GP visits via a Community Services Card, which is issued to an individual and any dependent family members. People with high health needs access the government subsidy for GP visits via a High Use Health Card.

The subsidy for all children aged under six increased on 1 July 1997, to $32.50 per consultation. Prior to 1 July 1997 the subsidy for children aged under five was $25 for card holders and $15 for non-card holders per consultation. The subsidy for children aged six years or older is unchanged at $20 for card holders and $15 for non-card holders. Adult card holders will continue to receive a subsidy of $15 per consultation.

There is also a higher subsidy paid to GPs in certain specified rural areas, and an immunisation benefit to cover the cost of vaccinations for children under 16 years old.

Health Benefits Limited (HBL). This was established in July 1993 and is owned by the Health Funding Authority (HFA). Its role is to make government subsidy payments on behalf of the HFA 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 around $1.2 billion of payments on behalf of the HFA with some 34 million items in pharmacy payments alone.

HBL has changed its systems and approaches in a number of areas since its inception to match the changing relationships HFA has 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 also provides valuable information to the HFA, health providers and other appropriate agencies about patterns of spending on health, prescription costs and medicine usage, health trends and claiming patterns.

Pharmaceutical benefits

All people eligible for publicly funded health services are entitled, at a small cost to themselves, to a wide range of medicines, approved appliances and materials which are included in the pharmaceutical schedule and prescribed by medical practitioners, midwives or dentists.

The pharmaceutical schedule is a list of the drugs and services subsidised by the Government. The Government pays a subsidy equivalent to the lowest price drug with a specific effect in each drug group. Some drug companies charge more for their products and pass this charge on to the customer. Special mechanisms are in place to ensure that people can get access to non-schedule drugs in special circumstances.

The Government sets a standard maximum pharmaceutical charge of $15 per item. Medication costing less than $15 is charged accordingly. Higher government subsidies on pharmaceuticals are available for low income people, people with high health needs and under six-year olds, and in addition there is a subsidy on contraceptives. Children under six are exempt from charges on pharmaceuticals (except one or two specific items).

Individuals or families pay the pharmaceutical charge only, for the first 20 pharmaceutical items each year, commencing 1 February. The Government then additionally subsidies pharmaceutical needs, and non-cardholder families and High Use Health card holders continue to pay a residual charge of $2 per item until the following 1 February. Community Services cardholders do not pay a prescription charge until the following 1 February.

PHARMAC. The Pharmaceutical Management Agency Ltd (PHARMAC) is a Crown agency set up in 1993 as a limited liability not-for-profit company, owned by the Health Funding Authority (HFA), 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. In 1999, 128 new products were added to the schedule compared with 100 products in 1998.

The HFA spent $717 million on pharmaceutical subsidies in the year to June 1999, down $56 million from the previous year. This decrease reflects PHARMAC's continued ability to negotiate lower prices, which offsets the volume, spending, and growth in new pharmaceuticals.

A public health nurse visits a Porirua family, 1956.

With a staff of 19, PHARMAC assesses the value granted from the products it subsidises or is requested to subsidise. 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 financial risk sharing.

Subsidies for hospital treatment

Inpatient, outpatient and day treatment in public hospitals is free of charge for all people eligible to access publicly funded health services. Services related to public hospital inpatient, outpatient and day treatment, such as pharmaceuticals and x-rays are also free.

Before 1 July 1997 outpatient treatment in public hospitals was free of charge for all cardholders (Community Services Card or High Use Health Card: see under general practitioner subsidies). Those without cards paid a $16 charge for children and $31 for adults. Families paid for a maximum of five outpatient visits each year, with exemptions for some sorts of treatment.

Inpatient, outpatient and day treatment in public psychiatric hospitals is free. For people who receive mental health services as a day patient or an outpatient, including those who are a patient of a community mental health team and are on a Community Treatment Order, the services including pharmaceuticals are free.

Maternity services

Women may receive free pregnancy, childbirth and postnatal care from general practitioners or independent midwives (through benefits paid by the Health Funding Authority) or by attending antenatal clinics established in connection with public hospitals. 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.

GOVERNMENT FUNDING OF ACCESS TO PHARMACEUTICALS
Annual subsidised pharmaceutical expenditure1, not adjusted for inflation

Table 8.2A. TRENDS IN EXPENDITURE ON MAJOR HEALTH BENEFITS

ItemYear ended 30 June
1995199619971998

Note:Figures are GST inclusive (12.5 percent). Totals may not add up due to rounding.

Source: Health Benefits Limited; Health Funding Authority.

 $(000)
Primary services
General medical services (GMS) including motor vehicle allow170,275173,382192,174190,369
Practice nurse and health centre31,02032,64635,46132,309
Rural practice bonus3,2473,2382,9983,543
Immunisation2,9802,9648,0076,343
Maternity89,47894,228105,423109,214
Dental benefits16,04215,78016,53817,102
Capitation  43,535 
Sub-total313,042322,237360,601402,415
Referral services
Specialists2,5622,7212,6832,627
Laboratory141,082158,137159,668175,192
Diagnostic imaging2,5082,8083,1152,868
Sub-total146,152163,665165,466180,687
Pharmaceuticals
674,798695,939747,426772,734 
        Total1,133,9921,181,8411,273,4931,355,836

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. To prepare parents for their baby's arrival, antenatal classes are available through some hospitals from independent midwives, voluntary organisations and groups that have a direct contract with the local Health Funding Authority.

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 hospital and health service 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. Hospital and health services also provide home-aid as part of a range of services to reduce the need for hospital or residential home care, and as a temporary follow up to hospital care.

Dental services

Routine dental treatment is free for pre-schoolers, school children and adolescents. Dentists under contract to the Health Funding Authority provide the treatment. Some public hospitals also have dental departments which provide services to patients. The government has also decided to fund emergency dental treatment for low income earners through the Health Funding Authority. These services were phased in over a three-year period from 1 July 1997.

Artificial aids

There are specific benefits available from the Health Funding Authority 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

The Health Act 1956 is New Zealand's core public health statute. It identifies the public health responsibilities of the Ministry of Health, territorial local authorities (city and district councils) and designated officers (particularly medical officers of health, and health protection officers).

The act provides mechanisms for the improvement, promotion and protection of public health in relation to infectious diseases and environmental hazards. It also provides the framework for subordinate regulations and related public health statutes.

A major function of local government is the improvement, promotion and protection 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 duties include the control of sanitary conditions (including housing standards) and the regulation of food premises, hairdressers, camping grounds and funeral directors. They are also responsible for the control of offensive trades and environmental noise. Local authorities are 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 hospital and health services). They may 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; food safety and quality; smoke-free environments; and the coordination of national regulatory activities.

Within the Ministry of Health the Public Health Group monitors the state of public health to identify public health needs, and advises the Minister of Health on matters related to public health.

Public health legislation review

The existing public health legislation is based on the Health Act 1956. This legislation is regarded as being outdated, inflexible, complex, incompatible with current health and disability sector configurations and potentially inconsistent with more recent legislation in related sectors. Accordingly there has been a cabinet direction to review public health legislation and to prepare draft legislation for a new public health bill to replace existing legislation.

The new legislation is proposed as a replacement for the Health Act 1956 and the Tuberculosis Act 1948. It is proposed that the draft legislation will include:

  • Clarity about the purpose of public health and how to take action.

  • Coordination with all legislation that impacts on public health.

  • Descriptive (enabling) rather than prescriptive (subordinate) legislation.

  • An explicit methodology for assessing risks to public health and determining interventions with regard to alternatives, costs and benefits.

Health poster, 1950s.

Health poster, 1950s.

  • Regular monitoring and reporting on the state of public health and the effectiveness of interventions.

  • Allowance for innovation by alternative solutions to meet mandatory objectives, functional requirements and performance measures.

  • No override of current legislation, except in declared public health emergencies.

  • Provision for cost recovery and charging as appropriate.

  • Recognition of New Zealand's international obligations and commitments to public health.

The progression of the new legislation is contingent on government processes.

Environmental health

Safe drinking water is an essential prerequisite for public health. If a community's drinking-water supply becomes contaminated by pathogenic organisms a serious threat to public health results: a large number of people can be infected very quickly and this can lead to the spread of infectious disease in pandemic proportions. Chemical contamination of drinking water also has to be guarded against. Although the direct health risks are lower than for contamination by pathogens, public concern about chemical contamination is often high.

In the ministry's strategy the yardstick by which the public health safety of community drinking-water supplies is assessed is the Drinking-Water Standards for New Zealand 1995.

The Drinking-Water Standards for New Zealand 1995 specifies:

  • The maximum acceptable values (MAVs) for potential contaminants of public health significance.

  • Priorities for monitoring potential contaminants to maximise monitoring cost effectiveness.

  • Performance standards for the monitoring and analysis of drinking-water quality.

  • The level of performance that is required for a drinking-water supply to demonstrate compliance with the Standards. Compliance is defined in terms of effectiveness in not exceeding MAVs, frequency and quality of monitoring, analysis, record keeping, and so on.

  • The remedial action to be taken in the event of contamination of the supply.

The Drinking-Water Standards for New Zealand 2000 is being prepared.

The first of the three principal ways used by the Ministry of Health to inform the public about the health safety of their drinking-water supplies is the public health grading of community drinking-water supplies. Both publicly and privately owned drinking-water supplies may be graded and the results published.

Grades given for the water source and the water treatment range from ‘Al’ (completely satisfactory) to ‘E’ (completely unsatisfactory). This is determined by the extent to which the supply complies with the Drinking-Water Standards for New Zealand 1995 and whether adequate barriers to contamination are in place to minimise risk to the quality of the water.

The water supply distribution system (pipes, reservoirs, etc) is graded similarly.

The second way in which the ministry makes information available to the public is through the Annual Report on the Microbiological Quality of Community Drinking-Water Supplies in New Zealand. It appears in August or September of the year following the calendar year covered by the report.

The third ministry source of information on community drinking-water supplies is the Register of Community Drinking-Water Supplies in New Zealand. This lists all the community drinking-water supplies known to the Ministry of Health (defined as supplies which service 25 or more people for 60 or more days a year), together with their public health grading and whether any chemical contaminants are present at concentrations which could potentially be of public health significance.

Radiation protection

Potential harm from radioactive materials and irradiating equipment is controlled by the National Radiation Laboratory (NRL), a specialist business unit of the Ministry of Health, based in Christchurch. The NRL issues licences under the Radiation Protection Act 1965 and publishes a variety of publications including codes of safe practice. To protect the public who may be exposed to radiation, the users of radiation and patients, the NRL also audits facilities that use radioactive materials and irradiating apparatus and provides a variety of radiation safety services, including personal dosimetry and specialist advice. The NRL also operates a number of radionuclide monitoring stations that measure radioactivity in the atmosphere and in rainwater, and provides advice on non-ionising radiation and health.

Control of medicines and drugs

The Medicines Act 1981 and the Medicines Regulations Act 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 drugs capable of being abused, including illicit drugs such as heroin and prescription drugs, are controlled by the Misuse of Drugs Act 1975 and the Misuse of Drugs Regulations 1977. It is a serious offense to obtain, manufacture, possess, consume, supply or offer to supply controlled drugs unless authorised under the Act.

Controlled drugs are divided into three classes. Heavier penalties are for offenses involving class A drugs, including heroin and LSD. Classes B and C contain many drugs which are used for medical and scientific purposes, such as morphine and pethidine. Cannabis plants, fruit and seeds are included in class C. Anything produced from a cannabis plant is class B.

The Misuse of Drugs Amendment Bill (No.4), introduced into Parliament in October 1999, provides for the rapid classification of controlled drugs by regulation, rather than amendment of the act. This will allow for emerging drugs to be controlled more quickly. The bill also clarifies the basis of drug classification to relate to risk of harm to individuals and society ranging from Class A (very high risk) to Class C (moderate risk).

Illegal dealing in any class of controlled drug is subject to heavy penalties varying from lengthy terms of imprisonment through to fines. To deter drug abuse, the Ministry of Health, New Zealand Customs Service and the New Zealand Police have maintained the National Drug Intelligence Bureau since 1972.

In July 1998 the Government released the National Drug Policy (NDP). The NDP is a cohesive policy framework, coordinating initiatives of relevant government agencies to minimise drug-related harm. The NDP provides a basis for priority setting, inter-sectoral decision making and strategic alignment. It is led by the Ministry of Health. A work programme on cannabis and hard drugs was developed in 1999 and is being implemented. Further efforts have also been invested in the area of reducing the use of tobacco and the misuse of alcohol.

Communicable disease control

Under the Health Act 1956, medical practitioners are required to notify the Medical Officer of Health of cases of notifiable disease they suspect or diagnose. Notification data is recorded on a computerised database installed in each public health service, and is used to guide local control measures. The data is, 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: the prevalence of, and immunisation coverage for, communicable diseases. This includes policy development, promulgation of regulations and the fulfillment of international disease reporting requirements. The Ministry of Health manages the national coordination of responses to disease outbreaks and is responsible for the national immunisation schedule and the control of communicable diseases through designated officers.

Health poster, 1950s.

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 and food-borne illnesses, are undertaken by designated officers (health protection officers, food act officers and medical officers of health) based in public health units which are part of New Zealand's hospital and health services.

The New Zealand food industry is working towards managing its food safety risks by the use of the Hazard Analysis Critical Control Point (HACCP) system. To encourage a transition to food safety programmes, the Food Act 1981 was amended in November 1996 to recognise food safety programmes based on the HACCP system. From 1 July 1997 food businesses have been able to 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 HACCP-based food safety programme which fulfils specific requirements set out in the Food Act. The food industry and the Ministry of Health have been working closely together in this transition process. This reform is underpinned by the ongoing development of guidance documents in the form of codes of practice.

The Ministry of Health is working collaboratively with the Ministry of Agriculture and Forestry to harmonise their regulatory systems and to implement risk based management programmes for food administration in New Zealand. The two agencies want to achieve consistency between the domestic food safety programmes and the risk management approach under the Dairy Industry Act 1952 and the Animal Products Act 1999.

The food hygiene regulations apply to a food business until an exemption is granted to that business. These regulations contain minimum construction requirements, 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. Public health unit health protection officers and medical officers of health provide specialist advice to local authorities on these matters.

Health service utilisation

In New Zealand most GPs or family doctors work in clinics based in the community, and provide a range of general medical services including treatment for common health complaints and prescriptions for medicines. General practitioners were the most widely used of all the health professionals covered by the 1996/97 New Zealand Health Survey, with 4 out of 5 adults and children having visited a GP at least once in the previous 12 months. The survey results found levels of health service utilisation differed by sex and age. Women were one-and-a-half times more likely than men to be frequent users of GP services: 18.2 percent of women compared with 11.7 percent of men. Younger adults were less likely than older people to use health services. A total of 74.4 percent of those aged 25 to 44 years had visited a GP at least once in the previous year compared with 91.5 percent of those aged 65–74 years and 95.5 percent of people aged 75 years and over.

Māori and those with low family incomes were more likely to have visited their GP six or more times in the 12 month period prior to the survey. One in five Māori adults were recorded as frequent health service users compared with 16.3 percent of Pacific Islands people, 15.0 percent of European and 8.9 percent of adults in other ethnic groups. Adults in the lowest family income group were almost twice as likely as their counterparts from the highest income group to have frequent contact with a GP.

Services for older people

The focus for services for older people involve assessment, treatment, rehabilitation and continuing care.

Historically, most of the funding for continuing care services for older people has been spent on rest home and hospital care. A policy to promote ‘ageing in place’ is resulting in an increased range and volume of home support services. This is enabling more people to remain in their home, if appropriate. These services include more support for informal caregivers and more flexible arrangements for day care and respite care.

The Health Funding Authority (HFA) funds services for older people from public and private providers. Older people, assessed as needing continuing care in a rest home or geriatric hospital, who apply for a government-funded residential care subsidy are financially means tested. If they do not meet the criteria they have to contribute to the cost of their care.

Voluntary welfare organisations

Over the years voluntary welfare organisations have made valuable contributions to important aspects of public health. Increasingly, these voluntary agencies have received state funding. 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 New Zealand Plunket Society, the New Zealand Family Planning Association, and the New Zealand AIDS Foundation.

Mental health

In 1996 the Government established the Mental Health Commission, an independent body charged with ensuring that the Government's overall strategy is implemented. The commission is expected to hold to account the Ministry of Health, purchasers, providers and health professionals for their role in implementing the strategy which confirms a change in direction from a hospital-based to a community-based service. The commission reports directly to the Minister of Health and will be in existence for five years.

Additional funding has been made available for the purchase of mental health services to address the following:

  • access to new anti-psychotic medications

  • workforce development

  • child and adolescent mental health services

  • more community services for adults

  • community attitudes towards mental illness.

Recruitment poster, 1950s.

The Mental Health Commission and the Ministry of Health are closely involved in monitoring the expenditure of the additional funding, and the development of new and improved services.

The development of the National Drug Policy is part of the government's national strategy for mental health. This has been approved by the Government, completing a process begun in 1996, with the release of part I of the policy on tobacco and alcohol. The Government released the policy (including part 2 on illicit and other drugs) in 1998.

Youth suicide

The New Zealand Youth Suicide Prevention Strategy was launched in 1998 to address New Zealand's high rates of youth suicide (highest in 1996 of OECD countries compared: Finland, Australia, Canada, USA, Norway, France, Denmark, Sweden, Germany, Japan, UK and Netherlands). The strategy is overseen by both a ministerial and an inter-agency committee. It takes a broad-based and coordinated approach to suicide prevention: from health promotion through to treatment and post-crisis support. A work programme containing 30 projects is currently being implemented.

Disability support services

The Health Funding Authority (HFA) has responsibility for funding a wide range of disability support services for people who have been assessed as having a physical, psychiatric, intellectual, sensory or age-related disability. The disability must be likely to continue for a minimum of six months, and result in a reduction of independent function to the extent that ongoing support is required.

The HFA funds services provided by voluntary (not for profit) organisations, private businesses such as some rest homes, and government funded hospital and health services (HHSs). Most services are community based. The proportion of services provided by HHSs has declined steadily in the last decade and now only constitutes around 10 percent.

Disability support services (DSS) framework. The HFA is required to have a systematic approach to the purchasing of services for people with disabilities. This approach is called the disability support services framework.

The framework consists of three main components:

  • Needs assessment, which identifies and prioritises needs, and includes the preparation of a needs assessment report.

  • Service coordination, which identifies the most appropriate services and support options to meet the person's assessed need, and determines which services will be publicly funded.

  • Service provision.

HFA funding. While the HFA is the predominant funder of disability support services some services are also provided by other government agencies, such as education.

Disability support services aim to promote and maximise the independence of people with disabilities, provide effective habilitation and rehabilitation, and support opportunities to participate as fully as possible in their families, community and society.

In some cases services have eligibility criteria which the consumer is required to meet. Eligibility for fully funded access to some services is dependent upon an assessment of the consumer's ability to contribute towards the cost of that service. This assessment is undertaken by The Department of Work and Income.

Disability support services comprise 25 percent of the total Vote Health budget for the 1999–00 year. The disability support services forecast funding for the 1999–00 year is $1.637 billion; this compares with $1.536 billion for the 1998–99 year. Since 1996–97, funding for disability support services has been allocated on the basis of a population funding formula which takes account of the number of people with disabilities and older people in the four main areas of the HFA.

During 1998–99 approximately 51 percent of HFA expenditure on disability support services was spent on age-related disability, 20 percent on psychiatric disability, 16 percent on intellectual disability and 12 percent on physical/sensory disability. The remaining 1 percent of disability support expenditure was spent on general disability services (this category includes some services for children). There has been little change in the proportion of expenditure by disability type in the past few years.

Background to current DSS provision. The Regional Health Authorities (RHAs) became the primary funder of a range of disability support services for all people with disabilities and older people progressively from 1993. Major transfers of funding and responsibilities from the Department of Social Welfare (DSW) occurred from 1993–1995 following government decisions to realign services set out in Support for Independence: A New Deal (Ministry of Health 1992).

Prior to the disability reforms, responsibilities and funding for disability support services were spread across a range of government departments and agencies with differing access criteria. Many services for people with disabilities and older people were the responsibility of the DSW under the Disabled Persons Community Welfare Act 1975, while Vote Health also had significant funding responsibilities. This was confusing for people with disabilities and their families and providers, and some disability groups had poor access to services as a result.

Ettie Rout, 1918.

The consolidation of funding responsibilities under the RHAs, now the HFA, was accompanied by a shift to accessing all disability support services based on individual needs assessment and service coordination (the DSS framework). This coordination needs to be further extended by ongoing work to improve links with other government departments, ministries and agencies, for example, ACC and Education. This was identified as an area of further work in the Disability Support Services Strategic Work Programme: Building on the New Deal (Ministry of Health and Health Funding Authority. 1998).

Family health

The health of families is promoted through cooperation between the Ministry of Health, the Health Funding Authority, government departments, voluntary agencies, hospital and health services and health professionals.

Family planning. Family planning information and services 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 the HFA to provide a range of services, including clinics, training and education. These services are aimed at assisting people to make informed and responsible choices about their reproductive and sexual health.

The HFA purchases family planning advice from a range of providers: the Family Planning Association, individual GPs (where Community Service Card subsidies are involved), group practices, student health clinics, sexual health clinics, marae-based health services, and other providers.

Some HHSs offer family planning services within their obstetrics and gynaecology departments to provide additional facilities for the public, and limited training for doctors, medical students and nurses. In addition, there are private providers.

In May 1996 the Government made extra funds available to allow some free contraceptives and consultations to be available and to increase the subsidies paid for oral contraceptives. This initiative aimed to make it easier, especially for those on low incomes, to get contraceptives and advice. The provision of reproductive health services is increasingly linked to sexual health services.

Māori health

To a large extent, the difference in health between Māori and non-Māori reflects overall differences in social and economic status, although ethnicity or cultural circumstance is 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, to maximise effectiveness for Māori, health and disability services should be linked with other services to address social, cultural and economic conditions.

Health and disability support services improve health for Māori, by prevention strategies and by timely and effective interventions that reduce mortality and morbidity from conditions such as: diabetes, rheumatic fever, asthma, vaccine-preventable disease and ischaemic heart disease. Many causes of death and disability can be treated, but require early identification of the problem and early initiation of treatment by health services. Improving Māori access to appropriate health services is a major focus of the government's strategy to achieve its objective for Māori health – providing Māori with the opportunity to enjoy at least the same level of health as non-Māori.

Through policies for health promotion, positive incentives are being given to Māori for increased participation in the health and disability sector against a backdrop of significant Māori social and economic development. Māori health providers have improved access to health services as well as contributing to the general development of their communities. The number of Māori health providers has increased significantly since 1993, from approximately 30 to just over 200 providers.

The government strategic directions for Māori health are:

  • 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.

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 its minister 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 HHSs, health professionals and a large variety of community and consumer groups. A national breast cancer screening programme began in 1998.

The National Cervical Screening Programme (NCSP) is coordinated nationally by the Ministry of Health but managed and delivered at a local level. Cervical cancer is largely treatable if detected early. The need for such a screening programme was first identified in 1984 and the programme was established in 1990. The goal is to reduce mortality and disability from squamous cell cancer of the cervix trough by using a nationwide ongoing screening programme which can detect pre-cancerous changes. Treatment at this stage is very successful. Screening is offered three-yearly for women aged 20 to 69 years. The NCSP is delivered to women by a range of providers including general practitioners, nurse and lay smear takers, midwives, health educators and laboratories. Local coordination of the NSCP and the National Cervical Screening Register (NCSR) is managed through 14 geographic sites which are linked to a central database.

The cervical cancer incidence and mortality targets are:

  • Mortality – to reduce the age-standardised death rate from cervical cancer to below 3.5 per 100,000 or less by the year 2005.

  • Māori mortality – to reduce the age-standardised death rate from cervical cancer to 9.4 per 100,000 Māori women by the year 2000; and to 6.6 per 100,000 or fewer by 2005.

  • Incidence – to reduce the age-standardised incidence rate of cervical cancer in women to below 8.6 per 100,000 by the year 2005.

  • Māori incidence – to reduce the age-standardised incidence rate of cervical cancer in Māori women to below 11.0 per 100,000 by the year 2005.

  • Early detection – no more than 30 percent of invasive cervical cancers detected should be beyond stage one at the time of detection by the year 2000. The provisional data for 1999 indicates 58 percent of 1996 and 52 percent of 1997 were stage one at diagnosis (13 percent and 18 percent for 1996 and 1997 respectively had no staging information stated).

  • Enrolments – to increase the proportion of eligible women enrolled and screened in the previous three years to 85 percent by the year 2000. This target has been reached. By November 1999, 90 percent of eligible women were enrolled and 84 percent had have a smear in the previous five years.

The shrinking of both incidence and mortality rates for cervical cancer for all New Zealand women has accelerated since 1991 and is most likely due to improvements in cervical screening since the mid-1980s. Based on current trends, the cervical cancer incidence and mortality rate targets for the total population are likely to be achieved by the year 2005.

Since the targets for Māori women were set, the definition of ethnicity was changed from a ‘sole ethnic origin’ population to a ‘Māori ethnic group’ population. Until several years of mortality data are available for Māori women using the new definition, progress toward the mortality target cannot be accurately estimated. The Māori women's cervical cancer incidence target for the year 2005 could possibly be achieved if the reductions that have occurred since 1991 continue.

Breast cancer is a significant health problem for women in New Zealand. It is the leading cause of cancer deaths for women, with 84 percent of all breast cancer deaths occurring in women over the age of 50. International evidence shows that an organised population-based breast screening programme can reduce deaths from breast cancer in women aged 50–64 by between 25 and 30 percent over a number of years, as long as at least 70 percent of eligible women are screened.

The national breast cancer screening programme. Breast Screen Aotearoa New Zealand, has been established and screening of eligible women started in 1998. Through early detection, the programme aims to reduce breast cancer mortality by offering free mammography services at two-yearly intervals to women in the 50 to 64 age group who do not have symptoms of breast cancer. Assessments for women who need it are done by a team of radiographers, radiologists, breast specialist nurses, surgeons and pathologists.

In addition to the target group for the national programme the following groups of women continue to have access to publicly-funded mammograms:

  • women who have had breast cancer

  • women between 40 and 49 years who have a strong family history of breast cancer (defined as a mother or sister with pre-menopausal or bilateral breast cancer)

  • women between 40 and 49 years who have had a breast histology demonstrating an at-risk lesion.

Organised breast cancer screening programmes similar to this are already operating in Australia, and in the United Kingdom through the National Health Service.

Breastfeeding. The Ministry of Health recommends exclusive breastfeeding as the preferred infant feeding choice for the first four to six months of life, with continued breast feeding in combination with other foods for the first 12 months. Provided the infant is allowed to breast feed on demand, breast milk remains a major source of nutrients for the first year of life. 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 premenopausal breast cancer, a contraceptive effect (only with exclusive breast feeding), very little preparation and it helps mothers to return to their pre-pregnancy weight.

Plunket data from 1993–1997 indicates that full breastfeeding rates remain high at around 50 percent at three months. At six months around 55 percent of infants get some breastfeeding.

BREASTFEEDING
Proportion of mothers giving any breastfeeding, and duration, for year to 30 June 1999

BREASTFEEDING
Babies with any breastfeeding when first seen by Plunket

Child health

The Ministry of Health provides policy advice to the Minister of Health relating to health services for children and their families.

In 1998 the Ministry of Health led the development of the Child Health Strategy to provide direction to the health and disability sector to improve overall child health and disability outcomes and reduce inequities.

The Child Health Strategy sets the direction for improving child health and disability outcomes over the next five to ten years. It was developed through extensive sector consultation and is widely supported. The strategy recognises that improving child health and disability outcomes requires a comprehensive approach. This is set out in the strategy's six future directions:

  • A greater focus on health promotion, disease prevention and early intervention.

  • Better coordination.

  • Develop a national child health information strategy.

  • Child health workforce development.

  • Improve child health research and evaluation.

  • Leadership in child health.

The Child Health Strategy emphasises the need to reduce inequities in health and disability outcomes by focusing on four priority groups:

  • Māori children

  • Pacific children

  • children whose families are experiencing multiple social and economic disadvantage

  • children with high health and disability support needs.

A comprehensive range of child health services are purchased by the HFA. These include high quality secondary and tertiary paediatric services, primary care and well child services, which focus on disease prevention and health promotion. The services that are set out in the Well-Child-Tamariki-Ora national schedule include newborn screening; developmental, vision and hearing screening for children aged 0–4 years; and immunisation. Well child services for this age group are provided by a range of providers including HHSs, the Royal New Zealand Plunket Society, Tipu Ora and other Māori providers. 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 6.7 deaths per 1,000 live births in 1997. This is one of the lowest rates New Zealand has ever achieved, and is believed to be due to a dramatic reduction in SIDS following the release of the findings of the New Zealand Cot Death Study.

A free series of immunisations is available to children in New Zealand to protect them from nine serious diseases. To be fully protected children need to have all of the immunisations in the series. This will result in fewer children contracting vaccine-preventable diseases.

A mass measles campaign was held in 1997 to limit the spread of a measles epidemic. This campaign successfully prevented over 95 percent of the predicted measles cases.

A national committee has been established by the Ministry of Health to certify the elimination of polio in New Zealand. This is being done as part of the global eradication of polio.

St Johns Ambulance mobile clinic, Auckland branch, c1940.

Table 8.3. RECOMMENDED IMMUNISATION SCHEDULE

AgeVaccine

1Diphtheria, tetanus, whooping cough (pertussis), Haemophilias influenza type b.

2Oral polio vaccine.

3Measles, mumps, rubella.

4Adult-type tetanus-diphtheria vaccine.

Source: Ministry of Health

6 weeksDTPH1, Hepatitis B, OPV2
3 monthsDTPH, Hepatitis B. OPV
5 monthsDTPH, Hepatitis B, OPV
15 monthsDTPH, MMR3
11 yearsOPV, MMR, Td4

Table 8.4. INFANT IMMUNISATION LEVELS BY VACCINE TYPE, 1992

Vaccine typePercentage1

1National 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

Electrical muscular treatment at Hutt Hospital.

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 action means building healthy public policy, creating supportive social environments, strengthening community action, developing personal skills and reorienting health services. A consultative service is provided to schools by public health nurses, with specific emphasis on health education and health promotion.

Family Start

Family Start is an intensive home-based visiting service set up by the Ministries of Health, Education and Welfare as part of the Strengthening Families intersectoral initiative. It is jointly funded through Votes: Health, Education and Welfare, and the services are purchased by the Health Funding Authority, the Child, Youth and Family Service and Early Childhood Development. This programme is targeted at families in difficult circumstances that put at risk good health, education and welfare outcomes for their children. Families experiencing multiple or severe difficulties around the time of the birth of a child may be referred by maternity carers, and well child providers to general practitioners. Participation in the programme is voluntary. Support is provided at three levels of intensity, depending on the assessed needs of the family. Family Start is not intended to replace or duplicate existing health, education or welfare support services, but to work with families in a supportive partnership and to link them to existing services and local networks as needed. If necessary, families can participate in the programme for the first five years of a child's life.

TOBACCO CONSUMPTION
Per person aged 15 years and over

Smoking

The total amount of tobacco products released for consumption per adult decreased between 1996 and 1998, and reached a new low in 1998. This reverses the increase observed between 1995 and 1996 which corresponded to the drop-off in the consumption of loose tobacco. Since 1990, total tobacco released for consumption has fallen by one-third. However, in New Zealand one in five deaths can still be attributed to tobacco smoking.

Since 1995, a number of tobacco control initiatives have been put in place including:

  • The national Quitline and Quit Multimedia campaign (introduced in 1999).

  • Increased enforcement of the ban on sales of tobacco to minors.

  • Additional smokefree sponsorship of sporting and cultural events.

  • The Why Start? multimedia campaign (which ran from mid-1996 to mid-1999).

  • Increased smokefree schools programmes.

  • New legislation (passed in 1997) to, among other things, raise the age at which people can be sold cigarettes from 16 to 18 years, and ban the sale of single cigarettes and small packs of cigarettes.

  • An increase in the tax on a packet of 20 cigarettes of around 50 cents per packet plus GST.

In addition, six trials involving up to 2000 Māori women smokers, administered by the government's drug buying agency PHARMAC and the Health Funding Authority, are underway. They are being developed and delivered by Māori providers and will test the effectiveness of nicotine replacement therapies against counselling alone.

AC Nielsen data for 1999 showed that 26 percent of New Zealand's total population smoked cigarettes. Twenty-six percent of males smoked and 25 percent of females. Fifty-one percent of Māori smoked, and 30 percent of Pacific Islands people.

Between 1976 and 1998 cigarette smoking prevalence has declined overall by approximately one-quarter. However, there has been little decline for women under the age of 25 years and for Pacific Islands people. Māori smoking rates have declined by around 10 percent since 1976, but have stayed relatively static since 1990.

A survey of students carried out by Action on Smoking and Health showed that fourth formers’ smoking rates had increased from 11.6 percent to 15.2 between 1992 and 1997. In 1998, this figure reduced to 14 percent, but has appeared to have increased again in 1999.

Alcohol

In New Zealand the excessive consumption of alcohol is a major personal and public health issue. Alcohol is reported to be the most commonly used recreational drug. Estimated total annual alcohol consumption per person aged 15 and over in 1997 was 8.9 litres, an increase of 2 percent from 1996.

The 1995 survey of New Zealand drinkers and their associated health problems published by the Alcohol and Public Health Research Unit indicates that:

  • Eighty-nine percent of men and 85 percent of women are drinkers.

  • Seventy-three percent of all alcohol is consumed by men.

  • Seventy-four percent of self-reported problems resulting from alcohol consumption are from men.

  • The 18 to 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.

In 1996 an estimated 146 people died from alcohol-related (primary cause) diseases such as alcoholic liver diseases and cirrhosis, alcoholic cardiomyopathy, alcohol dependent syndrome, alcoholic psychosis and alcohol abuse. The alcohol related (primary cause) age standardised average mortality rate for 1994–96 was 3.31 per 100,000, a decline of 38 percent from 1980–82.

Land Transport Safety Authority figures indicate that in 1997 alcohol was a contributing factor in 27.1 percent of fatal road traffic crashes and 17.4 percent of casualties involving motor vehicle related injuries.

Alcohol use by young people is an area of particular concern. The 1995 national survey of New Zealanders’ drinking patterns estimated that the top 10 percent of alcohol drinkers accounted for almost half of the total consumed. This group of heavy drinkers was found to be predominantly male (83 percent of the sample) and 18–24 year olds were over-represented in this group (33 percent of the sample). Second to the 20–24 age group, people between 18 and 19 consumed the next highest median volumes of alcohol annually.

The New Zealand Health Survey 1996/1997 found that one sixth of adults display drinking patterns that put them at risk of future negative physical or mental health effects. Young people aged between 15 and 24 years of age, especially men, were more likely to fall into this group. According to the survey, while more Māori and Pacific Islands people report never drinking alcohol, those who do drink consume more on a typical drinking occasion than European and Pākehā and illustrate hazardous patterns of drinking (more than six drinks on occasion).

The Alcohol Advisory Council of New Zealand (ALAC) promotes moderation in the use of alcohol and develops and promotes strategies which will reduce alcohol-related problems. ALAC funds a multidisciplinary alcohol research unit in association with the Health Research Council and the University of Auckland School of Medicine, and supports other independent research projects. ALAC 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. In the health promotion area, ALAC funds mass media advertising to raise the level of awareness of alcohol-related problems, and encourages host responsibility both on licensed premises and at private functions.

Physical activity

In 1996 the Hillary 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 that they had taken part in sport or physical activities. Gardening, walking, swimming, exercising and cycling are the main ways in which New Zealand adults are physically active. However, there are still significant numbers of people who are not physically active in their leisure time.

The 1996/97 New Zealand health survey found that 15 percent of all adults were sedentary; that is, they had participated in no leisure-time activity in the previous week. To overcome this the commission, in association with North Health, has developed “Green Prescriptions”. Green Prescriptions encourage general practitioners to prescribe exercise to those of their patients who would benefit from it. GPs are in a good position to promote the health benefits of physical activity – they have regular access to a large proportion of the sedentary population and are a respected source of advice.

ALCOHOL AVAILABLE FOR CONSUMPTION
Per person aged 15 years and over

Willis Street school dental clinic, Wellington, 1962, where student dental nurses trained.

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 for dental therapists and dentists are taught at the School of Dentistry, University of Otago.

School dental service. This service works to maintain a high standard of dental health for pre-school and school children, starting at the age of two-and-a-half and continuing through to the highest class at primary or intermediate school.

Dental therapists, after completing the two-year training course, provide children with routine dental care.

The dental care involves examination, disease prevention measures, fillings in deciduous (first) and permanent teeth, extraction of teeth and dental health education. Some children are referred to dentists for additional care which is beyond the scope of the dental therapists. The cost of such care is usually met as a special dental benefit. Orthodontic treatment and some other specialist services can only be obtained privately.

For children leaving the care of the school dental service at the end of their primary schooling, the number of filled teeth was on average 1.6 per child in 1997, and 44 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.

The New Zealand Health Information Service

The New Zealand Health Information Service (NZHIS) is the group within the Ministry of Health responsible for the collection and dissemination of health-related information.

NZHIS has responsibility for the:

  • Collection, processing, maintenance and dissemination of health data, health statistics and health information.

  • Continuing maintenance and development of the national health and disability information systems.

  • Provision of appropriate databases, systems and information products.

  • Development and provision of health and disability information standards and quality-audit programmes for data.

  • Coordination of ongoing national health and disability information collections and of proposals for their development.

  • Analysis of health information and provision of advice on the use of information obtained from NZHIS.

Information collected by the NZHIS

There are three major information systems currently supported by the NZHIS, the National Health Index (NHI), the Medical Warning System (MWS), and the National Minimum Dataset (NMDS). These databases contain information for secondary and tertiary health events from HHSs. Plans are in place to expand the existing information base to include primary care information. NZHIS also collects health workforce information.

The National Health Index. The NHI provides a mechanism for uniquely identifying healthcare users. It was developed to help protect personally identifiable health data, particularly data held on computer systems, and to allow different information systems to be linked while still protecting privacy.

The Medical Warning System. The MWS is designed to warn healthcare providers of the presence of any known risk factors that may be important in making clinical decisions about individual patient care.

The National Minimum Dataset. The NMDS is a single integrated collection of secondary and tertiary health data, developed in consultation with health sector representatives, required at national level for:

  • policy formulation

  • monitoring and evaluation of policy implementation

  • performance monitoring and evaluation

  • health status measurement

  • meeting international reporting requirements.

To ensure that health-event data provided to the NMDS is anonymous, each record is identified with the healthcare user's NHI number in encrypted form only. No personally identifiable information is kept on the NMDS.

Health workforce information. The Health Workforce Data Collection consists of 13 stand-alone 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 NZHIS publishes annual reports of statistics based on data from the NMDS. These publications are Public Hospital Morbidity Data, Private Hospital Morbidity Data, Mental Health Data, Cancer Data, Mortality and Demographic Data, and Fetal and Infant Deaths.

Health workforce information is also published, but at greater-than-annual intervals at present. These publications are available from the Information Delivery section of NZHIS.

More information is available on the NZHIS website at www.nzhis.govt.nz

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 84.7 percent of deaths in 1996, while coroners certified the remaining 15.3 percent. Of the deaths certified by doctors, 2.2 percent were subject to a postmortem, compared to 84 percent of coroner-certified deaths. Overall, almost 14.7 percent of deaths in 1996 were subject to a post-mortem.

Malignant neoplasms (cancer), ischaemic heart disease and cerebrovascular disease were the leading causes of death in New Zealand in 1996, collectively accounting for just over 60 percent of all deaths (cancer 26.2 percent, ischaemic heart disease 23.3 percent and cerebrovascular disease 9.3 percent).

Further statistics on causes of death can be found in Section 8.5: Accidents. For general health statistics see Section 8.4: Hospitals.

A new $75,000 cell separator bought for the Waikato Regional Blood Centre in 1998 to allow better processing of blood products.

Table 8.5. MAJOR CAUSES OF DEATH 1994–96

Cause of deathNumber of deathsRate per million of mean population
199419951996199419951996

Source: Mortality and Demographic Data 1994–1996. New Zealand Health Information Service

Malignant neoplasms7,1667,4227.4612,0432,0842,062
Diabetes mellitus486508595139143164
Chronic rheumatic heart disease124129127353635
Hypertensive disease258247289746980
Ischaemic heart disease6,6196,6976,633188718811833
Other forms of heart disease112211641286320327355
Cerebrovascular disease2,7272,7152,659778762735
Diseases of arteries, arterioles and capillaries667672654190189181
Pneumonia101511671092289328302
Bronchitis, emphysema and asthma400362427114102118
Other diseases of respiratory system132914911690379419467
Peptic ulcer152165141434639
Cirrhosis of liver130113115373232
Congenital anomalies177181181505150
Conditions of perinatal mortality119119149343341
Motor vehicle accidents602612537172172148
Other unintentional accidents626651658179183182
Suicide and self-inflicted injury512543540146152149
All other diseases2,8622,9983,146816842869
        Total, all causes of death27,09327,95628,3797,7267,8507,843

Cancer. In New Zealand approximately one-quarter of all deaths are caused by cancer. A detailed report entitled Cancer: New registrations and deaths is published annually by the NZHIS. 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.

Table 8.6. DEATHS FROM CANCER, 1996

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: Mortality and Demographic Data 1996. New Zealand Health Information Service

Under 553.50.143.00.1
5–14144.90.4176.30.5
15–24238.60.6145.30.4
25–4413024.13.419334.05.4
45–64986274.025.5967267.126.9
65 and over2,7141490.370.12,394995.266.7
        Total3,872217.8100.03,589195.0100.0

In 1996, 94.6 percent of cancer deaths occurred at age 45 years and over, with 68.5 percent of deaths occurring at 65 years and over. The lungs were the major site of male cancer death, accounting for 23.3 percent of male cancer deaths in 1996. Other common sites for males were the large bowel and prostate. The main cause of female cancer deaths was breast cancer, which caused 18.9 percent of female cancer mortality, followed by cancer of the large bowel.

SELECTED CAUSES OF DEATH
Age-standardised rate

Table 8.7. DEATHS FROM CANCER AT SELECTED SITES, 1994–96

SiteSexNumberRates per million mean population
199419951996199419951996

1T = Total.

2Cancer of the large bowel is an aggregation of rectum cancer and cancer of the large intestine.

Source: Mortality and Demographic Data 1994–1996, New Zealand Health Information Service

Lip, oral cavity and pharynxT18910911425.430.631.5
M59738634.141.548.4
F30362816.920.015.2
OesophagusT20222519257.663.253.1
M13914812480.384.269.8
F63776835.542.736.9
StomachT25126529771.674.482.1
M14015217680.986.599.0
F11111312162.562.765.7
ColonT760717731216.7201.3202.0
M363345354209.8196.3199.2
F397372377223.5206.3204.8
RectumT389393402110.9110.4111.1
M228228233131.8129.7131.1
F16116516990.691.591.8
Large bowel2T114911101133327.6311.7313.1
M591573587341.6326.0330.2
F558537546314.1297.8296.6
Bronchus, trachea and lungT140314061406400.1394.8388.6
M919892904531.1507.5508.6
F484514502272.4285.0272.7
Female breastT567638681319.1353.8369.9
M0000.00.00.0
F567638681319.1353.8369.9
Cervix uteriT77968243.353.244.5
M0000.00.00.0
F77968243.353.244.5
Corpus uteriT52615829.333.831.5
M0000.00.00.0
F52615829.333.831.5
Ovary, fallopian tube and broad ligamentT17217517996.897.097.2
M0000.00.00.0
F17217517996.897.097.2
ProstateT517554502298.8315.2282.4
M517554502298.8315.2282.4
F0000.00.00.0
Bladder and other urinary organsT16615518647.343.551.4
M11511511166.565.462.4
F51407528.722.240.7
SkinT19319719455.055.353.6
M11412610765.971.760.2
F79718744.539.447.3
BrainT19216720054.746.955.3
M1107310763.641.560.2
F82949346.252.150.5
Lymphosarcoma and reticulum cell sarcomaT35302110.08.45.8
M22141012.78.05.6
F1316117.38.96.0
LeukaemiaT25824525573.668.870.5
M13414014177.479.679.3
F12410511469.858.261.9
All other and unspecified sitesT694879828197.9246.8228.8
M383485430221.3275.9241.9
F311394398175.1218.5216.2
        Total malignant cancer deathsT7,1667,4227,4612043.42084.22062.0
M3,8343,9183,8722215.82228.92178.4
F3,3323,5043,5891875.51943.11949.7

Table 8.8. FETAL AND INFANT MORTALITY RATES, 19961

Category of deathMāoriPacific IslandsOtherTotal
NumberRateNumberRateNumberRateNumberRate

1Rates per 1,000 live or total births.

Source: Fetal and Infant Deaths 1996, New Zealand Health Information Service

Fetal1137.1468.12577.14167.2
Early neonatal553.5142.51042.91733.0
Total perinatal16810.56010.536110.058910.2
Late neonatal221.440.7240.7500.9
Total neonatal774.9183.21283.62233.9
Post-neonatal1076.8234.1641.81943.4
Total infant18411.6417.31925.34177.3

Chinese herbalist Chung Ying, also known as Chung Dick Lee, owned the Dick Lee herb shop in Wellington, c1925.

INFANT MORTALITY
Deaths of infants under 1 year

New definition for fetal deaths

New legislation affecting the certification and registration of fetal deaths was introduced on 1 September 1995. This fundamentally changed the definition of ‘stillborn child’ (fetal death) and the definition of perinatal death. The new definition includes fetal deaths of 20 weeks or more gestation or 400 grams weight, and has been applied to the 1996 data.

Perinatal deaths. The term perinatal deaths covers fetal deaths of 20+ weeks gestation or 400 grams birthweight, and infant deaths within less than 168 completed hours after birth (early neonatal deaths).

Late neonatal death. A late neonatal death occurs when a liveborn infant dies after seven days and before 28 completed days after birth.

Post-neonatal death. A post-neonatal death is when a liveborn infant dies after 28 completed days and before the first year of life is completed.

Infant death. An infant death is the death of a liveborn infant before the first year of life is completed.

Ethnicity. In September 1995 new birth and death registration forms with modified ethnic questions were introduced. Details of the changes were presented in Demographic Trends 1996, published by Statistics New Zealand, and in Fetal and Infant Deaths 1995 published by the New Zealand Health Information Service. Because of the changes, ethnic breakdowns of birth and death data are not available for 1995. Table 8.8 of 1996 fetal and infant mortality starts a new time-series of ethnic-specific statistics.

Table 8.9. INFANT MORTALITY RATES FOR SELECTED OECD COUNTRIES1

Country19851997

1Rate per 1,000 live births.

21996.

Source: OECD in Figures (1997 edition)

Australia9.95.3
Austria11.24.7
Germany8.94.8
Greece14.16.4
Iceland5.75.5
Japan5.53.7
New Zealand10.86.9
Portugal17.86.4
Switzerland6.94.72
United Kingdom9.45.9

Maternal deaths. Direct maternal deaths totalled four in 1996, which is a rate of 7.0 per 100,000 live births.

Table 8.10. PRINCIPAL CAUSES OF INFANT MORTALITY 1996

Cause of deathNumber of deathsRate per 1,000 live births

Source: Mortality and Demographic Data 1996.

Infectious and parasitic diseases60.1
Malignant neoplasms00.0
Diseases of nervous system110.2
Diseases of circulatory system00.0
Diseases of respiratory system160.3
Diseases of digestive system10.0
Congenital anomalies1031.8
Perinatal conditions1472.6
Sudden infant death syndrome1061.8
External causes of injury and poisoning260.5
All other causes50.1
        Total deaths4177.3

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.

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.

New Zealand's abortion law is kept under review by a three-member supervisory committee (the Abortion Supervisory Committee), which also licenses institutions for the performance of abortions, appoints certifying consultants to consider cases, and liaises with all those providing facilities, both public and private.

Counselling advisors also monitor counselling services for women seeking advice about their pregnancy and keep the committee informed on related issues.

Table 8.11. ABORTIONS ACCORDING TO AGE GROUP1

Age group1995199619971998

1Calendar years.

Source: Abortion Supervisory Committee

12–1442605665
15–192,5942,9092,9062,832
20–244,1644,3974,4844,355
25–292,9853,2393,3783,381
30–342,1582,3152,3692,368
35–391282141915021559
40–44390430492444
45 and over37362125
Totals13,65214,80515,20815,029
Note:
Under 16 years220248215238
Age 16–19 years2,4162,7212,7472,659

Table 8.12. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED1

Grounds19971998

1Calendar years.

Source: Abortion Supervisory Committee

Serious danger to life37
Serious danger to physical health289
Serious danger to mental health14,96514,753
Combination of serious danger to physical and mental health7166
Substantial risk of physical or mentally abnormal seriously handicapped child2446
Substantial risk of physical or mentally abnormal seriously handicapped child and serious danger to physical health89
Substantial risk of physical or mentally abnormal seriously handicapped child and serious danger to mental health105124
Offence under s. 131 Crimes Act 1961315
Incest and serious danger to mental health1-
Totals15,20815,029

Table 8.13. ABORTION RATES: NEW ZEALAND AND OTHER LOW FERTILITY COUNTRIES

CountryYearCrude abortion rate1General abortion rate2

Sources for other than New Zealand statistics are given in Table 4 of the 1999 Annual Report of the Abortion Supervisory Committee:1Per 1,000 estimated mean population.

2Per 1,000 estimated mean number of women aged 15–44 years.

3Rates are based on the resident population concept, replacing the de facto concept that has been used in the past.

4Residents only.

5Based on data of unknown completeness.

6Includes residents of Scotland obtaining abortions in England.

Source: Abortion Supervisory Committee

New Zealand319903.314.0
19913.314.0
19923.313.9
19933.314.3
19943.615.3
19953.716.1
19964.017.3
19974.017.7
19984.017.5
Australia1995–1996-22.2
Canada41995-15.5
Denmark1995-16.1
England and Wales41997P3.315.8
Finland19962.010.0
France51995-12.4
Germany1996-7.6
Japan51995-13.4
Netherlands419961.46.5
Norway1996-15.6
Scotland61997P2.411.0
Sweden1996-18.7
United States1996-22.9

8.4 Hospitals

Hospital and community health administration

Since 1 July 1993 hospital and health services (HHSs) have been responsible for providing health services in the health sector. HHSs were formed around existing large hospitals.

Hospital and health services enter into contracts with the Health Funding Authority to provide health care services. The HFA is the country's health care purchasing organisation. Until 1 July 1997, purchasing was through four regionally-based divisions – North Health, Midland Health, Central Health, and Southern Regional Health.

Licensing and inspection of public and private hospitals are the delegated responsibility of the Ministry of Health.

The Crown Company Monitoring Advisory Unit (CCMAU) is responsible for monitoring the performance of HHSs.

A Wellington Free Ambulance officer treats a patient, 1977.

Fred Hollows.

Public hospital patients

In 1998, there was a total of 387 hospitals in New Zealand: 109 of these were public hospitals and 278 private. The total number of hospital beds in 1998 amounted to 30,282, of which an increasing number were in private hospitals (15,984 compared with 14,298 in public hospitals). As of February 2000 there were 433 hospitals (224 public (HHS) and private hospitals and 209 hospitals licensed with exemption). The license exemption applies to medium or low level care beds (old peoples’ home beds). There has been an increase in the number of hospital beds to 31,425 with 17,483 in public (HHS) and private hospitals and 13,942 in hospitals licensed with exemption.

Table 8.14. HOSPITALS AND HOSPITAL BEDS, 1995–98

 Year
1995199619971998

Source:Licensing Section, Ministry of Health

Number of hospitals
        Private hospitals207249263278
        HHS hospitals138119116109
Number of beds
        Private hospitals7,2187,2188,65815,984
        HHS hospitals15,55515,27014,93014,298

Principal diseases and disabilities. Detailed statistical information is supplied to the Ministry of Health through the New Zealand Health Information Service about all patients discharged from, or dying in, public hospitals in New Zealand.

Table 8.16 shows the principal diseases and injuries treated in public hospitals in 1998, 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 1998 was 7.5 days. The disease groups with the longest average stays were intellectual disability (138,4 days), and psychoses (63.7 days).

Table 8.15. AGE AND SEX OF INPATIENTS DISCHARGED FROM PUBLICLY-FUNDED HOSPITALS, 1998

Age group (years)MalesFemalesTotal

Source: Provisional data, New Zealand Health Information Service

0–448,37341,00489,377
5–97,9526,04914,001
10–146,7535,28012,033
15–196,86812,86119,729
20–247,63721,99729,634
25–297,83030,24238,072
30–347,71729,92937,646
35–398,13919,58227,721
40–448,04810,52018,568
45–498,5129,07017,582
50–549,2539,06318,316
55–5910,4319,25619,687
60–6411,89510,01921,914
65–6914,99912,12327,122
70–7417,10914,99832,107
75–7915,90116,91332,814
80–8411,55515,75427,309
85 +8,75516,18924,944
        Total217,727290,849508,576

Table 8.16. DISEASES AND CONDITIONS TREATED IN PUBLIC HOSPITALS (INCLUDING READMISSIONS, EXCLUDING DAY CASES) DURING 1998

Disease groupTotal dischargesAverage stay (in days)Percentage of all cases

1Includes carcinoma in situ and malignant neoplasms of lymphatic and haematopoietic tissue.

2Includes neoplasms of uncertain behaviour and neoplasms of unspecified nature.

Source: Provisional data, New Zealand Health Information Service

Infectious and parasitic diseases (except tuberculosis)10,6454.12.1
Tuberculosis34414.90.1
Malignant neoplasms122,8348.74.5
Benign neoplasms23,7765.60.7
Disorders of the thyroid gland5956.40.1
Diabetes mellitus3,09913.00.6
Other endocrine, nutritional, metabolic and immunity disorders2,9476.40.6
Diseases of blood and blood-forming organs4,5984.20.9
Psychoses8,29463.71.6
Other mental disorders3,98111.20.8
Intellectual disability46138.40.0
Disorders of eye and adnexa3,2333.40.6
Diseases of ear and mastoid process2,7652.30.5
Other disorders of central nervous system5,93439.51.2
Acute rheumatic fever and chronic rheumatic heart disease43810.40.1
Ischaemic heart disease22,5095.84.4
Hypertensive disease and other forms of heart disease16,8658.83.3
Cerebrovascular disease9,57228.01.9
Diseases of arteries, arterioles and capillaries4,4217.40.9
Other disease of the circulatory system3,7995.60.7
Acute respiratory infections and influenza8,2102.61.6
Pneumonia9,5219.21.9
Chronic obstructive pulmonary disease14,6945.72.9
Chronic disease of tonsils and adenoids2,8041.10.6
Other respiratory disease6,8605.11.3
Disease of oral cavity, salivary glands and jaws13982.30.3
Oesophagus, stomach and duodenum disease5,0475.41.0
Appendicitis4,4403.50.9
Hernia of abdominal cavity3,5972.70.7
Non-infective enteritis and colitis2,4585.60.5
Other digestive system disease17,3875.53.4
Other diseases of urinary system10,0084.92.0
Male genital organ diseases3,0413.00.6
Breast and inflammatory disease of female pelvic organs2,3362.60.5
Other female genital tract5,9863.31.2
Pregnancy and complications of childbirth, excl. abortion63,9633.012.6
Pregnancy with abortive outcome4,7301.60.9
Skin and subcutaneous tissue disease11,1315.72.2
Arthropathies and related disorders9,2689.61.8
Osteopathies, chondropathies3,68117.90.7
Congenital anomalies4,9715.21.0
Perinatal conditions15,9867.03.1
Symptoms, signs33,6185.16.6
Fractures20,6835.74.1
Dislocations, sprains and strains of joints2,8503.30.6
Intracranial injury5,0213.21.0
Laceration and open wound6,7192.81.3
Burns11147.50.2
Drug, medicament, poisoning3,3772.20.7
All other conditions92,9826.818.3
        Total508,5767.5100.0

Injury cases. In 1998 the most common causes of hospitalisation involving injury and poisoning were surgical and medical complications and misadventures, adverse effects of drugs, accidental falls, and motor vehicle accidents.

Table 8.17. INJURY CASES TREATED AS INPATIENTS IN PUBLICLY-FUNDED HOSPITALS (INCLUDING READMISSIONS), 1998

Cause of injuryTotal casesPercentage of all injury cases

Source: Provisional data, New Zealand Health Information Service

Transport
Railway130.0
Motor vehicle traffic6,4797.0
Motor vehicle non-traffic10311.1
Other road vehicles19082.1
Water1980.2
Air730.1
Vehicle accidents not elsewhere classifiable410.0
        Total9,74310.6
Non-transport
Accidental poisoning16501.8
Accidental falls23,79225.8
Surgical and medical complications and misadventures25,43227.6
Other accidents15,83017.2
Late effects of accidental injury2,1062.3
Adverse effects of drugs, medicaments and biological substances8,3339.0
Suicide and self-inflicted injury3,0613.3
Homicide and injury purposely inflicted by other persons2,1932.4
Legal intervention by police120.0
Injury undetermined whether accidentally or purposely inflicted1400.2
Injury resulting from operations of war50.0
        Total82,55489.4
        Total all injury cases92,297100.0

Accidents at home. A high percentage of non-transport accidents, especially those involving young children and elderly people, occur at home. Domestic accidents are included by type of accident in table 8.18. This table shows the number of patients discharged from, or dying in, public hospitals in 1998 after treatment for accidents at home. It only includes inpatients in public hospitals, not the large numbers of accident cases treated in outpatient departments, doctors’ surgeries and at home.

Table 8.18. INPATIENTS DISCHARGED FROM PUBLICLY-FUNDED HOSPITALS AFTER ACCIDENTS AT HOME, 1998

Cause of injury or poisoningTotal patients

Source: Provisional data, New Zealand Health Information Service

Drugs and medicaments607
Petroleum products and other solvents22
Agricultural and horticultural preparations other than plant foods or fertilisers20
Noxious foodstuffs and poisonous plants38
Other solid and liquid substances18
Gases and vapours19
Accidental falls8,225
Struck by falling objects82
Accidents caused by cutting and piercing instruments1091
Accidental burns653
Accidents caused by foreign bodies188
Non traffic motor vehicle accidents142
Other road vehicle accidents101
Other vehicle accidents not elsewhere classified2
Alcohol40
Cleansing, polishing agents, disinfectants, paints and varnishes28
Corrosives and caustics not elsewhere classified34
Natural environmental factors262
Drowning and submersion27
Mechanical suffocation11
Struck against or accidentally by objects or persons435
Caught accidentally in or between objects181
Accidents caused by machinery64
Accidents caused by explosions19
Accidents caused by firearms4
Accidents caused by electric current31
Exposure to radiation1
Overexertion497
All other and unspecified accidents2,198
        Total15,040

For further accident statistics, see section 8.5: Accidents.

Mental health data

Legislative changes affecting statistical time-trends. The Mental Health Act 1969 was repealed in November 1992 and The Mental Health (Compulsory Assessment and Treatment) Act 1992 was introduced. The new legislation shifts emphasis away from determining whether a person should be detained in a psychiatric hospital to the timely consideration of whether compulsory treatment for a mental disorder is required. If such a need is established, the act's intention is for treatment to be provided in the least restrictive environment possible. Intellectually disabled persons are excluded from the definition of mental health patients unless they have a mental illness in addition to their disability.

In order to provide treatment in the least restrictive environment possible, the act also dispenses with the separate designation of psychiatric hospitals. This change is intended to encourage the treatment of people with mental disorders within the community when possible. Inpatients are mainly treated in specialised wards that are attached to general hospitals.

Comparability of 1994 statistics with earlier years. It is important to note that because of the changes in definition of ‘mental disorder’ contained in the 1992 Act, the statistics for 1994 are not directly comparable with statistics for earlier years.

Previous reports of mental health data contained information about patients, including intellectually disabled persons, admitted to designated mental hospitals, psychiatric units located at public hospitals, and facilities licensed under the Alcoholism and Drug Addiction Act (A&DA), 1966. Because the new legislation removed the designation of mental hospitals, the range of possible treatment facilities has been widened to include any licensed hospital.

Inpatient mental health care data is collected as part of the National Minimum Dataset (NMDS) which is maintained by the New Zealand Health Information Service (NZHIS). The NMDS includes information from public hospitals and facilities that are licensed under the Alcoholism and Drug Addiction Act (1966). Community-based mental health programmes are not included.

The 1994 statistics. Mental health statistics for 1994 represent patients with a primary diagnosis of mental illness admitted to, and discharged from, licensed public hospitals or A&DA Act facilities. Information is also reported about patients who had a secondary mental health diagnosis or who were admitted to hospital as a result of deliberate self-harm or attempted suicide.

New mental health data collection system planned. As the data that is currently available represents only those patients admitted to hospital, the true prevalence of psychiatric illness in New Zealand cannot be determined.

A new data collection system for mental health data was pilot-tested in 1997, and the national roll-out phase has now commenced. The new system collects both secondary and community data from the 22 licensed public hospitals which provide mental health services, and the approximately 400 non-government organisations providing community-based mental health programmes. The system is known as the National Mental Health Information System, or NMHIS.

Key facts

Total admissions

  • There were 20,638 mental health admissions in 1994, 7045 (34 percent) of which were first admissions and 13,593 (66 percent) readmissions.

  • Seventeen percent of admissions were for the Māori population.

  • Females and males made up almost equal numbers of total admissions (10,598 male and 10,040 female admissions).

  • The most common admission diagnoses were schizophrenic disorders (males) and affective psychoses (females).

  • The most common admission diagnosis for the Māori population was schizophrenic disorders (males and females).

First admissions

  • There were a total of 7,045 first admissions in 1994 (3,619 males and 3,426 females).

  • The most common first admission diagnosis for males in 1994 was alcohol dependence or abuse, and for females, affective psychoses.

  • Alcohol dependence or abuse was one of the leading causes of first admission for both the total and Māori populations.

  • The most common age-specific rate of first admissions for both males and females was 65 years and over.

Readmissions

  • In 1994, there were 13,593 mental health readmissions (6,979 males and 6,614 females).

  • The most common readmission diagnoses for the total population were schizophrenic disorders (males) and affective psychoses (females).

  • Readmissions for Māori accounted for 18 percent of all readmissions in 1994 (1,432 males and 1,057 females).

Secondary diagnoses

  • There were 10,869 hospital discharges in 1994 with a non-mental health primary diagnosis but with a secondary mental health diagnosis.

  • The most common secondary mental health diagnosis was senile and pre-senile organic psychoses, followed by other psychoses.

  • There were 3,966 discharges with both a primary and secondary mental health diagnosis in 1994. This made up 19 percent of all (primary) mental health diagnoses in 1994.

  • The most common secondary diagnosis for people with both a primary and secondary mental health diagnosis in 1994 was alcohol dependence or abuse (21 percent of secondary discharges).

Computer technology used in Hollywood movies has been adapted as a tool to help doctors treat children with mobility problems.

Home safety poster, 1950s.

Occupational safety poster, 1980s.

8.5 Accidents

Accident insurance

New Zealand was the first country to introduce a system of 24-hour, comprehensive, compulsory, no-fault insurance cover for people with 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, no matter who was at fault.

Between 1974 and 1998, the scheme was amended from time to time, mainly to keep its entitlements in line with social changes. Essentially it covered all New Zealand residents, New Zealand residents while temporarily overseas and overseas visitors while in New Zealand. The scheme was managed first by the Accident Compensation Commission, then subsequently by a statutory corporation now known as the Accident Compensation Corporation (commonly known as ACC).

The Accident Insurance Act 1998 dramatically altered the scheme's structure by introducing competition to the market for work-related accident insurance.

However the Labour/Alliance Coalition Government, elected in November 1999, introduced a policy to reverse those changes. The Accident Insurance Amendment Act 2000 and the Accident Insurance (Transitional Provisions) Act 2000, both passed in March 2000, returned workplace accident insurance to ACC. From 1 July 2000 ACC is the sole provider of accident insurance for all work and non-work injuries for all New Zealanders. Private insurers do not provide for any new claims after 30 June 2000, but will generally continue to manage those claims they have accepted for cover prior to 1 July 2000.

ACC

ACC is a Crown entity with a board of directors appointed by the Minister for Accident Insurance. A service agreement between the board and the minister specifies the desired outcomes and objectives of ACC and acts as an accountability mechanism.

In the financial year to 30 June 1999, before the introduction of competition, ACC received 1.51 million registered claims. Some 8.5 percent of those (128,000) involved moderate or serious injuries while the remainder involved basic medical attention for claimants. In addition to the registered claims, ACC continued to provide support to 112,000 people for the ongoing effects of injuries that happened in previous years.

Services. The main services or compensation that ACC provides to injured people are:

  • The costs of their retrieval from the accident scene, when 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 when the injured person is able to continue some work but earnings are reduced.

  • A range of ‘vocational’ support providing injured people with retraining, which allows them to return, where possible, to their former capacity for work, or to alternative work.

  • A range of personal support, designed to make living with an accident more comfortable. This support can include 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. However, there have been major changes in the way it calculates its premiums. The 1998 legislation saw the funding reserves policy move from a ‘pay-as-you-go’ basis to a ‘fully funded’ basis. This change requires ACC to set premiums today to cover the full future costs of each claim, and to establish reserves to meet the full future entitlements of people injured in the past.

This change brings ACC into line with usual insurance practice. It also means that each generation pays the costs of its own accidents, rather than passing costs on to future generations as with pay-as-you-go premiums.

ACC receives income from:

  • Earners (who pay a premium based on their total earnings, which is collected with PAYE tax).

  • Part of the annual registration fee for motor vehicles and a tax of two cents a litre on all petrol sales.

  • The Government, which pays the cost for people who are not earning an income.

  • All employers and self-employed people.

  • The investment of funds that it holds to cover the cost of claims.

Costs. The costs of each injury are assigned to one of seven separate accounts.

The employers’ account meets the cost of all work-related injuries from 1 July 2000, and for those employees not covered by private insurers from 1 April 2000. The account is funded from employer premiums.

The self-employed work account meets the cost of injuries to those self-employed people who chose to remain covered by ACC from 1 July 1999, and all injuries to self-employed people from 1 July 2000.

Note: No data for the employers’ and self-employed accounts is included in the claims and financial figures as that information relates to data prior to 1 July 1999.

The residual claims account meets the cost of work injuries occurring before 1 July 1999 and non-work injuries to earners occurring before 1 July 1992.

Work injuries occurring prior to 1 July 1999 and non-work injuries of workers sustained before 1 July 1992 are funded from this account.

The earners’ account meets the cost of injuries occurring to earners outside their workplace post-1992 (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.

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.

The motor vehicle account meets the costs of all injuries involving motor vehicles on public roads. It is funded from motor vehicle premiums and petrol tax. In the year to 30 June 1999 some 44,065 registered claims were made against this account.

The medical misadventure account meets the cost of injuries that 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.

Table 8.19. TOTAL CLAIMS REGISTERED BY YEAR AND ACCOUNT TO 30 JUNE 1999

 Earners1Residual claimsMedical misadventureMotor vehicleNon-earners’Total

Source: Accident Compensation Corporation

1994/5381,084289,4932,17447,334718,4891,438,574
1995/6401,401291,1832,10646,180711,7101,452,580
1996/7419,028292,286183044,455738,3941,495,993
1997/8421,255267,250136346,603748,7651,485,236
1998/9415,274247,102120044,065804,7991,512,440

Christchurch volunteers doing Plunket washing during the influenza epidemic, 1920s.

Table 8.20. STATEMENT OF ACTUAL FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1999

 199719981999

Source: Accident Compensation Corporation

Income$(000)
Residual claims account (old employers’ account) premiums1,189,3701,052,003630,633
Motor vehicle account premiums249,195259,172270,293
Non-earners’ account premiums180,252158,902196,750
Earners’ account premiums282,165379,783357,370
Subsequent work injury account premiums8031,5731,456
Medical misadventure account premiums9,95312,90717,935
Sundry income8572,3471,729
Investment income164,009135,794186,702
 2,076,6042,002,4811,662,868
Residual claims account (old employers’ account) full funding surcharge244,185325623
Earners’ account full funding surcharge-40,609134,103
 -284,794459,726
        Total income2,076,6042,287,2752,122,594
Expenditure
Rehabilitation benefits
Vocational rehabilitation13,29218,47622,718
Social rehabilitation106,97996,97799,791
Medical treatment198,273204,148202,543
Hospital treatment24,71662,26972,074
Public health care88,855101,252104,418
Dental treatment10,36510,0478,941
Conveyance for treatment31,62231,41636,863
Miscellaneous benefits8,94310,68115,884
 483,045535,266563,232
Compensation expenditure
Income maintenance844,195816,609748,390
Independence allowances26,92227,29526,459
Lump sums4,7512,0381,009
Death benefits58,42160,43461,186
 934,289906,376837,044
Operating costs
Projects33,522--
Core operating costs144,473172,565164,554
 177,995172,565164,554
Other payments
Collection fees31,11831,72648,924
        Total expenditure1,626,4471,645,9331,613,754
        Operating surplus/(deficit) prior to backdated attendant care450,157641,342508,840
Backdated attendant care(155,033)29,000(14,191)
        Total surplus295,124670,342494,649
Less transfer to full funding(283,637)(488,779) 
        Operational surplus/(deficit)295,124386,7055,870
Movement in account reserves
Operational
Account reserves – opening balance492,885788,0091,174,759
Operational surplus/(deficit)295,124386,7055,870
Transfer from full funding account reserve--772,416
Transfer to account reserves from revaluation reserve-45- 
Prior year premium income adjustment--546,685
Initial future claims adjustment--(6,883,000)
Account reserves – closing balance788,0091,174,759(4,383,270)
Full funding
Account reserves – opening balance--283,637
Full funding surcharge (net)-283,637488,779
Transfer to operational account reserve--(772,416)
Account reserves – closing balance-283,637-
Revaluation reserve
Opening balance-632587
Increase/(decrease) in revaluation reserve632(45)-
Closing balance632587587
        Total reserves – closing balance788,6411,458,983(4,382,683)

In the year to 30 June 1999 income totalled $2,123m and total expenditure was $1,614m. The surplus went into 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 ACC is not required to pay earnings related compensation) and claims for medical treatment only (for which the doctor is normally reimbursed directly by ACC).

Statistics for accidental injuries treated in public hospitals appear in section 8.4: Hospitals. Detailed statistical information can be accessed on the ACC website at www.acc.co.nz/statistics

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 1998 there were 8,770 reported accidents resulting in 502 fatalities and injuries to 12,412 individuals involved.

Road safety. Road safety is administered by the Land Transport Safety Authority with the road laws enforced by the New Zealand Police. For further information, see section 23.4: Road transport.

Table 8.21. CLASSIFICATION OF ACCIDENTS 19981

Classification of accidentsKilledSeriousMinorTotal

1Year ended 31 December.

Source: Land Transport Safety Authority

Overtaking or lane change42107356505
Head on (not overtaking)11644410751635
Lost control or ran off road on straight292668801175
Lost control or ran off road while cornering1245222,0982,744
Collision with obstruction1486368468
Rear end769809885
At intersections or driveways -
        Turning versus same direction1584524623
        Crossing no turns261288491003
        Crossing vehicle turning18132748898
        Vehicles merging428164196
        Right turn against201708921082
Vehicles manoeuvring990497596
Pedestrian crossing road54203616873
Pedestrian – other133461108
Miscellaneous113775123
          Total5022,40010,01212,914

Table 8.22. AGE OF PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS1

Age groups (years)Killed2Injured
199519961997199519961997

1Year ended 31 December.

2Killed immediately or died within 30 days of accident.

Source: Land Transport Safety Authority

Under 5171717298268246
5–920817490480433
10–14152111715667633
15–198394763,1692,6902,524
20–2410075692,9842,4411908
25–29735759187915831505
30–34524044147012441135
35–3929273011741031965
40–44312433892808763
45–49322320752684602
50–54231720556494473
55–59161322425431387
60–64112217293308271
65–6981417331279258
70–74171319265253242
75–79121423230215189
80 and over191727255212210
Unknown age241819692708634
        Total58251454016,87014,79613,378

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 centres around integrating traffic education into school programmes.

Traffic education units are cooperatively 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 coordinate community organisations working in road safety is 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 and Environment Select Committee, by the National Road Safety Committee, and by a number of other bodies, including local road safety committees.

ROAD DEATHS
Death rate from motor vehicle accidents

Table 8.23. ROAD USERS KILLED AND INJURED IN ROAD MOTOR ACCIDENTS, 19981

Type of casualtyKilledSerious injuryMinor injuryTotal

1Year ended 31 December.

Source: Land Transport Safety Authority

Driver of -
        Car1768874,5345,597
        Taxi184251
        Van32146541719
        Truck1148169228
        Bus111012
        Motorcycle47290572909
        Other111618
        Unknown----
          Subtotal26913815,8847,534
Passenger from -
Car1164742,3992,989
Taxi-31922
Van22100379501
Truck-214566
Bus172028
Motorcycle73572114
Other--44
Unknown----
          Subtotal1466402,9383,724
Other road users -
        Pedal cyclist16118508642
        Pedestrian712556751001
        Other and unknown-6713
          Subtotal8737911901656
          Total5022,40010,01212,914

Table 8.24. 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

199165018.816,767486.0504.8
199264618.516,121462.5481.0
199360017.015,108428.6445.6
199458016.216,600464.1487.2
199558216.016,870463.1479.1
199651413.814,796398.0411.8
199753914.413,375355.7370.0
199850213.212,412327.4340.7

ROAD ACCIDENTS
Contributing factors by percentage, 1998

THE ROAD TOLL
Numbers killed

Table 8.25. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH RATES, 19971

CountryPersons killedPersons killed per 100,000 populationPersons killed per 10,000 vehicles

1Data is for countries that contribute data to the International Road Traffic and Accident Database.

Source: Land Transport Safety Authority

New Zealand54014.42.3
Australia17679.51.7
United Kingdom3,7436.31.4
USA41,96715.72.1
Japan11,2548.91.5
Canada3,06410.21.7
Germany8,54910.41.7
Sweden5416.11.2
France8,44414.42.9

Motor vehicle insurance. Under the Accident Insurance Act 1998, cover for injuries from motor-vehicle accidents is funded from the motor vehicle account. It has set as its injury prevention priorities road safety and motorcycle safety. See Accident compensation costs.

Water accidents

Water Safety New Zealand was formed in 1949 and is the national organisation responsible for ensuring all New Zealanders participate safely in water activities – whether in home pools, at the beaches, in lakes, rivers or out at sea.

Water Safety New Zealand represents the interests of 26 member organisations across a range of aquatic sports and recreation, including the Swimming Federation, Surf Life Saving New Zealand, New Zealand Underwater Association, New Zealand Recreation Association, and Royal New Zealand Coastguard Federation. It is funded by the Lottery Grants Board and through sponsorship of specific programmes by organisations like the New Zealand Lotteries Commission and its ‘Lotto’ brand.

Table 8.26. DROWNINGS

ActivityYear ended 31 December
199111992119931199419951996P1997P1998P

1Figures for 1991–93 have been confirmed against coroners’ reports.

Source: New Zealand Water Safety Council

Recreational
Boating1522351224171816
Surf sports1-1111-1
Whitewater sports14-521--
Recreational fishing117121188134
Underwater sports9771112201012
Swimming187132022-2226
Other recreational23368613
        Total recreational5750716677536462
Non-recreational
Immersion accidents3031253322313037
Road vehicles2215181624151112
Other transport1-12---4
Commercial fishing67103319-9
Other commercial2-2-5111
Rescuing others452-1123
Suicides and homicides241924131892313
Miscellaneous13114--1
        Total non-recreational9080836877766780
        Total drownings147134154134154129131142

Preparing to helicopter a patient to medical treatment, 1972.

A key objective of Water Safety New Zealand is to ensure that water safety needs of the community are met through the provision of key services: public education, information and statistics, research, and advice and consultancy.

Water Safety New Zealand continues to support and fund water safety education programmes like Lotto SwimSafe, an introductory learn to swim programme; BeachEd, an experiential day at the beach for primary and intermediate school children; and various boating courses run by Coastguard Boating Education Service. Water Safety New Zealand also have a comprehensive video library which includes videos on boating safety, safety at the beach, river safety and learn to swim.

An award winning website (www.watersafety.org.nz) has been developed which includes topical information, press releases and drowning statistics, an on-line ordering system for Water Safety New Zealand resources and videos, and safety advice on a variety of water related activities.

In 1999 the Lotto Take The Plunge campaign taught about 12,000 people to swim. It involved 990 volunteers in 211 pools. KidSafe Week 1999 was supported by Water Safety New Zealand to increase awareness of the large number of drownings in the under-five age group. The key focus for the week was water safety in and around the home. Water SafetyAcross The Curriculum continues to be a very popular teachers’ resource and is complemented with a water safety scenario video which has been written and performed by school children for school children.

General accident statistics

In 1996 accidents, poisoning and violence caused 6.1 percent of deaths from all causes. The largest single external cause of death in 1996 was suicide (540 deaths), followed by motor vehicle accidents (537 deaths). Accidental falls accounted for 267 deaths in 1996.

Table 8.27. DEATHS FROM EXTERNAL CAUSES 1994–19961

 199419951996
NumberRate per million populationNumberRate per million populationNumberRate per million population

1Registered during calendar year.

2Includes falls aboard ship and from horseback.

3Includes drowning from water transport.

Source: Mortality and Demographic Data 1994–1996. New Zealand Health Information Service

Motor vehicle crashes602171.7612171.9537148.4
Other transport accidents26819.46919.46818.8
Accidental poisoning185.1246.7267.2
Accidental falls23466.725772.226773.8
Accidents caused by machinery195.4205.6143.9
Accidents caused by fire and flames267.4359.8359.7
Accidents caused by firearms41.141.161.7
Accidental drowning and suffocation310931.110429.19125.1
Suicide and self-inflicted injury512146.0543152.5540149.2
Homicide7020.04713.26919.1
All other external causes7822.29125.68222.7
        Total deaths from external causes1740496.21806507.11735479.5

Table 8.28. DEATHS FROM LEADING EXTERNAL CAUSES BY SEX AND AGE, 19961

Age group (in years)Motor vehicle accidentsAccidental drowningsAccidental poisoningsAccidental falls
MFMFMFMF

1Registered during calendar year.

Source: Mortality and Demographic Data 1996. New Zealand Health Information Service

0–1428221181210
15–24143431131053
25–347923911071
35–443618414330
45–5427172365101
55–64306110062
65–74181212101613
75+2015112073126
        Total38115640201610121146
Age group (in years)Suicide and self-inflicted injuryHomicideAll other external causesTotal external causes
MFMFMFMF
0–14343422106950
15–241053899254299100
25–341212115432726457
35–4466146327314642
45–5446175133612950
55–64345311438818
65–74348221428639
75+195201123128170
        Total4281124524178581209526

Male deaths by external causes. Males accounted for 69.7 percent of deaths from external causes in 1996. Males aged 15–24 years had the highest number of deaths for any particular age group, with motor vehicle crashes being the most common cause of death, followed by suicide. In 1998 the government launched the New Zealand Youth Suicide Prevention Strategy to address the country's high rate of youth suicide (New Zealand has one of the highest rates of youth suicide in the OECD).

Table 8.29. SITES OF FATAL NON-TRANSPORT ACCIDENTS,1 1994–96

Place of occurrenceNumber of accidentsRate per million of population
1994199521996199419951996

1Excludes surgical and medical misadventure and later complications, and late effects of injuries.

2Due to changes in the coding of the place of death, 1994 data onwards is not comparable to earlier years.

Source: Mortality Data, New Zealand Health Information Service

Home567538598161.7151.1165.3
Farm2011235.73.16.4
Mine and quarry0120.00.30.6
Industrial premises1124163.16.74.4
Recreation/sport1411184.03.15.0
Street/highway3238479.110.713.0
Public building2033255.79.36.9
Residential inst959211227.125.831.0
Other specified place15821816545.161.245.6
Place not specified13613910138.839.027.9
        Total105311051107300.3310.3305.9

Deaths of pre-school children from accidents and violence. In 1996 the age-specific mortality rate for children aged from 1–4 years from accidents and violence was 15.6 per 100,000 population, compared to 19.9 per 100,000 in 1995.

Table 8.30. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE,1 1996

Cause of deathSexAge (in years)Total
01234

1 Registered during calendar year.

Source: Mortality and Demographic Data 1996, New Zealand Health Information Service

DrowningM2322110
F111104
Motor vehicle crashesM3121310
F311117
HomicideM100012
F201003
Accidental poisoningM000000
F010102
Accidental fallsM100001
F000000
Accidents caused by fire and flamesM003104
F000011
All other external causesM9200011
F411006
        Total male16674538
        Total female10443223
        Total2610117761

8.6 Emergency management and fire safety

Ministry for Emergency Management

The Ministry for Emergency Management (MEM) was established, effective 1 July 1999, and was formed out of the Ministry of Civil Defence. The new name is a clear indicator of the Government's intention to provide strong leadership through the development of an integrated risk-based approach to emergency management in New Zealand. The Department of Internal Affairs (DIA) is MEM's host department, and provides the ministry with core administrative services. DIA's Chief Executive is also the Secretary for Civil Defence.

The ministry's emphasis is on seeking sustainable, long-term solutions to managing the risks arising from emergency events (natural such as earthquakes or technological such as chemical spills) by ensuring that effective risk management is seen as an integral part of day-to-day business decision making. Part of this process is the development of a new emergency management group (EMG) structure which groups together local authorities for emergency management purposes. The EMGs are seen as ideal mechanisms for supporting the move to a more focused approach to risk management.

Challenges and opportunities in 1999–2000. The Government's objectives will be progressed through the development of risk-based models and frameworks to support the establishment of approximately fifteen EMGs, and the introduction of the new Emergency Management Bill which will give legislative force to the new arrangements and replace the Civil Defence Act 1983.

The ministry has also assumed the roles and responsibilities for recovery from emergency events, transferred from the Department of Prime Minister and Cabinet.

Army engineers demolished this unstable wall after the 1947 Ballantyne's fire to allow the search for bodies to begin.

Air raid shelter at Parliament grounds, c1945.

Key activities in 1999–2000

  • Progressing the Emergency Management Bill.

  • Developing the national emergency management strategy framework.

  • Developing EMG guidelines and best practice models.

  • Developing the emergency management plan framework, at both the national and EMG level.

  • Progressing the professional development programme for emergency managers.

  • Maintaining the capability of the ministry to respond to national level emergency events.

  • Monitoring lifeline utilities and emergency services for potential disruptions caused by the Y2K computer problem.

  • Maintaining the ministry's key role in the provision of advice and support to the Minister of Civil Defence and to the emergency management sector.

Natural disaster insurance

National disaster insurance is the responsibility of the Earthquake Commission (see section 24.3: Insurance and superannuation).

Fire protection

Fire protection involves fire safety and operational fire fighting. These services are managed nationally by the New Zealand Fire Service on behalf of the New Zealand Fire Service Commission. The primary emphasis on fire safety is determined by legislation in the Fire Service Act 1975.

New Zealand Fire Service Commission. The commission is responsible for ensuring all statutory requirements set down in the terms of the Fire Service Act 1975 are met. The commission is also the purchasing and policy setting agency.

The commission consists of three commissioners appointed by Government with the Secretary for Internal Affairs being the fourth member. The commission is also the National Rural Fire Authority, set up under the Forest and Rural Fires Act 1977. The authority is responsible for coordinating 112 rural fire authorities which operate in areas outside the designated urban fire districts where operational fire fighting is provided by the New Zealand Fire Service.

New Zealand Fire Service. Fire safety and fire prevention are the service's key aims.

The Fire Service has an operating structure designed to deliver improved decision-making response and resources to front line operations. Senior managers are specifically responsible for fire safety and the enhancement of fire safety technology and legislation.

There are eight fire regions:

  • Northland with headquarters in Whangarei.

  • Auckland the area from Warkworth in the north to Pukekohe.

  • Bay/Waikato includes the Bay of Plenty, Coromandel, Waikato south to Turangi with headquarters in Tauranga.

  • Eastern includes Gisborne, Hawke's Bay down to Pahiatua (Napier).

  • Western includes Taranaki to Horowhenua (Palmerston North).

  • Arapawa includes the remainder of southern North Island and Nelson/Marlborough (Wellington).

  • Transalpine includes Canterbury (up to Kaikoura) and the West Coast (Christchurch).

  • Southern includes Otago and Southland (Dunedin).

The fire regions are responsible for fire safety programmes, managing the fire fighting resources, and the training and operational efficiency of brigades in the fire districts within them.

The majority of the 359 fire districts are staffed by volunteer firefighters. Nineteen of the 359 fire districts are served mainly by paid firefighters with some stations augmented by volunteers. There are 1,515 paid, 8,000 volunteer and 3,000 rural firefighters and 428 support staff (including the three communications centres in Auckland, Wellington and Christchurch).

The New Zealand Fire Service has a responsibility to fight fires in all urban fire districts and, to the extent that its ability to fight fires is not compromised, will respond to other emergencies at which its fire fighting resources can improve outcomes.

The net cost of funding the New Zealand Fire Service Commission, after allowance for miscellaneous income, is met by a levy on insured property which is collected by the insurance industry.

For the year ended 30 June 1999 contributions from the levy totalled $166,322,000. This compares with levies of $172,630,000 and a government contribution of $12,496,000 for the year ended 30 June 1998. Other spending funded by miscellaneous revenue amounted to $7,153,000 compared with $15,812,000 for the 1998 year.

Fire safety. The Fire Service Act 1975 requires the Fire Service Commission, as a matter of prime consideration, to take an active and coordinating role in the promotion of fire safety. This includes working with other agencies to improve community knowledge about fire through public education, encouraging the use of sprinkler systems, support of fire engineering qualifications at tertiary level, enforcement of fire safety law, rural fire prevention and provision of fire danger indices for various vegetation types in rural areas during the fire season.

Table 8.31. INCIDENTS ATTENDED BY FIRE BRIGADES

Year ended 30 June1995–961996–971997–981998–99

1Whenever possible fatalities have been confirmed with coronial records.

Source: NZ Fire Service

Fires
Structural fires2,9592,9822,8712,373
Other property fires2,9063,9604,1893,964
Chimney fires112310511022860
Chemical fires169168141120
Rubbish and other fires4,8735,6907,7866,441
Trees/grass/scrub fires3,3093,6515,0554,154
        Total, fires15,33917,50221,06417,912
Hazardous substance emergencies
Flammable liquid spills1805196417611556
Chemical/hazardous substances259230242238
        Total, hazardous substance emergencies2,0642,1942,0031794
Vehicle incidents
Vehicle fires2,9043,4493,5963,573
Vehicle accidents2,2622,9773,3184,470
Rescue in or under vehicle842831815501
          Total, vehicle incidents6,0087,2577,7298,544
Medical emergencies
Co-responder calls045614901870
Emergency medical calls1232179619502,071
          Total, medical emergencies12322,2523,4403,941
Other emergencies
Other pressure/rupture80706774
Hazardous condition standby2,0302,2002,1083,160
Special service incidents2,4293,0523,1653,356
          Total, other emergencies4,5395,3225,3406,590
False alarm calls
Malicious1657168717971957
Defective apparatus/installation6,0696,8057,2147,859
Accidental4,9045,9466,8977,326
Good intent5,1705,7156,5806,904
        Total, false alarm calls17,80020,15322,48824,046
        Total incidents attended46,98254,68062,06462,827
Fatalities132524642

Fire insurance is described in section 24.3: Insurance and superannuation.

Student nannies learn to escape a fire in a training exercise at a simulated house fire, 1998.

8.7 Occupational safety and health

Primary responsibility for the provision of occupational safety and health policy advice and services is held by the Occupational Safety and Health Service (OSH) of the Department of Labour. The Accident Compensation Corporation (ACC) also plays a major role in workplace injury prevention (refer section 8.5: Accidents).

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 at work, with three means of achieving this object:

  • Promoting excellence in health and safety management.

  • Prescribing, and imposing on employers and others, duties to prevent harm to employees.

  • Providing for the making of regulations and approved codes of practice relating to hazards to employees.

The act sets out the responsibilities of employers, employees and others in control of places of work, managing the risks they face in their day-to-day work. It provides for detailed guidance material to be created to assist those with responsibilities to meet the act's requirements and allows for regulations to be made for specific industries, processes or hazards (which are mandatory to comply with). The act also allows for approved codes of practice to be made, after consultation with industry (which are not mandatory, but are statements of preferred or best practice).

Under the act, employers have 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

  • recording and investigating accidents and incidents so that injury prevention activities can be undertaken.

Employees are also responsible for ensuring their work does not endanger the health and safety of themselves or others. People who control a place of work, the self-employed and principals to contracts, also have responsibilities to protect the safety and health of employees and others at work.

The Occupational Safety and Health Service: Te Ratonga Oranga. OSH is one of four services within the Department of Labour. It provides policy and technical advice to the government and industry, promotes excellence in health and safety management, and undertakes a number of public safety functions, both within and outside workplaces. Its website is www.osh.dol.govt.nz

OSH promotes self-management of occupational health and safety hazards in the workplace, intending to reduce workplace injury, illness and death.

To achieve their aim OSH pursues five key strategies, particularly in those sectors where the highest incidence of workplace death, serious injury and illness has been recorded.

The five key strategies are:

  • making New Zealanders aware of the cost and suffering resulting from workplace death

  • maximising compliance with health and safety legislation

  • extending OSH's reach into the community

  • initiating and developing a seamless health and safety support network across all sectors

  • ensuring that comprehensive and accurate health and safety information is available.

In delivering its strategies, OSH works in close cooperation with industry, Crown agencies and other community groups in order to increase its reach and penetration of the labour market.

The service operates under the legislative framework of the Health and Safety in Employment Act 1992 (HSE Act), the Explosives Act 1957, the Dangerous Goods Act 1974 and the relevant sections of the Hazardous Substances and New Organisms Act when they come into force. It operates through 18 branch offices spread throughout New Zealand and a Wellington-based central support office.

Of 290 staff, 175 are field staff, including health and safety inspectors or occupational medicine specialists. During 1989–99 OSH field staff made 13,880 visits to workplaces.

Funding is through a levy on employers which is collected along with ACC levies, currently set at five cents per $100 of wages paid.

OSH's budget for the 1999–00 year is $25.45 million, divided into providing three main outputs: policy advice ($1,315m); promoting excellence in self-managing occupational safety and health hazards in the workplace ($22,362m); and regulatory functions outside the Health and Safety in Employment Act 1992 ($1,773m).

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. In 1998–99 OSH investigations led to 129 prosecutions with 103 defendants being convicted. Prosecutions were begun against 172 defendants during 1998–99. OSH also surveys agents certifying the safety of hazardous equipment and audits workplaces for compliance with the law.

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 1,133 cases in 1997–98.

Table 8.32. OCCUPATIONAL DISEASE NOTIFICATIONS

Disease categoryYear ended 30 June
1995199619971998

Source: Occupational Safety and Health

Asbestos-related disease132677158
Occupational asthma97816761
Other occupational respiratory disease34312412
Occupational disease due to chemical exposure115949182
Chronic solvent-induced neurotoxicity63724254
Occupational cancer3245
Occupational illness due to infection49614558
Occupational noise-induced hearing loss575612597353
Occupational overuse syndrome/osteoarthritis760828826426
Occupational skin disease911063624
        Total1919195418031133

Table 8.33. FATAL ACCIDENTS INVESTIGATED BY OSH BY INDUSTRY

IndustryYear ended 30 June
19951996199719981999
Source: Department of Labour Annual Reports, 1993–1997
Agriculture and hunting414121513
Forestry and logging1111999
Construction1618101713
Other141010159
        Total4553415644

Contributors

  • 8.1 Ministry of Health; CCMAU; Health Research Council; Malaghan Institute of Medical Research; Medical Council; Dental Council; Nursing Council; Pharmaceutical Society; Dental Technicians Board.

  • 8.2 Health Funding Authority; Health Benefits Ltd; Ministry of Health; PHARMAC.

  • 8.3 Ministry of Health; Family Planning Associations; Alcohol Advisory Council; Plunket Society; Abortion Supervisory Committee; Alcohol and Public Health Research Unit; OECD.

  • 8.4 CCMAU; Ministry of Health.

  • 8.5 ACC; Land Transport Safety Authority; New Zealand Water Safety Council; Ministry of Health.

  • 8.6 Ministry for Emergency Management; New Zealand Fire Service Commission.

  • 8.7 OSH, Department of Labour.

Special articles

CCMAU; Health Research Council; PHARMAC; Statistics New Zealand; Health and Disability Commissioner; New Zealand Aids Foundation; Family Planning Association; Children's Health Camp Board; Mental Health Foundation; ALRANZ; Health Sponsorship Council.

Further information

Health

Alcohol and Pregnancy. 1995. Alcohol Advisory Council.

Alcohol Consumption in New Zealand. Alcohol Advisory Council (annual).

Annual Report and Statement of Accounts. Pharmaceutical Society of New Zealand.

Annual Report: for the year ended 30th June 1997. Ministry of Health

Annual Report of the Department of Labour. Occupational Safety and Health, Department of Labour. (Parl paper G.1).

Annual Review. PHARMAC

Cancer: New registrations and deaths. New Zealand Health Information Service, Ministry of Health (annual).

Department of Labour Corporate Plan. Occupational Safety and Health, Department of Labour, 1999–2000.

Fetal and Infant Deaths. New Zealand Health Information Service, Ministry of Health (annual).

He Matariki. 1995. Public Health Commission.

Health and Disability Sector in New Zealand: A Directory. 1998. Ministry of Health.

Hospital and Selected Morbidity Data. New Zealand Health Information Service, Ministry of Health (annual).

Māori and Alcohol: a history. 1999. Health Services Research Centre/ALAC.

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).

National Immunisation Strategy. 1995. Ministry of Health.

Policy Guidelines for Regional Health Authorities 1996/97. Ministry of Health.

Progress on health outcome targets: The state of the public health in New Zealand. 1995. Public Health Commission.

Report of the Abortion Supervisory Committee (Parl paper E.28) (annual).

Annual Report of the Alcohol Advisory Council (Parl paper E.26).

Report of the Notifiable Occupational Disease System. Occupational Safety and Health, Department of Labour (annual).

Report of the Residual Health Management Unit. 1997. (Parl paper E.56).

Taking the Pulse: the 1996/97 New Zealand health survey. 1999. Ministry of Health.

The role of alcohol in road crashes. 1995. Alcohol Advisory Council.

Safety

An Introduction to the Notifiable Occupational Disease System. Occupational Safety and Health Service, Department of Labour (annual).

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

Annual Report of the Ministry of Transport (Parl paper F.5).

Annual Report of the New Zealand Fire Service Commission (Parl paper G.8) (annual).

Annual Report of the New Zealand Water Safety Council.

Key Statistics. Statistics New Zealand (monthly).

Motor Accidents in New Zealand. Ministry of Transport (annual).

Report of the Accident Rehabilitation and Compensation Insurance Corporation (Parl paper E.19).

Report of the National Poisons and Hazardous Chemicals Information Centre. National Toxicology Group (annual).

Report of the Health Research Council (Parl paper E.11).

Report of the Nursing Council of New Zealand (Parl paper E.18) (annual).

Report of the Health Sponsorship Council (Parl paper E.45) (annual).

Chapter 9. Education

Boarding the school bus for Piopio School, in the Waitomo area, 1920s.

9.1 Administration of education

Education agencies

Ministry of Education: Te Tāhuhu o te Mātauranga. The vision of the ministry is to ‘raise achievement and reduce disparity’ in learning outcomes for all New Zealanders by working closely with the education sector and community. 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 wānanga 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 ensures the delivery of education advisory services, special education services, curriculum and early childhood development through contractual arrangements with other agencies.

The website for the ministry is www.minedu.govt.nz

Early Childhood Development (ECD): Ngā Kaitaunaki Kōhungahunga. ECD was established under the Education Act in 1989 as a Crown entity and reports directly to the Minister of Education. Its role is to promote and encourage the development and provision of high quality, accessible and culturally appropriate educational and developmental facilities and services, for the benefit of families and young children.

ECD acts as a coordinator and guardian, a catalyst for development and an active developer of services across the early childhood education spectrum. Increasingly research affirms the value of participation in education during the first five years of children's lives for improved individual, family, community, social and economic well-being.

Early childhood education now covers a diverse range of activities which include: parenting, formal and informal education, and community-driven initiatives. ECD supports families through comprehensive parenting initiatives, such as the Parents as First Teachers Programme (PAFT), Ahuru Mowai (the Māori dimension of PAFT) and Family Start (a combined health, welfare and education government initiative which provides intensive support to families most at risk due to social and economic stresses). ECD also provides information and advice through its publications, telephone or personal advice, and in workshops and seminars. Families are also supported through playgroups, where parents are enabled to play a key role in their children's early development and education.

ECD is committed to working in partnership with Māori whānau, hapū and iwi to bring about increased participation by Māori whānau in early childhood education, and to enhance the educational outcomes of Māori children. It is also committed to supporting Māori parents and whānau towards quality parenting practice. Working with the Department for Courts, ECD has run programmes such as Atawhaingia Te Pa Harakekeke, a course for Māori fathers in prison to teach them about their fathering role. He Taonga Te Mokopuna is another programme, which is designed for children who come from homes damaged by domestic violence.

ECD provides substantial support for the Pacific Islands early childhood education infrastructure, which is emerging in response to the needs of this fast growing population of under fives.

ECD also contributes to licensed and chartered early childhood centres with advice and information that helps centres to achieve licensed status. ECD is a major provider of professional support services for staff and management in licensed centres.

The website for ECD is www.ecd.govt.nz

Sylvia Ashton-Warner, c1967.

Specialist Education Services (SES): He Tohu Ūmanga Mātauranga. SES provides services for the benefit of people with learning difficulties. This is done by building relationships with clients, their families and other organisations in their lives.

SES services are provided by teams with a range of skills. Each of the 15 SES area teams have staff specialising in early intervention, behaviour, communication and disability. Team mix depends on the needs of the client and could include speech-language therapists, special education advisers, advisers on deaf children, psychologists, early intervention teachers, physiotherapists, occupational therapists and behaviour specialists. Families, school and early childhood centre staff are included as part of the team.

Poutama Pounamu Research Education Centre has been established by SES to research and develop resources for Māori students. The centre adds to other services provided for Māori clients, including Whenu Māori, a service delivered by Māori staff for Māori families. Poutama Pounamu has also developed Kawea te Rongo, a resource kit which will be used to train teachers to identify and support Māori children with communication difficulties.

SES is funded to provide services through a contract with the Ministry of Education. Educational facilities are able to contract services and other agencies such as the Department of Work and Income, ACC and Early Childhood Development also contract SES to provide specific programmes. The skills and experience of SES staff are leading to an increasing number of contracts with health, education and welfare agencies.

SES is a Crown entity governed by a board appointed by the Minister of Education.

The website for Specialist Education Services is www.ses.org.nz

Career Services. This Crown entity was established in July 1990, and is directly responsible to the Minister of Tertiary Education who appoints a board to oversee its work. Career Services contracts with the Minister of Tertiary Education to deliver a range of services to agreed consumers through a purchase agreement signed between the minister and the board.

Services contracted by the Minister of Tertiary Education include the development and promotion of Kiwi Careers, a national careers information system providing: career information and advice; career planning; and training and updating the direct influencers of students who are involved in helping them make career decisions.

Partly funded by the Crown, the purchase agreement also allows the negotiation of contracts with other organisations, both public and private. Major clients include the Department of Work and Income, workers compensation insurers and a range of organisations contracting career planning for their own staff or clients.

The website for Career Services is www.careers.govt.nz

Education and Training Support Agency (ETSA). ETSA operates under the business name of Skill New Zealand: Pūkenga Aotearoa. This Crown entity was established by the Education Amendment Act 1990. It reports directly to the Minister of Education through its Board. With 11 regional offices and three satellite offices there is an extensive regional structure, as well as a national office based in Wellington. Further information on Skill New Zealand is available in Chapter 14.

The website for Skill New Zealand is www.skillnz.govt.nz

New Zealand Qualifications Authority (NZQA): 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.

The website for NZQA is www.nzqa.govt.nz

Education Review Office (ERO): Te Tari Aortake Mātauranga. The ERO is a government department whose sole purpose is to report publicly on the education and care of students in schools and early childhood centres. The ERO's findings inform decisions and choices made by parents, educators, managers and others.

The chief executive of the ERO is the Chief Review Officer, who formally accredits individual review officers to carry out reviews in schools and early childhood centres. The functions and powers of the Chief Review Officer are described in Part 28, ss 325–328 of the Education Act 1989.

This act gives the Chief Review Officer the power to initiate reviews, investigate, report and publish findings on the provision of education to all young New Zealanders. The Chief Review Officer has approximately 100 designated review officers who are located in nine district offices and a Māori Education Unit.

The ERO carries out different types of evaluations: accountability reviews; cluster reviews of education institutions and services; and national evaluations of education issues. It also provides contract evaluation services.

Accountability reviews – In an accountability review the ERO investigates and reports to boards of trustees, early childhood centre managers and the Government on the quality of education provided for students in individual centres and schools.

Reviews of schools and centres are scheduled on the basis of prior performance, current risk appraisal and general review frequency. Schools are reviewed every three to four years, and early childhood centres every four to five years. Reviews are more frequent in particular cases, such as low quality performance or where there are major risks to the students and their safety. Education Review Office reports on individual schools and centres are freely available to the public. They can be obtained from the individual school or centre, from any ERO office or from the ERO website, www.ero.govt.nz

Evaluation reports – The ERO publishes national reports which evaluate specific education issues using its inspection evidence. National reports cover such areas as curriculum; assessment; barriers to learning; principals and teachers; early childhood education; management; school types; cluster reports; senior school students; and advice to parents.

Learning Media Limited: Te Pou Taki Kōrero. Learning Media is a publishing company that specialises in producing educational resources for teachers and children. Those resources are produced in a variety of media – print, audio, video, and computer software. Learning Media's background in educational publishing goes back to 1907, when the first issue of the School Journal was published.

Learning Media has been a commercial Crown-owned company since 1993. Most of its current work involves publishing under contract for the Ministry of Education.

Learning Media also provides publishing services for public and private sector clients. Recent clients include the Museum of New Zealand: Te Papa Tongarewa, the Reserve Bank, the Electoral Commission, Curriculum Corporation (Australia), Creative New Zealand, the New Zealand Dairy Board and Telecom New Zealand.

Learning Media develops and publishes its own titles for sale to schools both in New Zealand and overseas.

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. The board is a Crown entity, established under the 1989 Education Act. It maintains a register of teachers who: fit the requirements of the act, are of good character, are fit to be a teacher, are satisfactorily trained to teach, and are satisfactory teachers in practice. Teachers are issued with a practising certificate valid for three years. There are 50,000 teachers with a current practising certificate. Renewal of the practising certificate is dependent 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.

The Teacher Registration Board operates reciprocal registration with the Australian states of South Australia and Queensland. The board is part of the National Association of State Directors of Teacher Education and Certification (NASDTEC) in North America which is the world's largest teacher licensing authority. This gives New Zealand access to its clearing-house for checking the licensing of all North American teachers. Links are also maintained with the Department for Education and Employment in England and with the General Teaching Council for Scotland.

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 Year 9 (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 other education and community interests.

College of Education councils. Councils of colleges of education include representatives from universities and teacher organisations.

University councils. Each university is established under its own Act of Parliament and is also subject to the provisions of the Education Act 1989 and amendments. All matters relating to management are the responsibility of the council of the institution, which represents the interests of staff, students and the community.

Education service centres. Education service centres offer services such as administration of school transport, payroll, property, and other administration services to schools.

Other educational bodies

New Zealand Council for Educational Research (NZCER): Te Rūnanga o Aotearoa mō te Rangahau i te Mātauranga. See separate article p 225–6.

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, tertiary and post-graduate 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 either the Māori or the English language. 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 is supported financially by both the government of the day and New Zealanders, Māori and non-Māori, who care about education.

More recently the trust has developed some pilot initiatives under a programme called Whakamana Whānau. 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, Cooperative Reading, Learning to Learn, a young Māori writers course and a summer school for young Māori artists. In 1998, in excess of $2.0 million was distributed for Māori education and at 31 December 1998 the trust had net assets of about $10.7 million.

Early childhood education funding

A universal funding formula forms the basis for direct funding subsidies of chartered early childhood services, including kōhanga reo. Services can claim funding for a maximum of six hours per childplace day, with a limit of 30 hours per week.

The funding formula for early childhood services varies according to the type of service, the quality standard met and the ages of the children enrolled. The current funding rates for licensed and chartered services, except kindergartens, are $2.53 per hour per child for children aged two years or over, and $5.04 per hour per child for under two-year-olds.

A higher funding rate of $2.80 per hour per child over two years of age and $5.60 per hour per child under two years of age is available for services meeting criteria which are higher than licensing requirements and are related to staff qualifications and staff-to-child ratios. For kindergartens, the rate is $3.37 per hour per childplace.

Table 9.1. GOVERNMENT EXPENDITURE ON EDUCATION1

Year ended 30 JuneEducation expensesGross Domestic ProductEducation expenses as percent of GDPTotal government expensesEducation expenses as percent of government expenses

1Estimated actual. Expenses figures from Annual Budget Statements, GDP from Statistics New Zealand.

2Forecast.

3Projection.

Source: Ministry of Education

 $(million)$(million)percent$(million)percent
1992–19934,53974,6106.131,42914.4
1993–19944,62780,8245.729,63915.6
1994–19954,80386,5565.530,40015.8
1995–19964,94991,4615.431,74315.6
1996–19975,33595,2065.632,95316.2
1997–19985,71498,2475.834,21116.7
1998–199925,910....35,25616.8
1999–200036,238....36,35817.2

School funding and administration

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 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.

Financial management of the schools by the Boards of Trustees is subject to review and audit by the Audit Office. Education management and attainment is also 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; schools in need of special support and improvement; 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 instruction undertaken in Māori.

Managing school property. The Ministry of Education has a Property Management Group 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 $4.7 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 Group 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 by the government. Discretionary allocations of staffing, equipment and grants are made to meet the requirements of the pupils.

Special Education 2000, first announced in the 1996 Budget, will ensure students receive the support they need. It is being phased in over four years, beginning in 1997 with the Special Education Grant (SEG), which funds schools to help students with moderate needs in areas such as learning and behaviour. The other major parts of this policy are:

  • The Ongoing Resourcing Scheme (ORS), which will assure students with high special education needs of ongoing resourcing for as long as they need it during their school years.

  • The Transitional Resourcing Scheme (TRS), for five to seven year olds with high special education needs.

  • A nationwide programme for students with severe behaviour problems which will help schools work with students who have learning and behaviour difficulties.

  • Additional funding provided to help students with speech-language difficulties, especially those in the early school years.

  • Increased funding for children with special education needs in early childhood education.

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 a school boarding bursary is $1,990 which 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 9,000 students receive transport allowances because they cannot use a school bus or need to travel a long distance to do so. Approximately 2,300 school bus services carry students to and from school each day.

Tertiary education funding

In 1991, as a result of reforms in the tertiary sector, a new system for funding tertiary institutions was introduced.

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 wānanga 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.

Overview of funding to the tertiary sector. Demand driven, rather than capped, funding was introduced for the tertiary sector in 1999. In August 1999 it was estimated that 160,860 EFTS's were being funded with $1,1672 billion.

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.

Study Right was phased out during 1999–2000, following the 1998 Budget announcement of the Universal Tertiary Tuition Allowance. Under this new policy, tertiary education institutions and private training establishments meeting quality assurance and financial viability criteria received the Universal Tertiary Tuition Allowance during 1999 for eligible domestic students. Complete implementation of the Universal Tertiary Tuition Allowance, along with new information collection systems and automated resource allocations to providers, was planned for 1 July 2000.

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, many 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 5 and 19, and attendance is compulsory from the age of 6 until 16.

The vast majority of children start 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, Years 7 and 8 (Forms 1 and 2), may be taken at a full primary school, an intermediate school, an area school, or a Year 7–13 (Form 1–7) school, depending on where a child lives. On completing Year 8 (Form 2), a child normally enters Year 9 (Form 3) of a secondary school, or alternatively, Year 9 (Form 3) in an area or Year 7–13 (Form 1–7) school.

Preschool children learn in te reo Māori at the kōhanga reo, Hoani Waiti marae, 1985.

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 currently divided into four terms of even length. Previous to 1996, 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 Islands language groups, education and care centres, home-based care services and kōhanga 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 services wishing to receive government funding must be licensed and chartered. Licensing ensures that basic standards of quality are maintained. A charter contains both mandatory and optional objectives and practices. Chartered groups receive funding direct from government in the form of a bulk grant.

Kindergartens. Kindergartens predominantly operate 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 may be linked to one of two national associations: the New Zealand Free Kindergarten Association (Inc), or the New Zealand Kindergarten Federation.

Playcentres. Playcentres are parent cooperatives 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 and these are, in turn, linked to a national organisation. Training and parent education programmes are developed by the national playcentre body and implemented through centre-based programmes.

Te kōhanga reo. Kōhanga 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 Te Kōhanga Reo National Trust. The trust receives government funding and allocates it to individual kōhanga reo. The trust has delegated responsibility for developing and approving charters for kōhanga reo, based on government guidelines.

Pacific Islands language groups. Pacific Islands language centres offer programmes based on the values and languages of Pacific Islands cultures. The centres cover a range of nationalities: Samoan; Cook Islands Maori; Niuean: Tongan; Tokelauan; Tuvaluan, and Fijian. They range from licence-exempt family playgroups, meeting once or twice a week, to licensed and chartered centres. These programmes emphasise language development, both in Pacific Islands languages and English, and increasing parental knowledge in early childhood care and education.

Anau Ako Pasifika. Early Childhood Development 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 Islands communities. It is based in Auckland, Tokoroa and Wellington.

Education and care centres. Education and care centres provide sessional, all-day or flexible-hours early childhood education services other than playcentres, kindergartens or kōhanga 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 education and care centres have all trained staff, while others may have a mixture of trained and untrained personnel. A considerable proportion of education and care centres are 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 coordinators supervise the provision of the early childhood education and care, and provide regular playgroups or workshop meetings for parents and caregivers.

School children learn at a Hutt Valley marae, 1974.

EARLY CHILDHOOD EDUCATION
Children attending 1 July 1998

Ponsonby Primary School networked its computers in the junior area as a step to networking the whole school, 1998.

Playgroups. Playgroups are licence-exempt, 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 in their parenting role they will become more confident 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 cover most regions of the country, involving some 6,000 families. Māori and Pacific Islands 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.

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 te reo Māori (the Māori language) and is based on Māori culture and values. The curriculum is the same as at other state schools. Kura kaupapa Māori were developed to build on the success of kōhanga reo (Māori language early childhood centres) in preserving and increasing the use of te reo Māori. 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 increased to around 25 percent in 1997. In 1998 support for senior students in years 11,12 and 13 rose 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 and 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 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 19,278 at 1 July 1999 was made up of: 928 early childhood; 223 special needs full-time; 1,393 students attending other primary schools; 6,915 students attending other secondary schools; 1,127 full-time primary; 2,851 full-time secondary; and 5,841 adult students. The staff of 486 includes: 22 early childhood teachers; 78 primary teachers; 270 secondary teachers; 12 regional representatives; and 154 administrative staff. A full listing of courses offered by the Correspondence School is available on the school's website www.correspondence.school.nz

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 for the national curriculum is nearing completion. The New Zealand Curriculum Framework and national curriculum statements, will provide the basis for programmes in schools.

New Zealand Curriculum Framework (1993). 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 cooperatively 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. These are:

  • language and languages/te korero me nga reo

  • mathematics/pāngarau

  • science/pūtaiao

  • technology/hangarau

  • social sciences/tikanga-a-iwi

  • the arts/ngā toi

  • health and physical well-being/hauora.

Alexander Turnbull Library Clarence Beeby, 1984.

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 cooperative; 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 direction 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 identify 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 broad national assessment policy which was amended in 1999 with the release of the policy statement Information for Better Learning.

Curriculum statements. The New Zealand Curriculum Framework is supported by the more detailed national curriculum statements. National curriculum statements – Mathematics in the New Zealand Curriculum, Science in the New Zealand Curriculum, English in the New Zealand Curriculum and Technology in the New Zealand Curriculum have been distributed and are now mandatory in schools. The national curriculum statement Social Studies in the New Zealand Curriculum was published and distributed to schools in 1997, and Health and Physical Education in the New Zealand Curriculum was published and distributed to schools in 1999. The draft national curriculum statement The Arts in the New Zealand Curriculum was published and distributed for consultation in 1999.

Curriculum statements for optional language subjects, Japanese, Chinese, Spanish and Samoan, have been published. Curriculum statements for senior sciences (biology, chemistry and physics) have also been published and distributed to schools.

National curriculum statements have also been published in te reo Māori for Māori medium education: pāngarau (Māori Mathematics in the New Zealand Curriculum), pūtaiao (Māori Science in the New Zealand Curriculum), and hangarau (Māori Technology in the New Zealand Curriculum). Draft statements for tikanga-a-iwi (social studies) and Ngā Toi (the arts) were also published for consultation in 1999.

Primary school curriculum. The New Zealand curriculum for primary and intermediate schools comprises the seven national curriculum statements. Four of the seven statements are now mandatory and the remaining three, social studies, health and physical education, and the arts will be phased in during 2000–2003.

Secondary school curriculum. The New Zealand curriculum for secondary schools also comprises the seven national curriculum statements up to the end of year 10 (Form 4). Students may choose from a wide range of subjects from 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 for the teachers developing and delivering the programmes, the student, and the parents.

The main information will come from ongoing school-based assessment.

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 at the system level are monitored on a four-year rolling cycle by assessing around 3 percent of 8 and 12 year-olds. The four-year cycle covers all essential learning areas and essential skills in the New Zealand Curriculum.

The Literacy and Numeracy Strategy

In October 1998 the Government announced the goal that ‘by 2005, every child turning nine will be able to read, write, and do maths for success’. Along with the goal, a funding package of some $35 million over five years was announced.

Aspects of the strategy which were implemented during 1999 included:

  • A literacy taskforce which reported to the Minister of Education on 31 March 1999 with clear advice about how the goal could be defined, measured, and what actions and resources were desirable to assist its achievement.

  • A schools proposals pool (reaching $5 million per year by 2000).

  • The adjustment of national administration guidelines to ensure an emphasis on reading, writing, and maths in the early years of schooling.

  • Preparation of teacher and principal professional development resources, and programmes for achieving the goal.

  • Briefing the principals of most decile 1 and 2 primary schools on the goal and the strategies being followed to achieve it.

  • ‘Feed the Mind’, a public information campaign funded with $3 million over three years. Its purpose is to show all adults associated with young children that there are many easy and fun ways to help children learn. This campaign began in May 1999 and involves television, radio, and outdoor advertising, and also the mailing of packages of helpful tips (published in English, Māori, Samoan and Tongan) direct to homes and organisations in the areas around decile 1 and 2 schools.

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.

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 are the final school examinations and are 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 an A (300 or more total marks) or a B (between 250–299 total marks) Bursary, or Higher School Certificate and three C grades or better in the Bursary examinations. Entrance to university can also be achieved by gaining 13 level 3 unit standard credits. 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 who then go on to attend university.

The National Qualifications Framework

The National Qualifications Framework brings together senior secondary education, industry training and tertiary education under one system. It is coordinated and administered by the New Zealand Qualifications Authority (NZQA).

Currently, the Framework is based on nationally agreed ‘unit 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.

SCHOOL QUALIFICATIONS
Highest attainment of secondary school leavers

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, wānanga, or even in the workplace. NZQA will update a learner's Record of Learning when it has received their results from their training organisation.

Up to 1 September 1999, 450,000 learners had been registered on the Framework. There were 620 national qualifications registered, and 27,250 individual qualifications awarded.

In 1997, the Government Green Paper on the National Qualifications Framework proposed that the Framework be broadened to include qualifications that are not composed of unit standards. There will be further announcements on the development during 2000.

The National Certificate of Educational Achievement

  • From 2001, all New Zealand students at year 11 (Form 5) will work towards a National Certificate of Educational Achievement (NCEA) in place of School Certificate. In 2002 and 2003, levels 2 (Form 6) and 3 (Form 7) will be phased in to replace sixth form and university bursaries.

  • NCEA will include a wider range of subjects and skills not previously examinable under the School Certificate, university bursaries and scholarship qualifications. It will allow for recognition of a broader range of student achievements, such as performance ability, and measurement and laboratory skills.

  • External exams remain. Exam success will be measured against nationally agreed standards of achievement in every school subject. These standards have been developed in line with both Māori-language and English-language curriculums, to ensure equity of access to the new qualification.

  • NCEA will show the differences between good, very good, and excellent achievement.

  • At National Certificate Level 1 (year 11 or Form 5) the exams will be like School Certificate but the exam results will contribute to the new qualification. Similarly, the exams at Level 3 (year 13 or Form 7) will be similar to bursaries and scholarship, and will contribute to Level 3 National Certificate.

  • NCEA will be just like a university degree. Students will build up their achievements over three year levels; gain performance grades in each part of each subject; be able to cross-credit between qualifications; ‘honours’ students will go for the top.

  • Candidates for NCEA will also be able to work towards other national certificates, and other qualifications.

Table 9.2. SCHOOL CERTIFICATE CANDIDATES1

YearNew Zealand school candidatesExtra-mural candidatesPacific Islands school candidatesTotal candidates
Number enteredPercentage of totalNumber enteredPercentage of totalNumber enteredPercentage of total 

1Based on number of candidates sitting examinations.

2Figures for extra-mural candidates not collected since 1991.

3From 1991 Pacific Islands figures include candidates from Niue and Cook Islands only.

Source: New Zealand Qualifications Authority

198960,99392.92,7984.318812.965,452
199061,31990.12,4433.64,3206.368,082
1991265,75899.5....29830.566,081
199266,09799.6....2770.466,374
199364,48999.5....3490.564,838
199464,22399.6....2830.464,506
199563,10799.6....2710.463,378
199663,47099.6....2790.463,749
199763,54999.7....1800.363,729
199864,06299.5....2580.564,320

Food chemistry laboratory, School of Home Science, University of Otago, 1949.

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
19960.219.129.315.19.99.616.8
19970.217.728.015.311.010.817.0
19980.217.026.114.711.411.818.8

TERTIARY ATTENDANCE, 1999

Table 9.4. SECONDARY SCHOOL LEAVERS BY YEAR OF SCHOOLING, GENDER AND ETHNICITY DURING 1998

Years in attendanceNZ European/European/PākehāMāoriPacific IslandsAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale

Source: Ministry of Education

Year 911712785771144724219219438
Year 102251602201383926121597505346851
Year 11187812641048892228217726549293,2752,4675,742
Year 124,4103,63913831520466397246243121846,6265,88312,509
Year 139,93111,16518032,07379610031494135332132914,34515,92330,268
Year 146664322181551659611278101811717791950
Year 1521221523102113105850108
        Total17,24816,8094,7724,878171517451951176451347126,19925,66751,866

Table 9.5. SECONDARY SCHOOL LEAVERS BY LEVEL OF HIGHEST ATTAINMENT, GENDER AND ETHNIC IDENTIFICATION DURING 1998

Highest attainmentNZ European/European/PākehāMāoriPacific IslandsAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale

1Minimum of three Cs in the University Bursary Examinations.

2One or more subjects irrespective of grade awarded.

Source: Ministry of Education

A or B Bursary or National Certificate L33,6784,45016520883958877661221254,9355,64410,579
Entrance Qualification1 or 40 or more credits at L3 or above153918522242618811522421550532,1252,4964,621
Higher School Certificate or 12–39 credits at L3 or above2,2742,45342250521627326723763693,2423,5376,779
National Certificate L248571419320023268100168
6th Form Certificate2 or 12 or more credits at L2 or above4,3004,0929441152435460299297111986,0896,09912,188
School Certificate2 or 12 or more credits at L1 or above2,8942,1211006104336735613912663484,4693,6948,163
No formal qualifications or fewer than 12 credits at L12,515178419971690523426135121101765,2714,0979,368
        Total17,24816,8094,7724,878171517451951176451347126,19925,66751,866

SIXTH FORM SUBJECTS
Subjects taken by Sixth Form Certificate candidates for school year 1998

Establishments

Educational institutions. Table 9.6 sets out the number of educational institutions providing education in the preschool, primary, primary and secondary, secondary and tertiary areas at the primary and intermediate (Forms 1 and 2) level.

Table 9.6. NUMBER OF EDUCATIONAL INSTITUTIONS

Type of institution199719981999

1Early Childhood Development.

2Counted elsewhere.

3Includes restricted composite schools.

4Includes only those institutions that had students in formal programs of study at July.

Source: Ministry of Education

Early childhood services
Kindergartens595596598
Playcentres545537523
Education and care services124813321403
Casual education and care – no regular roll404444
Childcare – homebased130150171
Te kōhanga reo (including developing centres)705646599
ECD1 funded playgroups (including unlicensed playcentres)505583620
ECD1 funded Pacific Islands language groups150170138
Correspondence School222
        Total number of early childhood services3,9184,0584,096
Primary schools
State primary2,0942,0902,069
State intermediate141136133
Private primary and intermediate585651
 2,2932,2822,253
Composite schools
State composite (Area)1586369
Correspondence School111
Private composite423743
 101101113
Secondary schools
State year 9–15238237233
State year 7–15828387
Private secondary182315
 338343335
Special schools
State special464343
Private special210
Other Vote Education443
 524846
        Total number of schools2,7842,7742,747
Post secondary institutions
Polytechnics252525
Colleges of education444
Universities777
Wānanga333
        Total number of tertiary institutions393939
Private training establishments (PTEs)4542501..

Table 9.7. NUMBER OF STUDENTS ENROLLED1

Type of institution199719981999

1As at July.

2Early Childhood Development.

3Includes unlicensed playcentres. 3Includes restricted composite schools.

4Includes only those institutions that had students informal programs of study at July.

Source: Ministry of Education

Early childhood education
Kindergartens46,75646,30745,993
Playcentres17,05816,78716,261
Education and care centres61,59765,20568,132
Childcare – homebased7,6158,3008,498
Correspondence School914887928
Te kōhanga reo (including developing centres)13,50512,05011,789
ECD2 funded playgroups313,11518,06317,027
ECD2 funded Pacific Islands language groups3,3653,5992,948
        Early childhood total163,925171,198171,576
Schools
State and state integrated schools – regular classes
Full primary & contributing377,097383,899384,040
Intermediate55,62455,70156,718
Composite (Area)415,60917,37719,376
Year 7–1535,47736,49638,386
Year 9–15178,910181,352181,782
Correspondence School4,7335,1034,731
 667,450679,928685,033
Private schools – regular classes
Primary6,3306,1645,488
Intermediate98104125
Composite11,69011,63312,318
Year 7–152,9452,9152,277
Year 9–153,4193,5273,719
 24,48224,34323,927
Special education
State schools attached classes4,1604,1272,781
State special schools177217591853
Private special schools special class students 1999804247
Other Vote Education special schools156170141
 6,1686,0984,822
Foreign fee-paying students
State schools5,0004,3094,574
Private schools468418470
 5,4684,7275,044
Ministry of Foreign Affairs and Trade scholarship students
State schools333331315
Private schools141614
 347347329
Adults in regular classes
State schools8,3569,1198,238
Private schools5173
 8,3619,1368,241
        School Total712,276724,579727,396
Home schooling5,3515,2745,451
Post secondary education
Formal programmes
Polytechnics99,619101,41699,062
Colleges of education10,88211,77012,793
Universities106,377107,937105,996
Wānanga108812281883
        Tertiary total217,966222,351219,734
Private training establishments434,06833,77233,309
        Grand total1,133,5861,157,1741,157,466

Table 9.8. EQUIVALENT FULL-TIME TEACHING STAFF AT ALL EDUCATIONAL INSTITUTIONS

Type of institution199719981999
Source: Ministry of Education
Early childhood services – paid staff
Kindergartens164616071625
Playcentres (includes unpaid adults on duty)137613361314
Education and care centres – regular and casual6,2796,6327,169
Childcare – homebased coordinators216236242
Correspondence School232424
Primary schools
State22,28922,68123,152
Private418438397
Composite schools
State (Area)105111581302
Private885920981
Secondary schools
State14,57714,66314,919
Private540565482
Special schools
State502491561
Private16110
Correspondence School
Primary and secondary392413363
Post secondary – academic staff
Polytechnics4,8354,8284,932
Colleges of education581481496
Universities4,8674,9735,008
Wānanga73107131
Private training establishments2,8702,8162,910

State-of-the-art resources in 1977 – audio cassettes – are packed into Correspondence School lesson kits for preschoolers living in remote areas.

Children with special needs in their classroom, 1978.

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 TEACHING STAFF AT STATE SCHOOLS

 Overall Ratio2Classroom Ratio
19961997199819991996199719981999

1Includes management, special education teachers and other additional teachers. Note:Primary and intermediate ratios are based on July rolls while secondary and composite ratios are based on March rolls.

Source: Ministry of Education

Primary/Intermediate19.9419.5219.4819.123.0922.922.9322.67
Secondary15.815.7615.8515.751818.0718.218.19
Composite15.0314.7214.8814.8717.6517.317.4217.29

Projected student numbers. The table below gives actual 1 July rolls for 1991 to 1999, and projected rolls for 2000 to 2002.

Table 9.10. ACTUAL AND PROJECTED STUDENT ENROLMENTS (MEDIUM PROJECTION SERIES)

 YearEarly childhood1Primary July (Year 1–8)Secondary March (Year 9–15)Tertiary (Ministry funded EFTS)2

1Series revised as a result of a revision to Early Childhood Development data.

2The projections for tertiary ministry funded EFTS are based on the funding regime announced in the 1998 ‘Tertiary Education Review’ White Paper. Note:Figures exclude school students in special classes and special schools.

Source: Ministry of Education

Actual1991121,134415,632234,300 
1992135,732417,086236,804 
1993148,239422,904232,728 
1994153,364429,246234,733200,119
1995159,402444,443231,968211,401
1996160,291456,554232,424214,624
1997163,925468,139232,917217,966
1998171,198475,765236,708222,351
1999171,566481,183246,213219,734
Projected2000172,953484,328245,678223,805
2001175,063484,523254,158227,803
2002177,355483,890262,629231,928

Special education

The special education policy provides: extra assistance; adapted programmes or learning environments; and specialised equipment or materials to support young children and school students to access the New Zealand Curriculum Framework.

EDUCATION: 1875–1999

Year1Early childhood education2Primary3Secondary4University studentsPolytechnic studentsCollege of education studentsWānanga studentsPrivate training establishments students
schoolsstudentsschoolsstudentsschoolsstudents

1Year ending 31 December until 1925; thereafter 1 July. Figures from 1994 on have been revised and are not comparable to previous years.

2Early childhood figures only include playcentres and kindergarten until 1990, when they also include childcare, kohanga reo and Pacific Islands language groups.

3Primary includes year 1–8 students at all schools.

4Secondary includes year 9–15 students at all schools.

5Prior to 1990 polytechnic figures included all students attending polytechnic; from 1990 they include only those attending on 31 July.

6Includes full primary, contributing, intermediate and special schools.

7Includes secondary and composite schools.

Source: Ministry of Education

 no(000)no(000)no(000)     
1875....83054.24      
1880....1,17195.2141.6211    
1885....1,363116.5242.6442    
1890....1,566134.1222.1596    
1895....1,831145.8242.5742    
1900....2,157149.4866.9805    
1905....2,192158.1866.91,153 211  
1910....2,508179.6949.11,862 380  
1915....2,765210.812911.52,039 390  
1920....2,777225.313115.43,822 680  
1925....2,995247.318123.24,442 1,271  
1930....3,045252.620931.04,801 1,155  
1935....2,950232.321631.95,101 429  
1940....2,656243.323436.15,528 1,457  
1945....2,874252.524846.98,425 1,431  
1950....2,377304.626953.711,515 2,684  
1955....2,423365.431380.810,851 2,847  
1960....2,517425.0354111.415,8097,6633,828  
1965..27.82,594472.9376157.922,14529,0744,790  
1970..41.12,595516.7386186.831,90843,2047,587  
19751,09854.82,542525.3408219.735,49956,0988,004  
19801,20856.92,595507.9394226.343,93373,0675,919  
19851,389R60.72,641452.4403230.959,12376,0542,703  
19902,890R87.32,460420.4400230.278,9195677155,766  
19953,824R159.4R2,368448430236.9104,50291,23112,374726..
19994,097171.62300481.264477246.2105,99699,06212,79318833,309

Historically young children and school students with special education needs have not had equal access to funding or quality education services throughout New Zealand. To address this, in 1996 the Government introduced Special Education 2000. The policy has been implemented to:

  • Improve educational opportunities and outcomes for children with special education needs in the early childhood and school sectors.

  • Ensure there is a clear, consistent and predictable resourcing framework.

  • Provide equitable resourcing for those with similar needs, irrespective of school setting or geographic location.

  • Assist schools to take ownership in meeting the full range of student's needs.

Special Education 2000 addresses specific physical, intellectual, sensory, social and emotional needs while preserving the parent or caregiver's right to choose. The policy insists that schools and early childhood centres work closely with students and their families, communities and specialists to identify needs and together make the best decisions to meet these needs.

Funding is provided by the Ministry of Education to enable schools and early childhood centres to provide services on behalf of students with special needs. This is likely to involve a combination of specialists, particular educational programmes, in-classroom teacher support and special equipment. Many of the special services, guidance and advice are provided by Specialist Education Services (SES), a Crown-owned entity. Educational settings range from mainstream classrooms and early childhood centres, kōhanga reo, kura kaupapa, attached classrooms, residential special education schools, hospital schools, home schooling and the Correspondence School.

International students

Overseas students who wish to study at a New Zealand school can get information about fees, courses of study and academic entry requirements from the New Zealand Government office in a student's home country or by writing directly to the school they wish to attend.

A student visa is required for any course of study longer than 28 days. Academic entrance requirements and fees will be specified by individual schools. It may be possible to pay annual fees by instalment. International students are not entitled to student loans or student allowances.

Accommodation. Students applying from overseas need a written guarantee of suitable accommodation before a student visa can be granted. They must also be able to show that they have enough funds to support them during their stay in New Zealand. Schools offering study places may have hostel or boarding accommodation on site or be able to make other arrangements for students.

Immigration. Information on immigration regulations and requirements can be obtained from New Zealand Government offices or the New Zealand Immigration Service, which has offices in some main city centres in New Zealand.

Additional resources for teaching

Rural education activities programmes (REAPs). The Rural Education Activities Programme is a community-managed 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. This will enhance, promote and provide lifelong learning opportunities, community development and personal development in a manner that is equitable, appropriate, effective and efficient.

REAPs are 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.

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.

Advisory services. Primary and secondary advisers are employed on a full or part-time basis by colleges of education in Auckland, Wellington, Christchurch and Dunedin; the School of Education at the University of Waikato; and Massey University College of Education. 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 Guidelines. Both Early Childhood Development and Specialist Education Services also provide specialist assistance and advice.

Physical education teachers in training, 1944.

Participants at the 1968 annual conference of the Māori University Graduates Association.

9.3 Post-compulsory education and training

Universities

There are eight universities in New Zealand. They are the University of Auckland, Auckland University of Technology, 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; Auckland University of Technology in mechanical and architectural drawing and health studies; 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.

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.

Student support

The Student Services section of the Department of Work and Income provides a range of allowances for students 18 years and over, on 1 January of the year they are attending a secondary school or tertiary institution.

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.

Single students 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 Department of Work and Income provides a student finances brochure which gives an overarching view of all types of student assistance available. There are also student allowances, and student loans, detailed in separate publications.

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 (private training establishment students can only borrow up to $6,500 for fees).

  • Course-related costs – a maximum amount of $1,000 a year for full-time, full-year courses, to assist with course-related costs such as equipment, textbooks and 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.

Students with student loans now have to provide receipts for actual course costs incurred before the student is repaid. Loans on which interest will be charged are repayable through the Inland Revenue Department. The level of repayments is based on taxable income.

Applications are made through the institution at which the student will be enrolling. Student loans officers are available at each institution to assist in making these applications.

Alexander Turnbull Library Teachers attending an NZEI maths course, 1961.

Table 9.11. ENROLMENTS AT TERTIARY INSTITUTIONS, AT 31 JULY 1999

Field of study numberField of studyLevel of programme
Post-graduate levelDegree levelDiplomasCertificatesTotal
MakeFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotal

1Includes all Doctor of Philosophy degrees which are not classified by field of study.

Source: Ministry of Education

1General programmes11811147918672,729  1031373,7814,3458,126
8Literacy and numeracy    3759730105576711141881
14Education science and teacher training42114702,57510,89910885,4453791,9384,46319,75224,215
18Art, music and handcrafts1221352,2213,3666016856639483,6075,1348,741
22Humanities12642,3447,30714,06123338272210109,52617,79727,323
26Religion and theology331821113657  249161410
30Social, behavioural and communication skills2997769522,82139117059783,4422,6208,74411,364
34Commercial and business2,8622,39812,55112,6874,0846,4654,3997,99823,89629,54853,444
38Law3003622,3223,378211221115362,8545,2888,142
42Natural and applied sciences161714197,8776,16619831446985510,1618,75418,915
46Mathematics462632118585311889207
48Computing2301121972795161694194114494,3043,0507,354
50Medical and health588105619958,54416846012210862,87311,14614,019 
52Industrial trades and crafts1082316711102268,4236859,566108610,652
54Engineering17443892,5078823,218257691468,16015749,734
58Architectural and town planning15617012217819053262422002,52414774,001
62Agriculture, horticulture, forestry and fishing271248954691588370195514603,7682,7696,537
70Transport and communication7326447782523940588115703
78Service trades23221873304377662,2764,5252,9235,6438,566
84Mass communication7119522953718358913915862214792,101
89Para-professional occupations      6622662288
90Sport and recreation108566847075613886583572,01115083,519
92General foundation programmes      5146925146921206
98Other courses nec      363582363582945
 Total enrolments11,98312,68647,92269,72614,07819,18326,34130,274100,324131,869232,193
 Adjustment for multiple enrolments1081423,5824,575636891109914265,4257,03412,459
 Number of students11,87512,54444,34065,15113,44218,29225,24228,84894,899124,835219,734

Table 9.12. SUMMARY OF 1998 TERTIARY GRADUATES

Field of study no.sField of StudyProgramme and award category
DoctorateMasters/HonoursPostgraduate Diploma/CertificateDegreeDiplomaCertificateTotal
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotal
Source: Ministry of Education
1General programmes244155  1351341217  101161492467959
8Literacy        34665478585819241505
14Education  3887842037682,2934492,4507873514175,7687,185
18Art, music and handicrafts  3350916414544195242366470101713222,339
22Humanities  4307347310312812,618791904056252,2684,2706,538
26Religion and theology  86115121412  6440104
30Social, behavioural and communication skills  781928015317343710443148819029233,1154,038
34Commercial and business  5693576215072,3792,3076288867142,5234,9116,58011,491
38Law  12612221328419  1431695997111310
42Natural and applied sciences214573731881451198105852891582772,05519433,998
46Mathematics  3 175 1    20626
48Computing  72472114049261589686411169512,067
50Medical and health4140841903764882,57773217714228663,6774,543
52Industrial trades and crafts   5111052561022,257337 2,3285022,830
54Engineering  5021355174251482421979412993131612
58Architectural and town planning  574671023918279643627418329747
62Agriculture, forestry and fishing  3929554221712326311361942011937271920
70Transport and communication  11  2391 1481517325198
78Service trades  3 13231119832421064196411742,2483,422
84Mass communication  1973142270155375278116218418636
84Para-professional occupations            000
90Sport and recreation  7121061301281551164262947285561284
92General foundation programmes          177233177233410
98Other programmes nec          144159144159303
 Programmes completed2501572,4172303160217868,35713,15725605,3068,99512,57524,18135,28459,465
 Adjustment for multiple completions  5716243644473611634950777011011871
 Number of graduates2501572,4122,296158617627,99312,7102,5245,1908,64612,06823,41134,18357,594

Table 9.13. UNIVERSITY STAFF (ACTUAL) EMPLOYED DURING THE WEEK 26 JULY-1 AUGUST 1999

DesignationFull-time staffPart-time staffTotal
MaleFemaleMaleFemaleMaleFemaleTotal
NumberFTE1NumberFTE1NumberFTE1NumberFTE1NumberFTE1

1FTE = Full-time Equivalent. Part-time staff are given as a percentage (one decimal place) of full-time staff, (actual salary paid divided by salary paid if positions were full-time).

Source: Ministry of Education

Academic Staff
Professors393497145.683.9464438.65752.9521491.5
Readers/Associate Professors463595423.1125.8517486.17164.8588550.9
Senior lecturers131444043176.016247.017451390.0602487.02,3471877.0
Lecturers7115579841.413458.6809752.4691615.615001368.0
Other teaching or combined teaching/research staff188278355115.3394139.1543303.3672417.11215720.4
        Total academic staff3,06913831009301.3710254.44,0783370.320931637.46,1715007.7
Research Only Staff
Research only staff2822065728.77940.2339310.7285246.2624557.0
Other research support staff1212075121.321699.9172142.3423306.9595449.3
        Total research only staff40341310850.1295140.2511453.1708553.212191006.2
Executive Staff Vice-Chancellor70000077.00077.0
Senior academic managers40821.610.84241.698.85150.4
Senior managers8513652.732.19087.73938.1129125.8
        Total executive staff1324474.342.9139136.34846.9187183.2
Advisory and Other Teacher Support Staff Advisers3942116.2105.85045.25247.810293.0
Teacher development contract coordinators0320.773.220.7106.2126.9
Teacher development contract facilitators61573.1228.8139.13723.85032.9
Other0300.000.000.033.033.0
        Total advisory and other teacher support45632010.03917.86555.010280.8167135.8
Other Staff
Technicians7563706430.216484.7820786.2534454.713541240.9
Librarians and library assistants1113708124.522496.4192135.5594466.4786601.9
Student/community services521474222.816692.99474.8313239.9407314.7
General staff840202114773.1731401.8987913.12,7522422.83,7393335.9
General services staff44913816969.0524220.3618518.0662358.31280876.2
        Total other staff22083,046503219.51809896.12,7112427.54,8553942.17,5666369.6
        Grand total5,8574,9491647585.22,8571311.37,5046442.27,8066260.315,31012702.5

Table 9.14. STUDENTS RECEIVING STUDENT ALLOWANCES BY INSTITUTION TYPE AT 31 JULY 1998

Allowance typeType of institution
Secondary SchoolsPolytechnicsColleges of EducationUniversitiesPrivate InstitutionsWānangaTotal
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotal
Source: Ministry of Education
16–24 years – targeted away from home17412419622,7871376334,7775,48326645335387,3519,51816,869
16–24 years – targeted at home542371141914735424621022,13816125525184,3034,5018,804
25+ years – away from home5642210218722604522,597209637539549315,4394,88810,327
25+ years – at home58330216367333921441561097615761337
Accommodation benefit4134346,4766,948647160810,20110,007111012131159518,96220,30539,267
Couple allowance304337337334516485131289134121610752,291
Students with dependents12218814521085150218113959026313325223,1512,2365,387
Independent circumstances33345868286624610341317781403118002,5664,366
Earning spouse – away from home0411150913152100264470
Earning spouse – at home4161423283213212820131431103387301068
        Total allowances1379126414,85315,92514163,66822,97822,5742,455278026622843,34746,43989,786
Adjustment for more than one allowance4134346,4766,948647160810,20110,007111012131159518,96220,30539,267
        Number of students9668308,3778,977769206012,77712,5671345156715113324,38526,13450,519

Table 9.15. SUMMARY OF 1998 TERTIARY GRADUATES

Programme award categorySector
PolytechnicsColleges of EducationUniversitiesWānangaTotal
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotal
Source: Ministry of Education
Doctorate000025015700250157407
Masters/Honours3117002,3862,286002,41723034,720
Postgraduate Diploma/Certificate19104001583168200160217863,388
Degree10403,4523827516,8958,88140738,35713,15721,514
Diploma19602,81225114413009254912825605,3067,866
Certificate8,54011,76232208336500871058,99512,57521,570
        Programmes completed11,59018,147665240011,75014,43117630624,18135,28459,465
Adjustment for multiple awards3245031174445791277011011871
        Number of graduates11,26617,6446642,38311,30613,85217530423,4113,48357,594

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 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 23 polytechnics in New Zealand. They are: Northland Polytechnic, Unitec-Institute of Technology, Manukau Institute of Technology, Waikato Polytechnic, Bay of Plenty Polytechnic, Waiariki Institute of Technology, Tairawhiti Polytechnic, Eastern Institute of Technology of Hawke's Bay, Wairarapa Community Polytechnic, Taranaki Polytechnic, Wanganui Community Regional Polytechnic, Manawatu Polytechnic, Whitireia Polytechnic, Central Institute of Technology, The Open Polytechnic of New Zealand, Hutt Valley 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 402 on-campus staff (141.9 full-time equivalent academic staff), a total staff of 777, and 29,050 enrolled students in 1999. Nearly 75 percent of these students are already in paid employment and are studying part-time to enhance their career opportunities.

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. Schools of Accounting, Finance and Law; Information Science; Management; and a Workplace Learning and Development Group are integrated within a single faculty based at its Lower Hutt campus, and there are regional centres in Auckland, Wellington and Christchurch. The Open Polytechnic offers more than 700 courses and 120 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; Holmesglen Institute of TAFE in Melbourne; and The Open University, UK. 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.

Home schooling, 1994

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 lecturers through the use of toll-free telephone lines.

The Open Polytechnic's website is www.topnz.ac.nz

National Vocational Qualifications. The New Zealand Qualifications Authority (NZQA) has responsibility for: prescriptions, examinations and certification for Advanced Vocational Awards qualifications (three-stage Technician Certificates and five-stage New Zealand Certificates), and Trade Certificate and Advanced Trade Certificate qualifications; responsibility for prescriptions and certification of the New Zealand Diploma in Business; and responsibility for administering the certification of New Zealand Diploma qualifications.

Technicians Certificates and New Zealand Certificates – available in areas such as civil engineering, electrical and mechanical engineering. Courses for these qualifications are offered at accredited training providers such as polytechnics (although not all training providers offer all courses). These may be on a full-time or part-time basis, and may be for a full-year or half-year duration. Distance learning courses may also be available. All these certificates require students to complete three years’ suitable work experience.

Trade Certificates (and Advance Trade Certificates in a number of cases) – available for some industries. Courses for these qualifications may be available at accredited training providers such as polytechnics, and are often available as a block course. Distance learning courses may also be available. The award of these certificates also requires practical training to be obtained through on-the-job experience.

The New Zealand Diploma in Business – a generic business qualification, endorsed by a number of industries such as accounting, management and marketing. Courses for the qualification are available at a number of accredited tertiary education providers, and are also available through distance learning. Most courses are of one semester (half-year) duration and may be completed through full-time or part-time study.

New Zealand Diplomas – available in Science and Surface Coatings Technology. They are advanced qualifications for students who have completed a New Zealand Certificate in the same or a related area.

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 practice
IntermediateBasic

Note:Some trade certificates and advanced trade certificates were replaced in 1996 by Qualifications Framework National Certificates.

Source: NZ Qualifications Authority

199352847219744174,8035,482
199412140116543753,6754,596
1995131445616813914,5242,295
199662130911373462,4452,566
199731439411482822,3282,324
19989164199382312,3342,352

National Qualifications Framework qualifications (National Certificates and National Diplomas) – Based on unit standards, these have been or are being introduced in a large number of industries, including many where there have previously been no nationally-recognised qualifications. Industries with national certificates or national diplomas already developed include dairying, furniture making, hairdressing, quantity surveying, and social services. In time, it is expected that all certificates will be replaced by qualifications which are registered on the National Qualifications Framework. National certificates and national diplomas generally are developed by industry training organisations or other standards-setting bodies, with the NZQA responsible for the maintenance of the National Qualifications Framework. Training for these qualifications occurs on-the-job, off-the-job or in a mixture of these depending on the qualification.

Other qualifications – A wide range of other vocational qualifications has been developed. These include qualifications developed and administered by: polytechnics and other tertiary training providers; national bodies, such as the New Zealand Institute of Management and the New Zealand Air Force; and private training providers.

Teacher education providers

Teacher training courses in primary and secondary education are offered by a number of institutions including: colleges of education; the schools of education at some universities; some polytechnics; and other teacher education providers.

Teacher training in early childhood education, Māori language, business, music, physical education, trades and technology, and special education are also offered by other tertiary providers.

Early childhood workers and teachers. Three-year training programmes for early childhood workers and teachers are operated at each of the colleges of education. The Advanced Studies for Teachers Unit at Palmerston North College of Education and Massey University offer advanced courses for all early childhood education workers and teachers.

Primary teacher training. The usual course of training for primary teacher trainees is three years at a teacher training provider, followed by two years of satisfactory teaching in a state primary school. Courses may be shortened to one or two years for trainees who are university graduates or 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.

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 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. Secondary teacher training can be undertaken at a variety of institutions.

Special education training. People 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 the visually impaired are located at Auckland and Christchurch.

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 Kaiwhakaako, started in 1944, is contracted to the Ministry of Education to offer 3–5 day residential courses during school vacations. About 1,000 teachers per year attend the courses, with travel assistance provided.

BACHELORS DEGREES
Selected degrees completed in 1998, by field of study

Table 9.17. CHILDREN ON REGULAR ROLLS OF EARLY CHILDHOOD EDUCATION SERVICES AT 1 JULY 1998

Type of serviceNumber of servicesAge in yearsTotalIncluded in total
Under 112345 and overMāori descentPacific Islands
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotalTotalTotal

1Early Childhood Development... Not applicable.

Source: Ministry of Education

Licensed Early Childhood Education Services:
Kindergartens5985514132672688,1557,92414,92514,12115314323,51922,47445,9936,9763,275
Playcentres523674734137913502,14621092,25420881788161578468,3197,94216,2611828328
Education and care services1403131812294,8714,3998,5648,16810,92510,1949,0668,66640932335,15332,97968,1328,3313,551
Childcare – homebased171428385100695311471074102889077374840264,4224,0768,498991139
Casual education and care44                 
Correspondence School1119742402001982191881494854439281519
Te Kōhanga Reo.5862812408131314165317172118021298152016221745,8785,76711,64511,33616
          Subtotal..3,32627072,5948,0928,03613,81913,37622,77322,09628,06926,8582,31672177,77673,681151,45729,6137,318
Developing Early Childhood Education Services:
ECD1 funded:
        Playgroups596116810571916183125082,298193917749619351131298,6058,02416,6291580359
        Pacific Islands language groups1381871682362213132893373683603565162148414642,948332,887
        Unlicensed playcentres..2417163522573860633937222101783889428
Developing Te
        Kōhanga Reo.. 13121018231675181618107767144136
          Subtotal..771137312432,197209229012,6412,34322101378134418420310,3769,73320,10918433,274
          Total4,0974,0803,83710,28910,12816,72016,01725,11624,30629,44728,202250092488,15283,414171,56631,45610,592

Delegates to the 1950 WEA conference in Christchurch.

Wānanga

Wānanga (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 wānanga qualified for funding on the same basis as universities, polytechnics, and colleges of education 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 have course approval and accreditation from 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 equivalent full-time students places, the PTEs operating in provincial towns offer improved access to tertiary education, 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 oversees a range of initiatives 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 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 is 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.

COMMUNITY EDUCATION
Enrolments in 1997 and 1998
1

University Continuing Education. All eight 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 programmes 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 coordinator with a sub-committee of the school board of trustees to meet the community's defined needs. Schools receive an allocation of tutor hours and associated staffing allowances. Fifteen percent of the allocated hours must be available for use by local community groups and all courses are required to fall under one of the following headings: adult basic education; training for volunteer community workers; parent education; personal development; or specific community need. Courses that do not fall under these categories can be offered on a self-funded basis.

Polytechnics also provide a range of community education courses and programmes for adults, both on-campus and through outposts established to give students in smaller centres the opportunity of participating in some form of tertiary education.

Distance education. The main agencies in the field of distance education are the Correspondence School (with 19,278 students enrolled at 1 July 1999), Massey University (with 16,684 students enrolled in extramural studies in 1999), and The Open Polytechnic of New Zealand with 29,050 students enrolled for 1999.

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 Coordinating 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

Although 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 kōhanga 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 Māori Language Education Plan. The Māori Language Education Plan (MLEP) is the education-focused part of the Government's Māori Language Strategy. In 1998–1999, the ministry completed the development of the MLEP.

There are five key areas in the MLEP designed to support Māori language education. These focus on raising the capacity of education providers to deliver high quality Māori language education. This will be done through adequate and appropriate resourcing for both mainstream and Māori medium schools, including the provision of skilled teachers, sufficient teaching and learning materials, and new assessment tools. A number of initiatives to improve Māori language teaching were included in the 1999 Budget.

Māori teachers. An evaluation of Māori teacher supply initiatives was completed and a review of the current Māori and Māori medium teacher supply initiatives is under way. During the year, TeachNZ scholarships, designed to attract increased numbers of Māori and Māori medium teachers, were awarded to 165 recipients.

Contributors

  • 9.1 Ministry of Education; Early Childhood Development; Special Education Service; The Careers Service: Rapuara; Education and Training Support Agency (ETSA); New Zealand Qualifications Authority; Education Review Office; Learning Media Ltd; Teacher Registration Board; New Zealand Council for Educational Research; Māori Education Trust.

  • 9.2 Ministry of Education; Te Kōhanga Reo; The Correspondence School; New Zealand Qualifications Authority; Special Education Service.

  • 9.3 New Zealand Vice-Chancellor's Committee; New Zealand University Students Association; Ministry of Education; The Open Polytechnic; New Zealand Qualifications Authority; Skill New Zealand (ETSA); Massey University.

  • 9.4 Ministry of Education.

Special articles

Learning Media Ltd; New Zealand Council for Educational Research; The Correspondence School; Statistics New Zealand; Ministry of Education.

Further information

Annual Report of the New Zealand Council for Educational Research.

Boyd, S 1998. Computers in classrooms. Wellington: NZCER.

Chalmers, A 1998. Workload and stress in New Zealand universities in 1988: A follow-up to the 1994 study. Wellington: NZCER and AUS of NZ.

Education Statistics of New Zealand. Ministry of Education (annual).

Educational Research Series, 1935–1992. New Zealand Council for Educational Research.

Garden, RA 1996. Mathematics performance of New Zealand form 2 and form 3 students: National results from New Zealand's participation in the third international mathematics and science study. Ministry of Education.

Harris, D and Boyd, S 1998. A link to learning: The use of computers by children with disabilities. Wellington: NZCER.

Keegan, PJ 1998. Te Wāhanga Kaupapa Māori publications and documents 1972–1997. Wellington: NZCER.

Ko e Ako ‘a e Kakai Pasifika. Pacific Islands peopleseducation in Aotearoa, New Zealand towards the twenty-first century. 1996. Wellington: Ministry of Education.

Mara, DL 1998. Pacific Islands SchoolParentCommunity Liaison Project: An independent evaluation. Wellington: NZCER.

Mara, DL 1998. Progress towards licensing and chartering Pacific Islands early childhood centres in New Zealand. Wellington: NZCER.

Meagher-Lundberg, P and Podmore, VN 1998. Out-of-school care: A review of quality provision. Wellington: NZCER.

Ministry of Education 1995. Changing Directions, Roles and Responsibilities in Education. Wellington: Ministry of Education.

Ministry of Education 1995. Education in New Zealand. Wellington: Ministry of Education.

Ministry of Education 1997. Governing and Managing New Zealand Schools: A Guide for Boards of Trustees. Wellington: Learning Media Ltd.

Ministry of Education 1996. Ngā Haeata Mātauranga: Ten Point Plan for Māori Education. Wellington: Ministry of Education.

Ministry of Education 1995. The Schools Support Project: Supporting Schools and Boards of Trustees in Self-Management. Wellington: Ministry of Education.

New Zealand Council for Educational Research, 1935–1992. Educational Research Series.

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).

Performance assessment in the third international mathematics and science study: New Zealand results. 1996. Ministry of Education.

Podmore, VN and May, H with Mara, D 1998. Evaluating early childhood programmes using the strands and goals of Te Whāriki, the national early childhood curriculum. Final report on phases one and two to the Ministry of Education. Wellington: NZCER/Ministry of Education.

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 Māori Education Trust.

Report of the Pacific Islands Polynesian Education Foundation (Parl paper E.21).

Report of the Teacher Registration Board.

Science performance of New Zealand Form 2 and 3 students: National results from New Zealand's participation in the third international mathematics and science study. 1996. Ministry of Education.

Staffing of Form 1–7 and Form 3–7 state secondary schools. Research and Statistics Division, Ministry of Education (annual).

Sisley, R with Waiti, D 1998. Te Pīkaunga-Mahi Me Te Kōhukihuki (Workload and Stress): A national survey of Māori ASTE Te Hau Takitini O Aotearoa members. Wellington.

Tertiary Education Statistics, Ministry of Education, (annual).

Wylie, C 1999. Can vouchers deliver better education? A review of the literature with special reference to New Zealand. Wellington: NZCER.

Chapter 10. Justice and law

Home Guards searchers return to Koiterangi after the manhunt for murder suspect Stanley Graham, 1941.

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 acting upon an address of the House of Representatives, on grounds of misbehaviour or incapacity. District court judges may be removed from office by the Governor-General, 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 or temporary judges for up to four years, or one year if the judge is 72 years of age or over when reappointed.

The salaries of judges are determined annually 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 October 1998 set these rates: Chief Justice, $243,000 plus an annual expense allowance of $7,900; Court of Appeal president, $239,000 plus $6,500 expenses; Court of Appeal judge. $222,600; High Court judge, $212,200; Master of the High Court, $169,500; Chief District Court judge, $205,500; district court judge, $169,500; Principal Family Court judge, $182,500; Principal Youth Court and Principal Environment Court judges, $176,000; Chief Employment Court judge, $212,200; Employment Court judge, $197,600; Chief Māori Land Court judge, $189,800; Deputy Chief Māori Land Court judge, $182,500; Māori Land Court judge, $169,500. High Court judges receive an annual expense allowance of $5,600, and district court judges $4,100.

The Government introduced a Constitution Amendment Bill into the House on 29 April 1999. The purpose of this bill is to enhance public confidence in the judiciary by making the processes for judicial appointments, removals and immunity more consistent and clear, without compromising judicial independence. The bill brings most of the provisions governing the judiciary into the Constitution Act, but makes minor alterations to other acts. The bill has been reported back from the Committee stage and has been carried over to the next parliamentary session.

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. 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, when 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 their 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 when 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 qualifications and experience necessary for judicial appointment. Masters may exercise certain powers of the High Court concurrently with High Court judges. Masters deal with, among other things, applications for summary judgements, specified 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 JA Faire (Auckland); Master JCA Thompson (Wellington); and Master GJ Venning (Christchurch).

District courts. Unlike the High Court, which is one court for New Zealand, district courts are established as separate entities in various localities.

Table 10.1. JUDGES OF THE COURT OF APPEAL AND HIGH COURT1

1Year ended 31 December 1999.

Source: Department for Courts

Permanent Judges of the Court of AppealRt Hon Sir Ivor Richardson, President of the Court of Appeal, Rt Hon Justice Gault, Rt Hon Justice Henry, Rt Hon Justice Thomas, Rt Hon Sir Kenneth Keith, kbe, Rt Hon Justice Blanchard, Rt Hon Justice Tipping, Rt Hon Dame Sian Elias, Chief Justice of New Zealand (ex officio).
Permanent Judges of the High CourtRt Hon Dame Sian Elias, Chief Justice of New Zealand, Hon Justice Gallen, Hon Justice Heron, Hon Justice Ellis, Hon Justice McGechan, Hon Justice Doogue, Hon Justice Anderson, Hon Justice Robertson, Hon Justice Fisher, Hon Justice Penlington, Hon Justice Hammond, Hon Dame Silvia Cartwright, dbe, Hon Justice Morris, Hon Justice Hansen, Hon Justice Williams, Hon Justice Baragwanath, Hon Justice Goddard, Hon Justice Pankhurst, Hon Justice Chisholm, Hon Justice Salmon, Hon Justice Paterson, Hon Justice Gendall, Hon Justice Giles (died April 1999), Hon Justice Potter, Hon Justice Laurenson, Hon Justice Randerson, Hon Justice Young, Hon Justice Nicholson, Hon Justice Wild, Hon Justice Durie, Hon Justice Chambers, Hon Justice R Hansen.
Acting or Temporary Judges of the High CourtHon Justices Greig, Barker, Tompkins, Smellie and Neazor JJ are all acting judges.

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 wan-anted 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 three 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 in Auckland, Wellington and Christchurch, although it can travel to other locations.

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 courts -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.

A 1981 anti-Springbok tour demonstration.

Tribunals

Over 100 tribunals, authorities, boards, committees or related bodies exist to deal with disputes, largely between individuals, on matters such as environmental planning; economic issues; scientific and technical matters; censorship; welfare and benefits; taxation; occupational licensing and discipline; activity licensing, e.g., shop trading hours; and company registration. The main tribunals which deal with individual disputes are described below together with the Waitangi Tribunal, 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 29 other mediator and/or adjudicator members, appointed from time to time by the Governor-General. The tribunal has offices in Auckland, Hamilton, Wellington, Christchurch and Dunedin, and travels to other locations.

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 $7,500 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 $12,000 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 separate article).

Sources of law

The law of New Zealand consists of the common law, statute law enacted by the New Zealand Parliament, constitutional conventions, 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 which 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 six commissioners, and maintains a staff of approximately 10 legal researchers. 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 either 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. The Law Commission's reports are presented to the Minister of Justice, tabled in Parliament, and published. The commission consults widely when developing its proposals for reform and the reports are generally preceded by discussion papers, which are widely distributed. Submissions and comment on the proposals outlined in the papers are sought before the final report is prepared.

Discussion papers published during 1999 concerned the topics of adoption, coroners, and juries. A new series of reports – study papers – was begun that year, and two study papers were released on women's access to legal services and priority debts in the distribution of insolvent estates. Reports published during 1999 covered the subjects of computer misuse, cross-border insolvency, electronic commerce, evidence, retirement villages, shared ownership of land, and Māori women's experiences in the justice system.

The Law Commission's work programme for the year 2000 includes such topics as alternatives in prosecution, battered defendants, international law for computer misuse, limitation of actions, protection of construction contractors, adoption, coroners, criminal prosecution, costs in criminal cases, juries, Māori custom law, same-sex marriage, abuse of process including maintenance and champerty, adopting international trade conventions, community developments, and fetal tissue sampling.

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.

Māori Land Court chief judge Eddie Durie, of Ngāti Raukawa, Ngāti Kauwhata and Ngāti Rangitāne, at his swearing-in as a High Court judge, 1998. He was the first Māori appointed to the High Court bench.

Legal Services Board

The Legal Services Board: Te Poari Ratonga Ture is a Crown entity established by the Legal Services Act 1991. It is an independent, publicly-funded body responsible for administering both civil and legal aid throughout the country, using a network of district committees and subcommittees.

Under the Legal Services Act 1991, the board has a number of functions relating to the availability of legal services, ranging from the provision of legal aid to promoting law-related education for the public and the funding of the community law centres.

The overall objective of the board's business is to give those at the lower end of the socio-economic scale assistance for a proper defence in criminal matters and to receive resources to bring or defend court proceedings in the civil jurisdiction. Legal aid is given to people as either a grant, a subsidy or an advance in the nature of a loan.

There is a bill before Parliament that will repeal the current act and give total control of all legal aid functions to a new ‘Legal Services Agency’.

Criminal legal aid. Any person who is charged with an offence before the courts or wants to appeal is able to apply to the registrar of the court for criminal legal aid. Criminal legal aid will be granted if it appears to the registrar that the applicant does not have sufficient means to obtain legal assistance and the interests of justice require such representation. Not all cases justify a grant of legal aid, especially many of those where imprisonment is not the likely outcome should the person be found guilty. When applications are refused, there is a right of appeal to a judge. About 53,000 people are being assisted by criminal legal aid each year.

Civil legal aid. Civil legal aid is available for most non-criminal proceedings in the courts and before a range of tribunals, including the Employment Tribunal and the Waitangi Tribunal. The legal aid is generally viewed more as a loan than a grant. When this is indeed the case, at least some of the cost is paid back later by means of a legal charge being placed over the assets of the recipient.

A study published in 1997 showed that women and children in family law cases make up the largest single group receiving civil legal aid.

Finance. In the 1998/99 financial year 28,000 people were assisted and just over $7 million was paid back to the board. Payments for legal aid (inclusive of GST) were $54 million for civil actions and $36 million for criminal cases, totalling $65 million. About another $5 million was spent on the duty solicitor scheme (short-term assistance given by rostered lawyers for unrepresented people appearing in District Courts) and on the Police Detention Legal Assistance Scheme (short-term assistance by phone or in person given to people detained or cautioned by the Police).

Allocation of legal aid is carried out by court registrars and a large force of volunteer lawyers and community representatives over whom the board has no immediate management control.

The board's business is driven by demand. No direct control can be exercised over the number of applications submitted. The criteria for eligibility and the nature of the legal service provided are not limited in any way by the financial resources of the board. Once an entitlement to assistance is established there is no mechanism whereby aid can be declined because of existing or growing pressures on funding.

Community law centres. There are currently over 20 centres, which are funded to a large extent by the Legal Services Board. This valuable legal service is funded from a non-taxpayer source. It is generated from interest paid by banks on the non-interest-bearing portion of funds in law practitioners’ trust accounts.

No legal aid for UN case. A Court of Appeal judgement in September 1997 overturned a previous High Court judgement which said that the Wellington District Legal Services Committee had to consider an application for legal aid to challenge the 1992 fisheries settlement at the United Nations Human Rights Committee.

The claimant said that the settlement violated her rights under the UN International Covenant on Civil and Political Rights (which New Zealand has ratified). The Court of Appeal said that legal aid outside New Zealand could only be granted for Privy Council proceedings. The Privy Council has now confirmed the Court of Appeal ruling.

Civil jurisdiction

The High Court has original jurisdiction to hear and determine civil proceedings including:

  • Proceedings in contract and tort.

  • Equity.

  • Supervisory powers over inferior courts and tribunals.

  • Wills and administration of the estates of the deceased.

  • Dissolution of partnerships and the taking of partnership accounts.

  • The sale and distribution of the proceeds of any property subject to a lien or charge.

  • Proceedings relating to mortgages, leases, sale, or partition of land, including specific performance of contract.

  • Execution of trusts, charitable or private.

  • Rectification, or setting aside, or cancellation of deeds or contracts.

  • Proceedings relating to the insolvency of individuals and companies.

  • Family law (matrimonial property, and proceedings under the Family Protection Act 1955).

  • Electoral petitions.

  • Admiralty.

  • Absconding debtors.

The High Court also issues declaratory judgments and hears appeals from the district courts and from a number of administrative tribunals. Decisions on many civil proceedings in the High Court may be appealed to the Court of Appeal.

District courts have jurisdiction to hear proceedings founded on contract or tort and other civil claims (including equitable claims) where the amount of 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. A bill is currently before Parliament which would extend service to a wider range of ages.

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. They receive additional funding from a variety of sources (though this had fallen considerably since the Legal Services Board came in), including city councils, the Auckland District Law Society, and lottery grants. 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 Solicitor-General is the chief legal adviser 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. Historically, the position of Solicitor-General was created in 1867 and remained in existence for a few months as a political office held by a member of the executive council. The position was revived in 1875 as a permanent government post and the inception of the Crown Law Office dates back to this time.

The Crown Law Office is organised into nine teams: Bill of Rights Act; Public 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 which provides law students with an opportunity to gain first-hand experience of issues dealt with in the office. It also participates in the Pegasus Scholarship programme which provides an opportunity for English barristers to contribute to, and learn from, the New Zealand legal system.

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.

Nevada Rata, 7, tries out the judge's seat at Masterton's courthouse open day, 1998.

1999 was a year of diverse and complex issues for the Crown Law Office. In the area of criminal law the Crown Law Office prosecuted Scott Watson in a double homicide case through the Blenheim Crown Solicitor and Deputy Solicitor-General (Criminal). The three-month trial saw 487 witnesses called for the Crown and 25 for the defence, making it one of the largest criminal jury trials in New Zealand's criminal law history. In the civil law context, over 120 plaintiffs challenged the lawfulness of the broadcasting fee which, since 1989, had raised over $750 million in revenue for New Zealand on Air. Another civil law case involved a charitable trust. The Attorney-General, addressing public concern, held an extensive inquiry into the functioning of the Centrepoint community as a charitable trust. After the inquiry, the Attorney-General applied to the High Court to have the Public Trustee appointed as trustee of the Centrepoint Community. The Public Trustee has now applied to the High Court to vary the trust deed.

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 less serious offences. These include offences against public order, such as disorderly behaviour and fighting in a public place, and offences against persons or property, such as common assault and wilful damage.

Recorded crime

A total of 455,552 offences were recorded by the New Zealand Police for the year ended 30 June 1999, a decrease for the second year running. The decrease of 2.2 percent compares with a decrease in recorded offences of 3.5 percent for the June year 1998, and an increase of 1.6 percent increase for the June year 1997. The overall resolution rate for all recorded offences was 38.3 percent in 1999 compared with 38.1 percent in 1998.

The number of recorded violent offences remained stable over the last two years, increasing only 0.1 percent from 40,221 for the year ended 30 June 1998 to 40,274 at the same time in 1999, and only 0.4 percent between 1996 and 1997 June years. The resolution rate for recorded offences also remained stable over the last two years at around 76 percent.

During the year ended 30 June 1999 a total of 94 homicide offences were recorded by the Police. This compares with 116 in the same period in 1998, a decrease of 19 percent, which follows a previous decrease of 27 percent. Within this group, recorded murders increased slightly, with 48 recorded for the June 1999 year compared to 45 at the same point in 1998. The total number of robberies recorded was 1,844, a decrease of 8.3 percent over the previous year. Aggravated robbery decreased by 3.3 percent, from 1,135 recorded offences for the year ended 30 June 1998 to 1,098 for the same period in 1999. Non-aggravated robbery also decreased, by 14.9 percent, with 877 offences recorded for the June year 1998 compared with 746 at the same time in 1999.

The number of recorded sexual attack offences remained stable overall, with 2,033 recorded offences for the year ended 30 June 1999 compared to 2,042 for the same period in 1998. The total number of recorded sexual offences decreased (by 3.5 percent), with 3,109 recorded in 1999 and 3,221 in 1998. Of all these recorded offences 50.4 percent were resolved.

Table 10.2. NATIONAL RECORDED CRIME, BY CLASS AND GROUP, FOR YEARS ENDED 30 JUNE

Crime typeRecordedPercent resolved
1998199919981999

1The ‘homicide’ category includes murder, attempted murder, manslaughter, infanticide, abortion, and aiding suicide.

Source: New Zealand Police

Violence
Homicide11169474.170.2
Kidnapping and abduction19217058.353.5
Robbery2012184436.034.1
Grievous assaults24402,42580.980.3
Serious assaults13,62513,30879.279.1
Minor assaults13,66613,86577.476.6
Intimidation and threats8,0608,26379.979.6
Criminal harassment4526384.476.0
Group assemblies654281.583.3
        Total40,22140,27476.676.2
Sexual offences
Sexual attacks2042203354.047.9
Sexual affronts73069847.948.0
Abnormal sexual relations22845.550.0
Immoral behaviour39432475.667.3
Film Video and Publication Classifications Act334687.976.1
        Total3,2213,10955.550.4
Drugs and antisocial
Drugs (not cannabis)1397149289.990.5
Drugs (cannabis only)24,89925,29390.189.3
Liquor4,8685,68695.696.3
Gaming534786.876.6
Disorder20,58720,15286.288.7
Vagrancy21521492.189.3
Family offences51942967.869.7
Children and young persons offences727272.241.7
Residential Tenancies3633.333.3
Domestic Violence Act3,3233,86482.180.2
Total55,93657,25588.489.0
Dishonesty
Burglary78,91878,52711.411.1
Vehicles take/interfere51,06847,35616.316.0
Theft133,736134,41720.019.7
Receiving3,021282093.995.7
Fraud26,50721,73348.351.8
        Total293,250284,85320.319.9
Property damage
Destroy property39,66438,08728.628.7
Endanger property24624971.172.7
        Total39,91038,33628.829.0
Property abuses
Trespass12,65611,59969.970.0
Littering62455476.878.0
Animals48442157.656.3
Postal/fire/rail5,2944,63350.849.6
Firearms (Arms Act)3,2632,93480.481.7
        Total22,32120,14166.866.9
Administrative
Against justice8,5719,07486.785.0
Births/deaths/marriages71342.953.8
Immigration1138105794.390.3
Racial4075.0 
DNA offences3066.7 
Against national interest7557.140.0
Other by-law breaches827115498.499.0
Dog control breaches41828158.160.5
        Total10,97511,58487.286.2
        Total465,834455,55238.138.3

For the year ended 30 June 1999 there were 1,492 recorded non-cannabis drug offences, a 6.8 percent increase from the previous year. Resolution rates increased slightly from 89.9 percent in 1998 to 90.5 percent for the same time period in 1999. Recorded cannabis-only drug offences increased by 1.6 percent with 25,293 recorded for the year ended 30 June 1999. Of these, a total of 15,655 were resolved by way of prosecution (including those offenders apprehended and prosecuted in the youth court).

In total, recorded drug and antisocial offences increased by 2.4 percent from 55,936 offences recorded for the year ended 30 June 1998 to 57,255 for the same time period in 1999. The rate of resolution continued to increase slightly, with 88.4 percent resolved for the June year 1998 and 89.0 percent resolved for the year to 30 June 1999.

Recorded dishonesty offences decreased 2.9 percent, from 293,250 for the June year 1998 to 284,853 for the same time period in 1999. As in previous years, this offence class accounted for the major proportion of all recorded offences (excluding traffic offences), at 62.5 percent, although this proportion has been dropping since the June year 1996. Within this group, all offence types except theft, which increased by 4.8 percent from 133,736 offences to 134,417, recorded fewer offences. Burglary decreased by 0.5 percent, receiving offences decreased by 6.7 percent, vehicle taking and interference decreased by 7.3 percent from 51,068 offences down to 47,356 offences, and fraud decreased by 18.0 percent from 26,507 offences to 21,733 offences.

Of the 12 police districts, nine recorded a decrease in the number of recorded non-traffic offences during the year ended 30 June 1999.

Children and young persons (i.e. those under 17 years of age) comprised 21.9 percent of all offenders apprehended for the year ended 30 June 1999. Furthermore, 46.3 percent of apprehended offenders were under 21 years of age. Of all those apprehended, 81.0 percent were male and 19.0 percent female, a nearly identical proportion to last year. In the offence category of dishonesty, 33.7 percent of apprehended offenders were children or young persons, and 56.8 percent were under the age of 21 years.

(The Police changed the presentation of crime statistics during the 1997/98 year so that figures now exclude incidents which are reported to Police but are subsequently found to involve no offence. Therefore data published in earlier years will differ from the revised figures presented here.)

Table 10.3. CONVICTIONS FOR ALL OFFENCES EXCEPT TRAFFIC OFFENCES

Offence type19891991199319951998
Source: Ministry of Justice
Violent9,5349,53513,15916,77816,200
Other against persons3,0202,5882,9773,5343,538
Against property51,26254,66657,50057,17353,496
Involving drugs11,53911,55313,26511,81514,183
Against justice9,08010,55712,28513,55515,701
Against good order7,4976,4877,4489,30710,571
Miscellaneous16,79011,41619,99516,85510,375
        Total108,722106,802126,629129,017124,064

CONVICTIONS, NON-TRAFFIC OFFENCES
By type of offence

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 ‘elect’ jury trial if they are charged with any offence, indictable or summary, punishable by imprisonment for more than three months. There are specific exceptions in section 43 of the Summary Offences Act for the offences of common assault (section 9 – punishable by six months’ imprisonment) and assault on police, prison or traffic officers (section 10 – six months’ maximum). For these offences there is no right to elect trial by jury.

CONVICTIONS
For non-traffic offences, by type of offence

SENTENCES
For non-traffic offences, by type of sentences

Table 10.4. CONVICTIONS FOR VIOLENT OFFENCES

Offence type19891992199519971998

1Includes convictions for manslaughter which involved the use of a motor vehicle.

2Includes both robbery and assault with intent to rob.

3Mostly assault with a weapon, wounding with intent, and injuring with intent, but also aggravated wounding or injury, disabling, doing dangerous act with intent, acid throwing, and poisoning with intent to cause grievous bodily harm. These offences have maximum penalties of at least 5 years’ imprisonment.

4Most common assault under the Crimes Act 1961, but also includes assault with intent to injure, injuring by unlawful act, and aggravated assault (including assault on a police officer or a person assisting the Police under the Crimes Act 1961). These offences have maximum penalties of between 1 and 3 years imprisonment.

5Mostly common assault under the Summary Offences Act 1981, but also includes assault on a police, prison or traffic officer, or on a person assisting the Police, under the same act. These offences have a maximum penalty of 6 months’ imprisonment.

Source: Ministry of Justice

Murder2445354225
Manslaughter12742413245
Attempted murder5126186
Kidnapping or abduction5159112113153
Rape134149328230259
Unlawful sexual connection150341385303360
Attempted sexual violation4855765856
Indecent assault55593411259741058
Aggravated burglary48679710283
Aggravated robbery317402482588568
Robbery2150143209258281
Grievous assault3585681115712131348
Serious assault4154315822,9943,0343,246
Male assaults female/assault on a child147720744,3953,6363,445
Minor assault54,0963,6064,7254,4414,523
Threaten to kill or do grievous bodily harm234368516612634
Other violence9012095131110
        Total9,53410,68016,77815,78516,200

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 those 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.

Table 10.5. CONVICTIONS FOR OTHER OFFENCES AGAINST THE PERSON

Offence type19861989199319951998

1Mainly unlawful sexual intercourse or doing an indecent act with or upon another person. Sex offences reported in the violent offences category are not included in the figures for this category.

2Obstructing or resisting a police officer, traffic officer, or other official.

3Excludes threatening to kill or do grievous bodily harm which is classified as a violent offence.

Source: Ministry of Justice

Incest4051474610
Other sex1297237405386297
Obstructing or resisting22,7362,41620982,4222,497
Threats and intimidation3348186274440478
Other97130153260256
        Total3,5183,0202,9773,5343,538

Table 10.6. CONVICTIONS FOR PROPERTY OFFENCES

Offence type19861989199319951998

1Includes fraud, false pretences, and forgery.

Source: Ministry of Justice

Burglary7,9626,9217,3846,7496,394
Theft14,77914,85315,45612,79713,814
Receiving stolen goods28802,5134,1253,1293,380
Motor vehicle conversion4,3523,6002,5642,8172,539
Fraud116,16316,43019,57822,07117,265
Arson220221187191314
Wilful damage4,0653,8594,1115,1825,091
Other3,1072,8654,0954,2374,699
        Total53,52851,26257,50057,17353,496

Convictions for all offences except traffic offences

A conviction is the most frequent outcome of a prosecution. In 1989 and 1990, 70 percent of all prosecutions resulted in a conviction. This proportion has generally shown a slowly decreasing trend since then, reaching the lowest level recorded in the decade in 1998 (63 percent). The decrease is likely to be linked to the use of diversion by the Police.

There were about 9,000 fewer convictions for non-traffic offences in 1997 than in 1996, while in 1998 the number of convictions increased by about 3,500. The decrease in 1997 was due to the offence of ‘failing to register a dog’ becoming an infringement.

The number of convictions for violent offences increased considerably between 1990 and 1995. However, the figures in the last three years have all been a little lower than the 1995 figure. The number of convictions for violent offences in 1998 was 70 percent greater than the figure in 1989.

In the last four years, violent offences have accounted for 13 percent of all convictions for non-traffic offences, compared with 9 percent in 1989.

There was a substantial increase in the total number of convictions for violent sex offences (rape, unlawful sexual connection, attempted sexual violation, and indecent assault) over the 10-year period under examination. Overall, convictions for such offences more than doubled from 887 to 2,116 between 1989 and 1996, before dropping to 1,565 in 1997, then increasing to 1,733 in 1998. It should be noted that 28 percent of the convictions for violent sex offences in 1998 related to offences which occurred prior to 1990, and an additional 35 percent related to offences which occurred between 1990 and 1996. The data indicate that four of the convictions in 1998 related to sex offences that occurred before 1960, 69 related to sex offences that occurred in the 1960s, 205 related to sex offences that occurred in the 1970s, and 203 related to sex offences that occurred in the 1980s. 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 reporting of offences that occurred many years ago.

The number of convictions for robbery fluctuated within a relatively narrow range around a mean of 153 convictions each year between 1989 and 1994, before increasing in the next four years to reach 281 in 1998 – the highest figure in the decade. Prior to 1998, there had been an increasing trend in the number of convictions for aggravated robbery through the 1990s. The 1998 figure was a little lower than the 1997 figure, but was still the second highest recorded in the decade.

The total number of convictions for non-sexual assaults of various types increased significantly between 1990 and 1995, but has levelled off in the last three years at a slightly lower level than in 1995. A large part of the increase in the early to mid-1990s occurred in the category ‘male assaults/female assault on a child’, the majority of which are domestic-related assaults. Statistics New Zealand (1996) suggests that the ‘increase may be due largely to changes in police practice in relation to domestic violence. Whereas police formerly attempted to mediate and reconcile the parties in domestic incidents, they now treat such incidents as family violence complaints and, barring exceptional circumstances, arrest [and prosecute] the offender’. Although the number of ‘male assaults/female assault on a child’ convictions has decreased in the last four years, the 1998 figure was still 133 percent greater than the figure in 1989.

The number of convictions in the most serious category of assaults – ‘grievous assault’ – has continued to increase throughout the decade, with the 1998 figure (1,348) being 130 percent greater than the figure in 1989 (585). Convictions for ‘serious assault’ have shown a strongly increasing trend through the 1990s, although the increase since 1995 has been relatively small.

Convictions for threatening to kill or do grievous bodily harm have shown a strong upward trend over the decade. The 1998 figure (634) was 171 percent greater than the figure in 1989 (234).

Convictions for other offences against the person increased in number between 1991 and 1995, but have generally levelled off since then. The number of convictions for these offences in 1998 was 17 percent greater than the number in 1989.

Offences against property comprise the largest group of offences aside from traffic offences. The number of convictions for property offences remained reasonably stable between 1992 and 1996, but dropped in 1997 and 1998. The 1998 figure was the lowest recorded since 1990. In 1998, 43 percent of convictions for non-traffic offences were offences against property.

Much of the decrease in property offences in 1997 and 1998 was due to a decrease in the number of convictions for fraud. Between 1994 and 1996 there were around 21,000 to 22,000 convictions for fraud each year, but by 1998 the number had dropped to just over 17,000. This is the lowest number of convictions for fraud since 1990; however, this finding needs to be treated with caution. Many offenders convicted of fraud are facing a vast number of charges, so the total number of charges of fraud could change a lot without the number of people being convicted of fraud necessarily changing that much. In fact, the number of cases in 1998 where the most serious offence was fraud was the highest recorded in the decade.

The vast majority of convictions for drug offences involve cannabis. This was the case for 93 percent of drug convictions in 1998. The total number of convictions for drug offences tends to fluctuate from year to year between about 11,000 and 14,000. Around one in ten non-traffic convictions have been for drug offences throughout the decade.

Table 10.7. CONVICTIONS FOR DRUG OFFENCES

Offence type19861989199419951998
Source: Ministry of Justice
Use cannabis7,6917,0757,3995,9336,973
Deal in cannabis20452,4824,2293,4433,979
Other cannabis1095998173014722,173
Use other non-cannabis drug437493334389413
Deal in other drug137232381385422
Other drug296259147193223
        Total11,70111,53914,22011,81514,183

The total number of convictions for offences against the administration of justice has continued to increase over the decade, with the 1998 figure being 73 percent greater than the figure in 1989. The major contributing factors were large increases in the number of convictions for breach of periodic detention and failure to answer bail, and there were also big increases in the number of breaches of protection orders in 1997 and 1998 (compared with the number of breaches of non-molestation orders in earlier years).

JPs Brian Callinan and Diana Fox amid computers set up for the depositions hearing in Napier of a fishing fraud case, 1998.

Police narcotics detection dogs with their trainers, 1975.

SENTENCING, NON-TRAFFIC OFFENCES
By type of sentence

Offences against good order have shown an increasing trend since 1992. The number of convictions for good order offences in 1998 was the highest recorded in the decade. The Police have indicated that recent increases in disorder and trespass offences are due to their tougher stance against street disorder.

The wide variety of offences included in the ‘miscellaneous’ category makes it difficult to account for fluctuations in the number of convictions for these offences. The introduction of the Dog Control Act 1996 contributed to the large drop in the number of convictions for the offence of failing to register a dog, which has become an infringement.

Of the cases that resulted in conviction in 1998 for a non-traffic offence, and for which the gender of the offender was known, 84 percent involved male offenders and 16 percent involved female offenders. Forty-six percent of the cases in 1998 for which the ethnicity of the offender was known involved New Zealand Europeans, 44 percent involved Māori, 8 percent involved Pacific Islands peoples, and 2 percent involved offenders of some other ethnicity. Twenty-one percent of the cases that resulted in a conviction in 1998 for a non-traffic offence, and for which the age of the offender was known, involved teenage offenders; 25 percent involved offenders aged between 20 and 24 years; 18 percent involved offenders aged between 25 and 29 years; 23 percent involved offenders aged between 30 and 39 years; and 12 percent involved offenders of or over 40 years of age.

Table 10.8. CONVICTIONS FOR OFFENCES AGAINST THE ADMINISTRATION OF JUSTICE

Offence type19861989199419951998

1The offence of breach of bail was introduced on 1 August 1987 by the Summary Proceedings Act (No. 2) 1987.

2Non-molestation orders were replaced by protection orders under the Domestic Violence Act 1995.

Source: Ministry of Justice

Breach periodic detention3,7194,8637,1217,3287,538
Breach supervision502475417680601
Breach parole51192321194202
Breach community service82104418403282
Breach of bail1-18912,9143,3844,015
Breach non-molestation order/protection order21852684404211885
Escape custody470441353424425
Obstruct/pervert course of justice254511889154
Other546801666632599
        Total5,5809,08013,06513,55515,701

Table 10.9. CONVICTIONS FOR OFFENCES AGAINST GOOD ORDER

Offence type19861989199419951998
Source: Ministry of Justice
Riot2430-72
Unlawful assembly7632446440
Possess offensive weapon13111384124812011418
Offensive language20011059694675652
Disorderly behaviour3,2222,6463,6774,2965,139
Trespassing1621189024042,7443,035
Other392456307320285
        Total8,6477,4978,3749,30710,571

Table 10.10. CONVICTIONS FOR MISCELLANEOUS OFFENCES

Offence type19891992199419961998

1Excludes a small number of offences prosecuted under this act which were categorised as violent offences or other offences against the person.

2The Dog Control Act 1996, which came into force on 1 July 1996, replaced the Dog Control and Hydatids Act 1982.

3Offences under the Income Tax Act 1976, the Income Tax Act 1994, the Goods and Services Tax Act 1985, or the Tax Administration Act 1994.

4Convictions under the Fisheries Act and related regulations, e.g. commercial fishing regulations and freshwater fisheries regulations.

Source: Ministry of Justice

Arms Act1920989936866953
Dog Control Act23,8555,3747,8987,519888
Tax Acts34,6132,8545,1603,7512,469
Sale of Liquor Act3,52564411649391208
Fisheries Act45177581253314736
Other3,3603,2562,8433,9934,121
        Total16,79013,87519,25417,38210,375

Sentencing for non-traffic offences

There have generally been only small changes over the last decade in the proportion of cases resulting in a custodial sentence. 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. This was followed by a slight reversal of these trends between 1993 and 1996.

However, the sentencing of non-traffic offences as a group in both 1997 and 1998 was affected when failing to register a dog became an infringement offence. Around 5,000 fewer cases resulted in a monetary penalty in these years because of this.

Throughout the decade, around one in ten people convicted of a non-traffic offence have received a custodial sentence. In 1998, 6,991 non-traffic cases resulted in a custodial sentence – the highest number recorded in the decade. The average length of the custodial sentences (including preventive detention) imposed in cases involving non-traffic offences increased from 11.6 months in 1989 to 14.4 months in 1998.

Table 10.11. SENTENCES FOR NON-TRAFFIC OFFENCES1

Sentence type/year ended 31 December198619891992199519971998

1Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

2Community care was renamed ‘community programme’ by the Criminal Justice Amendment Act 1993.

3Monetary penalties are fines and reparation.

4To come up for sentence if called upon or a suspended prison sentence.

5Mainly disqualification from driving and deportation orders.

6Conviction and discharge under Section 20 of the Criminal Justice Act 1985.

Source: Ministry of Justice

Custodial5,6215,6616,2276,2356,8776,991
Periodic detention8,13411,14113,50113,07413,34514,701
Community programme2797604869744355308
Community service128120344,4824,2734,0824,437
Supervision2,7983,00625804,3654,1704,159
Monetary339,64227,74818,96425,70620,58019,654
Deferment420612,6783,2413,1753,2993,616
Other51454024311719
Conviction and discharge62,1892,5183,0454,1913,6534,398
        Total62,66855,43052,93361,79456,37658,283

Only 7 percent of the non-traffic cases which resulted in a custodial sentence in 1998 involved a female offender. Māori offenders accounted for over half (53 percent) of the cases which resulted in imprisonment in 1998 (for which the ethnicity of the offender was available), while a further 38 percent involved New Zealand Europeans, and 8 percent involved Pacific Islands peoples. Cases involving offenders in their twenties accounted for nearly half (48 percent) of the cases which resulted in a custodial sentence in 1998, with a further 19 percent of cases involving teenage offenders. (It should be noted that only 81 of the 1,319 cases identified as involving a teenager and resulting in a custodial sentence 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 1998 were aged 40 or more.

The use of periodic detention increased from 20 percent of non-traffic cases in 1989 to 26 percent of cases in 1992. After falling off over the next four years, the proportion of cases resulting in this sentence has increased in 1997 and 1998 to be just over 25 percent. The number of periodic detention sentences imposed in 1998 for non-traffic offences was the highest recorded in the decade.

The number and proportion of non-traffic cases resulting in a community programme sentence in 1998 was the lowest recorded in the decade.

The proportion of cases resulting in supervision as the most serious sentence showed an upward trend between 1991 and 1995. Since then, the proportion has been fairly steady at around 7 percent.

There was a marked decrease in the use of monetary penalties (in particular, fines) as the most serious sentence for cases involving non-traffic offences, from 42 percent in 1996 to 34 percent in 1998. The decrease in the use of monetary penalties in the late 1980s and early 1990s is likely to be partly due to the introduction of the police adult diversion scheme from 1988. A number of the less serious cases, which would most likely have had a monetary penalty imposed, were diverted from a conviction, with the result that the remaining cases were more serious on average. More serious cases tend to attract more serious sentences.

The Crimes Amendment Act (No 3) 1993 increased the maximum penalty for both rape and unlawful sexual connection from 14 years to 20 years’ imprisonment. Since this legislative change, the average length of the custodial sentences imposed for rape has increased significantly to reach 94.6 months (7 years 11 months) in 1998, the highest figure in the decade. In the period 1991 to 1993, rapists had sentences imposed of 71 months (5 years 11 months) on average. Custodial sentences imposed for unlawful sexual connection have also been longer in the last five years compared with earlier years in the decade.

Convictions and sentencing for traffic offences

Traffic offences comprised the largest single category of offences resulting in conviction for each year between 1989 and 1998. In 1998, for example, one-third of all convictions resulted from traffic offences.

For each of the years 1992 to 1998 there have been fewer convictions for driving offences resulting in the death of another person than in the period 1989 to 1991. 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. The number of convictions for driving causing injury has been relatively stable each year since 1991, at a higher level than in 1989 and 1990.

The number of convictions for driving while disqualified and driving with excess alcohol increased considerably between 1989 and 1991, then decreased in the next three years. Part of the decrease was due to fewer officers being available for traffic enforcement when the Police and the Traffic Safety Service of the Ministry of Transport merged in July 1992. The number of convictions for driving while disqualified was fairly stable between 1994 and 1997, at a lower level than in the early 1990s, before increasing in 1998. The 1998 figure was the highest recorded since 1992. The number of convictions for driving with excess alcohol increased sharply in 1995 and the number has remained reasonably stable since then. The 1998 figure was 6 percent lower than the figure in 1989.

Convictions for reckless or dangerous driving decreased in 1992 and 1993, but have shown an increasing trend since then. The number of convictions in 1998 was 11 percent greater than the number in 1989. The number of convictions for careless driving was a little higher in 1998 than in the previous year. However, there has generally been a downward trend over the decade in the number of such convictions, with the 1998 figure being 32 percent lower than the figure in 1989.

Table 10.12. CONVICTIONS FOR TRAFFIC OFFENCES

Offence type19891992199419961998

1Includes charges where the offender refused to supply a blood specimen, or was convicted for driving under the influence of drink or drugs.

2All charges involving driving with excess alcohol, reckless/dangerous driving or careless driving where death or injury occurred are included in the first two categories in the table.

Source: Ministry of Justice

Drive causing death20214111795126
Drive causing injury13291441150315601556
Driving with excess alcohol1,226,47025,20622,66325,44224,858
Driving while disqualified10,45612,22310,70310,95911,623
Reckless/dangerous driving2260322302,1362,5252,885
Careless driving215,02612,92611,32911,15010,272
Other traffic55,29214,73711,10911,52510,997
        Total111,37868,90459,56063,25662,317

As was the case for non-traffic offences, there have been only small changes in sentencing for traffic offences since 1992 for all sentence types. The number of cases that involved a traffic offence which resulted in imprisonment was higher in 1998 than in any other year in the decade. Just over 5 percent of traffic cases in 1998 resulted in a custodial sentence. The average length of the custodial sentences imposed in traffic cases has remained reasonably stable through the decade at about five months.

There was a large increase in the number of traffic cases resulting in a community-based sentence between 1989 and 1991. In the next six years, the number showed a downward trend, before increasing again in 1998. This trend is mostly due to changes in the number of convictions for serious traffic offences, as the proportion of traffic cases resulting in a community-based sentence has not changed very much in recent years.

Periodic detention has accounted for 16 percent to 19 percent of the sentences imposed on convicted traffic cases in each of the last seven years. The number of periodic detention sentences imposed followed a similar pattern to that described above for the total number of community-based sentences imposed for traffic offences.

There was a very large increase in the number of cases resulting in a community service sentence for a traffic offence between 1989 and 1992. The number dropped in the next five years, before increasing a little in 1998. The proportion of traffic cases resulting in community service has decreased a little since 1993, with 9 percent of traffic offenders receiving such a sentence in 1998, compared with 11 percent in 1993.

There has been an increase in the use of supervision as the most serious sentence for traffic offenders since 1992, although the proportion of cases resulting in such a sentence is still very small (less than 3 percent in 1998).

Throughout the 10-year period, a monetary penalty was by far the most likely outcome of a conviction for cases involving a traffic offence. A monetary penalty was the most serious sentence imposed in 60 percent of cases resulting in conviction for a traffic offence in 1998.

Table 10.13. SENTENCING OF TRAFFIC OFFENCES1

Sentence type/year ended 31 December19861989199319961998

1Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

2Community care was renamed ‘community programme’ by the Criminal Justice Amendment Act 1993.

3Monetary penalties are fines and reparation.

4To come up for sentence if called upon or a suspended prison sentence.

5Conviction and discharge under Section 20 of the Criminal Justice Act 1985.

Source: Ministry of Justice

Custodial123419192,23922902501
Periodic detention3,6738,2658,7227,6638,137
Community programme2217244367223121
Community service67724505,1294,2124,313
Supervision36671489511921176
Monetary338,76666,66626,95629,71528,301
Deferment42489977360
Driving disqualification3719089359361161
Other-77---
Conviction and discharge510683,147135412591589
        Total46,39684,47945,34047,56347,359

Riot at Auckland's Mount Eden Prison, 1965.

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 and orders 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: the Public Prisons Service; the Community Probation Service; the Psychological Service; the Service Purchase and Monitoring Group; the Policy Development Group; the Strategic Development Group; the Finance Group, including Corrland which manages farms and forests owned by the department; and the Internal Audit Group.

Contracted facilities and services

Auckland Central remand prison. In July 1999, the department signed a $102 million five-year contract with Australasian Correctional Management Pty Ltd (ACM) to run New Zealand's first contract-managed prison. The Auckland Central remand prison is scheduled to open in May 2000. The prison will accommodate up to 252 inmates with capacity for 360 if necessary.

ACM was selected from a rigorous tender process and the contract was tabled in Parliament. The department will closely monitor the performance of the management of the prison by the appointment of a monitor who will have statutory powers.

Prisoner escort and courtroom custodial services. In October 1998 the department signed a contract with Chubb New Zealand Ltd to supply prisoner escort and courtroom custodial services in the Northland and Auckland regions. The contract provided for escorting prisoners between penal institutions, courts and forensic psychiatric units, previously undertaken by Police and Public Prisons Service officers; and court custody of prisoners appearing for judicial purposes, previously undertaken by Public Prisons Service officers.

The contract was awarded for five years and has now been in operation for over a year.

Community Probation Service

Community Probation Service's 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 22,600. 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.

Police toxicologist testing clothing, 1950s.

Crime prevention

In early 1992 the Crime Prevention Action Group was established to explore different approaches to crime prevention. A group of interdepartmental officials, it analysed the potential for crime prevention activities by taking account of the way crime impacts on the community and the existing potential for active community participation to prevent crime. It developed a strategy for crime prevention that coordinates policy, research and service delivery from the relevant government agencies and the efforts being made in the community into one strategic crime prevention framework.

In July 1993 the Crime Prevention Unit (CPU) was established within the Department of the Prime Minister and Cabinet.

The CPU has two major roles: coordination of government agencies’ crime prevention policies and programmes; and partnership with communities through supporting local crime prevention initiatives.

The core of this programme of supporting community crime prevention initiatives is the network of safer community councils (SCCs) which has been established throughout New Zealand. SCCs coordinate community crime prevention programmes and activities and encourage the development of new programmes. They are established and funded by the CPU under an agreement between the Government (represented by the Crime Prevention Unit) and a sponsoring body (such as a local authority or iwi). An SCC usually comprises a committee with members representing the community, local and central government agencies and other key individuals. Each committee generally oversees the work programme of a paid coordinator.

SCCs also promote, support and in some cases deliver crime prevention services. Examples of such services include mentoring projects; neighbourhood-based safety projects; early intervention with ‘at-risk’ children; family skills development and community managed diversion projects which are aimed at dealing effectively with offenders outside the formal court system.

The CPU evaluates the projects and services it supports in order to build up knowledge of what works – including for whom and in what circumstances – in preventing crime in New Zealand communities.

At 30 September 1999 there were 63 safer community councils: North Island (46), South Island (17). Of these, seven are iwi sponsored (including two co-sponsored with the local authority) and there are two Pacific Islands community sponsored SCCs.

The appropriation for community crime prevention initiatives is $4,660 million in 1999/2000 (1998/99, $4,317 million).

Table 10.14. REPORTS ON COMMUNITY-BASED SENTENCES1

Report type19962199719981999

1Year to 30 June.

2Due to departmental restructuring these figures cover from 1 October 1995–30 June 1996.

Source: Department of Corrections

Remand pre-sentence reports10,86714,38314,27715,049
Courts servicing – same day reports and oral information15,52924,22225,12422,943
Reparation reports2,118278028102603
Community programme agreements439508376290
Parole reports15702,2592,8332,871
Home leave reports112219772,6362073
Special purpose reports33234040

Drivers caught speeding by police speed cameras are automatically fined.

Sentences administered by Community Probation Service

Community service. Offenders live at home and remain in work while contributing some of their time – from 20–200 hours within 12 months – to an organisation in their own community. They are not paid for the work they do: it is overseen by the community organisation and there is frequent mutual benefit from it. Only offenders who do not present a risk to others are eligible for community service. The offender is seen to be making some form of reparation to the community.

In the year to 30 June 1999, 10,934 community service sentences were imposed.

Supervision. On 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. They may also be subject to additional conditions to address particular needs such as attending counselling and other relevant programmes. The sentence of supervision is rehabilitative in that it focuses on addressing the reasons for offending. It can be imposed for periods ranging from six months to two years.

In the year to 30 June 1999, 9,945 supervision sentences were imposed.

Community programme. This sentence places people in the care of a person or organisation that offers a programme dealing with the offending-related problem the sentenced person has acknowledged. Getting help with the problem may involve living with the sponsor for up to six months or spending a great deal of time regularly with them for up to a year. The offender's family and friends may also be involved with the programme.

In the year to 30 June 1999, 365 community programme orders were imposed.

Periodic detention (PD). This sentence, which also offers service to the community, differs from Community Service in that it requires people to attend a PD work centre on at least one specified day per week, for up to a year. The detainees are sent out from the centre in groups of up to 10, supervised by a staff member, to perform a day's work for a community organisation or occasionally an individual. The type of work can include clearing land, building walkways and fences, mowing lawns, cleaning, painting and building play areas for kōhanga reo or schools.

In the year to 30 June 1999, 24,861 periodic detention sentences were imposed.

Parole. People on parole have been released from prison, under strict conditions laid down by law. Often they will move on to a community-based programme designed to deal with their offending-related problems. They must report regularly to a probation officer who monitors their progress and adherence to any conditions imposed as part of the parole.

In the year to 30 June 1999, the Community Probation Service supervised 2,368 offenders on parole.

Table 10.15. COMMUNITY-BASED SENTENCES1

SentenceAs at 30 June
199519962199719981999

1Figures represent the average monthly muster for the 12 months ended 30 June.

2Due to departmental restructuring, these figures cover from 1 October 1995 to 30 June 1996.

Source: Department of Corrections

Periodic detention23,38122,66522,60923,93424,861
Community service13,42312,26211,61310,67010,934
Community programme1022836584418365
Supervision9,8759,79110,0789,9249,945
Parole1859201920922,2452,368

Home detention. Home detention allows eligible offenders to serve part of their sentence outside prison, in an approved residence (including a marae) under electronic surveillance and intensive supervision by a probation officer. A probation officer assesses the suitability of an inmate for home detention and reports to a district prisons board or to the Parole Board. The final decision regarding the release of the inmate to home detention is made by a district prisons board or the Parole Board. Offenders will be able to work and attend rehabilitative programmes to address the causes of their offending. Home detention legislation came into effect on 1 October 1999. The service expects that 300 offenders will have been released to home detention by 30 June 2000.

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 5,900 sentenced inmates and remandees. There are 6 maximum security units, 78 high-medium security units, 5 low-medium security units, 61 corrective training units and 1 specialist youth unit. There are two separate women's prisons and a women's division at Mt Eden Prison. Addington Prison, which first opened in the 1870s, closed in 1999 and a new remand centre was opened at Christchurch Prison.

About 2,700 people work full time for the service. As well as providing custodial services, the Public Prisons Service aims to help reduce re-offending. The service looks at the root causes of people's offending and is working with different approaches to address these issues with inmates.

Shut-in Stitchers, a quilters’ group at Arohata Women's Prison, with tutor, 1998.

Inmates take part in specialised programmes to address the problems that have led them to offend. These programmes range from Straight Thinking, a programme that teaches inmates cognitive skills, to vocational skill programmes and programmes that specifically address the issues around inmates’ offences such as drug and alcohol abuse, violent behaviour and repeat driving offences.

Certain prisons offer specialised units that focus on specific offending-related needs. These units include three Māori focus units, one youth unit, one violent offending unit, two sex offender units and a drug treatment unit.

Most inmates are also kept busy in work programmes where they can learn skills that may help them get a job once they leave prison. These jobs range from joinery to horticulture, printing to cooking.

The average cost of keeping someone in prison was $51,036 per year for the year to 30 June 1998, compared to $49,224 for 1997.

Table 10.16. PENAL INSTITUTIONS

InstitutionCapacity1

1As at 15 November 1999.

Source: Department of Corrections

Male prisons
Auckland645
Christchurch616
Dunedin59
Hawke's Bay Regional540
Invercargill172
Manawatu278
Mount Eden421
New Plymouth108
Ohura100
Rimutaka446
Rolleston320
Tongariro/Rangipo529
Waikeria842
Wanganui (includes Wanganui City Prison)420
Wellington120
Female prisons
Arohata105
Christchurch Women's98
Mount Eden (women's division)54

Proceeds of crime

Apart from his role in company liquidations and personal bankruptcy, the Official Assignee has certain statutory responsibilities under the Proceeds of Crime Act 1991.

The High Court may order that assets be placed in the custody and control of the Official Assignee. This is to ensure that the assets are not depleted or destroyed while a criminal trial is pending or a further application under the Proceeds of Crime Act is to be heard.

When the court orders forfeiture of a criminal's property, or that the restrained property is to be sold to satisfy a pecuniary penalty, the Official Assignee takes the necessary steps to realise those assets and transfer the proceeds to the Crown.

In the year to 30 June 1999 the Official Assignee in relation to Proceeds of Crime matters:

  • had property with a value of $5,781 million placed into his custody and control through restraining orders

  • assisted with five pecuniary penalty orders which awarded a total of $173,061

  • received eight forfeiture orders for property valued at $266,289

  • returned a total of $949,687 to the Crown.

Detention in a penal institution

The sentences of imprisonment which the Department for 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 Probation 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 half of their sentence is completed.

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 1998 there was an average of 5,561 inmates in prison (5,328 males and 233 females). This was made up of an average 4,978 sentenced inmates and an average 761 inmates remanded in custody. In 1997 there was an average of 5,152 inmates (4,587 sentenced, 565 remand).

Census of prison inmates. The following detailed statistics are taken from the census of inmates carried out on 20 November 1997 and published in the Ministry of Justice's Census of Prison Inmates 1997. The information was obtained directly from the prisons or extracted from the Law Enforcement System of the former Wanganui computer.

In total, there were 4,935 sentenced inmates comprising 207 females and 4,728 males. In addition, there were 529 remand inmates within the prisons (13 female and 516 male) making a grand total of 5,464 prisoners. Unless specified the following figures refer to sentenced inmates.

Age and ethnicity – in total, 491 inmates (10 percent) were under the age of 20, 1,627 inmates (33 percent) were under the age of 25 and 2,268 inmates (53 percent) were under the age of 30. Nine hundred and ninety-three (20 percent) of inmates were 40 years or over.

Table 10.17. AGE DISTRIBUTION OF INMATES1

AgeFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

1As at 20 November 1997.

Source: Ministry of Justice

1500.050.150.1
1641.9220.5260.5
17–192713.04339.24609.3
20–243918.8109723.2113623.0
25–293416.496720.5100120.3
30–343617.474615.878215.8
35–393014.550210.653210.8
40–492110.158012.360112.2
50–59146.82375.02515.1
60+21.01392.91412.9
        Total207100.04,728100.04,935100.0

Of the female inmates whose ethnic group was known, 76 (42 percent) identified themselves as Māori only, and 67 (37 percent) identified themselves as European only. Of the male inmates whose ethnic group was known, 1,566 (44 percent) identified themselves as Māori only, and 1,366 (38 percent) as European only.

PRISON INMATES
Numbers in prison per 10,000 mean population

Male Māaori and Pacific Islands inmates were generally younger than male European inmates. Sixty-one percent of male Māori and Pacific Islands inmates were under 30 years old, compared with 44 percent of European inmates. Thirty-one percent of male European inmates were 40 years or older compared with 17 percent of Pacific Islands inmates and 14 percent of Māori inmates.

Table 10.18. MAJOR OFFENCE OF INMATES1

Major offenceFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

1As at 20 November 1997.

Source: Ministry of Justice

Violence7033.82,69857.12,76856.1
Other against persons31.41052.21082.2
Against property8340.194119.9102420.7
Involving drugs2914.03317.03607.3
Against good order00.0320.7320.6
Traffic136.347510.04889.9
Against justice73.41012.11082.2
Miscellaneous21.0451.0471.0
        Total207100.04,728100.04,935100.0

Major offence – the census shows that 57 percent of male inmates were imprisoned for violence offences. The next largest group of male inmates was those imprisoned for property offences (20 percent), followed by traffic offenders (10 percent) and then by drug offenders (7 percent). Two 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 (40 percent) or violent offences (34 percent). Fourteen percent of female inmates were drug offenders and 6 percent were traffic offenders.

The most common violent offences for male inmates were aggravated robbery (20 percent of male inmates sentenced for violent offences and 12 percent of all male inmates) and rape (17 percent and 9 percent).

The most common violent offences for female inmates were murder (24 percent of female inmates sentenced for violent offences and 8 percent of all female inmates) and aggravated robbery (19 percent and 6 percent).

Sentence length – Seventy-one (34 percent) female inmates and 957 (20 percent) male inmates were serving a sentence of up to one year. Seventeen (8 percent) female inmates and 288 (6 percent) male inmates were serving sentences of life imprisonment. Ninety-two males were serving preventive detention sentences. Excluding life and preventive detention sentences, 15 female inmates (7 percent) and 1,275 male inmates (27 percent) were serving a sentence of more than five years.

Seven female inmates and 177 male inmates were serving sentences of three months or less. The most common major offences of inmates serving this time were driving with excess alcohol (52 inmates) and breaching periodic detention (26 inmates).

Excluding people serving life imprisonment or preventive detention, inmates serving sentences of more than five years were most commonly imprisoned for rape (358 inmates), aggravated robbery (259 inmates) and unlawful sexual connection (165 inmates).

Most inmates are not required to serve the entire sentence imposed.

Table 10.19. TOTAL SENTENCE LENGTH FOR INMATES1

Sentence lengthFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

1As at 20 November 1997.

Source: Ministry of Justice

Under 3 months73.41773.71843.7
3 months and under 6 months2110.12004.22214.5
6 months and under 1 year4320.858012.362312.6
1 and under 2 years3918.874315.778215.8
2 and under 3 years2813.559112.561912.5
3 and under 5 years3717.978216.581916.6
5 and under 7 years94.353211.354111.0
7 and under 10 years31.450810.751110.4
10 years and over31.42355.02384.8
Life178.22886.13056.2
Preventive detention--921.9921.9
        Total207100.04,728100.04,935100.0

Centre wing Paparua Prison, Christchurch, 1989.

Offending history – Thirty percent of female inmates and 57 percent of male inmates had previously received a custodial sentence. Fifty-four percent of the female inmates, and 64 percent of the male inmates had at least six previous convictions. Thirty-two percent of the female inmates and 36 percent of the male inmates had more than 20 previous convictions.

Twenty-two percent of female inmates and 30 percent of male inmates had previously spent less than one year in prison. A small proportion (3 percent) of female inmates and 11 percent of male inmates had spent at least three years in prison previously.

Table 10.20. TOTAL TIME SPENT IN PRISON ON PREVIOUS OCCASIONS1

Total lime spent in prisonFemaleMale
NumberPercentNumberPercent

1As at 20 November 1997.

Source: Ministry of Justice

No previous incarcerations14670.5205643.5
Under 6 months3717.989819.0
6 months and under 1 year94.351310.9
1 and under 2 years52.447110.0
2 and under 3 years31.42595.5
3 and under 5 years41.92906.1
5 and under 7 years31.41433.0
7 and under 10 years--721.5
10 years and over--260.5
        Total207100.04,728100.0

Classification status – if the security status was known, 60 percent of male inmates had a minimum security classification status, 37 percent were classified as suitable for medium security, and 1 percent had a maximum security classification. For female inmates where the security status was known, 79 percent had a minimum security classification status. Overall, 2 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. When 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 also an education coordinator in each prison who is responsible for contracting educational services from the community.

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. 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 Department of Work and Income. 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 is eligible for parole after serving one-third of his or her sentence, if the sentence is for more than a year and is not for a serious violent offence. 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 boards 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 Probation Service).

Residential YouthCentre, Epuni.

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.

The New Zealand Police commenced restructuring during 1998, resulting in the country being divided into 12 districts, each managed by a District Manager. The Office of the Commissioner in Wellington provides police advice and support to the Government, the Commissioner and districts. A number of service centres are located around the country to provide administrative support to the districts.

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 the 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 fisheries officers.

The effective strength of the police at 30 June 1999 was 6,908 sworn personnel, giving a full-time equivalent (FTE) of 6,876 sworn officers (6,492 in 1997). There were also 1,906 non-sworn full-time equivalent positions (1,909 in 1997).

Police operations

Armed offenders squads. Police maintain 17 squads of specially trained and equipped officers throughout New Zealand. During the year ended 30 June 1999, armed offenders squads (AOS) were deployed 533 times (596 in 1998). During June 10 AOS members were selected to joint a UNCIVPOL contingent in East Timor monitoring the period leading up to the ballot in late August.

Special Tactics Group. This group is made up of selected members of armed offenders squads from Auckland, Wellington and Christchurch, and is provided with specialised training to enable it to deal with incidents beyond the capability of armed offenders squads. The squads exercise with police negotiators and other specialist police support staff.

Search and rescue. There were 838 police-controlled search and rescue operations during the year ended 30 June 1999, which searched for and/or rescued a total of 1,288 people. The comparable activity in 1998 was 838 searches and 1,172 people.

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. There were over 42,000 standard classroom sessions delivered during the year ended 30 June 1999.

YES promotes a curriculum for schools that has four themes:

  • Crime prevention and social responsibility, for example, Stealing and Vandalism.

  • Drug Abuse Resistance Education, for example, the DARE programmes.

  • School road safety education, for example, school patrols and the Road Safe series.

  • Violence prevention, for example, Keeping Ourselves Safe and Kia Kaha.

POLICE NUMBERS
Population1 per sworn police officer2

Police dogs. A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ended 30 June 1999, police dogs were deployed to 37,790 incidents (32,777 in 1996). There were 96 general-purpose teams with specialist trained dogs, and of these, three are dual trained to find narcotics. The service operates eight narcotic dogs, three explosive detector dogs, and one firearm detection dog. Property, excluding motor vehicles, was recovered to the value of $543,942.

Community constables. Many Police are in positions that require them to work in partnership with the community (such as iwi liaison officers, or family violence coordinators). However, those working as community constables are not necessarily full-time. Consequently, no statistics are kept on the numbers of community constables.

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.

Youth aid staff throughout the country as at 30 June 1999 totalled approximately 144 members.

Neighbourhood support groups (Community Support Groups). As Police are now involved in many partnership activities within the community, such as Safer Community Councils, Victim Support Groups (of which there are 76), and Women's Refuge Collectives’ (of which there are 49), Police do not hold accurate information on the number of community support groups.

National Drug Intelligence Bureau. For the year ended 30 June 1999 there was a total of 26,789 drug offences recorded, of which 89.3 percent were resolved. In the year to June 1998, search without warrant powers were exercised in 4,072 cases, resulting in 3,171 seizures (77.9 percent).

In the year ending June 1998, a total of 187,577 cannabis plants were recovered as part of the Annual Cannabis Plant Recovery Programme.

Reported offences. A summary of offences reported to the Police for the year ended 30 June 1999 can be found at the beginning of section 10.2, Criminal justice.

Police Infringement Bureau. A speed camera programme was introduced by the New Zealand Police in 1993; the first full fiscal year of operation was 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 59 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.

The Police Infringement Bureau, commissioned on 23 June 1997, has now completed its first full year of work. Speed is now the single biggest cause of fatal crashes in New Zealand. Police have increased their effort in speed limit enforcement. Speed cameras have resulted in 428,502 offence notices being issued in the year ended 30 June 1999.

Table 10.21. DRUG SEIZURES BY SUBSTANCE

Substance1993–941994–9511995–9611996–971,21997–981

1Year ended 30 June.

2Recording of statistics has changed in the last fiscal year, as a result figures may not be comparable to previous years.

Source: New Zealand Police

Heroin (grams)103230673801.31110.3
Heroin (millilitres)4351293820.49.0
Cocaine (grams)3108993494.257.3
Opium (grams)371866823.9-
Opium (poppies)   1101199
Morphine (grams)315321569.31580.2
Morphine (millilitres)1032947176018343.5
Analgesics (tabs)13,97911,505468403186
LSD (tabs)25,94518,2308,65533,5881312
Psilocybine (grams)4,0713,38617331914.7725.3
Psilocybine (mushrooms)18883,2022,6821564408
MDMA (Ecstasy) (grams)   1.05938.0
Amphetamine (grams)71538331116.71102
Methamphetamine (grams)182101199396.8105
Cannabis plant (number)220,011355,663268,58698,063169,625
Cannabis leaf (grams)765,263863,985482,617206,984373939.5
Cannabis oil (grams)259,6413,8393,0675,2035488.4
Cannabis resin (grams)670706,43913012309136.1

Regional prison manager John Jamieson at the Wanganui Prison shoe factory, 1999.

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; Department of Prime Minister and Cabinet; Ministry of Economic Development; Office of Film and Literature Classification.

  • 10.4 New Zealand Police; Police Complaints Authority.

Special articles

New Zealand Council of Victim Support Groups; New Zealand Police; Department for Courts; Royal Federation of New Zealand Justices’ Associations.

Further information

Census of Prison Inmates 1997. 1997. Ministry of Justice.

Changes to the Seriousness of Offending and in the Pattern of Sentencing: 1979 to 1988. Department of Justice.

Conviction and Sentencing of Offenders in New Zealand: 1989 to 1998. 1998. Ministry of Justice.

Escape pressures – inside views of the reasons for prison escapes. June 1996. Department of Corrections and Ministry of Justice.

Home detention: Evaluation of the pilot programme. 1997. Ministry of Justice.

Interpreting trends in recorded crime in New Zealand. 1997. Ministry of Justice.

In the interests of justice: An evaluation of criminal legal aid in New Zealand. 1995. Legal Services Board.

New Zealand Crime Prevention Strategy. October 1994. Department of the Prime Minister and Cabinet.

New Zealand Now: Crime and New Zealand Now: Crime, tables. August 1996. Statistics New Zealand.

Psychiatric Morbidity in Prisons: An investigation of the prevalence of psychiatric disorders among New Zealand prisoners. December 1995. Department of Corrections.

Rarangi rauemi: A catalogue of resources for law-related education. 2nd ed., 1995. Legal Services Board.

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)

Review of the Corrland Service of the Department of Corrections. July 1996. Deloittes.

Review of the Psychological Service. May 1996. KPMG.

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Parliamentary Counsel Office (annual).

The Law Commission publishes both their preliminary papers and reports as series.

The Legal Services Board produces pamphlets on the legal aid system, and on obtaining civil or criminal legal aid.

Chapter 11. Communications

Radio's ‘Uncle Scrim’, Colin Scrimgeour, broadcaster, administrator, consultant and entrepreneur, c1938.

Communications

Introduction

Not surprisingly, isolation has been a strong theme in New Zealand's social and cultural landscape. Its image is evoked in John Mulgan's classic New Zealand novel Man Alone, and characterised in the ‘number-8 wire’ can-do attitude.

New Zealand remains one of the most geographically isolated countries on earth. By 1900 it was connected to the outside through a pair of telegraph cables to Australia. Most New Zealanders relied on postal services and sea travel for overseas contact.

A century later, however, that isolation no longer exists. Communication with the outside world is cheap, instantaneous and seemingly ever present. New Zealanders make more than half a billion minutes worth of international toll calls each year. Per capita Internet usage is among the highest in the world and, particularly through pay television services, there is access to global television networks and a growing number of niche television services.

This change from isolation to integration shows the huge impact modern telecommunications, information technology, print and broadcast media has had. In many ways this impact is one of the major stories of the 20th century. The new technologies are arguably the major force driving both the development of an integrated global economy, and the rise of global culture. The ability to access knowledge, and to process, analyse and transport data has been instrumental in the rise of knowledge-based economies in developed countries around the world. Never before has so much of the knowledge held throughout the world been so easy to distribute and to access. This has fundamental implications for the rate at which knowledge increases and societies and economies develop.

Postal services

While telecommunications and computers have radically changed the way people communicate, the basics of domestic postal delivery have altered little. Universal penny postage was introduced in January 1901, and posties throughout New Zealand still cycle or walk to hand-deliver mail six days a week. However, as the new century begins, a huge number of written messages are now sent by electronic mail (email). With email, distance is no longer a factor in the cost of a message or the time taken for delivery.

SENDING MATERIAL TO LONDON, 1938 AND 2000
Real (inflation adjusted) costs of sending one page of material (300 words) from New Zealand to London

A noticeable change in the last decade has been the appearance and growth of courier services that pick up and deliver items, be it by bicycle, car or plane, within a specified time period. The number of people working as couriers and deliverers grew from 6,312 in 1991 to 11,925 in 1996. The growth of telecommunications has also contributed to the use of courier and postal services, as more people shop via the Internet, or buy television-advertised products through 0800 numbers.

On 1 April 1998, New Zealand became one of the very few countries to completely liberalise its letter-post market, removing New Zealand Post's remaining monopoly rights under the Postal Services Act 1998. By the end of 1999, 28 competing postal operators were registered with the Ministry of Commerce, giving customers more choice and reduced costs. New Zealand Post is owned by the government but operates as a commercial entity.

Telecommunications

In 1900, remote communication via telegraph, both nationally and internationally, was well established. Messages were transmitted in Morse code, converted at the receiving end into a written message (telegram) and then delivered. By 1900 some New Zealanders had been using telephones for 22 years; however, for limited local calling the telephone as a means of personal communication belongs to the 20th century. In 1900 total telephone subscribers numbered 7,150 out of a population of 811,000. In 1999, there were 1.9 million main telephone lines for 3.8 million people, and around 1.3 million mobile phones.

As with the telegraph, the first wireless (radio) communications were in the form of Morse code. New Zealand's first experimental public wireless station opened in Wellington in 1911, and was soon put to use communicating with coastal shipping. Maritime radio continued to use Morse code till the mid-1990s, and its use only officially ended in New Zealand in early 1999.

By the 1920s radio technology had further developed to allow the transmission of voice. Using a radio-telephone link, the first regular telephone service between New Zealand and Australia was established in 1930 and was extended to Britain later that year.

The appearance of large dishes on hilltop towers in 1960 signalled the arrival of microwave transmission in New Zealand, which was particularly useful for transmitting data over rough terrain where it would be difficult and expensive to lay cable.

NUMBER OF TELEPHONES AND POPULATION GROWTH

The first telecommunications satellite available for New Zealand use was launched in 1965 and allowed a phone connection with Britain, while New Zealand's first earth station was opened in 1971.

In 1983 the first fibre optic network was installed by New Zealand Post, leading the way for a huge increase in the capacity of telecommunications transmission lines through the high-speed transmission of digitised data. Growth in Internet traffic has meant a huge increase in data transmissions rather than voice signals. Data traffic is expected to predominate over voice traffic by at least four to one by 2004.

Deregulation. Prior to 1987, New Zealand's telecommunications infrastructure was built, owned and operated by the government through the Post Office. In 1987 the Post Office was split into banking, postal and telecommunications components. While remaining government owned, the new entities were given a corporate structure and commercial goals. The market for telecommunications services was fully deregulated in 1989, comparatively early compared to many other countries. The government's telecommunications entity, Telecom New Zealand Limited, was privatised and sold in 1990.

Competitors for Telecom emerged quickly, mostly providing telephone services to business and offering national and international calls. There are now numerous companies providing a wide range of telecommunications services in New Zealand.

Access to telephones. While most New Zealanders have access to a telephone, the rate of access is not constant across ethnic groups, incomes, or locations. Data from the 1996 Census shows that overall telephone penetration rates are 96 percent. However, only 86 percent of Māori and 85 percent of Pacific Islands people over 15 lived in homes with a telephone. Between 15 and 20 percent of Māori in the Northland, Waikato, Bay of Plenty, Gisborne, Hawke's Bay and Manawatu regions did not have access to a telephone. Between a half and two-thirds of Māori without phones in these regions had income of $15,000 or less. However, competition in telephone services since the mid-1990s has made it easier for those on lower incomes to have phone access compared to people in the earlier part of the decade, when the economy was in recession and competition was limited.

MĀBORI AND NON-MĀBORI WITHOUT ACCESS TO PHONES, BY REGION, 1996

ACCESS TO PHONES, BY REGION AND ETHNICITY, 1996
Percentage of all those with incomes below $15,000 who are without phones

Although the telephone is not a piece of digital technology, it is now the way most people access digitised information, i.e. the content and services on the Internet. The digital divide, the gap between information haves and have-nots, starts therefore with these sorts of disparities in telephone access.

Currently, the major growth area in telecommunications is cellular mobile phone services. The percentage of New Zealanders with a cell phone has doubled in the last two years of the century to around 30 percent.

Newspapers

New Zealand has no national newspapers as such, but newspapers remain a significant form of communication. While newspaper circulation generally has been declining since 1975, newspaper readership in the last five years has increased, particularly for younger people, and of Sunday papers.

In 1910, 193 newspapers were published including 67 dailies. This reflected New Zealand's generally literate population, low population density and challenging geography. However, as New Zealand urbanised after World War II, small country newspapers either ceased publication or were integrated into larger provincial and metropolitan papers. Motorised transport made distance less of an issue for news gathering, production and distribution. Readers wanted wider coverage, and increasing investment was required in production technology.

The 1970s saw a refocusing back to local news through the development of weekly or biweekly free community newspapers whose revenue relied on local advertising. In turn, the 1980s saw the revival of Māori language and Māori-oriented papers, reflecting the new Māori renaissance. The papers revived a publishing tradition that flourished in the second half of the 19th century. Throughout the 20th century, other non-English papers included those in Chinese, Croatian, Samoan, Dutch and Gaelic. The high proportions of immigrants from Asian countries at the end of the 20th century also saw an increase in Asian-language newspapers.

New Zealand has seen over 500 different newspapers since the first newspaper, the New Zealand Gazette, appeared in Wellington in 1840. Only one 19th century daily has been published continuously, the Otago Daily Times. It began in 1861 and is now also the only daily metropolitan newspaper in independent ownership. At the end of the 20th century New Zealand had 24 daily newspapers. In addition to changes in the number and type of newspapers there have been significant changes in production and appearance as a result of new information and communication technologies. This began in the 1970s with the progressive move from hot type to cold type, and then to computers to set copy. Today, in some newspaper companies, the first time that graphics, photos, editorial and advertising copy are seen on paper is when the newspaper rolls off the press.

The Internet has also become a key source of news, information and entertainment. Its ‘free-to-view’ culture, however, leaves newspaper companies struggling to profit from online news. The future of newspapers diversifying to the Web may lie in providing customised news for subscribers.

SURVIVING DAILY NEWSPAPERS AS AT DECEMBER 1999

PaperDate foundedCirculation as at 31 March 1999

*Formed from integration of Napier's Daily Telegraph and Hasting's Hawke's Bay Herald Tribune (1857).

Wanganui Chronicle185613,261
Taranaki Daily News185727,044
Otago Daily Times186145,189
Southland Times186231,652
New Zealand Herald (Auckland)1863213,150
Timaru Herald186414,455
Evening Post (Wellington)186560,415
Nelson Evening Mail186618,118
Marlborough Express186610,433
Greymouth Evening Star (News)18665,293
The Press (Christchurch)186995,506
Waikato Times187240,622
Bay of Plenty Times187222,133
Westport News18722,221
Gisborne Herald (Poverty Bay Herald)18749,224
Oamaru Mail18763,715
Northern Advocate (Northland)187714,956
Wairarapa Times-Age (Wairarapa Daily)18788,478
Ashburton Guardian18795,978
Manawatu Evening Standard188021,367
Levin Chronicle (Manawatu Farmer)18934,486
Dominion (Wellington)190768,521
Dannevirke Evening News19092,500
Hawke's Bay Today*1998Not known

TOTAL NEWSPAPER CIRCULATION
Daily and Sunday newspapers

Radio and television

During the 20th century radio and television have done much to enhance social identity and lessen New Zealanders’ isolation, both from each other and from the rest of the world. Commercial and public radio services have been offered from the early 1920s, and regular television transmission started in 1960 (although the first television pictures had been transmitted in the 1920s by a team at Otago University). Once radio and television were introduced, some time after the United States and Britain, the uptake was rapid.

Television. Public television broadcasts started in 1960, 11 years after an interdepartmental committee first looked at establishing a New Zealand television service. Once the service started, the daily broadcast hours and geographic coverage gradually increased. Television sets also increased dramatically, from 4,000 in 1961 to over 500,000 by 1966, although the first fully national link-up was not established until 1969. The next innovation, in 1974, was colour television. Ownership rose to 90 percent of all households by 1985, and has recently held steady at about 98 percent. Growth since the mid-1990s has been in multiple sets per household and upgrading to new technology.

New Zealand did not gain its second television channel until 1975. Both channels were state-owned, despite a Broadcasting Tribunal decision (overturned by the government) that the new channel should be operated by a private company. The first privately owned channel (TV3) did not begin broadcasting until 1989.

Two of the main national channels (Television One and TV2) are now operated by the state-owned enterprise Television New Zealand Ltd (TVNZ). Privately owned competitors include Can West (which operates TV3 and TV4), Prime and the Pay TV networks, Sky Television and Saturn. In addition there are a number of regional and special interest channels. New Zealand does not have any overseas ownership restrictions or cross-media limitations on privately owned TV companies.

Radio. New Zealand was one of the first countries to legislate for control of the airwaves, via the Wireless Telegraphy Act 1903. Annual licence fees were first imposed in 1922 when the oldest radio station in the Commonwealth started in Dunedin. It is still broadcasting as station 4XD.

Between 1925 and 1931, the Radio Broadcasting Company of New Zealand – a private company – had pioneered many innovations such as live outside sports broadcasts and regular weather forecasts. During this period, the number of radio sets in use increased from 4,000 to over 70,000. However, moves towards centralised control of broadcasting continued for some years and the company passed to the Crown in 1936. The State maintained a monopoly on commercial radio until 1968. The state-owned enterprise, Radio New Zealand Ltd, with provision for community access and Māori services, was established in 1988 when the Broadcasting Corporation of New Zealand was dissolved.

New Zealanders now enjoy a range of services offered by public radio and a large and increasing number of privately owned national and local stations. There are currently about 190 radio stations and radio services delivered over the Internet are also increasing.

Broadcasting policy. Substantial changes to the broadcasting regime were implemented with the passage of the Broadcasting Act 1989. This allowed open entry to the market, with the abolition of the Broadcasting Tribunal that had been responsible for granting broadcasting warrants. Most restrictions on advertising were also removed. The Broadcasting Commission, the Broadcasting Standards Authority and Māori broadcasting funding agency Te Māngai Pāho (TMP) were established, while New Zealand On Air, funded by the public broadcasting fee1, supports services unlikely to be fully provided for on a commercial basis.

Māori broadcasting. Since the 1980s there have been specific policies for the promotion of Māori language (te reo Māori) and Māori culture. TMP is responsible for disbursing public funds allocated for Māori broadcasting. During 1998/99 TMP funded about 371 hours of Māori television programmes (each programme to include at least 60 percent Māori language content). It also funded a number of music videos, 20 Māori radio stations, and the extension of radio coverage to reach more Māori listeners.

Computers and the Internet

Notwithstanding the impact of radio and television, future historians may well look back on the explosion of Internet use over the last decade as the most significant communications development of the 20th century. The Internet is increasingly driving the expansion of telecommunications and has a key role in enabling the growth of electronic commerce. It is also a prime example of how rapidly and extensively a single technology can transform a society and economy.

For those able to make effective use of it, the Internet has given individuals, communities, businesses and governments the ability to communicate almost instantaneously and at low cost with millions of others. However, the rapid increase in Internet usage has caused concerns about cultural globalisation, copyright, privacy, security and pornography, and the possible existence of a ‘digital divide’. Specifically, this is the gap between those who have adequate access to information and communications technologies, such as computers and the Internet, and those who have not, for socio-economic and/or geographical reasons (information have-nots).

Computers. Computers have played an increasingly significant role in commerce and communications since they emerged from defence and research laboratories in the late 1940s and early 1950s. As the second half of the century has progressed, computers have developed from a few very large, costly machines into compact, cheap and ubiquitous tools for commercial and, increasingly, personal and domestic use.

1 The fee was to be abolished from 1 July 2000 and New Zealand on Air to be funded thereafter from general taxation.

GROWTH IN INTERNET ACCESS
Percentage of New Zealanders with Internet access at any location

By March 1998 a third of New Zealand households had computers, but with marked differences according to income levels. While 57 percent of households with incomes in the top income quintile had computers, this dropped to just over 50 percent for those in the middle quintile, and 17 percent for those in the lowest quintile.

Computer networks. The connection of computers to telecommunications systems began in the early 1960s with the development of computers capable of sharing tasks between different users simultaneously, and the need to link to those in distant locations.

In New Zealand during the late 1960s and through the 1970s, some larger corporates, including banks and government agencies, developed private corporate networks based on telephone circuits leased from the Post Office. Post Office regulations precluded separate corporate entities establishing private networks between each other until the deregulation of telecommunications in the late 1980s.

The Internet. Despite its apparently rapid emergence in the 1990s, the Internet was 30 years old in October 1999 and represents the culmination of developments over much of the past century.

The Internet has no central location or ownership. It is a network of networks whose operation and management rely on cooperation between the agencies it links together. At its heart is a set of common protocols and communication standards. These are not specific to any particular computing hardware or software, allowing users to freely exchange information irrespective of the systems they are using.

From its introduction to New Zealand in 1986 the Internet extended rapidly into the government and private sectors, initially through connections with local universities. New Zealand's first Internet service provider (ISP) was established in 1989 and by late 1999 there were at least 80 ISPs offering New Zealand connection services. Although the government was indirectly involved in establishing the Internet, through its funding of universities and other research institutions, commercial Internet services have been developed entirely by the private sector.

Responsibility for domain name registrations in the .NZ domain (for example, stats.govt.nz) lies with the Internet Society of New Zealand (ISOCNZ). In general, there are minimal restrictions on New Zealand organisations registering a domain name in the .nz domain. In addition, any New Zealand organisation or person can register a domain under one of the generic top level domains, such as .com or .org. OECD figures from July 1998 indicate that of the New Zealand registrations, 94 percent are in .nz with the remaining 6 percent in the generic domains. This represents one of the highest levels of parochial registration worldwide. As of January 2000, there were over 46,000 registrations in the .nz domain, of which about 3,000 were from off-shore.

Direct measurement of Internet usage is difficult and surrogate measures, such as host count, are commonly used to indicate growth. This is on the basis that although the numbers counted may not be meaningful in themselves, the trends they illustrate are real. The graph on this page shows another surrogate measurement based on the number of domain names registered in the .nz domain.

Since 1996 the number of New Zealanders with Internet access at any location has grown from 16 percent to 52 percent with numbers almost doubling during 1997. New Zealand ranks sixth out of the top 10 OECD countries in the number of hosts per 1,000 people.

A snapshot of Internet use taken in early 1999 by AC Nielsen shows that most people are accessing the Internet in their own home, followed by friends and relatives’ homes, work, then schools, technical institutes and universities. In June 1999 a third of New Zealand's population aged 10 years and over had used the Internet at some location in the past four weeks. This is a growth of 40 percent over the year. Nearly 8 out of 10 users use the Internet at least once a week and nearly a third use it daily. Most are using it for personal reasons. Likelihood of usage increases with rises in household income.

New Zealanders have adopted the Internet very rapidly and New Zealand has high diffusion rates compared to many OECD countries. Consequently, as facility with, and access to, PCs and the Internet become more critical for communication, education, commerce and the accessing of information, a lack of access and skill is likely to significantly disadvantage individuals and communities, socially and economically.

INTERNET TIMELINE FOR NEW ZEALAND

1986• International email services established through Victoria University of Wellington dial-up to University of Calgary, Alberta, Canada (February).
1987 
1988• International 9,600 band circuit established between Waikato University and PACCOM in Honolulu, Hawaii (April).
1989• First New Zealand ISP established (Actrix Networks in Wellington) (November).
1990• New Zealand research network backbone linking universities, DSIR and MAF Technology (Tuianet) becomes operational (throughout year).
1991• Wellington City Council public access server (Gopher) established; first local body in the world ‘online’ (July).
1992 
1993• First New Zealand websites established at Victoria and Waikato Universities.
1994• Tawa Schools Music Festival broadcast live via Internet from Michael Fowler Center, Wellington (August), (Rolling Stones do it four weeks later).
• Commercial Internet registrations overtake all other .nz registrations – total .nz domain name registrations 429 (September).
• Official New Zealand government web site (www.govt.nz) established (November).
1995 
1996• Over 2,000 .nz domain name registrations (November).
1997• More than 10,000 .nz domain name registrations and 4,000 websites (April).
1998• Over 500,000 New Zealand users, 16,000 .nz domain name registrations, 8,600 websites (February).
1999 
2000• Over 1,000,000 New Zealand users and 46,000 .nz domain name registrations (January).

HOUSEHOLDS WITH COMPUTERS
By income quintiles

Future directions

‘Convergence’ is likely to be the key trend in communications in coming years. The term was first coined in the early 1990s to mean the merger of telecommunications and cable networks in the United States. Today it tends to mean the effect of the digital revolution on a range of services and technologies.

Convergence blurs the distinction between technologies that developed independently, such as telephony, radio, television and the Internet. In a world of digital convergence, televisions will only be distinguishable from mobile telephones by their form. In terms of function, both will be able to provide common personal and office services such as messaging and calendar functions, sending and receiving multimedia messages, offering interactive games, and electronic commerce services.

At the commercial level, convergence continues to centre around the merger between different telecommunication and broadcasting infrastructures and services. For a number of countries this is raising concern over the impact on regulatory regimes. In New Zealand, our light-handed regulatory approach has already allowed a degree of convergence, in terms of the ability of companies to offer the whole range of information and communication technology services: television, telephony and Internet access.

In some ways the term convergence is misleading, as it implies a narrowing of services and suppliers. In fact, both these are expanding rapidly. Older technologies (newspapers, radio) seem not to disappear in response to new technologies, but adapt by finding their own audience and role. Hence it is likely that newspapers will survive alongside Internet-based news sources.

One effect of expanding communication and information technology services is that the icons of mass communication – print, radio and television – no longer have dominance. ‘Mass communication’ in effect is being fragmented into niche communication or narrowcasting – where TV channels, for instance, aim their interest at very specific audiences rather than attempt a broad appeal. In the 21st century mass communication will likely mean mass access to the whole range of available content via a multitude of technologies and channels.

Another trend is the rise in self-publishing driven by the Internet. Today, any individual with a minimum of technical expertise and a connection to the Internet can publish their creative or intellectual work for global access, in effect democratising the publishing process. This is changing the role of the gatekeepers such as publishers, producers and censors, who traditionally exercised control over content, access and quality. Musicians, for instance, can now bypass music industry structures altogether and place their music on the Internet for direct consumption. Nevertheless gatekeepers will still be needed for their very function of guaranteeing reliability and quality, and for their marketing expertise.

Today the opportunity for ordinary people to inexpensively communicate and publish globally is creating vital new business opportunities, particularly for small and medium-sized enterprises. The Internet can negate New Zealand's isolation, and make global time differences a distinct advantage.

An important question is how growing access to increasing quantities of information, combined with greater communication opportunities, will change New Zealand's social, economic and governance structures. And how direct access to global stores of knowledge will change the geography of opportunity both within New Zealand and between New Zealand and the rest of the world.

We do not know what effect the rise of narrowcasting over broadcasting may have on New Zealand's culture and social cohesion. Nor do we know what will happen if we are no longer limited by existing socio-political boundaries, business models, traditional notions of time, cost and distance. It is likely that many more communities of interest will form that have little to do with geographical locations or even national boundaries.

It seems that technology is delivering a future that is both digital and global, and in which opportunity is amplified through participating in ever more complex networks. Plugging communities and individuals into global networks is an increasingly important part of economic development.

However, the same technology that amplifies opportunity can also amplify the already existing disparities in society. Increasingly, public policy will have to focus on ensuring that all citizens have access to emerging global networks: that we do not create a digital divide of information haves and have-nots.

The Internet is on everyone's mind. Yet just a decade ago in 1990, the Internet was the domain of a few research scientists. It is more than likely that in another 10 years, commonplace technology and applications will be at least as different again. Such rapid change is unique in the history of humanity. While we can not be sure of the destination, we do know that communications technology in the 21st century will take us on a journey that is both rapid and full of unexpected turns.

References

Griffith, P, Harvey, R and Maslen, K 1997. Book and Print in New Zealand: A guide to print culture in Aotearoa. Wellington: Victoria University Press.

Hobbes’ Internet timeline, www.info.isoc.org/gurest/zakon/Internet/History/HIT.html

Information about Newspapers 1999/2000. The Newspaper Publishers Association of New Zealand.

Internet User Profile Executive Summary: Quarters 1 and 2. January to June 1999. AC Neilsen, www.acneilsen.co.nz

McLauchlan, G (ed) 1995. New Zealand Encyclopedia, 4th edition. Auckland: David Bateman.

McLintock, AH (ed) 1966. An Encyclopaedia of New Zealand (Vol 2). Wellington: Government Printer.

Martin, N 1995. New Zealand Television Broadcasters’ Yearbook 1994. Television Broadcasters Group.

NetWatch INL Annual Report. www.inl.co.nz/index

Newspapers Currently Received, May 1999. Wellington: Parliamentary Library.

Pickford, M and Bollard, A (eds) 1994. Wire and Wireless: A history of telecommunications in New Zealand, 1860–1987. Palmerston North: Dunmore Press.

A Report on Changes in the Magnitude and Quality of Television Audiences Over Time. 1997. AGB McNair.

11 Communications

The communications infrastructure in New Zealand has undergone dramatic changes in recent years, therefore we advise caution in interpreting figures and company ownership information in this section. 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 Ministry of Economic Development (previously 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.

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.

Te Māngai Pāho, the Māori broadcasting funding agency, was established by the Broadcasting Amendment Act 1993 to provide funding to promote Māori language and culture through broadcasting.

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. 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.

1ZB's modem radio studios, 1950, featured windows for spectators to watch recording sessions like this concert.

NZ On Air, in the past, collected the Public Broadcasting Fee (which was set at $110 per annum per household with a television set) and disbursed it to meet its statutory objectives, namely to:

  • Reflect and develop New Zealand identity and culture by promoting programmes about 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.

In May 1999 the Government announced that the Public Broadcasting Fee would be abolished with effect from 1 July 2000, and that funding for NZ on Air's activities would in future be a charge to Vote: Culture and Heritage.

In 1998/99, NZ On Air spent $42.8 million on the production of television programmes; $23.7 million on National Radio, Concert FM and access radio services; and $12.4 million on Māori broadcasting. It also spent $2.1 million on remote television and radio coverage, $2.0 million on New Zealand music projects and $1.0 million on broadcasting archives.

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 there are 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 1999, the authority issued 184 decisions on formal complaints (177 in 1998). Of these complaints, over 40 percent alleged a breach of good taste and decency. Although a small percentage of all complaints overall (about 5 percent), the number which allege a breach of an individual's privacy are increasing annually. Of the decisions issued, 83 percent related to television and 17 percent to radio.

During 1999 the authority approved the revised Radio Code of Broadcasting Practice. It contains eight principles, with which all radio programmes must comply, and accompanying guidelines to assist broadcasters and complainants in their interpretation of the principles.

The Authority also released in 1999 a revised Code of Broadcasting Practice for Pay Television. It consists of two codes – a standard and an advanced code. Pursuant to both codes pay television broadcasters are required to classify all programmes and broadcast warnings. Programmes classified as ‘18’ cannot be broadcast before 8.00pm under the standard code.

Complaints about the standard of advertising on radio and television are handled by the Advertising Standards Authority. In the year ended 31 December 1998, the Advertising Standards Authority considered 424 formal complaints, 31 (7 percent) of which related to liquor advertising and 28 (6 percent) related to food and beverage 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 for 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 o te Ika) had been broadcasting continuously. There are now 19 iwi-based radio stations broadcasting and one regional Māori radio station 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 be 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).

Tainui FM breakfast radio hosts Pita Te Ngaru (left) and Jessie Rawiri, winners in the Radio Industry Awards, 1998.

On 1 January 1995, Te Māngai Pāho assumed primary responsibility for the allocation of public funding for Māori broadcasting. This currently includes the purchase of Māori language programming broadcast on national television channels and iwi radio stations, and some Māori radio programming produced by national providers available to iwi stations through a radio programme distribution service.

Television broadcasting

Television New Zealand Limited. The TVNZ Group operates two national channels (TV ONE and TV2), and has several subsidiary companies.

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. The chief executive officer reports to a board of directors appointed by the Government.

TVNZ broadcasts its services to approximately 1,126,000 households, and has almost 100 percent coverage of the New Zealand population and 70 percent audience share. Its channels broadcast 24 hours a day, seven days a week.

All but one of the 50 most-watched programmes in 1998 were played on TV ONE or TV2.

TV ONE presents 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.

TVNZ's local and international activities include programme production, outside broadcast services, multi-media development, merchandising, Teletext, signal distribution and programming supply and transmission consultancy services in Australia, Southeast Asia and the Pacific.

Subsidiaries include signal distribution company Broadcast Communications Ltd (BCL), which provides services for all New Zealand TV broadcasters, most radio stations, the ABC and SBS in Australia, and whose facilities house Avalon Studios.

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.

The company's main revenue source is advertising. Advertising revenue in 1998 was $270 million (total revenue $426 million). Tax-paid profit for the year to 31 December 1998 was $31.5 million, being a 50 percent improvement on the prior year.

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.

TV3 is 100 percent owned by CanWest Global Communications Corporation, a Canadian communications company.

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.

Overseas-sourced programmes come primarily from the United States. TV3 has exclusive agreements with NBC, Disney, and World Vision, as well as the ability to source drama and comedy from many other international distributors.

On 29 June 1997, TV3 launched a second free-to-air channel on VHF frequency, TV4. Targeting young, urban Kiwis aged 15–39 years, TV4 is broadcast to more than 70 percent of New Zealand, 12 hours a day, seven days a week. Around 2.3 million people can access the channel.

SKY Television. SKY Network Television Limited is New Zealand's pre-eminent pay television company, which began broadcasting in May 1990 using scrambled UHF channels. As at 16 August 1999, SKY had established a significant subscriber base with approximately 346,000 residential subscribers and 5,000 commercial.

SKY's UHF signal reaches over 73 percent of New Zealand's estimated 1.3 million households. In December 1998, SKY launched its digital direct broadcast satellite (DBS) service, meaning that virtually all of New Zealand's remaining 356,000 households can now receive up to 22 channels. SKY's UHF service currently broadcasts seven channels over five frequencies: SKY Sport, SKY Movies, CNN, SKY 1, Cartoon Network, Discovery, and Trackside.

Prime Television. In 1997 Prime Television acquired 34 UHF licences covering all major cities and towns and in August 1998 commenced broadcasting to a target audience demographic (30 plus). Prime Television is a free-to-air terrestrial broadcaster with its main office in Albany, Auckland. Studios are in Albany, Hamilton and in Christchurch where local programmes are produced including regional news. An initial potential reach of 65 percent of the population (2.2 million) through its terrestrial services was expanded to a potential 100 percent through its October 1998 initiative to join the SKY Television satellite service. Broadcasting 24 hours a day, Prime's programmes include British drama and comedy through to international rugby, soccer and golf. Prime Television is a wholly-owned subsidiary of Prime Television Australia PTY Limited.

Regional and local television services. There are a number of small regional television services operating around the country, providing a mix of programmes, ranging from music television services such as Eastland Television in Gisborne to mixed local and international news and entertainment services such as Southland's Mercury TV and Christchurch's Family Television Network. In addition, services such as Geyser Television in Rotorua offer information about local events and attractions, targeted primarily at tourists. Local television services understood to be operating as at November 1999 included: Auckland: Triangle Television; Warkworth: Family Television Network; Rotorua: Geyser Television; Gisborne: Eastland Television; Hawke's Bay: Hawke's Bay Television, Channel 51; Wellington: Channel 7; Nelson: Mainland Television; Christchurch: CTV, CHTV; and Invercargill: Mercury Television.

Trackside. This channel, owned by the Totalisator Agency Board (TAB), commenced broadcasting in November 1992. It broadcasts live racing, race results and programmes about racing on a nationwide basis using UHF and satellite frequencies.

The TAB has leased the down-time on this channel to SKY Television.

Cable television. New Zealand's first commercial cable television operation began on the Kapiti Coast in 1993. It evolved into Saturn Communications in 1996. Today, the Wellington-based telecommunications company is rapidly expanding and planning new market startups beyond the Capital in 2000. Saturn offers uniquely bundled telephone, high-speed data services and multichannel TV via HFC (hybrid fibre co-axial) cable. The cable TV offering features 27 channels plus movies on near demand via Saturn Home Cinema. Saturn is wholly owned by Austar United, a division of United Global Com of Denver, Colorado. The website for Saturn Communications is www.saturn.co.nz

Table 11.1. HOURS OF LOCAL CONTENT ON NETWORK TELEVISION

YearTV OneTV2TVSTotal

1The 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

19902,47477210034,249
19911811101612124,039
199212,526122719625,715
199312005104217414,788
19942210104117184,969
19952,532111313735,018
19962407125514045,066
19972,638132416395,601
19983,503130714876,297

Non-commercial television. The Government has reserved UHF frequencies nationwide for the provision of non-commercial (community access) television services. As at November 1999, the Ministry of Economic Development had offered licences for non-commercial use to broadcasters in the Auckland, Wellington, Nelson/Marlborough, Christchurch, Dunedin, Taranaki, Waikato and Bay of Plenty regions. Two of these licences have been taken up: Triangle Television has been broadcasting in Auckland since July 1998 and Channel 7 has been broadcasting in Wellington since June 1999.

Testing television equipment at the New Zealand Broadcasting Service studios, Wellington, 1951.

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.

As at November 1999, the Ministry of Economic Development estimated that there were 190 radio stations broadcasting separate programmes on a continuous basis. Of these, approximately 170 stations were broadcasting on a commercial basis and two (National Radio and Concert FM) were operated by Radio New Zealand Ltd. The remainder include Access radio, Student radio, Christian radio and Māori and Pacific Islands broadcasting interests.

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 access rights. 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.

The Radiocommunications Act has been reviewed, resulting in a range of proposed amendments designed to allow greater flexibility in the Crown's management of the radio spectrum. These amendments are contained in the Radiocommunications Amendment Bill, which was before Parliament at the beginning of 2000.

Allocation by tender/auction. Until early 1995, spectrum access rights were allocated by sealed-bid tender. Since early 1995, spectrum access rights have been allocated by auction. Information on past and future auctions can be found on the Ministry of Economic Development website at auction.med.govt.nz

Most of the currently available UHF television, FM sound radio and AM sound radio frequencies have now been allocated. It is intended to auction spectrum licences for FM frequencies in the 100 to 108 MHz band in 2000. The registration of licences following allocation establishes the tradeable right which is recorded in a publicly-accessible register. An annual administration fee is payable to the Ministry of Economic Development by all registered licence holders.

Additional licences are created, when technically possible, and allocated when there is demand for them. Amendments to licences (such as changes of transmission site, increases in power) are accommodated, again when technically possible, in exchange for a formula-based payment reflecting the increased value of the licence.

Pending auction, 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 stand-alone company, Radio New Zealand Commercial, and the new company was offered for sale.

Radio New Zealand Limited (RNZ Limited) was constituted as a state-owned enterprise in 1988 when the Broadcasting Corporation of New Zealand (BCNZ), of which RNZ Limited had been a service, was dissolved. The BCNZ's radio assets were to pass through the Crown into the state-owned enterprise.

Radio New Zealand. Radio New Zealand Limited is a Crown entity established by the Radio New Zealand Act 1995. The company is New Zealand's public radio broadcaster consisting of three noncommercial radio networks: National Radio, Concert FM and the AM Network: a shortwave service: Radio New Zealand International; a news service: Radio New Zealand News and Current Affairs; and Sound Archives/Ngā Taonga Kōrero. National Radio and Concert FM are funded through New Zealand On Air and Radio New Zealand International is funded by the Ministry of Foreign Affairs and Trade.

National Radio focuses primarily on news and information. News bulletins are on the hour, every hour and Morning Report is the country's most authoritative news programme. Broadcasting 24 hours a day, the network reaches most New Zealanders on the AM band. The network is well known for its high profile personalities and programmes including Kim Hill and Country Life.

Concert FM is Radio New Zealand's fine music network, broadcasting a programme of mainly classical music and spoken features about music, 24 hours a day, on the FM band.

The AM Network broadcasts all sittings of Parliament from transmitters in Auckland, Napier, Wellington, Christchurch and Dunedin. When not used for Parliament the network is leased to another broadcaster.

Radio New Zealand International is the country's international shortwave service, providing news and information programmes to listeners in the South Pacific 15 hours a day. Radio NZ 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 comprehensive news coverage, current affairs, and specialist reporting for National Radio and Concert FM. International news services, correspondents overseas, and reporters throughout New Zealand deliver news to listeners throughout the day.

Sound Archives/Ngā Taonga Kōrero is a subsidiary of Radio NZ which gained archive status under section 90 of the Copyright Act in 1998/99, allowing material broadcast by any New Zealand network or station to be archived without breaching copyright. This will enable Sound Archives/Ngā Taonga Kōrero to become a truly national collection, representing all broadcast radio providers in New Zealand, as well as preserving existing collections largely created during the era of state-owned radio.

Radio's ‘Aunt Daisy’, Maud Basham, broadcasts for 2ZB, Wellington, 1959.

The Radio Network of New Zealand Limited. The Radio Network commenced operations as a private radio broadcaster on 1 August 1996. Ownership changed from that of the New Zealand Government to a consortium composed of radio, newspaper and outdoor advertising group Australian Provincial Newspapers Holdings Limited; the largest United States radio, television and outdoor advertising operator Clear Channel Communications Inc; and local newspaper and publishing group Wilson and Horton Limited.

Established in 1936 as the National Broadcasting Service, the organisation evolved through a number of social and political considerations. Before television, radio was a very powerful medium and political control set the early agenda. Organisational growth was shaped by the social demands of listening audiences and the political reaction to those demands. The result was the formation of a network of local commercial stations spread nationwide.

The organisation attempted to balance ownership of the non-commercial National Programme stations and the ‘commercial’ ZB stations. Advertising had been a component on New Zealand radio since 1936, first being heard on 1ZB Auckland (now The Radio Network's Newstalk ZB).

In 1988, the Lange Labour Government changed the structure of the state broadcaster, splitting the radio and television operations of the then Broadcasting Corporation of New Zealand. Radio New Zealand (RNZ) was formed as one of the first state-owned enterprises (SOE). In 1996 the Government sold RNZ.

The Radio Network is made up of 52 stations, one-third of the commercial radio stations in New Zealand. Radio Network national brands are Newstalk ZB, Classic Hits, Radio Sport and ZM. The brands are heard in all main metropolitan and provincial centres. Additionally, in Auckland The Radio Network broadcasts Easy Listening 198 and New Zealand's original ‘pirate’ radio station Radio Hauraki. Audiences in the rural heartland are served by The Radio Network's community radio stations.

The Radio Network reaches a listening audience of approximately 1.3 million New Zealanders on a weekly basis.

Other divisions of The Radio Network are:

The Radio Bureau – manages the sale and placement of radio advertising from advertising agencies and national clients for Radio Network stations and other private stations. The Radio Bureau represents virtually all commercial radio stations in New Zealand.

IRN – Independent Radio News supplies news and sport bulletin services to the commercial radio industry. It gathers news on a national basis and together with stories from international wire services collates and presents branded news bulletins for Radio Network stations and other private stations. IRN supplies in excess of 300 radio news and sport bulletins on a daily basis. IRN also supplies news to a number of Internet sites.

Private radio broadcasters. The Ministry of Economic Development estimates there are now 190 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. News and sports are provided to some RBA member stations by Auckland-based Independent Radio News.

Non-commercial broadcasting. The Crown has reserved AM and FM 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 operating on reserved frequencies provide airtime on a nonprofit basis to a range of minority groups in the community. In 1999 there were 11 access radio stations operating in New Zealand. All have been assisted by NZ On Air, whose funding for access radio in 1998/99 was $1.7 million.

Newspapers and magazines

New Zealand has a high number of daily newspapers in relation to its population size. There are 26 daily newspapers, of which 18 are evening papers, nearly all of them published in provincial towns and cities. Of the 8 morning dailies, the Auckland-based New Zealand Herald has the largest audited net circulation at 213,150 copies daily. The largest provincial paper is Hamilton's Waikato Times with an audited net circulation of 40,622. Other daily newspapers have circulations ranging from about 2,400 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 850,000 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 $4.0 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. The Sunday Star Times in particular has continued to enjoy strong growth and now circulates 197,619 copies every Sunday.

There are also approximately 120 community newspapers in New Zealand, the great majority of which are tabloid in style. 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.

Through its international agreements with Reuters, Australian Association Press (AAP) and other news organisations around the world, the cooperatively owned New Zealand Press Association (NZPA) ensures that all New Zealanders are kept in touch with what is going on in the world around them.

There are over 4,700 magazines available in New Zealand on a regular basis, 700 of which are published in New Zealand. Of this number, 165 are listed with the New Zealand Audit Bureau of Circulations as being published in New Zealand or New Zealand editions. One hundred and forty-five of these were audited in the period between January and June 1999. Of these, 83 were published monthly and 34 in alternate months.

Table 11.2. MAGAZINE CIRCULATION

PublicationCirculationPublished
Jan-June 1997Jan-June 1999
Source: Audit Bureau of Circulations
AA Directions526,136545,818Alternate months
Sky watch-293,139Monthly
TV Guide263,790241,356Weekly
NZ Woman's Day203,519165,914Weekly
NZ Woman's Weekly129,523126,640Weekly
Reader's Digest (NZ Edition)136,095124,589Monthly
PC Buyer124,116121,353Alternate months
Health & Wealth-108,900Alternate months
Rural News89,89093,483Fortnightly
NZ Listener96,32090,521Weekly
Straight Furrow89,87889,354Fortnightly
Farm Equipment News85,872-Other
Tearaway76,79881,168Monthly
Australian Woman's Weekly (NZ Edition)103,07480,045Monthly
NZ Gardener75,74868,850Monthly
New Idea52,67967,070Weekly
Next57,69262,255Monthly
Little Treasures59,42960,655Alternate months
NZ House & Garden45,77257,892Monthly
Video Magazine58,51749,433Monthly
Family Times42,000-Quarterly
Auckland Today41,65047,790Quarterly

Broadcaster Brian Edwards, talkback radio host, 1975.

Press freedom

Freedom of the press in New Zealand is of the highest degree.

Newspapers participate from an editorial perspective in 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.

Freedom House, a New York-based, non-partisan, non-profit human rights organisation which presents a yearly report on press freedom, has given New Zealand the same rating since 1972. That rating is ‘T’, representing the highest degree of freedom. Freedom House rates most of the countries in the world on their political rights, civil liberties and ‘freedom status’. Their website address is www.freedomhouse.org

Press Council. The New Zealand Press Council is a self-regulatory body founded in 1972. It has as its primary duty the investigation and adjudication of complaints against newspapers.

Its constituent members were the Newspaper Publisher's Association (NPA) and the then New Zealand Journalists Association (now part of the New Zealand Engineering, Printing and Manufacturing Union (EPMU)). They remain the constituent members. The constitution was revised in 1995 in preparation for the 21st century.

The Council comprises an independent chairman, five members representing the public and five representing the industry. Public members have a 6–5 majority. Two of the five industry representatives are nominated by the NPA, two are nominated by the EPMU and one by the magazine publishers. The public members are appointed by a panel including the Chief Ombudsman. Since its inception the council has had as its chairman a retired High Court judge. The current chairman, appointed in 1997, is Sir John Jeffries.

The principal objects of the Press Council are to:

  • Preserve the established freedom of the New Zealand press.

  • Maintain the character of the New Zealand press in accordance with the highest professional standards.

  • Consider complaints against the conduct of the press or the conduct of individuals and organisations towards the press, to deal with these complaints in whatever manner might seem practical and appropriate, and to record resultant action.

  • Keep under review developments likely to restrict the supply of information of public interest and importance.

In the past the council has stated it does not see its job as setting standards for newspapers to follow nor to police such standards. It has, from time to time, however, issued various recommendations to editors in general terms. During 1999 the Council issued a 13-point Statement of Principles. While not a rigid code, the principles set out a guide for complainants as well as for the publishing industry.

Since its inception the council has adjudicated on 750 complaints against newspapers. The number of complaints that reach the final stage represents about half of the total number received, many complainants failing to follow through after the initial complaint. Others are withdrawn for varying reasons.

Complaints cover a wide area ranging from cartoons that are too hard-hitting, photographs that are too explicit, and editorials that are alleged to be skewed, to the more frequent ones of non-publication or editing of letters sent to the correspondence columns.

To make a complaint to the council, a complainant is required first to complain in writing to the editor of the newspaper concerned. This allows the editor to become acquainted with the nature of the complaint and to take the opportunity of righting a possible wrong. If the complainant is still not satisfied with the position they can then approach the council, setting out a statement of the complaint in general terms and copies of correspondence with the editor.

The complaint is then copied for the editor, who is invited to respond to the council. A copy of the editorial response is then sent to the complainant, who can comment on the response. The council then considers the complaint. There is no charge for the council's service.

The total budget for the council's working is met by contributions from the constituent members, publishers of community newspapers, and the INL and Wilson and Horton magazine publishing groups.

In circumstances where legally actionable issues may be involved, complainants are required to provide a waiver that, having referred the matter to the Press Council, no legal proceedings will be taken against the newspaper or journalist concerned. The council will not proceed in cases where a waiver is not produced.

The New Zealand council is a member of the World Council of Press Councils. Through his position the chairman of the New Zealand Council is a vice chairman of the world body.

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 1998, there were approximately 150 agencies, most of them New Zealand-owned, with the remainder (30) affiliated to multi-nationals by total or partial ownership (these tend to be the larger agencies).

Mainstream media advertising for the year ended March 1998 was approximately $1,382 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. Approximately 45 percent of expenditure on media advertising was made through advertising agencies, with agencies placing around 80 percent of advertising on television, 30 percent in magazines, 30 percent on radio, 30 percent in newspapers and 20 percent of advertising through other media.

Table 11.3. MEDIA ADVERTISING1

Medium1997–9819982
ExpenditureShareExpenditureShare

1All cash advertising revenue plus agency commission where applicable.

2Year ended 31 December.

Source: Advertising Agencies’ Association of New Zealand Inc (actual media revenue).

 $(million)percent$(million)percent
Daily newspapers4683544133
Community newspapers10171028
Television4653447335
Radio1721317013
Magazines1351012710
Outdoor and cinemas171241

Table 11.4. ADVERTISING EXPENDITURE BY INDUSTRY, 19991

IndustryExpenditure

1Oct 1998 to Sept 1999.

Source: AC Neilson (rate card basis)

 $(million)
Retail152
Foodstuffs222
Leisure/travel/entertainment228
Agriculture16
Household cleaning products30
Investment/finance/banking85
Toiletries/cosmetics95
Automotive111
Beverages90
Pharmaceutical52
Government departments, services and community104
Telecommunication72

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 40 member agencies which collectively represent about 85 percent of agency billings in New Zealand with combined turnover of around $900 million. The Association of New Zealand Advertisers represents the interests of advertisers and has 90 members.

The industry has a self-regulatory system managed by the Advertising Standards Authority (ASA), 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

The telecommunications market was fully opened up to competition on 1 April 1989. Telecom New Zealand Ltd was established as a state-owned enterprise on 1 April 1987 after the break-up of the Post Office, and was privatised in August 1990. Telecom is still the only service provider which provides a full range of telephone services throughout New Zealand. However, there are a considerable number of competitors who provide long distance call services to most areas and a wide range of telephone services to the central business districts of the larger cities.

Regulatory framework. In comparison with other countries, New Zealand has a light-handed regulatory regime. For instance, there are no specific licensing requirements to commence business as a telecommunications carrier, no foreign ownership restrictions and the government is not involved in the setting or approval of prices.

New Zealand relies mainly on generic competition law, the Commerce Act 1986, to regulate the telecommunications services market. This approach is supported by information disclosure requirements in the Telecommunications Act 1987 and the Kiwi Share Obligations (KSOs) that Telecom agreed to observe when it was privatised.

The main features of the supporting measures are:

  • Requirements for Telecom to disclose the pricing of prescribed services, the detail of interconnection agreements, the financial performance of its local loop and other businesses, and the cost of meeting the KSOs. The latter two information disclosure requirements apply from 1 January 2000.

  • Obligations under the Kiwi Share for Telecom to protect the interests of residential telephone users, including a cap on the price of residential telephone line rentals.

Competitive service provision. At least 15 companies were offering telecommunications services at 1 January 2000, including Telecom, Clear Communications, Vodafone, Saturn, Telstra NZ, Global One, WorldxChange, Teamtalk, Compass, Voyager, Newcall, Call Plus and Ihug.

The main competitive telecommunications services provided are international, national and cellular calls. In central business districts, the competition extends to all telephone and data services. Facilities management services are also becoming increasingly important.

Most competitors have interconnection agreements with Telecom, and a number of new entrants have interconnection agreements with each other. A range of number portability agreements are also in place.

A particular feature of New Zealand's residential long distance services are off-peak, unlimited call duration, capped charges, such as $3 capped national calls, $5 capped international calls to Australia and $10 capped international calls to the USA and the UK. A $5 capped call option for national peak calls is also now available to residential users.

Residential telephone service competition is developing, with Saturn currently offering an extensive range of services to residential and business customers in Wellington, the Hutt Valley and Kapiti. Telecom and Vodafone provide cellular mobile phone services with extensive coverage of New Zealand. Internet Protocol telecommunications services are also increasingly available, offering competing national, international and landline to mobile calls.

Fibre optic communication cables being laid under a railway line, 1995.

Public telephone box, 1912.

Telephone density is high, with about 51 access lines per 100 people (and about 30 mobile phones per 100 people). New Zealand's Internet connections are one of the highest in the world on a per capita basis.

High speed Internet services are now being introduced. Telecom New Zealand's Jetstream service uses asynchronous digital subscriber line technology to enable Internet data and voice to be sent at high speed down one telephone line at the same time in areas where Telecom has installed the technology. Saturn provides high speed Internet access via cable modems connected to its co-axial cable TV network in the Wellington area. Ihug's Satnet provides high speed Internet downloading via satellite dish anywhere in New Zealand and via microwave dish in Auckland.

Telecom Corporation of New Zealand Limited is the leading supplier of telecommunications services in New Zealand and the operator of one of the most technologically advanced communications networks in the world. The advanced digital network is the result of a $7 billion modernisation and investment programme. This programme was begun in 1987 to prepare Telecom to operate competitively in an open and lightly regulated environment. In particular, substantial investment has been made to upgrade transmission systems, with approximately 85 percent of inter-city trunk cables and 75 percent of urban transmission systems now fibre optics.

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 24.95 percent of the share capital in Telecom as at 31 March 1997.

Following an announcement in December 1997, Ameritech completed (April 1998) a sell down of its 24.9 percent shareholding in Telecom New Zealand. It is estimated that this sell down has increased the number of New Zealanders beneficially holding shares by 5,000. Today about 22 percent of Telecom's shareholding is held locally.

Telecom provides local, national and international telephone services and a wide range of other telecommunication services, including mobile telecommunication, data communications, leased circuits, directories, paging and mobile radio.

In May 1996 XTRA, an Internet access, navigation and content service was launched and by March 1999 had gained more than 180,000 customers. The website for Telecom is www.telecom.co.nz and XTRA's website is www.xtra.co.nz

Clear Communications Limited. Clear was launched in November 1990, as the first competitor in New Zealand's newly deregulated telecommunications industry.

Clear is a wholly-owned subsidiary of BT (formerly known as British Telecom), one of the world's largest communications companies. In June 1999, BT purchased 100 percent of Clear's shareholding, raising its stake from 25 percent and buying out former shareholders TVNZ, MCI and the Todd Corporation

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.

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. It employs around 850 staff in 12 offices nationwide. The website for Clear Communications is www.clear.co.nz

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

Until 1998, New Zealand Post Limited had the sole right to carry standard letters weighing up to 200 grams, unless 80 cents or more per item was charged. The Postal Services Act 1998 removed this monopoly and permitted full competition in all areas of the postal services market.

All postal operators are required to be registered by the Ministry of Economic Development. All mail must carry a mark to identify the postal operator which carried it and postal operators are given rights to open mail in certain circumstances (for example, so that it can be returned to the sender when an address is illegible), and erect letterboxes. To carry out a business involving the carriage of letters, a person or company must be registered as a postal operator with the Ministry of Economic Development. As at 1 November 1999, 27 operators were registered.

Under a Deed of Understanding with the Government, New Zealand Post Limited is required to meet certain social obligations, including:

  • Maintaining a minimum number of delivery points and postal outlets.

  • Maintaining five or six day a week delivery to 99.88 percent of delivery points.

  • Not increasing the price of a standard letter beyond 45 cents for a period of at least three years.

  • Not reintroducing the rural delivery fee, which was abolished on 1 April 1995.

  • Providing competitors with access to its network on terms and conditions that are no less favourable than the terms and conditions offered to equivalent customers.

For a minimum period of five years New Zealand Post Limited will be the sole operator designated as New Zealand's ‘postal administration’ to the Universal Postal Union (UPU) and will have the exclusive right to issue ‘official’ UPU-stamps that have the words ‘New Zealand’ printed by themselves. After five years, the Government will have the option of designating additional operators to fulfil New Zealand's international postal obligations.

New Zealand Post Limited

New Zealand Post Limited is owned by the New Zealand government as a state-owned enterprise (SOE) with the shares held by two ministers on behalf of the Crown – the Minister for State-Owned Enterprises and the Minister of Finance.

New Zealand Post's core business activities are message communication in letters, distributing courier and parcel items and financial transactions. It provides stamps and telegram services as well as data processing and mail production services. Through the Electoral Enrolment Centre, the company maintains the country's electoral rolls under a contestable contract with the Ministry of Justice.

On 2 October 1995 the price of standard letter postage was reduced from 45 cents to 40 cents, at the time a world first. Rates for bulk medium-sized letter mail were also reduced for the third time in three years.

The website for New Zealand Post is www.nzpost.co.nz

Table 11.5. POSTAL OUTLETS

As at 31 March199719981999
Source: New Zealand Post
Post Shops (including franchises)297308314
Post Centres705717719
Stamp resellers3,66314001400
        Total4,6652,4252,433

Table 11.6. POSTAL DELIVERY POINTS AND VOLUME OF ARTICLES POSTED

 Year ended 31 March
199719981999
Source: New Zealand Post
Deliveries tonumber
Residential1,105,8241,155,1531,181,141
Business53,48453,46551,590
Private Box and Bag169,484174,219174,074
Rural Delivery146,266150,655162,347
Other25,26222,38713,915
        Total1,500,3201,555,8791,583,067

Inland postal services. Any postal item, from a letter to a parcel up to 20 kilograms, can be sent by ‘FastPost’ or standard post. FastPost targets next working day delivery between major towns and cities, with standard 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.

Wanganui posties set out to deliver the mail, 1930s.

Postal volumes. For the year ended 31 March 1999, New Zealand Post delivered 1.53 billion items of mail, up 3.9 percent in the first year of a deregulated market.

Overseas mail services. New Zealand Post International operates several overseas mail services. Express International is a Track and Trace courier service to over 220 countries, with next morning delivery to Australian centres and targeting two days to the rest of the world, including built-in insurance cover and additional cover options. Air International offers delivery in approximately one week with tracking options and built-in cover and the option of additional cover to selected countries. Economy International, which is used when time is not as important, offers delivery to anywhere in the world within approximately three weeks.

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 products is sold by mail order through the Philatelic Bureau at Wanganui, at stamp sales centres and through Post Shops.

Table 11.7. 1999 STAMP ISSUES

Date of IssueIssue NameDenominations
Source: New Zealand Post
13 JanuaryNative Tree Flowers40c, 80c, $1.00, $1.20, $1.50, $1.80
10 FebruaryPopular Pets40c, 80c, $1.00, $1.20, $1.50, $1.80
10 FebruaryArt Deco Buildings40c, $1.00, $1.50, $1.80
10 MarchNostalgia40c, 80c, $1.00, $1.20, $1.50, $1.80
7 AprilU-Bix Rugby Super 125 booklets containing 10 x 40c stamps
Sheetlet containing 10 x 40c stamps
7 AprilCentenary of Victoria University40c
16 JuneNew Zealand Art-Doris Lusk40c, $1.00, $1.50, $1.80
16 JuneHealth – Children's Books1 x 40c + 5c gummed
1 x 80c + 5c gummed
1 x 40c + 5c self-adhesive
28 JulyScenic Walks40c, 80c. $1.00, $1.20, $1.50, $1.80
8 SeptemberChristmas40c, 80c, $1.10, $1.20, $1.50, $1.80
20 OctoberYachting40c, 80c, $1.10, $1.20, $1.50, $1.80
17 NovemberLeading the Way40c, 80c, $1.10, $1.20, $1.50, $1_80
POSTAL SERVICES: 19855–19992
YearLettersAll mailPost Offices2Rural box holders

1Calendar year to 1945, thereafter year ending 31 March. From 1990, total postal deliveries to households and businesses only.

2From 1995, includes all postal outlets: official post shops, post agencies, postal delivery centres, stamp retailers and stamp book outlets.

3As at 1 November 1991.

Source: New Zealand Post

 (000) itemsnumber
1855171....-
1860890....-
18654,443....-
18705,646..457-
187510,428..647-
188022,824..856-
188535,830..1043- 
189043,91770,0001185-
189529,58754,4871404-
190039,89876,8021686-
190571,116122,4941937-
1910196,769310,2372,257-
1915242,548356,5202402-
1920259,743360,7472207-
1925294,631471,504198213,066
1930313,148542,003177321,000
1935288,645526,127177723,517
1940296,684531,942170532,382
1945140,335236,844160736,963
1950169,798343,024150851,827
1955180,105386,381144264,125
1960210,300464,300144071,880
1965263,100551,400143575,591
1970288,600595,400151477,379
1975351,100699,000143583,834
1980541,200654,300132194,860
1985580,700730,9001269103,365
1990598,5001,195,57116843..
1995753,7171,288,1624,553107,781
1996789,3991,349,4834,570128,577
1997818,9021,430,7874,665146,266
19981,002,4321,434,8972,425150,655
19991,037,8621,527,1822,433162,347

The retail network. At 31 March 1999 New Zealand Post's retail network consisted of 308 company-owned and franchised Post Shops with postal services available at a further 719 Post Centres. Stamps and stamp booklets are available at a further 1,400 outlets.

Financial transaction services including motor registration and bill payment services are available at all New Zealand Post retail outlets through the sophisticated PostLink Computer System.

Recent performance. In the 1998/99 financial year New Zealand Post made a profit of $23.0 million after tax ($18 million in 1997/98).

Loading a mail plane on a South Westland beach, 1940s.

11.4 Information technology

New Zealand has a very competitive information technology (IT) market, with a range of equipment and software companies supplying both the domestic market and niche export markets overseas. New Zealanders are enthusiastic early adopters of new technologies: the rapid take-up of mobile cellular phones and personal computers (PCs) are examples, with 21 percent of households having at least one cellular phone and 33 percent of households having a home computer in 1997/98. Much of the recent growth in PC ownership can be attributed to falling PC prices and the increasing popularity of the Internet. Increasingly, PC ownership is the key to accessing information, entertainment and communication resources on the Internet, with electronic mail (email) representing a cheap and convenient means for people to communicate with each other.

Information technology industry. The IT industry comprises those industry sectors whose business is IT-related, including computing, broadcasting and telecommunications. At the March 1996 Census, there were just under 42,000 people employed in the New Zealand IT industry.

An industry survey conducted by Statistics New Zealand found the industry was worth approximately $5.6 billion in 1998, up 15.4 percent on the previous year. This comprises sales to end users of hardware, computer peripherals, communications hardware, software and services. The survey found software and computer services sales to end users were worth $1.71 billion in 1998.

The survey, now in its fifth year, also measures IT exports. Exports sales were found to be worth some $479 million in 1998 comprising $198 million of software and computer services, and $281 million of computer hardware.

Internet. The Internet is one of the key information technologies enabling the growth of electronic commerce. Internationally, the Internet has experienced exponential growth over the past six years and this has been reflected in New Zealand.

A July 1999 survey (Network Wizards, www.nw.com) found there were over 56.2 million host computers connected to the Internet world-wide. Host computers are computers with their own Internet address which are directly connected to the Internet; they have from one to many users. Home or business Internet users who connect by dialling up are not included in the host computer count, so the number of actual Internet users is much higher than the number of hosts.

In New Zealand, the Internet has grown quickly from just a few users in the scientific and research communities in the early 1990s. The 1,200 host computers connected to the Internet in New Zealand in July 1991 rose to over 182,000 by July 1999. According to a recent OECD report, in July 1998 New Zealand had the seventh highest number of hosts per 1000 people in the OECD (and the world).

Most of the growth of New Zealand Internet use is due to an increasing number of businesses going on-line, reflecting the increasing importance of electronic commerce. One indicator of the Internet's growing importance is the number of organisations, including businesses, with their own domain name (such as www.[businessname].co.nz). Over the three years from March 1996 to March 1999, businesses with their own domain name increased from 2,500 to just under 25,000. The total number of names registered in the ‘.nz’ domain in March 1999 was 28,400, compared with 16,600 12 months earlier. A key indicator of business interest in the Internet is the number of websites: as of March 1999 there were over 15,000 websites, of which 13,000 were commercial sites (85 percent of the total).

New Zealand Government has had a presence on the Web since 1994. The New Zealand Government On-Line (NZGO) site was launched in March 1997 as a one-stop site for information on the government, its constitution and the political scene, and links to all departments and agencies with websites. It was relaunched with a new format and many improved features in October 1999. NZGO is located at www.govt.nz

Electronic commerce. Electronic commerce is a vital part of New Zealand's emerging knowledge-based economy and IT is a key part of the New Zealand business infrastructure. The increasing use of computers and telecommunications, especially the Internet, combined with deregulation and increased competition in the telecommunications sector, is helping New Zealand businesses take advantage of the increasing globalisation of markets. The distance between New Zealand and its major markets is no longer the barrier it once was for local businesses.

Government policy on electronic commerce aims to remove barriers and allow electronic commerce to flourish. The Electronic Commerce Work Programme includes examination of issues relating to taxation, import tariffs, privacy, consumer protection, security and authentication, and intellectual property rights. Internationally, the Government is working through organisations such as the OECD and APEC on electronic commerce issues.

As APEC Chair in 1999, New Zealand was particularly pleased with the emphasis APEC trade ministers placed on electronic commerce in their joint statement, especially the encouragement of economies to consider the UNCITRAL model law in developing their regulatory frameworks.

Education. Over the last decade IT has become a key part of the New Zealand classroom. A survey carried out by the Information Technology Advisory Group (ITAG) in August 1998 showed that almost all New Zealand schools have computer equipment and telephone and fax lines available for staff and student use. In October 1999 the Ministry of Education opened its Online Learning Centre, Te Kete Ipurangi (www.tki.org.nz), with the purpose of providing New Zealand school communities with easy access to useful and relevant information on the Internet.

INTERNET ACTIVITIES 1999

Contributors

  • 11.1 Ministry of Economic Development; NZ On Air; Broadcasting Standards Authority; Advertising Standards Authority; Electoral Commission; Te Māngai Pāho; Television New Zealand; TV3 Network Services Limited; SKY Television; Saturn Communications; Radio New Zealand Limited; The Radio Network; Newspaper Publishers Associated; New Zealand Press Council; New Zealand Audit Bureau of Circulations; Advertising Agencies Association: Freedom House; Prime Television.

  • 11.2 Ministry of Economic Development; Telecom Corporation of New Zealand Limited; CLEAR Communications Limited; New Zealand Post Limited; The Telegram Company.

  • 11.3 Ministry of Economic Development; New Zealand Post Limited.

  • 11.4 Ministry of Economic Development; Telecommunications Users Association of NZ Inc.

Special articles

‘Communications’, IT Policy and Communications Networks Groups, Ministry of Economic Development; Te Māngai Pāho; AGB McNair; AC Nielsen; Radio New Zealand Sound Archives; New Zealand Press Council; New Zealand Post Limited.

Information technology

Statistics on information technology in New Zealand 2000. 2000. IT Policy Group, Ministry of Economic Development (www.med.govt.nz/pbt/infotech/currentstats).

Electronic Commerce: The freezer ship’ of the 21st Century. 1988. IT Policy Group, Ministry of Economic Development (www.med.govt.nz/consumer/elcom/ecommerce).

The knowledge economy (website) 1999. (www.knowledge.gen.nz).

ICT in Schools 1999. 2000. ITAG (www.med.govt.nz/pbt/infotech/ictschools 1999).

The Government's electronic commerce website is located at www.ecommerce.govt.nz

The survey showed that most schools (83 percent of primary schools and 94 percent of secondary schools) are using their computer equipment and phone lines to connect to the Internet. However, only 55 percent of primary schools and 60 percent of secondary schools can access the Internet from one or more classrooms. Some 46 percent of secondary schools but only 10 percent of primary schools have their own web pages.

The survey indicated that in 1998 primary schools averaged 1 computer to every 12 students and secondary schools averaged 1 computer to 7 students, compared with figures of 16 and 8 respectively found in a survey by the Ministry of Education in 1996. The overwhelming majority of computers in schools (80 percent) are available for student use.

IT Policy Group. The IT Policy Group is part of the Ministry of Economic Development's Competition and Enterprise Branch. Established in July 1993, the group's 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. The unit acts as a point of contact for the IT industry with the Government and provides support for ITAG, the Interdepartmental Committee on Information Technology (ICIT) and the Electronic Commerce Work Programme Steering Committee.

ITAG is a group of approximately 12 senior executives from IT or IT-related companies and academia in New Zealand, established by the Minister for Information Technology in September 1993. Its role is to provide advice to the minister on issues relating to the Government's economic policy-making role 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 the Government's role as a purchaser and user of IT equipment. As government departments are autonomous and chief executives responsible for all purchase decisions, ICIT's role is concerned with any issues crossing departmental boundaries. ICIT comprises a main committee of six representatives of government agencies and three sub-committees dealing with purchasing, standards and inter-connectivity, and information management, and reports to the Minister of State Services.

The Electronic Commerce Work Programme Steering Committee is intended to ensure issues of concern to the Government with the development of electronic commerce are addressed and that efforts are coordinated between government agencies.

The Telecommunications Users Association of New Zealand (TUANZ). This group is committed to 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. The purpose is to lead informed, sophisticated usage of technology-based communications by business users in New Zealand.

Members receive a monthly magazine, TUANZ Topics, and can attend regular seminars and events throughout the year. There are two special interest groups within TUANZ:

Interactive New Zealand – The interactive media users’ organisation is involved in developing a vibrant industry and raising awareness in the application of ‘new media’.

The Electronic Business Association of NZ – The association recognises that process automation technologies, and particularly telephone-based computing solutions, are ‘tools of business’.

Further information

Mass media

Annual Report of the Broadcasting Standards Authority.

Annual Report of Television New Zealand Limited.

Annual Report of TV3 Network Limited.

Annual Report of Radio New Zealand Limited.

Annual Report of NZ On Air.

Code of Broadcasting Practice. Broadcasting Standards Authority.

Information about newspapers. Newspaper Publishers Association (annual).

Report of the Ministry of Economic Development (Parl paper G.46).

Summary of Audited Circulations. New Zealand Audit Bureau of Circulations (bi-annual).

Telecommunications

Annual Report of CLEAR Communications Limited.

Annual Report of the Telecom Corporation of New Zealand Limited.

Report of the Ministry of Economic Development (Parl paper G.46).

Postal services

Annual Report of New Zealand Post Limited.

Report of the Ministry of Economic Development (Parl paper G.46).

Chapter 12. Arts & cultural heritage

New Zealand all-female pop group TrueBliss on stage at the Michael Fowler Centre, 1999.

12.1 Administration

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.

Ministry for Culture and Heritage

The Ministry for Culture and Heritage: Te Manatū Taonga, provides advice to Government on culture and heritage matters. It assists Government in its provision and management of cultural resources for the benefit of all New Zealanders. The Ministry for Cultural Affairs was established in 1991. On 1 September 1999 the Ministry for Culture and Heritage was established. It includes the functions of the Ministry for Cultural Affairs, plus an expanded heritage mandate. (It also administers the Antiquities Act 1975 on behalf of the Secretary for Internal Affairs.) In 1999/2000 its annual budget was approximately $1.4 million.

The ministry's main functions are:

  • Providing policy advice on culture and heritage issues, as determined in consultation with the minister, including legislation, major policy proposals, and developments and initiatives significant to the cultural sector.

  • Managing and disbursing government funding to a number of cultural sector agencies, and monitoring of the Crown's interests in these organisations.

  • Providing other negotiated services to the Minister for Culture and Heritage, including preparing replies to ministerial correspondence, and general services which assist the minister in discharging portfolio obligations to Parliament.

The ministry administers the Government's annual funding contributions (totalling approximately $100 million in 1999/2000) to nine cultural sector organisations:

  • Te Papa (Museum of New Zealand Te Papa Tongarewa)

  • New Zealand Symphony Orchestra

  • Creative New Zealand (Arts Council of New Zealand Toi Aotearoa)

  • New Zealand Film Commission

  • New Zealand Film Archive

  • Royal New Zealand Ballet

  • Aotearoa Traditional Māori Performing Arts Society

  • NZ On Air (Broadcasting Commission)

  • New Zealand Historic Places Trust.

Capital projects at regional museums. The Government recognises that regional museums make an important contribution to conserving and exhibiting New Zealand's cultural heritage and may hold collections of national significance.

The Policy for Government Assistance Towards Capital Projects at Regional Museums, 1994, lists the application criteria for government assistance. Auckland War Memorial Museum and Otago Museum have received grants under this policy.

Writer Janet Frame.

Table 12.1. FUNDING TO THE ARTS AND CULTURAL HERITAGE SECTOR, 1999–001

GroupGovernment fundingLottery grant2

1Does not include GST.

21998–99.

31996–97.

4Due to restructuring the New Zealand Historic Places Trust did not apply for its normal grant.

5This lottery grant includes the grants to Museum of New Zealand and New Zealand Film Archive shown separately in this table.

Source: Ministry for Culture and Heritage; Lottery Grants Board: Historic Places Trust: Department of Internal Affairs

 $(000)
Te Papa17,6411,250
Creative New Zealand2,38820,250
New Zealand Film Commission1,2228,775
New Zealand Film Archive178675
New Zealand Historic Places Trust3,53854
Lottery community facilities (II: Cultural facilities)-597
Lottery environment and heritage (III: Cultural heritage)-3,7375
National Archives8,7553-
Dictionary of New Zealand Biography5973-
New Zealand Symphony Orchestra8,880-
Historical Branch (Internal Affairs)1,0913-
Ministry for Culture and Heritage1,685-
National Library42,1283-
Aotearoa Traditional Māori Performing Arts Society980-
Royal New Zealand Ballet2,840-
New Zealand On Air56,6743-

Indemnification. The Government assists museums through its indemnity scheme for touring exhibitions. It accepts a substantial proportion of the risk inherent in presenting significant exhibitions. This alleviates the need to purchase total commercial insurance coverage. The scheme was formally established in 1986 and approval rests with the Minister of Finance, under the provisions of the Public Finance Act 1989.

Cultural Statistics Project. The Ministry for Culture and Heritage 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. Household Spending on Culture 1996 followed, along with Employment in the Cultural Sector (September 1998).

Creative New Zealand

Creative New Zealand is the main arts development organisation in New Zealand. It was established as a crown entity under the Arts Council of New Zealand Toi Aotearoa Act 1994, replacing the Queen Elizabeth II Arts Council of New Zealand. It consists of an Arts Council, two arts boards (Te Waka Toi and the Arts Board) and the Pacific Islands Arts Committee, and has offices in Wellington, Christchurch and Auckland. The Minister for Culture and Heritage appoints members of the Arts Council, the Arts Board and Te Waka Toi.

Creative New Zealand's mission is ‘to encourage, promote and support the arts in New Zealand for the benefit of all New Zealanders’. It does this by advocating for the arts, allocating grants to artists and arts organisations, and undertaking initiatives and research.

Most of Creative New Zealand's money comes from the New Zealand Lottery Grants Board ($20.31 million plus GST in 1999/2000) with the remainder from the Government through Vote: Cultural Affairs ($2.38 million plus GST in 1999/2000). Each year, Creative New Zealand distributes more than 80 percent of its total funding to New Zealand artists and arts organisations.

Advocating for the arts. A major focus of Creative New Zealand's work is promoting the value of the arts to society. It does this by working with other organisations, acting as a catalyst and providing information about the arts. In 1999, for instance, it helped set up an arts advocacy network, enabling arts groups to share information. It also supported a pilot partnership between an artists’ group in Dunedin and Department of Work and Income, aimed at improving employment opportunities for artists.

Creative New Zealand plays a major role in encouraging arts support from the private sector. In 1996, it set up a taskforce to explore ways of increasing patronage and encouraging endowments. Taskforce recommendations resulted in the Arts Foundation of New Zealand, launched in 1999.

It has also been involved in the National Business Review Awards for Business Sponsorship of the Arts since their inception in 1997. In 1999 it initiated the Creative New Zealand Award for Bravery to encourage arts partnerships involving an element of risk and innovation. It also sponsors the arts journalism category of the annual Qantas Media Awards and liaises with the media to increase arts coverage.

Creative New Zealand's website (www.creativenz.govt.nz) includes a database of New Zealand arts and cultural organisations, recent grants listings, press releases, and a publication order facility.

Grants. Creative New Zealand allocates grants to projects spanning all the artforms. In 1998/99, it offered project grants to more than 560 artists throughout New Zealand, totalling $6.35 million. Examples include a national quilt symposium in Queenstown, a site-specific installation in Otira and the composition of a score to accompany the 1922 silent movie My Lady of the Cave.

Support for the creation of new work encourages risk and innovation. Examples include the creation of Michael Parmenter's dance opera, Jerusalem, which received substantial funding, as did a New Year's Eve millennium celebration of the arts in Auckland.

Creative New Zealand also has 29 annual and multi-year funded clients including Chamber Music New Zealand, DANZ Aotearoa, regional theatre companies and orchestras, and the New Zealand National Youth Choir – winners of the world title at the 1999 International Musical Eisteddfod in Wales. Funding of these organisations for 1999/00 totalled $7,085 million.

The Creative Communities scheme is a partnership between Creative New Zealand and the country's 74 local authorities which supports the arts at a community level. The scheme distributed $2.56 million to community arts in 1998/99 for projects ranging from the Hokonui Fashion Design Awards in Gore to a Cook Islands language and cultural arts workshop in Hastings. In 1999, the organisation initiated the Creative Places award to encourage local government investment in the arts.

Special funds and awards. In 1999 Te Waka Toi held a special awards evening to honour nine Màori artists. It also presented its $25,000 Te Tohu Tiketike a Te Waka Toi/Te Waka Toi Exemplary Award to West Auckland kaumatua Jack Wihongi at a ceremony on the Hoani Waititi Marae. The 1999 Pacific Islands Artist Award was presented to Matafetu Smith, a traditional Niuean weaver living in Auckland.

The Screen Innovation Production Fund for experimental short films is a partnership with the New Zealand Film Commission. The New Zealand Authors’ Fund, administered by Creative New Zealand, compensates authors for loss of earnings when their books are borrowed from public libraries. In 1998/99, a total of $890,000 was allocated to the Authors’ Fund.

Research. Findings from a survey about New Zealanders’ arts participation, conducted by Creative New Zealand and released in 1999, showed that the arts are an integral part of New Zealanders’ lives. For instance, 90 percent of New Zealand adults (2.37 million) took part in an average of 3.7 different types of arts activity over a four-week period.

To find out what it is like to live and work as an artist in New Zealand, 1,000 artists from a range of artforms were interviewed in 1999 for a survey exploring the working life, career path and the business of being an artist.

Copyright

Copyright in New Zealand is based on the Copyright Act 1994, administered by the Ministry of Economic Development. 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), and the right not to have a work falsely attributed to them as an author or director. These rights cannot be assigned.

Exclusive rights of copyright owners. The owner of the copyright for a work has the exclusive right to do, and authorise others to do, a number of ‘restricted acts’ in relation to the work or an adaptation of that work in New Zealand. These include rights to:

  • Make copies.

  • Issue copies to the public, including the rental of films and sound recordings.

  • Perform, play or show the work in public.

  • Broadcast the work or include the work in a cable programme service.

  • Make an adaptation of the work.

Te Arangamai O Nga Tai Tamariki members opened the 1998 Aotea Youth Arts Festival with a play about the mythological creation of Aotearoa/New Zealand.

Copyright infringement occurs when a person undertakes a restricted act without a licence or the permission of the copyright owner.

Performers’ rights. Performers have rights to control the recording, reproduction or live broadcast or inclusion live in a cable programme of certain performances.

Enforcement of copyright. In New Zealand this is available by civil action or criminal action. Criminal liability for breach of copyright can extend to $150,000 or three 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 (the Classification Act) united censorship provisions for all types of publications under a single consistent regime. The act defines a ‘publication’ as:

  1. Any 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 including cinematographic film, video recordings, and any other material record of visual moving images.

Administration. The act came into force on 1 October 1994 and established the following bodies:

Office of Film and Literature Classification (the Classification Office) – a stand-alone Crown entity made up of a Chief Censor, a Deputy Chief Censor, classification officers, an Information Unit and support staff. The office classifies publications that are likely to be restricted or objectionable. The Chief Censor and Deputy Chief Censor are appointed by the Governor-General on the recommendations of the Minister of Internal Affairs, with the concurrence of the Ministers of Justice and Women's Affairs.

The Labelling Body – an industry-based body responsible for rating unrestricted films and videos and issuing labels. It is guided by classifications assigned by Australian or British authorities. 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. The labelling function is carried out by the Film and Video Labelling Body Inc.

Publications may be submitted for classification by the body (on behalf of distributors), the Secretary for Internal Affairs, the Chief Executive Officer of the New Zealand Customs Service or by any other person with the leave of the Chief Censor. The Chief Censor can also ‘call in’ publications when it is necessary. Classifications assigned by the office are legally enforceable. Under the act it is illegal to make an objectionable publication, or supply such a publication to any other person. The act also makes the possession of objectionable publications illegal. This applies whether or not the publication has been classified by the office.

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. The act established a legal test which looks at whether the availability of a publication would be injurious to the public good. This test is applied to publications in order to ascertain whether restriction is required, and what level of restriction is appropriate. The Classification Office can assign one of three classifications: unrestricted, restricted or objectionable. In general, publications classified by the office deal with matters such as sex, horror, crime, cruelty or violence, and are restricted to persons 16 years of age and over, or 18 years of age and over.

Following classification, films and videos are issued labels by the labelling body according to a ‘traffic light’ system. Rated films are issued with green labels for unrestricted films, and yellow labels for unrestricted films recommended for a certain age group. Red labels are issued for restricted material classified by the office. Computer games requiring restrictions are labelled in the same way as films.

Publications other than films are not required to be labelled before being supplied to the public. However, publications, such as magazines and books, can be submitted to the office for classification by the distributors or publishers. Such material is classified as unrestricted, restricted or objectionable. In addition, display conditions may be imposed, and publication may be required to be labelled.

Enforcement. The Department of Internal Affairs has a censorship compliance unit which is responsible for enforcing the act. The unit has ‘Inspectors of Publications’ to ensure that publications considered to be objectionable in terms of the act are not made available to members of the public. The Police are also inspectors of publications under the act with the same powers as the inspectors employed in the censorship compliance unit. The New Zealand Customs Service is responsible for ensuring that material imported into New Zealand complies with the law. Material seized by Customs may be referred to the office.

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 content 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.

Te Papa. The Museum of New Zealand: Te Papa Tongarewa, New Zealand's national museum, contains 21 major constructed exhibitions and features a programme of exhibitions from its own collections or borrowed from local, national and overseas sources.

The permanent exhibitions include Bush City, an outdoor space with distinctive aspects of the New Zealand landform. The Time Warp is a dynamic interactive zone that uses motion-simulation and cinema effects to project visitors into New Zealand's distant past and near future. Te Papa is the only museum in the world that has its own living, functioning marae.

The museum has particularly rich collections of New Zealand plants and animals, taonga Māori, Pacific artefacts and the former National Art Gallery collection. The Museum Board has purchased and refurbished the former Wellington City Council works depot in Wellington for the collections. Completed in early 2000, this new collections storage, research, and technical services facility will give Te Papa two world class buildings in which to preserve and present the national heritage.

More than 3.5 million visitors have come to the museum in the two years that it has been operating. Many more have benefited from its Extension and National Services programme. Over two-thirds of all visitors in the 1998/99 financial year came from outside the Wellington region and over a quarter were overseas visitors. Te Papa has achieved overwhelming success.

Historic places

New Zealand Historic Places Trust: Pouhere Taonga. The country's leading heritage agency since 1955, the New Zealand Historic Places Trust is now a statutory non-Crown-owned entity. With the advice and support of the Māori Heritage Council in matters of significance to Māori, the trust's board is responsible for promoting nationally the identification, protection, preservation and conservation of the land-based historic and cultural heritage of New Zealand. This includes buildings and archaeological sites, historic areas, and wahi tapu, which are sites of special, often sacred, significance to Māori. The trust's Māori name Pouhere Taonga means ‘pillar that binds all treasures’.

One of the trust's key tasks is to access and process nominations for the national register of historic places established by the Historic Places Act 1993. This register is for historic places which comply with the interpretations and criteria of the Historic Places Act. The Resource Management Act requirement for territorial authorities to ‘have particular regard to . . . recognition and protection of the heritage values of sites, buildings, places or areas’ has resulted in a variety of different criteria being developed by individual territorial authorities when listing local heritage places to be covered by protective mechanisms in their District Plans. An important aspect of the trust's work has become liaison with territorial authorities to ensure that registered historic places and sites are listed and receive the protection available through district plan provisions. Staff and trust branches also liaise with and provide heritage advice to private owners of registered historic places.

Historic places are registered under two categories:

  • Category I Places of special or outstanding historical or cultural heritage significance or value.

  • Category II Places of historical or cultural significance or value.

An anthropology student works at an excavation site near Rotorua, 1973.

Artist Colin McCahon.

Historic areas, wahi tapu and wahi tapu areas are included on the register, but are not differentiated as Category I or Category II, though individual sites within historic areas may sometimes have individual registration categories.

The trust is responsible for aspects of the regulation of all archaeological sites whether they are registered or not, including the authorisation of modification, damage or destruction of sites by development processes or by scientific excavation. Other aspects of archaeological site protection are the responsibility of territorial authorities under the Resource Management Act. However, amendments have been proposed to this act which may change the roles of territorial authorities and the trust.

In addition to exercising its regulatory powers the trust has recently placed greater emphasis on advocacy and cooperation with other agencies. Partnerships with key groups such as local authorities, owners, developers and iwi have been actively pursued. The trust's unique position as a centre of heritage expertise is being used increasingly to promote its services throughout New Zealand. Trust members receive the quarterly magazine, New Zealand Historic Places.

The trust owns or manages 58 properties throughout the country including 32 Crown properties, mostly reserves, which have either been vested in it or which it has been appointed to control and manage. The properties which the trust manages range from Pompallier in the Bay of Islands, New Zealand's oldest surviving industrial building, to the Southland Provincial Council Building in Invercargill. A number of properties are open to the public, including Pompallier, which is a working museum complete with printery, tannery and bookbindery. The trust-owned Stone Store, Kerikeri, the oldest stone building in New Zealand, reopened to the public in March 1998 following major conservation work begun two years earlier.

The staff of the trust, including heritage property curators and those employed in regional offices, are supported by 32,000 members and 23 branch committees throughout New Zealand.

In 1997 a ministerial review of historic heritage management in New Zealand was initiated which recommended that the trust ‘remain an independent statutory body as an advocacy and public membership organisation but without regulatory powers’. A Resource Management Amendment Bill, referred to a parliamentary select committee in July 1999, makes provision for repeal of the trust's regulatory powers. This would not affect the trust's work as expert technical adviser, educator and advocate for heritage.

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, administered by the Ministry for Culture and Heritage, 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 shipwreck items.

It is necessary to obtain an authority from the New Zealand Historic Places Trust before damaging, destroying, or modifying any archaeological site, or undertaking an archaeological investigation of any site. However, if the Resource Management Amendment Bill is enacted, territorial authorities may assume regulatory responsibility for protection of archaeological sites.

New Zealand Film Archive

The New Zealand Film Archive: Ngā Kaitiaki O Ngā 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 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 for Culture and Heritage and NZ On Air, sponsorship and commercial activity.

The collection comprises New Zealand and overseas films dating from 1895 to the present day and includes 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. Since 1997 the archive has been contracted by NZ on Air as the official archive for New Zealand television production.

As part of its acquisition programme the archive operated the Last Film Search, sponsored by the Bank of New Zealand. Regional searches collected 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. In 1999 the project was completed. One search, ‘Across the Ditch’, searched for New Zealand films held in Australian institutions. The fourteenth and final search covered the Wellington and Horowhenua district. More than 7,000 films were collected during the project which began in 1992.

Te Hokinga Mai O Ngā Taonga Whitiahua is a Film Archive initiative facilitated in partnership with Te Papa National Services. The programme, launched in February 1996, was designed to reconnect iwi with images housed at the archive depicting their people, geography and events. For the past several years, archive staff have made numerous visits to the six regions which have hosted marae screenings, inviting iwi to participate in the development of culturally appropriate access procedures.

The archive's public face is the Film Centre in Wellington which offers exhibitions, archival television programmes and cinema screenings. Entry is free.

Big Screen, an initiative to celebrate the millennium and increase access to the archive's collections, includes the Bank of New Zealand Film Archive Travelling Picture Show, a grand tour of free film screenings to mark the end of the Last Film Search. The Film Archive is also hosting a Film and History conference in partnership with Victoria University of Wellington in December 2000.

National Archives

National Archives: Te Whare Tohu Tuhituhinga o Aotearoa is the largest repository of information on the history and development of New Zealand. Comprising the records of Government since 1840, holdings consist of about 70,000 linear metres of paper documents, 500,000 maps and plans, and 1.4 million photographic images, as well as large deposits of films, videos, art works, posters, microfilms and objects.

These records represent the memory of Government because they provide evidence of its functions, policies, transactions and decisions. The wide variety of archives provide evidence of the country's development, whether social, military, legal or technical. Archives are the raw material for the history of New Zealand.

The archives are part of the Heritage Group of the Department of Internal Affairs. In 1999, the Government decided to move responsibility for funding the work of the group (including National Archives) to the Minister for Culture and Heritage, pending a review in 2000 to determine appropriate governance arrangements within an expanded Culture and Heritage portfolio.

Records held by National Archives include those of government departments such as Education, Railways, Health, Lands and 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.

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.

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 or informational value are selected for preservation. They are transferred to National Archives where finding aids or indexes 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.

Artist Frances Hodgkins at her Dorset, England, studio, 1945.

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.

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.

The establishment, in 1996, of the Statutory Regulatory Group has more clearly defined National Archives’ standard-setting role. This group provides 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.

National Archives currently operates under the Archives Act 1957 but a bill is expected to result in a new act that will take into account recent legislation (such as the Official Information Act 1982, Privacy Act 1993) which impinges on the administration of the Archives Act. It also aims to cover technological advances since 1957 and issues concerning the preservation of electronically-stored information.

12.3 Performing arts and film

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra (NZSO) celebrated its 53rd anniversary in 1999. Numbering 95 players and supported by an administrative staff of 25, the NZSO is an orchestra of international standing attracting prominent international artists and conductors.

Based in Wellington, it performs regularly in centres throughout New Zealand, travelling over 50,000km each year. This makes it one of the world's most travelled orchestras.

The New Zealand Chamber Orchestra (NZCO) was founded in 1987 and its players include leading members of the NZSO. It performs without a conductor, and is directed from the first violin chair by Music Director Donald Armstrong.

Both the NZSO and NZCO perform works from the major symphonic and chamber repertoire in seven New Zealand centres, playing a total of about 90 concerts a year.

As well as presenting a subscription series, the orchestra performs light music, family concerts, educational programmes and operas and ballets. The NZSO's involvement in major outdoor concert events such as the Martinborough Food and Wine Festival (1999), the formation of a young professionals music club (Classic Attitude Club) and the Tea and Symphony morning concerts have broadened its market appeal.

The NZSO is also committed to commissioning, performing and recording works by New Zealand composers. In 2000 the NZSO will perform the world premier of Gareth Farr's Hikoi and will play with the finalists of the Young Musician of the Year competition. It will also perform finalists’ works in The Music 2000 Prize which is a competition for New Zealand composers.

To date, the NZSO has made four 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. In 1999 the NZSO's first Music Director, James Judd, was appointed. Maestro Judd is also director of the Florida Philharmonic and will be based in New Zealand for 12 weeks every year.

The annually awarded Lexus Bursary gives one permanent member of the NZSO the opportunity to study overseas for six months on full pay. The 1999 recipient was trombonist Peter Maunder. The NZSO Foundation Charitable Trust was established to aid the long-term funding needs of the orchestra. The foundation's endowment fund grows through contributions by individuals, corporations and associations interested in supporting the NZSO.

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. Aged from 13 to 23 years, and selected by nation-wide auditions, the young players receive coaching from NZSO principals while gaining experience of professional symphony orchestra conditions. Many become NZSO and regional orchestra players. The highlight of 1999 was their performance at the APEC Conference. The Youth Orchestra is administered and funded by the NZSO.

Royal New Zealand Ballet

The Royal New Zealand Ballet is one of New Zealand's largest performing arts organisations comprising 32 permanent dancers and 21 staff in artistic support, production, marketing and management.

The New Zealand National Orchestra, established in 1947, rehearses in 1951 at Wellington Town Hall with violinist Yehudi Menuhin and conductor Michael Bowles.

Dame Kiri Te Kanawa sings at a Gisborne millennium concert, 1 January 2000.

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 100,000 annually. The company receives 40 percent of its income directly from Ministry for Culture and Heritage funds and 60 percent from box office sales and sponsorship.

International tours have taken The Royal New Zealand Ballet to the USA, Europe, Asia and Australia.

New Zealand School of Dance

The New Zealand School of Dance trains approximately 55 students each year, offering two- and three-year courses in dance performance and teaching dance. Students come mostly from New Zealand but also from Australia and Japan. The school, founded in 1967, has a close relationship with the Royal New Zealand Ballet and some students dance in its performances. Each year the third-year students tour nationally. The New Zealand School of Dance is funded by a grant from the Ministry of Education, tuition fees, and sponsorship.

New Zealand Drama School

The New Zealand Drama School: Te Kura Toi Whakaari O Aotearoa was established in 1970 by the Queen Elizabeth II Arts Council. Since then over 300 actors have graduated from the school. Toi Whakaari offers 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 1998/99 from the Ministry of Education totalled $838,000.

Chamber Music New Zealand

Founded in 1950, Chamber Music New Zealand is the major presenter of chamber music concerts. International and New Zealand artists perform in Celebrity Season concerts in nine centres, with further concerts being held in 27 smaller cities and towns. There were over 100 concerts in 1999.

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 the list of Chamber Music New Zealand's artistic goals. For over 30 years Chamber Music New Zealand has organised the National Secondary School Chamber Music Contest 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 1999 contest attracted 454 group entries representing 1,800 young musicians from throughout the country.

The major source of Chamber Music New Zealand's funding is ticket sales. The balance comes from Creative New Zealand and sponsorship.

New Zealand Choral Federation

The New Zealand Choral Federation: Te Kotahitanga Manu Reo o Aotearoa (NZCF) has 330 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’, promotes choral music in all its forms and aims 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.

*Includes co-productions and overseas features using New Zealand locations.

Source: New Zealand Film Commission.

New Zealand feature films*
Silent
1914Hinemoa George Tarr
1916The Test Rawdon Blandford
A Maori Maid's Love Raymond Longford (Australia)
The Mutiny of the Bounty Raymond Longford (Australia)
1921The Betrayer Beaumont Smith (Australia)
1922The Birth of New Zealand Harrington Reynolds
My Lady of the Cave Rudall Hayward
1924Venus of the South Seas James Sullivan
The Romance of Sleepy Hollow Henry Makepeace
1925Rewi's Last Stand Rudall Hayward
1925The Adventures of Algy Beaumont Smith (Australia)
1927Carbine's Heritage Edwin Coubray
The Te Kooti Trail Rudall Hayward
The Romance of Hine-moa Gustav Pauli (UK)
Under the Southern Cross Gustav Pauli (UK)
1928The Bush Cinderella Rudall Hayward
1929Under the Southern Cross / The Devil's Pit Lew Collins (USA)
Sound
1935Down on the Farm Lee Hill, Stewart Pitt
Hei Tiki Alexander Markey
1936Phar Lap's Son? A L Lewis
The Wagon and the Star JJ W Pollard
On the Friendly Road Rudall Hayward (NZ Film Guild)
1940Rewi's Last Stand Rudall Hayward
1952Broken Barrier Roger Mirams, John O'Shea
1954The Seekers Ken Annakin (UK)
1957Until They Sail Robert Wise (USA)
1964Runaway John O'Shea
1966Don't Let It Get You John O'Shea
1972To Love a Maori Rudall Hayward
1973Rangi's Catch Michael Forlong (UK)
1975Test Pictures Hinge Film Productions
Landfall Paul Maunder
1976God Boy Murray Reece (telemovie)
Off the Edge Michael Firth
1977Wild Man Geoff Murphy
Sleeping Dogs Roger Donaldson
1978Solo Tony Williams (Australia)
1979Skin Deep Geoff Steven
Middle Age Spread John Reid
Sons for the Return Home Paul Maunder
Angel Mine David Blyth
1980Squeeze Richard Turner
Beyond Reasonable Doubt John Laing
1981Goodbye Pork Pie Geoff Murphy
Kingi's Story Mike Walker
Pictures Michael Black
Race for the Yankee Zephyr David
Hemmings (Australia)
Bad Blood Mike Newell (UK)
Dead Kids/Strange Behaviour Michael
Laughlin (Australia/USA)
1982Smash Palace Roger Donaldson
The Scarecrow Sam Pillsbury
Battletruck Harley Cokliss
Carry Me Back John Reid
Prisoners Peter Werner (USA)
Brothers Terry Bourke (Australia)
1983Utu Geoff Murphy
Strata Geoff Steven
Savage Islands Ferdinand Fairfax
Merry Christmas Mr Lawrence Nagisa
Oshima (Japan/UK)
Patu Merata Mita
Iris Tony Isaac
Second Time Lucky Michael Anderson
1984Wild Horses Derek Morton
Trespasses Peter Sharp
Lizzie David Blyth
Death Warmed Up David Blyth
Constance Bruce Morrison
Trial Run Melanie Read
Among the Cinders Rolf Haedrich
Pallet on the Floor Lynton Butler
Mesmerized Michael Laughlin
Shaker Run Bruce Morrison
Hot Targets Dennis Lewiston
1985Other Halves John Laing
Heart of the Stag Michael Firth
Syliva Michael Firth
The Silent One Yvonne Mackay
The Lost Tribe John Laing
Kingpin Mike Walker
Vigil Vincent Ward
Mr Wrong Gaylene Preston
Should I Be Good Grahame McLean
Leave All Fair John Reid
Came A Hot Friday Ian Mune
Lie of the Land Graham McLean
1986Footrot Flats Murray Ball
Arriving Tuesday Bruce Morrison
Bridge to Nowhere Ian Mune
The Quiet Earth Geoff Murphy
1987Dangerous Orphans John Laing
Ngati Barry Barclay
Queen City Rocker Bruce Morrison
Starlight Hotel Sam Pillsbury
Mark II John Anderson
No Way Out Roger Donaldson (USA)
The Leading Edge Michael Firth
1988Mauri Merata Mita
Bad Taste Peter Jackson
Never Say Die Geoff Murphy
Illustrious Energy Leon Narbey
A Soldier's Tale Larry Parr
The Rescue Ferdinand Fairfax (USA)
Willow Ron Howard (USA)
Midnight Run Martin Brest (USA)
Chill Factor David McKenzie
1989Send a Gorilla Melanie Read
The Grasscutter Ian Mune (video release)
Zilch Richard Riddiford
Flying Fox in a Freedom Tree Martyn Sanderson
The Navigator Vincent Ward (NZ/Australia)
Meet the Feebles Peter Jackson
User Friendly Gregor Nicholas
An Angel at my Table Jane Campion
Shrimp on the Barbie Michael Gottlieb
1990Ruby and Rata Gaylene Preston
The Returning John Day
Te Rua Barry Barclay
Undercover Yvonne Mackay
1991End of the Golden Weather Ian Mune
Moonrise David Blyth
Chunuk Bair Dale Bradley
Old Scores Alan Clayton
Secrets Michael Pattison
1992Crush Alison Maclean
The Footstep Man Leon Narbey
Braindead Peter Jackson
Absent Without Leave John Laing
Alex Megan Simpson
The Piano Jane Campion
Grampire David Blyth
1993Cops and Robbers Murray Reece
Desperate Remedies Stewart Main and Peter Wells
Jack Be Nimble Garth Maxwell
Bread and Roses Gaylene Preston
1994Heavenly Creatures Peter Jackson
Once Were Warriors Lee Tamahori
The Last Tattoo John Reid
1995Jack Brown, Genius Tony Hiles
War Stories Gaylene Preston
Bonjour Timothy Wayne Tourell
Chicken Grant Lahood
Flight of the Albatross Werner Meyer
Broken English Gregor Nicholas
1996The Frighteners Peter Jackson
The Climb Bob Swaim
Abberation Mark Beesley
The Ugly Scott Reynolds
Topless Women Talk About Their Lives
Harry Sinclair
1997Saving Grace Costa Botes
Heaven Scott Reynolds
Memory and Desire Niki Caro
Via Satellite Anthony McCarten
1998When Love Comes Garth Maxwell
Channelling Baby Christine Parker
Wild Blue Dale Bradley
The Lunatic's Ball Michael Thorp
I’ll Make You Happy Athina Tsoulis
Savage Honeymoon Mark Beesley
Hopeless Stephen Hickey
Punitive Damage Annie Goldson
What Becomes of the Broken Hearted
Ian Mune
Scarfies Robert Sarkies

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.

The NZCF organises the annual Secondary Schools Choral Festival, with nine regional events culminating in a national finale. In 1999, 203 choirs from 125 secondary schools and over 6,000 students took part; 20 school choirs attended the finale in Dunedin. The New Zealand Festival of Youth Choirs was held for the first time, in Wellington, in 1995. The fourth Sing Aotearoa festival was held in Ohakune in June 2000. NZCF publishes Breve bi-monthly and books and videos on sight singing and choral direction.

New Zealand Film Commission

The New Zealand Film Commission (NZFC) finances distinctly New Zealand films with the aim of reaching bigger New Zealand audiences, and producing higher returns on investment both in cultural and financial terms.

The functions, powers, and duties of the New Zealand Film 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. The budget for 1998/99 was $12.6 million. Of the budget income, 10 percent is from the Government, and 75 percent from state lottery profits. The budget varies according to public funding and the returns on film investments. The NZFC planned to invest $8 million in the production and development of feature films in 1999 (1998 – $7.4m). The Film Commission also allocated $900,000 for short films and $1 million for promotion and marketing. Since 1978 over 120 features have been made in New Zealand, more than 70 of these with NZFC finance.

12.4 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

In 1999 there were 62 members registered with the Book Publishers Association of New Zealand. In addition to this professional core there were approximately 840 enterprises or individuals recorded as publishing or distributing publications during 1999.

According to National Library sources there were approximately 4,800 titles published in 1999. This figure comprises trade titles, publications from government departments, local bodies, historical societies, business organisations, special interest groups and individuals.

While the 1990s were testing times for books in light of new technologies, school book spending increased by approximately 51 percent over the eight year period 1989–1997. Spending figures from 1989 showed that a total of 10,240 books were purchased that year. By 1997 this number had increased to a total of 13,295 books purchased. Trends also showed there had been a shift from the purchasing of references books by schools to increased purchasing of CD-ROMs.

New Zealand's book trade export figures showed the provisional figure for the June 1999 year totalled $43 million. This figure represented the value of goods sold along with the costs of transportation. Imported books far outweighed exports with a total of $366 million. This is a value-for-duty-only figure meaning that it is the value of goods as submitted by importers for duty.

The Book Publishers Association held the third Book Design Awards (sponsored by Spectrum Print) to recognise excellence in book design and to increase public awareness of the quality of New Zealand books.

Also in 1999, the New Zealand Publishers Export JAG (Joint Action Group) organised the New Zealand publishers stand at the 51st annual October Frankfurt Book Fair.

The Huia Short Story Awards – established by Wellington's Huia Publishers in 1995 – are a biennial event to encourage new and established Māori writers. The outcome of the 1999 awards was the publication of three short story collections in Māori and English. There has been an increase in stories in te reo Māori (the Māori language) every year. This is attributed to the new generation of Māori speakers being taught in Māori language schools and preschools.

In 1999 the AW Reed Good Publishers biennial award, instituted by the New Zealand Society of Authors, was established. This award acknowledges the publisher who is judged the best and fairest in its working relationships with New Zealand authors and in the publication and promotion of their books.

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.

Rock group Split Enz, 1915.

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 1998 was 274 within 84 library systems.

In the year ended 30 June 1998, local authority libraries held a book stock of over 10 million volumes, and made over 48 million issues.

There are some 63 libraries in tertiary education institutions, including the eight university libraries, all of which have major collections, and there is provision for a library or library room in every school. The eight 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. Over 300 specialist libraries and information centres serve government departments, businesses and other organisations.

A cooperative inter-library lending system allows resource-sharing among its 250 member libraries. The Interloan Billing system is administered through the National Library and the New Zealand Library and Information Association by the Joint Standing Committee on Interloan.

Library education. Education for librarianship has been offered in New Zealand since the New Zealand Library School was established in 1946. This school, which was attached to the National Library, offered a Diploma in Librarianship to graduates and a Certificate of the New Zealand Library School to non-graduates. In 1980 library education was transferred to the tertiary sector. The Diploma moved to Victoria University of Wellington and the Certificate to the Wellington College of Education, where it was called the New Zealand Library Studies Certificate.

Postgraduate education in Library and Information Studies is now available nationally. The Master of Library and Information Studies is offered on-campus and through distance learning by the School of Communications and Information Management at Victoria University of Wellington. Over 90 students are enrolled in the programme each year, studying by means of coursebooks, audio-conferencing, video technology, classes at selected sites and through the World Wide Web.

Two Diplomas in Information and Library Studies are offered at the undergraduate level by the Open Polytechnic of New Zealand, which may lead to a Bachelor of Applied Science in Information and Library Studies with additional coursework. Several hundred students are enrolled in the diploma courses.

National Library of New Zealand: Te Puna Mātauranga o Aotearoa. The purpose of the National Library of New Zealand: Te Puna Mātauranga o Aotearoa is to inform New Zealand by forging links between information and people.

The National Library was established in 1966 by an act of Parliament, which also incorporated the Alexander Turnbull Library into the National Library. It collects, preserves and makes the country's documentary heritage available to all New Zealanders.

In its various collections the National Library holds about 2.9 million books; about 1.7 million photographs and negatives; 60,000 paintings, drawings and prints; enough newspapers to form a stack about 2km high; 7km of manuscripts; more than 4km of serials; 100,800 music scores; a collection of sound recordings including almost 13,000 music compact discs; 6,000 oral history interviews; 589,000 children's books (including the schools collection); and about 125,000 ephemera items, ranging from propaganda material to theatre programmes.

The National Library is the principal adviser to government on library and information issues. Recent work in this area includes evaluation of a cultural property pilot project in the Wairarapa, and a paper on the National Library's contribution to the Government's outcomes and goals for heritage and national identity.

Writer Katherine Mansfield, 1914.

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. Some collections are made available electronically, for example, through the Internet and on CD-ROM.

The National Library Gallery, through a programme of exhibitions and public events, provides a unique form of access to, and interpretation of the heritage collections held by the Alexander Turnbull Library.

The Alexander Turnbull Library is a national research collection, containing both published and unpublished material. The library specialises 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 bookmaking. It is based on the collections of Alexander Horsburgh Turnbull, a wealthy Wellington merchant who died in 1918 and bequeathed the nation his collection of some 55,000 volumes, as well as manuscripts, paintings and sketches.

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 varying media in recording the aspects of life in New Zealand. 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.

Oral History Centre. The many different voices of New Zealanders are recorded through the work of the National Library's Oral History Centre.

Interviewers use structured life history interviews to document people's experiences and to record those whose lives are relatively undocumented. The recordings also provide valuable information about language, accent, inflection, emphasis and tone which cannot be captured on paper.

The Oral History Centre has been part of the Alexander Turnbull Library since 1981. The centre maintains and provides access to the oral history collection as well as recording interviews for the library's programme of oral history projects and carrying out commissioned projects for other organisations.

The centre provides training workshops and consultancy for oral historians throughout the country, giving ongoing project support and promoting professional, ethical and technical standards in recording and archiving, in conjunction with NOHANZ, the National Oral History Association of New Zealand.

It supports the collection of Māori oral history and is involved in training and support for iwi and other Māori projects. The centre holds Māori collections such as The Maniapoto Archive, TeWananga o Raukawa Collection and The Māori Women's Welfare League Collection. Recent acquisitions include Kahungunu Kaumātua of the 1990s, Hiruhārama Oral History Project and Whanaungatanga: Ngāti Wehiwehi me Ngā Rauru.

An increasingly important part of the centre's work is contemporary oral history; regular weekly or monthly interviews are carried out with people in particular situations, such as leading politicians or people who are unemployed long term.

A major contemporary project was a series of interviews recorded on the high seas at Moruroa during French nuclear testing.

The oral history collection consists of 14,000 cassettes, reel-to-reel tapes and videos comprising more than 6,000 recordings of interviews and events, accompanied by relevant documentation.

Recordings are donated by community oral historians, organisations, museums, companies, university researchers, authors and others. The primary source of funding for oral history projects is the annual Awards in Oral History from the Australian Sesquicentennial Gift Trust, administered by the Department of Internal Affairs.

Most interviews in the collection have been recorded since 1980 and cover late 19th and 20th century social history. The Sunlight Centenarians Oral History Project recorded life histories of 23 centenarians in 1985. Whanganui Women was one of many projects inspired by the celebration of the centenary of women's suffrage in 1993. The World War I Oral Archive contains interviews with more than 80 veterans.

Local and regional oral history projects have been recorded about Martinborough, Porirua, Greater Green Island, Ngahinepouri, lower Hawke's Bay and elsewhere.

A growing number of projects focus on the experience of immigrant groups and ethnic minorities such as Italians, Cambodian women, Jewish immigrants of the late 1930s, people from the Pacific Islands, Indian women, Wellington City Transport European immigrant bus drivers and the Chinese residents of Haining Street, Wellington.

Businesses such as Fletcher Challenge Ltd, professional associations such as the Nursing Education and Research Foundation and voluntary organisations such as the National Council of Women have deposited extensive collections of life history interviews.

Oral history complements other library collections such as the Manuscripts and Archives collection. For example, in-depth interviews with politicians or trade unionists can be considered alongside their personal papers. The Archive of New Zealand Music has commissioned life history interviews with musicians.

A reference service is provided for those who visit or write to the library. Researchers may listen to tapes and use accompanying written material in the library or request them by interloan through most other libraries. Recordings are available subject to any conditions specified by the people interviewed or those who have deposited the tapes.

Services available from the National Library are:

Reference Service – The National Library provides a reference service to assist with 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 to local and overseas on-line 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, CD-ROMs and microfiche information from both New Zealand and overseas.

Te Puna – An Internet and Windows-based computer system that links most public, university, government and special libraries in New Zealand to a central bibliographic database. Te Puna's prime function is to support more than 350 member libraries throughout New Zealand in their reference, interloan, cataloguing and acquisitions activities.

Te Puna now contains about 12 million records, while another National Library database, Index New Zealand, has almost 311,000 records.

Services to libraries – A range of services is provided to New Zealand libraries. As well as hosting Te Puna, the Turnbull Library works with other libraries to run a system of inter-library loans (Interloans). This system allows libraries to share resources with each other, so New Zealanders anywhere in the country can access what they need. Some of the Turnbull collection can therefore be accessed at local libraries through this system.

School Services – National Library School Services offers a range of services from 14 centres geographically spread from Kerikeri to Invercargill. Advisory services work with schools to strengthen their library services, so that the school library/information centre can support teaching and learning more effectively. To supplement the resources schools are able to provide for themselves, the Curriculum Information Services offers teachers a wide range of curriculum-based resources for loan.

Services to Māori – Māori are acknowledged as a special group of users of the National Library, because of its commitment to bicultural objectives. There is a growing demand from Māori for information held by the library. The Services to Māori unit is working toward helping Māori gain optimum use of the library's resources and services. The unit focuses on ways the library can further develop relationships with the Māori community, including servicing Kura Kaupapa Māori schools. The library also has Takawaenga-ā-Rohe, Māori District Liaison Librarians, who assist with Māori information needs by acting as a link between Māori and the library.

Services to New Zealand publishers – Under the National Library Act 1965, amended in 1994, publishers are required to deposit three copies (in some cases fewer) of every publication produced in New Zealand. The library has the responsibility to collect these publications and make them available to present and future generations. It lists these publications on the New Zealand National Bibliography, which is published monthly and is often used by potential buyers to order new titles.

Country library service, Christchurch 1955.

The library also issues publishers with international standard numbers, which are designed to give publications a unique identification that allow for easy location and ordering.

Access to the National Library via the Internet – The National Library's website (www.natlib.govt.nz) carries information about its collections, services and policy research. In 1999 an average of almost 3,700 people accessed the site each month. Almost two-thirds of those people were from outside New Zealand. The site allows visitors to ask questions and give feedback, just as they could if they visited the library in person.

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. The public can search electronically-stored images of items from the pictorial collections through the Internet. By going to the website timeframes.natlib.govt.nz Internet users can view, print out or order copies of a range of photographs, maps, prints and ephemera from the library's heritage collections. The library has over 13,000 images available on-line.

Services to the heritage community: National Preservation Office – The National Library and National Archives jointly established New Zealand's National Preservation Office in 1997. The office works to develop national projects for preserving New Zealand's documentary heritage. It runs educational programmes and looks at technical preservation standards for New Zealand. The office helps coordinate policy and set up preservation programmes, and gives advice on grant applications.

The Preservation Officer, Māori, offers advice to iwi, hapu or any other Māori organisation on preserving collections. This work includes organising workshops on how to care for paper-based collections and assisting with surveys. Māori organisations are also offered advice to help set up archives or libraries.

Parliamentary Library. This library provides library, information, research and reference services for Parliament as required by the Parliamentary Service Commission. In the 1998–99 year library staff responded to more than 17,000 information requests from members of Parliament and their staff. The library uses many electronic resources to provide members with desktop access to information throughout parliamentary offices.

The library's print collection, which numbers over 500,000 volumes, is strongest in areas such as economics, politics, public administration, law, social sciences and New Zealand serials and newspapers.

The International Documents Collection includes government and parliamentary publications from a wide range of countries, with Australia, Canada, Japan, the UK and the USA particularly well covered. Publications from many intergovernmental agencies such as the UN, OECD and the World Bank are also available. The collection is for public use.

The Parliamentary Library building, which marked its centenary in 1999, is a striking example of 19th century Gothic architecture. Extensive refurbishment and earthquake strengthening took place from 1992–1996.

Contributors

  • 12.1 Ministry for Culture and Heritage; Lottery Grants Board; Historic Places Trust; Department of Internal Affairs; Creative New Zealand; Ministry of Economic Development; Office of Film and Literature Classification.

  • 12.2 Museum of New Zealand Te Papa Tongarewa; New Zealand Historic Places Trust; New Zealand Film Archive; National Archives; Motion Picture Distributors Association.

  • 12.3 New Zealand Symphony Orchestra; Royal New Zealand Ballet; New Zealand School of Dance; New Zealand Drama School; Chamber Music New Zealand; New Zealand Choral Federation; New Zealand Film Commission.

  • 12.4 Book Publishers Association of New Zealand; New Zealand Library Industry Association; Victoria University of Wellington; National Library of New Zealand; Parliamentary Library; Hocken Library.

Special articles

Copyright Licensing Ltd; Office of Film and Literature Classification; Booksellers New Zealand; New Zealand Film Commission; Recording Industry Association of New Zealand; National Library; New Zealand Cartoon Archive; PEN – The New Zealand Society of Authors.

Further information

Administration

Employment in the Cultural Sector. 1996. Statistics New Zealand and Ministry of Cultural Affairs.

Household spending on culture. 1996. Statistics New Zealand and Ministry of Cultural Affairs.

Local Authority spending on the arts 1992–93. 1996. Creative New Zealand.

New Zealand cultural statistics. 1995. Statistics New Zealand and Ministry of Cultural Affairs.

Report of the Arts Council of New Zealand Toi Aotearoa (Parl paper G.11).

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

Report of The Ministry for Culture and Heritage (Parl paper G.10).

Report of the New Zealand Historic Places Trust (Parl paper C.18).

Report of the New Zealand Lottery Grants Board (Parl paper G.7b).

The national collection

Annual Report of the New Zealand Film Archive.

New Zealand museums 1990–96: facts and trends. 1997. Creative New Zealand.

The Policy for Government Assistance Towards Capital Projects at Regional Museums. 1994. Ministry of Cultural Affairs.

Report of the Board of Trustees, National Art Gallery, Museum of New Zealand Te Papa Tongarewa (Parl paper G.12).

Report of the New Zealand Film Commission (Parl paper G.19).

Performing arts and film

New Zealand film 1912–1996. Helen Martin and Sam Edwards. 1997. Oxford University Press.

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

Heretaunga Tramping Club pre WWII.

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 an important focus for cultural identity and New Zealand is widely known for the calibre of many of its international sportspeople.

Outdoor recreation is popular, encouraged by a relatively pristine environment rich in scenic beauty. In 1997, the Hillary Commission launched KiwiWalks to encourage New Zealanders to make use of the rich natural surroundings. In the two years since KiwiWalks was launched 60 local councils and DOC conservancies have joined the scheme and launched 150 KiwiWalks around waterfronts, gardens, heritage sights and city vistas. They are identifiable by wooden plaques featuring the KiwiWalks logo which will be situated at the start, end and throughout all KiwiWalk tracks. To find out where the KiwiWalks are, visit the commission's website at www.hillarysport.org.nz

Providing for sport and leisure

Hillary Commission for Sport, Fitness and Leisure. The Hillary Commission's mission is for all New Zealanders to participate and achieve in sport, fitness and leisure. The commission initiates, supports and facilitates programmes and policies to raise the quantity and quality of active participation in sport, fitness and leisure among New Zealanders of all ages, at all levels of competence.

The nine-member commission employs approximately 38 staff. Sir Brian Lochore is the commission's presiding chairman. It is funded by the New Zealand Lottery Grants Board and government.

In the year ended June 1999, the commission expended $36.1 million in the following key areas: $21.9 million in the area of coaching and excellence; $4.7 million to the area of Push Play (Active-Living); $6.8 million to young people's sport; and $2.7 million towards corporate services. These figures include distributions to sport, fitness and leisure groups in New Zealand.

The commission's nation-wide 1997 Sport and Physical Activity Survey researched over 5,400 adults (18 years and over) and 1,700 young people (5 to 17 year-olds) about how active they are. Two out of three people over the age of five are active in their leisure time. Four out of ten young people (44 percent) and just over half the adults (52 percent) are highly active, spending five or more hours a week on sport and active leisure.

Almost 4 out of 10 adults are members of a club or gym (36 percent) and 2 out of 10 adults belong to a sports club. A lot more men (29 percent) belong to sports clubs than women (16 percent). Young adults (18 to 24 year-olds – 36 percent) are more likely to belong to a sports club than older people (20 percent).

Sports and physical activities are more popular with men than women, and young people are more active than older adults. Golf is the sport most men participate in while netball is the number one sport for women. Walking and gardening are the two main ways men and women are physically active in their leisure time.

Over 300,000 volunteers donate $580 million worth of time and effort to sports clubs and organisations throughout New Zealand.

High performance. A partnership was forged with the New Zealand Sports Foundation in 1996, providing benefits to top athletes and the sporting public. The commission and the foundation have cooperated closely in many areas, and the ‘one stop shop’ has been in operation since the two organisations issued a joint funding prospectus to national sports bodies.

Junior sport. Sport for young people is a major priority for the Hillary Commission. The commission's survey shows that participation rates are exceptionally high for 5 to 17 year-olds. A huge 93 percent of young people take part in sport and active leisure. Participation rates for boys are 95 percent and 91 percent for girls.

Rugby fullback George Nepia, 1928.

Almost three-quarters of young people are involved in sport and active leisure at school, and almost a quarter of young people take part in sports and activities organised by the school before or after the school day. About one-third of young people play sport as part of a club, although this is more common for boys (39 percent) than girls (28 percent). Two-thirds of young people enjoy playing sport and being active with family or friends.

For younger people (5 to 15 years) participation is at a high rate (94 percent), but for 16 and 17 year-olds it is noticeably lower (81 percent). Almost all young Māori (95 percent) and young people from a European background (93 percent) enjoy some form of sport or active leisure, but fewer young people from other cultures (90 percent) play sport or are active in their leisure time.

The top two sports and activities played in clubs by boys are soccer (17 percent) and rugby union (16 percent), while for girls they are swimming (17 percent) and netball (13 percent). Boys play more sport than girls at clubs, but the gap is closing, particularly in school sport.

The Hillary Commission believes in ‘Putting Young People First’ and has adopted a new national sport policy for young people. Called ‘Moving Through Sport’, it defines the sports and physical activities that young people have a right to.

Moving Through Sport increases the opportunity for all young New Zealanders to develop and enrich their lives through sport. This policy is based on the belief that sport, when presented and organised properly, makes a significant contribution to the social and moral education of young people and is an effective way of producing benefits for both the individual and New Zealand society.

There is widespread, possibly universal, acceptance by junior sport providers of the principles and policies of Moving Through Sport. This suggests that the document fairly describes ‘best practice’ in junior sport.

The commission has advocated the benefits of junior sport to key agencies and liaised with the Ministry of Education in development of the new Health and Physical Education Curriculum.

Both the KiwiSport programme (a modified sports code for primary school children initiated in 1988) and secondary schools' Sportfit (established in 1991) continue to be important to junior sport. KiwiSport is used to coach sport in 95 percent of primary and intermediate schools and in 1998–1999 over 11,400 teachers were trained in KiwiSports, along with 12,851 parents and older students. Almost two-thirds (63 percent) of young people receive some coaching or instruction to help them improve their performance in their chosen sports and activities.

Feedback from secondary schools reveals that just over a half (56 percent) of students are involved in competitive sport. In 1998, 53 percent of girls and 59 percent of boys played sport at this level.

At secondary schools 4 out of 10 teachers are involved in school sports programmes. This means that just over 8,000 teachers act as coaches, managers and officials and are the biggest single group providing sports leadership for secondary school students. A total of 338,000 people coach and administer sport for secondary school students.

The FairPlay campaign advocating ‘good sports’ was introduced in 1996 with its catch phrase ‘always give it heaps but don't get ugly’. The commission has led efforts to ensure that young people play sport in the proper spirit. Sport is all about energy and passion, but not at the expense of sporting behaviour.

Green Prescriptions. Approximately one-third of New Zealanders are not physically active in their leisure time. This is a public health issue that needs to be overcome, so the Hillary Commission developed Green Prescriptions. The programme encourages general practitioners to prescribe exercise to those of their patients who would benefit from it. GPs are in a good position to promote the health benefits of physical activity – they have regular access to a large proportion of the sedentary population and are a respected source of advice. Launched in May 1997, Green Prescriptions, in conjunction with health agencies, has now been nationally implemented. A toll-free information line 0800 ACTIVE, a service run by regional sports trusts, has been established to put patients in contact with local activity programmes. As of November 1999, 51 percent of New Zealand GPs are prescribing green prescriptions for their patients.

He Oranga Poutama. This programme provides the Hillary Commission's vital Māori dimension. He Oranga Poutama's strategy is to use the potential of Māori in sport – as players, coaches, umpires and administrators. The programme forges links with local iwi and acknowledges and supports initiatives that are unique to Māori. Sport and active leisure is now thriving in 200 marae settings.

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.

Coaching. Coaching is a vital part of the development of any athlete, and the commission is committed to supporting and developing New Zealand's coaches at the national, regional and local level. Most clubs find it hard to attract and keep coaches. This is a major issue for sport in New Zealand, and the Hillary Commission will continue to provide funds and information through the ‘Coaches Count’ promotion. Coaching New Zealand (CNZ) supports the delivery of regional and local coaching courses on contract. The campaign focuses on the need for more adults to coach junior sport, but also reaches 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. The commission has financially supported a dozen international events held or to be held in New Zealand. These include:

2003      Rugby World Cup
1999      Fifa Under-17 World Soccer Championships
1999      World Netball Championships
1999      Women's World Cup Cycle Race
1999      World 500cc Motorcross (feasibility study)
1999      Equestrian Asian Pacific Continential Championships
1999      Diving World Cup
2000      Group III World Water Ski Championships
1999      Wildwater World Cup
1999      World Kneeboard Surfing Championships
1999      International Cycle Tour of Wellington

The commission is also coordinating the group Sport Destination NZ, promoting New Zealand as a sport training destination to Olympic teams building up to the Sydney games.

No Exceptions. This is the Hillary Commission's strategy to ensure that all people with a disability have the opportunity to participate in an active lifestyle. New Zealand sports bodies are provided with leadership, training and resources to practise No Exceptions, and by 2001 the commission hopes to have young people with a disability fully integrated into KiwiSport and Sportfit programmes. In 2000 the Hillary Commission and the Halberg Trust committed resources to nine sports coordinators throughout New Zealand to encourage sport and active leisure to people with a disability.

SportsMark. The quality of a sports experience determines whether people will stay with the game – as players, officials or spectators. The SportsMark was a new standard introduced to national governing bodies in October 1998. It measures the quality of service by sport and leisure providers. Demanding criteria must be achieved to receive this award. SportsMark also applies to regional sports trusts or schools delivering Hillary Commission programmes.

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, while the Department of Internal Affairs administers a number of programmes to help local authorities and community organisations provide for the needs of young people.

PARTICIPATION OF WOMEN IN SPORT, 1997–98
Percentage of women participating in sport and active leisure activities during previous four weeks and 12 months

PARTICIPATION OF MEN IN SPORT, 1997–98
Percentage of men participating in sport and active leisure activities during previous four weeks and 12 months

Rugby's Colin ‘Pine Tree’ Meads, All Black 1951 to 1971.

World champion squash player Susan Devoy.

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 distributed $5.7 million to communities in 1999. The fund gives local authorities $1.23 per capita for sports clubs and active leisure organisations in their area. Base funding of $22,000 is available for those authorities which would not reach that amount under the $1.23 per capita system. This fund supports over 5,500 projects or events throughout New Zealand. 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 the Department of Internal Affairs 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.

The leisure industry

Sport. For many New Zealanders the successful New Zealand sportsman or woman represents the archetype of the battler succeeding against the odds. International sporting events in which New Zealand features have the power to arouse intense nationalistic fervour. New Zealanders have fared exceptionally well in the international arena despite the country's distance from the world's major venues and, until the early 1970s, a comparative lack of state or corporate funding.

Various reasons have been advanced for New Zealand's success. A small population may have helped produce an affinity between the national hero and weekend athlete, and, while a generally temperate climate has made it possible for athletes to train year round, there is sufficient variety of terrain and climate to foster a wide range of summer and winter pursuits.

Traditionally New Zealanders have excelled in rugby union, which has been regarded as the national sport, and track and field athletics. However, Sir Edmund Hillary, who with Sherpa Tensing Norgay in 1953 was the first to climb Mount Everest, probably remains New Zealand's best internationally known sportsman. Over more recent years New Zealanders have had sustained international success in rowing, rugby, netball, squash, Softball, cricket, yachting and other disciplines.

Specific successes in other sports have included Olympic medals in skiing, swimming, yachting, windsurfing, boxing, equestrian, cycling, marathon running and athletics. World titles have been won in swimming, ice racing and darts.

The Sydney Olympics in 2000 present wonderful opportunities for New Zealand sport, and it is essential that the sport, trade and tourism sectors work closely together to ensure the nation makes the most of these opportunities. In 1994 the New Zealand Lottery Grants Board decided to allocate an extra $3.6 million per year to prepare teams and athletes for the Olympic and Commonwealth Games leading up to 2000.

Recent research confirms the value of sport to the New Zealand economy:

  • Sport and leisure is a $5 million-a-day business.

  • New Zealand's sport and leisure industry supports 23,625 jobs.

  • Sport and leisure directly and indirectly contributes $1,764 million to New Zealand's gross domestic product.

  • Sport and leisure benefits from over $500 million of free volunteer effort every year.

  • The economy also benefits from major sporting events. An estimated $300 million will be generated by The America's Cup and the Rugby World Cup.

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.

New Zealand Sports Foundation. The foundation receives private and public sector funding to assist New Zealand's high performance sportspeople to succeed at an international level. The foundation works with current and potential athletes in cooperation with the Hillary Commission, the New Zealand Olympic Committee, the corporate sector, national sports organisations and coaches.

Over its 21-year history, the foundation has proved successful in identifying and supporting outstanding sporting talent. Since its establishment in 1978, the foundation has assisted the nation's best athletes to win 275 Olympic and Commonwealth Games medals, and over 300 world championships.

In the 1999/2000 year the foundation will distribute $14.7 million in grants to benefit New Zealand high performance sport. The foundation will also establish a new network of high performance sports centres around New Zealand. The centres will enable more athletes and coaches in a greater variety of sports to access increased services from sports medicine, sports science and career development.

Further information is available through the foundation website www.sportsfoundation.org.nz.

Tennis champion Anthony Wilding, c1912.

Outdoor leisure activities

Push Play (Active-Living). An estimated 900,000 New Zealanders are ‘couch potatoes’ and do not lead an active lifestyle, but most would like to. The Active-Living team at the Hillary Commission wants to get more people to be more active more often. The three-year campaign called ‘Push Play’ aims to reduce the ‘Couch Potato’ Index by 10 percent by June 2000. Push Play has a message for all New Zealanders and it is teaching people how to build and accumulate exercise into their daily lives. Research suggests that being active leads to improved quality of life. Through its Active-Living 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.

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 and snowboarding. The season in New Zealand extends from June to late October at ski areas in the North and South Islands. Many areas 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 snow sports centre is Mount Ruapehu in the Tongariro National Park. There are two commercial ski areas, 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 (Marlborough). There are nine ski club fields in the South Island.

The Waiorau Snow Farm Area on the Pisa Range near Wanaka offers 24 kilometres of crosscountry skiing. Glacier skiing on the Tasman and Fox Glaciers, with access via ski-planes, is also available, while guided heli-skiing 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 snow sports competitions at Mount Hutt, Whakapapa, Coronet Peak, Cardrona, Turoa, and Mt Dobson. This includes Continental cups and FIS level events held annually.

Mountaineering and tramping. The nearness of mountains and forests to the main centres of population in New Zealand gives the opportunity for adventures away from civilisation. In the Waitakere and Hunua Ranges, near Auckland, the many national and forest parks and reserves of the North Island, and through the extensive parks and protected natural areas of the South Island, there are tracks through beautiful scenery. Tramping tracks range from half-day family oriented walks to challenging tramps in back-country and alpine isolation. Climbing (both rock and ice) is becoming more popular with many opportunities for this activity found throughout New Zealand. Information on mountaineering and tramping in New Zealand is available through commercial guiding companies or the Department of Conservation. The Great Walks are New Zealand's most famous tracks and are popular with both New Zealanders and visitors from overseas. They include: Lake Waikaremoana, Urewera National Park; Tongariro Northern Circuit, Tongariro National Park; Abel Tasman Coast Track, Abel Tasman National Park: Heaphy Track, Kahurangi National Park; Routeburn Track, Mt Aspiring and Fiordland National Parks; Milford Track, Fiordland National Park; Kepler Track, Rakiura Track, Fiordland National Park. 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; New Zealand Masters Cycling Association; and New Zealand Secondary Schools Cycling Association.

Cycling New Zealand has about 2,000 licensed participants belonging to 49 clubs throughout the country. BMX New Zealand has approximately 1,000 licensed competitors. 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 500 licensed competitors.

Racing and gaming

Racing. There are 72 thoroughbred, 50 harness and nine greyhound racing clubs based throughout New Zealand. The number of meetings held by each club 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 thoroughbred horses is worth around $100 million per year, and Australia and Asian countries are 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 the Racing Act 1971.

The TAB has two fundamental objectives. They are to provide a safe and corruption-free mechanism for betting on horse, harness, greyhound racing and sport and to support the racing industry by returning the profit it makes to racing clubs.

Today there are 600 TAB outlets around the country. TAB bets totalled: off-course racing $996 million; on-course racing $105 million; and sports $50 million.

The Internet enables the New Zealand TAB to compete for a share of the international racing and sports betting market. Already the TAB website (www.tab.co.nz) has a customer base made up of bettors from over 70 countries.

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 sport 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.

The New Zealand Lotteries Commission is responsible under the Gaming and Lotteries Act for promoting and conducting New Zealand lotteries – Lotto, Lotto Strike, Instant Kiwi, TeleBingo, and Daily Keno.

The net profits from the commission's games are distributed to the arts, sports, charitable and community causes by the New Zealand Lottery Grants Board. In the 1999 financial year, the games raised $138 million for the grants board, which is the equivalent of $2.6 million a week.

Punters queue to place on-course bets at Trentham, c1912.

The most popular game, Lotto, is played regularly by some 70 percent of the adult population of New Zealand. The demographic profile of Lotto customers (their age, sex, socio-economic grouping, etc) is almost exactly identical to the demographic profile of the general adult population.

The weekly Lotto draw, which is broadcast live on TV2 at 8pm each Saturday, is a regular highlight and attracts an average viewing audience of just over 500,000 a week.

In any week, some 1.2 million customers will go to one of the commission's network of 600 franchised Lotto retail outlets to purchase a ticket. These stores are all independently owned or part of another retail chain or franchise. They employ 3,600 full-time and part-time staff to service their lotteries customers.

Typically, out of every dollar of sales, some 93 cents goes back to the community in one form or another. Some 55 cents is paid in prizes; 21 cents goes to the Lottery Grants Board; 10 cents is paid in taxes; 7 cents is paid in commission to Lotto shops; and 7 cents pays the expenses.

In the financial year ended 30 June 1999, sales were $643.7 million; prizes were $356.3 million; $138 million was paid to the Lottery Grants Board; tax paid was $64.4 million; retail commission was $45 million; and expenses were $43.3 million.

The New Zealand Lottery Grants Board: Te Puna Tahua, is a completely separate and independent organisation, a Crown entity chaired by the Minister of Internal Affairs, which distributes lottery profits to arts, sports, welfare, recreation, environment, heritage, research and community projects which do not receive funding directly from any other government source. The funds are distributed by the board via the Hillary Commission, the New Zealand Film Commission, and the board's own 10 distribution committees (see Table 13.1). The board's mission is to ensure empowered communities, community well-being and a sense of nationhood; and that its Treaty of Waitangi obligations are fulfilled.

Table 13.1. ALLOCATION OF LOTTERY PROFITS1

Recipient199619971999

1For year ended 30 June. Amounts do not include carry-forwards from previous financial year.

Source: New Zealand Lottery Grants Board

Distribution Committees$(million)
Lottery Aged3.43.73.4
Lottery Community Facilities11.312.112.0
Lottery Environment and Heritage9.610.710.4
Lottery General21.019.618.3
Lottery Health Research4.04.03.5
Lottery Marae Heritage and Facilities--6.0
Lottery Science Research2.02.01.0
Lottery Welfare13.314.412.0
Lottery Welfare – Individuals with Disabilities3.23.23.2
Lottery Youth6.26.85.0
Minister of Internal Affairs1.00.30.3
Statutory Bodies
Creative New Zealand Toi Aotearoa19.020.220.2
Hillary Commission for Sport, Fitness and Leisure28.227.030.7
New Zealand Film Commission8.08.88.8
Other
Alcohol and Drug..1.2..
Cultural Olympiad..0.5..
Millenium Fund..2.0..
Sports 2000..3.7..
        Total130.2140.2134.8

Casino Control Authority. Established under the Casino Control Act 1990, the main functions of the Casino Control Authority are to consider applications and grant casino licences, act as an appeal authority for licence holders, and advise the Minister of Internal Affairs on the act and on casino policies generally. The authority also approves casino games, and the rules under which they will be played. Six casino licences have been granted – four casinos are in operation in Christchurch, Auckland, Dunedin and Queenstown. A further two casinos are anticipated to open by 2002. All of the costs of casino regulation are met by casino levies. In the year to June 2000 levies totalled $4.4 million.

13.2 Tourism

New Zealand is internationally renowned for its vast expanse of natural assets and beauty. Traditionally, international tourists were drawn to New Zealand to experience the unpolluted air and water, the open spaces and unique plant and animal life. Today, the discerning traveller is looking for more: adventure, welcoming city centres, cultural activity and a touch of nature. Tourists want more than a view of the physical New Zealand; they want an inside panorama of everyday life, culture and activity.

The tourism market

The term ‘New Zealand tourism’ describes a market that caters to international travellers and New Zealanders. The tourism industry meets their needs, providing accommodation, food, tours, activities, transport and much more. A tourist includes anyone travelling for pleasure, business or education.

Tourism is an important source of income for New Zealand's economy, so it is imperative the industry works together to provide an excellent experience for travellers. New Zealand has two government-funded organisations, the New Zealand Tourism Board (trading as Tourism New Zealand) and the Office of Tourism and Sport (OTSP), that work directly with the industry to help manage a cohesive, coordinated approach to New Zealand's tourism campaign.

Attractions. It is without a doubt that New Zealand's unspoiled natural environment and spectacular scenery continue to attract over a million visitors every year to scenic destinations such as Milford Sound, the glaciers on the West Coast of the South Island, the caves at Waitomo and the geysers and hot springs of the geothermal areas in the central North Island. Other tourists, particularly those from crowded cities in the northern hemisphere, enjoy a peaceful drive through rural landscapes and along the rugged coastline.

New Zealanders have a long tradition of enjoying the outdoor life through walking, fishing and sailing. Visitors also enjoy these activities, as well as opportunities to try new adventure-tourism activities, such as mountain bike trails, bungee jumping, flying-by-wire, white water rafting, helicopter skiing and jet boating through the canyons.

Visitors can also delve into the New Zealand lifestyle through a multitude of farm and home stays, marae visits, museums, art and craft galleries, wineries and historic buildings, all targeted at providing real life experiences.

Shopping is also an important part of the tourism sector, with many retailers benefiting from visitors' interest in antiques, crafts and souvenirs of New Zealand. New Zealand's design and fashion clothing are also sought after and known internationally.

Events. Sporting and cultural events have also put New Zealand in the international spotlight, such as wine, food, art and flower festivals, Maori cultural competitions, triathlons and rugby matches. Conferences and conventions also generate considerable business for many cities and towns.

Tourist and Publicity Department poster, 1950s.

OVERSEAS VISITORS

Total numbers

Hosting the APEC summit 1999, the America's Cup 2000 and the various millennium celebrations offered unique opportunities to promote New Zealand as a tourist destination. Tourism New Zealand and its industry partners actively seek to ensure that the opportunities provided by these major events are maximised.

International tourism

A report released in 1999 by the Government Statistician, Tourism Satellite Account 1995, establishes a new method for examining and measuring tourism's economic impact on the New Zealand economy and also presents experimental results for 1995. The satellite account provides a framework for bringing together data about the industry from different sources. The account provides a yardstick against which the performance of the industry can be assessed. It is planned to update the figures for 1999.

According to the World Travel and Tourism Council, tourism is the world's largest industry, employing 255 million people worldwide in 1996. Tourism is New Zealand's top foreign exchange earner, bringing an estimated $4.3 billion in 1995. New Zealand's current share of the international tourism market is just 0.2 percent.

Visit www.purenz.com to see how New Zealand is depicted in international markets as a tourism destination. All current Tourism New Zealand research can be found on www.tourisminfo.govt.nz. The updated Tourism Satellite Account and other tourism sector information is on the Statistics New Zealand website.

During the 1999 calendar year total visitor arrivals to New Zealand reached an all time high of 1.6 million. After enjoying a period of growth in both visitor numbers and revenue for many years, the tourism industry faced tougher times towards the end of 1997. A sudden deterioration in the economies of several Asian countries led to a significant drop in the number of tourists from those countries. Recovery from this slump has been strong and in early 2000 visitor numbers were at historically high levels and showing strong growth trends. Tourism remains a labour-intensive industry that generates a wide range of jobs for New Zealanders. The Tourism Account 1995 estimated that about 58,000 full-time equivalent persons were engaged directly in the tourism industry in 1995, and another 60,000 were engaged indirectly supporting tourism.

Table 13.2. NUMBER OF INTERNATIONAL VISITORS

Year ended 31 MarchHolidayStay with friends and relativesBusinessOther1Total

1Includes conference/convention, work and working holiday, education, medical, stopover and unspecified.

Source: Statistics New Zealand

1986404,036140,48174,66169,895689,073
1987441,081157,61976,08788,422763,209
1988455,834194,93288,215116,511855,492
1989439,249207,333100,224120,716867,522
1990464,545224,875109,110134,901933,431
1991491,591238,034103,899133,538967,062
1992519,274245,845106,238128,357999,714
1993593,415255,149114,183123,8101,086,557
1994702,945272,507121,925115,9411,213,318
1995773,379282,565139,221147,8381,343,003
1996811,194319,350156,018155,2761,441,838
1997860,208354,226163,976172,9311,551,341
1998765,077355,260173,629170,8001,464,766
1999766,897392,296179,661178,4701,517,324

Table 13.3. INTERNATIONAL VISITOR EXPENDITURE – YEAR ENDING JUNE 1999

 Total foreign exchange earnings (excluding international airfares)Average expenditure per person per visitAverage expenditure per person per day
Source: NZTB International Visitors Survey
 (NZ$ million)(NZ$)(NZ$)
Australia7401,645131
USA5593,646259
Canada922,942115
UK5053,315117
Nordic countries732,785113
Germany1353,386146
Switzerland393,431100
Netherlands703,259107
Other Central Europe562,304137
Japan5573,854236
South Korea532,719153
Taiwan1102,549184
Hong Kong982,807157
Other North Asia282,314129
Singapore692,326168
Malaysia362,75171
Thailand362,542179
Other South East Asia322,68488
Other countries3852,432104
              Total/Average3,6722,640145

International visitors

More than 1.5 million overseas visitors arrived in New Zealand in 1999 – up 4 percent on the previous year. The number of countries from which overseas visitors originate has been growing increasingly diverse.

Table 13.4. OVERSEAS VISITOR ARRIVALS1 BY COUNTRY OF LAST PERMANENT RESIDENCE

Country of last permanent residenceYear ended 31 March
199719981999

1Intended length of stay in New Zealand is less than 12 months.

2Includes unspecified.

Source: Statistics New Zealand

Oceania and Antarctica513,912509,175582,191
Australia440,610440,778508,035
Cook Islands5,1215,6246,596
Fiji12,84111,83813,185
French Polynesia6,7346,0477,183
New Caledonia5,6264,6815,532
Tonga9,0818,8467,663
Samoa, Western12,13411,56512,272
Asia497,743406,272339,998
China, People's Republic of15,68817,08316,325
Hong Kong (SAR)35,02227,51830,393
India4,4774,7425,529
Indonesia13,3848,7487,116
Japan162,736161,886149,561
Korea, Republic of129,89172,36824,897
Malaysia18,55415,92915,006
Philippines4,7214,5994,183
Singapore24,93927,96228,011
Taiwan (Province of China)52,69242,44939,127
Thailand31,28918,85115,438
Europe277,745280,074295,275
Austria4,8914,1204,324
Denmark7,6536,9817,354
France6,4286,8207,629
Germany47,97848,44444,853
Ireland4,2194,7785,920
Italy5,0225,7086,023
Netherlands15,93816,49918,092
Sweden8,3968,6728,813
Switzerland13,26112,32611,641
United Kingdom146,711147,994160,514
Northern America176,193182,084198,458
Canada29,66630,05632,290
United States of America146,278151,765165,980
Other285,74887,161101,402
South Africa12,45314,20515,254
Total1,551,3411,464,7661,517,324

Tourist accommodation. A wide range of accommodation types is available. Low occupancy rates at certain times of the year are an issue for many accommodation providers because they affect plant utilisation and profitability. NZTB supports the work of Qualmark New Zealand Ltd, which has developed an independent rating system for assessing hotels, motels and holiday parks. For more information on Qualmark visit www.qualmark.co.nz

Of all the nights spent in New Zealand by international visitors in the year ending June 1999, an estimated 37 percent were spent in private homes, 16 percent in hotels, 12 percent in backpacker accommodation, 10 percent in motels or motor inns, 7 percent in student homestays or student accommodation, 7 percent in rented accommodation, 6 percent in motorcamps, 2 percent in bed and breakfast or farm stay accommodation and the balance in other forms of accommodation such as luxury lodges, national parks or in transit.

Transport. In the year to June 1999 an estimated 30 percent of all international visitors took a domestic air trip while they were in New Zealand, 25 percent hired a rental car or van, 25 percent took a coach tour, 18 percent used a private car, 15 percent took a ferry journey, 7 percent travelled on a scheduled bus service, 6 percent took a train trip, 3 percent hired a campervan and the balance used other forms of transport including backpacker buses, cruise ships or hitchhiked. There is a trend towards international visitors choosing to use forms of transport which offer greater flexibility, such as rental cars and campervans.

Managing the effects of tourism

The increasing importance of tourism has led to a strong interest in the concept of sustainable tourism both internationally and within New Zealand. In order to be sustainable, tourism must provide satisfying and distinctive experiences for visitors and reasonable returns on investment for investors. It must also protect and develop the environmental, cultural and social values on which tourism depends. Finally, it must be acceptable to host communities and provide them with real economic and social benefits.

MORE TRAVELLERS

Overseas visitors per 1,000 of the New Zealand population

Many of the natural areas enjoyed by visitors are managed by the Department of Conservation (DOC). Private sector firms provide a variety of facilities or services for visitors to complement those provided by the department, including ski fields, scenic flights and guiding services. These firms must comply with strict statutory procedures, strategies and plans introduced to protect the natural and historical features of conservation areas and the recreational experiences of other visitors. Firms also pay concession fees which help DOC protect conservation values.

Many tourism businesses are becoming more aware of the advantages of maintaining high environmental standards in the way that they conduct their business. This can include saving energy, controlling noise pollution and emissions, reducing demands for water and better management of rubbish. Some tourism operators also increase their clients' understanding of conservation and the environment. The New Zealand Tourism Board includes environmental responsibility in its criteria for judging the New Zealand Tourism Awards, and makes a special award for the best environmental performance. Some industry groups are also introducing voluntary codes to encourage their members to adopt the best environmental practices.

Tourism organisations

Tourism New Zealand. TNZ is responsible for the coordinated marketing and promotion of New Zealand overseas as a tourism destination. Its objective is to ensure that New Zealand is developed and marketed as a tourism destination to maximise the long-term benefits to New Zealand. TNZ works with the tourism industry to develop quality systems, new tourism products and international marketing. TNZ maintains a network of overseas offices located in Sydney, Melbourne, Brisbane, London, Los Angeles, New York, Tokyo, Osaka, Frankfurt, Singapore, Bangkok, Hong Kong, Taipei and Seoul.

Office of Tourism and Sport. The OTSP is an independent office established alongside the Department of Internal Affairs. Its role is to champion the cause of tourism and sport within government in order to maximise the benefits and opportunities that can be obtained. The office also monitors the outcomes of the work of the New Zealand Tourism Board, Hillary Commission and New Zealand Sports Drug Agency.

Bus travellers above Sandy Bay, Northland, 1953.

Other agencies with tourism functions

Many other government agencies are involved in the tourism sector. For example, New Zealand Customs and MAF's Quarantine Service screen all visitors entering New Zealand to ensure that no prohibited or restricted materials are brought into the country. Statistics New Zealand is a key provider of data needed for the management of tourism. The New Zealand Police investigate crimes committed by or against visitors. The Foundation for Research, Science and Technology allocates funds from the Public Good Science Fund for tourism research.

Tourism 100 years ago?

It's hard to imagine tourism before jet planes, but it certainly existed. At the beginning of the century, a holiday in New Zealand was more than a mere overnight journey across the Pacific. Nevertheless, in 1903 5,233 visitors came to New Zealand. Almost 100 years later, tourism is now responsible for around 4 percent of New Zealand's GDP. The following chart shows New Zealand tourism's stunning journey:

YearNumber of visitorsInteresting to note...
19035,233This is the earliest recording of tourist numbers.
19228,050An industry record high. From 1917, moving pictures directed in the USA were used to promote New Zealand tourism.
19247,522Economic stagnation, rumours of earthquakes, floods and avalanches impacted on the tourism market.
19257,365Maritime trouble in Australia and an infantile paralysis epidemic in New Zealand caused numbers to decrease. The Milford Track was badly damaged by avalanches and floods. In 1927, the tourism department opened more offices in New Zealand, Australia, the UK, the USA and South Africa.
193517,297Another record high. In 1930 ‘sound synchronised’ films were launched to promote New Zealand internationally. In late 1934, radio publicity campaigns were launched in the USA and Canada.
1939–44 The war years were a quiet time for holiday travel globally.
19497,828The post war tourism rejuvenation. 1946 witnessed a record ski season.
195010,768British airlines re-established air traffic. TransPacific and round-the-world promotions increased visitors. New Zealand experienced trouble providing accommodation for these numbers.
1950–6036,557Lower cost airfares were introduced. The 1953 Royal Tour took place and The Orient Line introduced a stop in Auckland.
1963100,000The jet era. The year's Budget introduced a tax incentive for tourism promotion.
1969 Tourist Development Conference sets targets for the tourism industry.
1970241,110New Zealand became included in package tours. The jumbo jet era is well and truly underway.
1976384,000The 75th anniversary of the Government's tourism department.
1980445,195Increased visitors from Japan and America.
1991967,062The New Zealand Tourism Board was established. The board would coordinate high-tech marketing campaigns and host international events throughout the decade
19991,560,000Another record high.

Tourism Department evolutions

Since its inception and the ensuing 100 years, the Government's tourism department has had a life of continual amalgamation with and separation from other government agencies. Throughout its evolution, however, the department's task remained the same – to develop the nation's tourism market.

The department developed accommodation through the Tourist Hotel Corporation and managed resort development in Rotorua and Queenstown. Initially promotions concentrated on selling New Zealand's lush, clean, green image – untouched and pristine. Over the years, the nation learned to combine those assets with action, creation and development.

The 1999 Tourism Award results acknowledge the creativity of New Zealanders, from the Montana Wearable Art Awards to the Tamaki Māori Village. New Zealand tourism is working to provide a complete package that can attract all cultures and interests. AJ Hackett's bungee jumping is another example of how both individuals and the nation can capitalise on this entrepreneurial and creative spirit.

Tourism today

Tourism's direct contribution to GDP in 1995 was 3.4 percent. It accounts for about 58,000 full-time equivalent jobs directly and about 60,000 indirect full-time equivalent jobs. International tourism contributes about $478 million in GST. It's certainly an asset worth protecting – and the New Zealand Tourism Board works with the industry to enhance and preserve a prosperous business.

Tourism tomorrow

In 1999 the New Zealand Tourism Board launched a global marketing campaign: ‘100% Pure New Zealand’. Parallel activities include hosting the America's Cup, APEC 1999 and several millennium events. Combined, the results target tomorrow's goals:

  • to increase visitors to New Zealand from 1.56 million to 2.5 million per annum over the next five years

  • to increase foreign exchange earnings from $4.2 billion per year to $7.7 billion over the next five years.

Smokefree skate competition, Wellington, 2000.

New Zealand Tourism Industry Association. Established in 1953 as the New Zealand Travel and 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 its 3,500 member organisations. This ranges from the large corporate members through to the small one-person service providers. The Tourism Industry Association organises the New Zealand Tourism Conference, the New Zealand Tourism Awards and Tourism Rendezvous New Zealand (TRENZ), which is New Zealand's largest tourism trade show. These events are held each year.

Contributors

13.1        Hillary Commission for Sport, Fitness and Leisure; 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        Tourism New Zealand; Office of Tourism and Sport; New Zealand Tourism Industry Association; Statistics New Zealand.

Special articles

Department of Internal Affairs; TAB; Hillary Commission for Sport, Fitness and Leisure; Statistics New Zealand; Te Puni Kōkiri; Tourism New Zealand.

Further information

Recreation and sport

Annual Report of the New Zealand Olympic and Commonwealth Games Association.

Annual Report of the New Zealand Sports Drug Agency.

Life in New Zealand. 1990. Hillary Commission for Sport, Fitness and Leisure.

New Zealand Lotteries Commission Annual Report.

New Zealanders' Participation in Outdoor Activities. 1993. Hillary Commission for Sport, Fitness and Leisure.

Profile of New Zealanders wanting to be more physically active. 1993. Hillary Commission for Sport, Fitness and Leisure.

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.

The Business of Sport and Leisure. 1993. Hillary Commission for Sport, Fitness and Leisure.

Gaming

Gaming-A New Direction for New Zealand. 1996. Department of Internal Affairs Policy Proposals.

Review of Gaming-A Discussion Document. 1995.

The Economic Impact of Gaming in New Zealand. A report prepared for the 1995 Review of Gaming.

The Impact of Technology on New and Existing Forms of Gaming in New Zealand. A report prepared for the 1995 Review of Gaming.

The Social Impact of Gaming in New Zealand. A report prepared for the 1995 Review of Gaming.

Tourism

Department of Conservation Visitor Strategy. August 1996.

Long-term tourism roading requirements. December 1994. Task Force Report, Ministry of Commerce and Transit New Zealand.

New Zealand International Visitors Survey (IVS). New Zealand Tourism Board (annual and monthly visitor arrival updates).

Quality Toilets. December 1994. Working Group Report, Ministry of Commerce.

Report of the New Zealand Tourism Board (Parl paper G.25).

Report of the Ministry of Economic Development (Parl paper G.46).

Tourism in New Zealand: Facts and forecasts. June 1994. New Zealand Tourism Board and New Zealand Tourism Industry Association.

Tourism Research Bibliography; 1994 to 1996. December 1996. Ministry of Commerce.

Tourism Research in New Zealand. February 1995. Report of the Tourism Research Working Group, Ministry of Commerce.

Tourism Satellite Account 1995. Statistics New Zealand.

Tourism sector review: New Zealand tourism at a glance. Ernst & Young.

Tourism Industry Outlook. Produced twice yearly by the Tourism Industry Association.

Chapter 14. Employment

Newspaper worker's son accompanies his mother to work, 1998. Employees can take a year's maternity leave but do not receive a parental allowance.

Employment

The workforce at the turn of the century

In 1894, the New Zealand Official Yearbook's article on ‘Labour in New Zealand’ emphasised the colony's pioneering conditions, and the dominance of the agricultural, pastoral and extraction industries. Industrial development was small in scale and largely for domestic consumers, supplemented by the primary-related industries of meat preserving and freezing, and dairy production. The primary sector was on a par with the particularly well-developed service sector, both comprising more than one-third of total employment. There was also some development of small-scale light domestic consumer industries from the 1880s; the secondary sector accounting for more than one-quarter (28 percent) of the total employed.

At that time a pattern of relatively permanent waged employment was only just consolidating, and largely for Pākehā males. Much of the employment was ‘unskilled’ manual work. Women had a low rate of paid labour force participation and Māori were peripheral to the waged economy. For men, however, labour force participation rates were high from early until late in life, although precise occupational classification is elusive.

Also elusive were the boundaries between wage earner, self-employed and employer; many jobs were fluid and flexible, seasonal and casual, and people moved in and out of industries and around the country during the year. Valued qualities were the ability to adapt, engage in a variety of tasks and show persistence and endurance. The last was particularly important as people coped with makeshift working conditions and primitive living conditions. Overall, the labour market was unstable and localised; unemployment and underemployment coexisted with labour shortages. This is partly explained by the wildly fluctuating labour demands of the agriculture and extraction industries, while other industries remained small, vulnerable and labour intensive.

For women, paid work was limited to a narrow range of occupations and the participation rate was only around 25 percent of the working-age population, compared to a male rate of more than 95 percent. Women largely worked in the years before marriage (for which the participation rate was about 40 percent) although some continued in paid work but remained unmarried.

At the turn of the century the Māori population mostly lived in rural areas on a semi-subsistence basis, separate from the world of the Pākehā. To gain supplementary income Māori also did seasonal, contract and casual work on farms, cleared the bush and developed land, worked on the gumfields and built roads and railways. Their contribution to the development of the settler economy and its infrastructure was substantial, although unable to be qualified.

The early 20th century

Uneven labour force growth marked the early 20th century. High before World War I, it was static when younger men left for war overseas, and high again in the 1920s, with net migration being significant in maintaining growth. Labour force participation rates, however, did not change greatly in this period.

The move away from a rural-based settler economy took a long time. Although declining, the primary sector preserved its place in employment well into the 20th century despite substantial technological advances and mechanisation. Nonetheless, a waged labour force, in the form of male Pākehā breadwinners, consolidated as New Zealand urbanised. Employment stabilised and occupations became more defined. A more permanent division emerged between wage workers and employers.

By 1945 wage and salary earners grew to 80 percent of the labour force, while others, particularly unpaid family workers, shrank in proportion. Employment began to shift into a greater range of light domestic industries, and service employment grew substantially, soon becoming the dominant sector. New Zealand was unusual both in the persistence of the primary sector, and in the fact that dominance passed directly to the service sector without the intermediary secondary sector.

LABOUR FORCE AND EMPLOYMENT STATUS

Up to the 1930s, there was little change in the proportions of the major occupational groupings, particularly for males. Occupational groupings of the time suggest that rural and industrial occupations remained roughly equal at around one-quarter each of the total labour force. Reconstitution into more modern occupational categories suggests that men in the agriculture, animal and forestry and the transport, production and labourer groups retained roughly equal shares of 35–40 percent of the total. Other groups were relatively minor contributors. For women, service workers, i.e. domestic and other servants, comprised nearly half the total at the turn of the century, with transport, production and labourers (largely in clothing manufacturing) another quarter. Both declined by 1936 but still remained the largest female groups, although there was marked growth in sales and clerical occupations. The latter shows a fundamental shift away from the unskilled to more skilled groups and to white collar occupations, particularly for women, who were moving out of manufacturing into shops, clerical and office work, and nursing and teaching. Despite this, domestic service remained by far the single most important female occupation, growing considerably in the 1920s and 1930s.

The Depression

The dramatic reduction in primary export prices in the early 1930s caused severe unemployment, especially in male-dominated manual work such as the construction industry and public works (both central and local authority). Estimates on the extent of unemployment vary from a minimum of 12 percent to a considerably higher percentage of the labour force depending on the extent of female and Māori labour counted as part of the labour force. Rural workers were not so much affected by unemployment as savage wage cuts. Farm production expanded and employment levels were maintained or even increased. Manufacturing was also less affected than other parts of the economy, although wages and hours were reduced. The unemployment crisis prompted major new initiatives in state unemployment relief and prepared the way for stronger state intervention in the labour market and industrial relations.

Meanwhile, state policy, starting with the Liberal reforms of the 1890s, described as a ‘social laboratory’ for the world, reinforced the emergence of a more permanent Pākehā (largely male) waged labour force. Policies protected conditions of employment, dealt with unemployment, regulated wages and hours of work, controlled immigration, and encouraged the formation of trade unions. But the legacy of pioneering conditions was hard to shake off. Workplace conditions remained primitive, payment differentials for skill were low, and levels of education were minimal. While New Zealand, with its social modernity, might have been described as the ‘birthplace of the 20th century’, progressiveness was belied by the legacy of a 19th century colonial economy.

Post-World War II

The depression of the 1930s, followed by World War II, prevented growth in the labour force for some time. After the Labour government's insulation of the economy from the late 1930s, and its assertion of considerable war-time powers of control, the country entered a period of prosperity. Labour shortages appeared in the 1950s and 1960s, assisted by the international post-war boom and the labour force grew steadily. Immigration made a substantial impact during the 1950s and the baby boom swelled the labour force in the 1960s.

FULL-TIME LABOUR FORCE PARTICIPATION RATE, BY SEX

A more modern and larger secondary sector developed, assisted by import licensing and the demands of World War II. Primary sector employment began to decline more rapidly while the service sector also got a substantial war-time boost. By the 1970s relative growth in the secondary sector stopped and its employment share began to decline. A new phase of strong growth began to take place in the service sector that continues to this day.

The expansion of manufacturing in the middle decades led to the transport, production and labouring workers forming by far the largest occupational group. Subsequent decades saw the growth of professional, administrative and clerical groups. Prior to this, little emphasis was placed on formal qualifications in the labour market because of the shortage of workers. There was little incentive to continue beyond an elementary secondary education. Margins for skill were low and the demand remained limited. Skill shortages could largely be met by immigrant British workers. As late as 1966 only 10 percent of the labour force had some kind of post-school qualification, while 71 percent had no formal qualifications at all.

The mid-century also saw the consolidation of an employment pattern we now regard as an historical relic – a one-income family (predominantly Pākehā) with a male waged breadwinner working 40 hours a week in a stable long-term job. The arbitration system, introduced in 1894 to abate ‘class warfare’, had been transformed in the early 20th century into a centralised general wage-fixing mechanism. The Arbitration Court issued awards that regulated wages and conditions. In early decades these were fixed for local districts and particular industries, but in the 1920s and 1930s a general wage-order system began to emerge. This standardised relativities for skill and stipulated general wage increases or decreases. Underpinning this system was the principle that wages paid should be sufficient for a man and his family dependents. The system was consolidated under the first Labour Government and during World War II, but no sooner had this occurred than the male breadwinner principle was challenged. The urbanisation of Māori, the impact of the war, changing patterns of fertility and changing views on gender roles had begun to break down this simple framework of employment.

For Māori, changing employment patterns had major historic implications. In the 1930s many Māori were supported on land development schemes; most others were employed in farm work or other forms of manual labour. The land, however, was no longer able to support more than a minority of the population. During and after the war Māori increasingly left their ancestral land to work in the cities, drawn by high labour demand and encouraged by the state.

FULL-TIME EMPLOYMENT BY INDUSTRIAL SECTOR

Māori men first moved into construction while women went into domestic service; both entered manufacturing. Growth in the Māori labour force was higher than the total labour force, but because of the youthful nature of the Māori population participation rates remained lower. In the early 1960s more than half of Māori men were in ‘unskilled’ manual work: primary processing, public works, construction, transport and the timber industry. About 30 percent of Māori women worked in manufacturing, and another third in various domestic (housekeepers, maids and cooks, hotel workers) and other services (in particular, teachers and nurses).

Making a cane perambulator at the Disabled Servicemen's Training Centre, Invercargill, 1949.

The 1960s was also a time when Pacific Islands people were beginning to migrate to New Zealand, encouraged by the continued labour shortages experienced in industry.

Māori were not the only group entering the urban labour force. From the mid-century, women also began to participate more and more in paid work, from a low base by international standards. The war had substantially increased women's employment in a range of industries. This gave women a tantalising but temporary taste of the labour force and there was a dramatic decline in the numbers of domestic servants. It was postwar conditions, however, that were more significant in the long term. High demand for labour, accelerated childbearing at a young age and a smaller family size meant more women were able to enter the labour force after marriage and children.

By the 1970s women commonly returned to the workforce after having children, and before long younger women, increasingly having children later, were establishing careers before child-bearing and returning to the workforce more rapidly after children. Female participation in full-time work continued to increase until recently. Equal pay for women, gained progressively from 1972 following the introduction of equal pay in the Public Service from 1960, was a formalised recognition of changing patterns. Thus, in the context of stability and prosperity protected by the state the male breadwinner pattern broke down as the economy diversified and the labour force broadened.

Recession and restructuring

A seemingly small recession in the late 1960s proved a harbinger of things to come – declining prosperity, rising unemployment and fundamental reorganisation of patterns of employment. The male breadwinner tradition disappeared as more women participated in the labour force, unemployment destabilised traditional patterns, part-time work expanded and families increasingly needed more than one income. Continued dependence upon primary exports and sheltered domestic industries was to make the adjustment to a more open international environment hard and painful.

During the 1970s governments attempted to keep the mounting forces of change at bay, but from the mid-1980s onwards they were unleashed by the 1984 Labour Government. The pace of change in employment patterns accelerated rapidly as a result. This continued into the 1990s as the regulatory framework of both labour relations and immigration was relaxed to provide greater flexibility in rapidly changing economic conditions. The Employment Contracts Act 1991 represented a fundamental break with nearly 100 years of state-regulated wages and conditions, by establishing a civil contract legal framework for employment.

In the first half of the 1970s migrants contributed substantially to labour force growth. Within a few years, however, there was substantial outwards net migration to Australia as the economy deteriorated. The outflow continued during the 1980s as unemployment mounted. In the latter half of the 1980s, for the first time since World War II, the numbers in full-time employment fell. Since then significant growth in the labour force has returned, most of it in the form of part-time employment.

From the 1980s the proportion of self-employed in the labour force increased (having been only 6.5 percent of the total in 1971). This increase was due to a shift to contracting and consultancy, and growth in small businesses. By 1996 the proportion had reached 10.6 percent. At the same time the labour force began to age, reflecting the decline in fertility from the 1970s and the increased participation of older females.

The service sector increased its dominance to nearly two-thirds of all employment by 1996, while manufacturing declined abruptly from the mid-1980s as tariff protection was lifted and continued recession made an impact. This sector was reduced to one-quarter of all employment by 1996.

Growth in the 1990s has been greatest in white collar occupations, with declines felt in agricultural, transport, production and labouring occupations. Those in transport, production and labouring occupations fell from 37 percent to 25 percent of the labour force in the period 1971–1991 before stabilising at that level. Public sector employment declined as a result of restructuring, corporation and privatisation. Having risen from about one-tenth of employment early in the century to one-quarter by 1981, public sector employment shrank back to 16 percent by 1996. Employment remained strongly segregated by gender. Women were concentrated in a narrow range of often lower paid occupations. High proportions still worked in predominantly female occupations, particularly clerical work. On the other hand women made inroads into traditionally male-dominated professional, administrative, managerial and supervisory occupations.

In conjunction with the rise in white collar occupations, formal educational qualifications are increasingly important. These are now required for many jobs, and schools retain students longer with more participating in post-compulsory education. By 1996, 40 percent of the labour force had some kind of post-school qualification while only 26 percent had no formal qualifications. Traditional apprenticeships declined but numbers trained in industry on a broader basis have expanded. But Māori and Pacific Islands groups still manifest much lower levels of qualification even though they have substantially increased participation in all levels of the education system during the 1990s.

An important feature of the later decades of the century was unemployment. From the mid 1970s unemployment rose to significant levels for the first time since the 1930s, particularly affecting the young. Rising unemployment prompted a range of state policies aimed at creating jobs. The strategies were supplanted by the provision of training from the mid-1980s: a tacit acknowledgement that unemployment was here to stay. While unemployment remained a problem, there were also those classified as under-employed or ‘marginally attached’ to the labour force. This group has grown markedly. Unemployment climbed rapidly and peaked at 11.1 percent of the labour force in 1992 before declining in the mid-1990s to around 6 percent. Following another lower peak of 7.6 percent in 1998 unemployment is again declining to the level of the mid-1990s.

Student kindergarten teachers demonstrate about pay rates, 1974.

Long-term unemployment grew considerably during this period. By the early 1990s half the unemployed had been out of work for half a year or more. Māori and Pacific Islands groups experienced much higher rates of unemployment than others, peaking at more than one-quarter or more of those in the labour force in the early 1990s, and were strongly over-represented amongst the long-term unemployed. By the late 1990s the proportion of long-term unemployed had shrunk to about one-third of the total.

MAJOR OCCUPATIONAL GROUPS, BY SEX, 1986–1996

There has also been considerable growth in the part-time (less than 30 hours) labour force, which comprised 23 percent of the labour force in 1996. This was largely in the service sector and grew from the need for two incomes in households and student involvement in part-time work. Women still dominate part-time work, forming 70.5 percent of this workforce in 1996, but growing numbers of men work part time. Those holding more than one job have also increased in number.

Other trends from the 1980s show the labour force participation of older and middle-aged men declining and, from 1986 onwards, the proportion of women in the labour force stabilising, halting a long-term trend. Young women's participation (like that of young men) reduced as further education was undertaken.

Māori and Pacific Islands workers in the last two decades have increased their presence in the labour force and participated in the general shift towards the service sector. Occupational differences between these two groups and others has diminished, but they (especially men) remain concentrated in the secondary sector and in manual work compared to other groups. Māori male and female participation rates declined substantially from the mid 1980s as a result of unemployment. Male rates remained depressed in the late 1990s. Pacific Islands male and female rates also declined and remained depressed.

For families there has been a considerable increase in couples with both partners working, many on a full-time basis, alongside a rise in families in which neither partner is working. The single breadwinner family has declined dramatically from more than one-third to one-quarter of families in the period 1986–96. This suggests an increasing divergence between those who can command the available jobs and others who are marginalised and excluded.

At the end of the century we see employment patterns transformed compared with those at the turn of the century. The male waged breadwinner and predominance of manual work has been replaced by more complex patterns – the involvement of men, women and different ethnic groups, an expanding service sector, increased self- and part-time employment, more demand for the highly skilled, increased wage dispersion based on skill levels, and greater variations in hours and conditions.

Future directions

Where are these trends taking us? Some are concerned that the labour force will not be able to support an ageing population; others that the era of life-long work has departed. Some also fear the consequences of polarised work opportunities, while others pin their faith on an increasingly globalised knowledge-based economy.

There are those who regard New Zealand's ageing population as a demographic timebomb that will in the future severely restrict the ability of the working-age population to fully support the elderly. However, history suggests that projections can prove misleading, as happened earlier in the century when the baby boom confounded pessimistic projections for the population. In addition, labour shortages anticipated early in the 21st century, particularly for younger workers, would ease unemployment.

FULL-TIME AND PART-TIME EMPLOYMENT, BY SEX

But it is not simply the number of jobs available; what is important is the kind of jobs, and it would appear that many new jobs being created are low-wage, casual and part-time positions in the service sector. The growth industry of tourism exemplifies this trend. Some would suggest that a separation into high skill/high wage and low skill/low wage groups is taking place within the burgeoning service sector. Shortages are more likely to be in the limited number of highly skilled jobs associated with the knowledge economy, for which New Zealanders may not be particularly well-equipped to compete.

The falling away of labour force participation rates for older men and women and the increased difficulty of entry to the labour force may suggest fundamental change is taking place, with a shortened working life span and reduced quality of employment particularly in later life. It appears that divisions are strengthening between those who are better educated and skilled, and those who are not. The more skilled command a premium in the labour force and can continue to work and choose when not to work. Others who are less skilled and educated are increasingly excluded from full-time, secure work.

There is also the issue of the transformative nature of technology and knowledge, in the context of globalisation. The old divisions between sectors will become blurred as knowledge becomes increasingly central to the entire economy. Flexible production and service provision that is responsive to markets requires agile organisations, decentralised decision making, rapid planning and design, and skilled technical workers. Will management hierarchies be replaced by specialist knowledge? Will large vertically-integrated organisations be replaced with small ‘flat’ organisations or even ‘virtual’ organisations (some home-based), shedding non-core functions, contracting in services, and assembling flexible groupings and networks of technical experts?

In many ways New Zealand is following other countries in the move from manufacturing to the service sector and to highly skilled knowledge-related jobs. Manual work, clerical and office work and middle management is shrinking while sales and marketing, information technology and senior management is expanding. A key issue is how to equip people for a future of uncertainty and change in which a life-long full-time job or career is no longer available. The crucial skills required are adaptability and flexibility. New Zealand's continued reliance upon primary commodity exports is out of line with world trends and much of our education system appears ill-equipped to respond to new demands. The legacy of a low-skilled labour force could be crippling.

The question is whether the opportunities provided by the knowledge economy will sufficiently expand quality employment across-the-board. If so, New Zealanders can look forward to a prosperous and exciting future; if not, the labour market may become increasingly polarised. The liberalisation of New Zealand's economy is integral to radical changes in forms of work but a key question is whether we can transform New Zealand's deeply embedded historical patterns of employment so all can take advantage of a knowledge-based economy.

Select Bibliography

Brosnan Peter and Wilson Moira 1989. 'The historical structuring of the NZ labour market', Victoria University Industrial Relations Centre Working Paper, 89/4.

Callister Paul 1998. 'Work-rich' and 'work-poor' individuals and families: changes in the distribution of paid work from 1986 to 1996', Social Policy Journal of NZ, no 10.

Carmichael Gordon A 1979. 'The labour force', in R J Warwick Neville and C James O'Neill, The Population of New Zealand, Auckland: Longman Paul. Censuses of Population and Dwellings, 1896–1996.

Davies Lisa with Jackson Natalie 1993. Women's Labour Force Participation in New Zealand: the Past 100 Years, Wellington: Social Policy Agency. Department of Industries and Commerce (G.V. Butterworth) 1967. The Māori in the NZ Economy, Wellington. Department of Statistics 1993. New Zealand Social Trends – Work. Wellington. Household Labour Force Survey, 1987–1999. Labour Market, 1998. Statistics New Zealand, Wellington.

Thompson Brendan 1985. 'Industrial structure of the workforce', in Economic and Social Commission for Asia and the Pacific, Population of New Zealand, vol 2, New York: United Nations.

Zodgekar Arvind 1985. 'Demographic characteristics of the labour force', in Economic and Social Commission for Asia and the Pacific, Population of New Zealand, vol 2, New York: United Nations.

Student using voice recognition computer software at CCS, Dunedin, 1998.

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 including the official measure of unemployment, and is based on a sample of around 15,000 households).

  • 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).

  • Through a record of work stoppages provided by the Department of Labour.

  • Through the five-yearly Census of Population and Dwellings.

Other sources include the Department of Work and Income and the Department of Labour. The Department of Work and Income provides information on job seekers registered with them, and their employment programmes. The Department of Labour produces statistics on the number, coverage and content of collective employment contracts covering 20 or more employees as lodged with the Industrial Relations Service.

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 FORCE1

Quarter endedLabour forceNot in labour forceWorking-age population1Labour force participation rateUnemployment rate
EmployedUnemployedTotal

1The civilian, non-institutionalised usually resident New Zealand population aged 15 and over.

Source: Household Labour Force Survey

 (000)percent
Male
1996 Sep951.961.71013.5349.01362.574.46.1
        Dec963.664.01027.6340.71368.375.16.2
1997 Mar959.366.31025.6348.51374.174.66.5
        Jun956.167.11023.2354.41377.674.36.6
        Sep952.167.01019.1361.21380.373.86.6
        Dec964.471.01035.4348.81384.274.86.9
1998 Mar958.476.41034.8353.31388.174.57.4
        Jun945.476.91022.3368.11390.473.57.5
        Sep937.077.71014.7376.51391.272.97.7
        Dec949.478.51027.8367.21395.073.77.6
1999 Mar953.580.61034.0362.61396.674.07.8
        Jun947.873.01020.8376.61397.473.07.1
        Sep948.771.51020.2379.01399.272.97.0
Female
1996 Sep784.450.5834.9603.51438.458.06.0
        Dec780.746.2826.8617.21444.057.35.6
1997 Mar772.060.5832.5617.21449.657.47.3
        Jun778.253.8832.0621.21453.257.36.5
        Sep778.154.8832.9623.21456.157.26.6
        Dec783.452.8836.2624.11460.357.36.3
1998 Mar773.164.5837.6626.71464.357.27.7
        Jun770.963.7834.7632.11466.856.97.6
        Sep780.056.8836.8631.41468.357.06.8
        Dec785.862.0847.8624.71472.557.67.3
1999 Mar787.661.2848.8626.11474.957.57.2
        Jun789.157.0846.1629.81475.957.36.7
        Sep792.852.3845.1632.71477.857.26.2
Total
1996 Sep1736.3112.21848.5952.42800.966.06.1
        Dec1744.3110.11854.4957.92812.365.95.9
1997 Mar1731.2126.81858.0965.72823.865.86.8
        Jun1734.3120.91855.2975.62830.865.56.5
        Sep1730.3121.81852.0984.42836.465.36.6
        Dec1747.8123.91871.6972.92844.565.86.6
1998 Mar1731.5140.91872.4980.12852.565.67.5
        Jun1716.3140.61856.91000.22857.265.07.6
        Sep1717.0134.51851.51007.92859.564.87.3
        Dec1735.2140.41875.7991.92867.665.47.5
1999 Mar1741.1141.71882.8988.72871.565.67.5
        Jun1736.9130.01866.91006.42873.365.07.0
        Sep1741.5123.81865.31011.72877.064.86.6

In 1998, the Household Labour Force Survey series were revised as part of a regular five-yearly process which follows each population census. This revision occurred for all Household Labour Force Survey series back to the September 1991 quarter. A new estimation methodology was also introduced. This methodology extended the range of statistics that could be produced to include households as well as individuals.

The updating had a negligible effect on ratio estimates, for example the unemployment rate. However, there were some small increases in labour force status level estimates, that is the numbers of people employed, unemployed and not in the labour force.

From December 1985 until December 1987 (the early years of the Household Labour Force Survey) the seasonal data for both the unemployment rate and the number of people employed was relatively constant. Following the share market crash the unemployment rate climbed steadily to 10.9 percent in the September 1991 quarter. At the same time the number of people employed dropped. Between December 1991 and September 1996 the number of people employed increased by 285,000 and the unemployment rate dropped by 4.4 percentage points.

Table 14.1 shows that the number of people in employment grew by 5,200 between the September 1996 and September 1999 quarters, peaking in the December 1997 quarter prior to the downswing in New Zealand's business cycle, the Asian economic downturn and the severe drought conditions. Over the same period the number of unemployed rose by 11,600, peaking in the March 1999 quarter. The labour force grew by 16,800 (0.9 percent) over this three-year period, reaching a high in the March 1999 quarter of 1,882,800. This compared with an increase in the working-age population of 76,100 (2.7 percent) over the three-year period, resulting in a decrease in the labour force participation rate of 1.2 percentage points.

Between the September 1996 and September 1999 quarters, the male labour force grew by 0.7 percent while the female labour force grew by 1.2 percent. The labour force participation rate for both males and females decreased over this period.

Women in the labour force

In the year ended September 1999, women made up 45.2 percent of the labour force. This compares with 43.9 percent five years ago and 42.6 percent a decade ago. In spite of the generally increasing labour force participation of women, there is still a clear difference between male and female labour force participation rates when this is broken down by age groups as the graph 'labour force participation rate, 1999' shows. At every age group male participation is higher than female participation. This difference is particularly marked in the 25 to 39-year age group which includes the main child-bearing ages (between 25 and 34). For the year ended September 1999, the overall labour force participation rate for males was 73.4 percent compared with 57.4 percent 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. In the September 1998 quarter, over two-thirds (68 percent) of all parents with children aged 0–13 years were employed, 84 percent of fathers were employed compared with 54 percent of mothers. Mothers were far more likely to work part time, with 26 percent working full time and 28 percent part time, while 80 percent of fathers worked full time and 4 percent part time (The New Zealand Childcare Survey 1998).

National Advisory Council on the Employment of Women (NACEW). The council's function is to advise the Minister of Social Services, Work and Income 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 19 members. Eight of these, including the chairperson, are appointed by the Minister of Social Services, Work and Income for their knowledge and experience in women's employment issues. These appointments are for a period of three years. The remaining 11 NACEW members are representatives from government departments (ministries of Education, Social Policy, Youth Affairs, Women's Affairs, the Department of Labour, Te Puni Kōkiri and the Department of Work and Income) and the central employer and union organisations (two representatives from the Council of Trade Unions, and one each from the NZ Employers' Federation and the State Services Commission).

During 1999 NACEW completed a major survey on childcare. This survey, which gathered information on childcare arrangements and the relationship between childcare and employment, was attached to the Household Labour Force Survey in the September quarter of 1998. A report describing the main findings of the survey was published in July 1999. The NACEW website is at www.nacew.govt.nz

Full-time and part-time work

People whose usual hours of work are 30 or more per week are classified as working full time, whereas as those whose usual hours of work are between 1–29 hours per week are classified as working part time. For the year ended September 1999, an average of 1,330,100 New Zealanders were employed in full-time work and 408,500 in part-time work. Compared with five years ago, full-time employment has grown by 8.4 percent and part-time employment by 21.1 percent. Over the last decade full-time employment has grown by 11.6 percent, while part-time employment grew by 45.7 percent. Following the share market crash in 1987 and during the recession of the early 1990s, the number of people in full-time employment declined, before rising strongly from 1992 to 1996. The average level of full-time employment for the year ended September 1999 is at a similar level to that recorded in 1996. Since the beginning of the Household Labour Force Survey part-time employment has shown steady annual growth.

LABOUR FORCE: 100 YEARS Full time labour force1: 1896–19962
Census yearEmployment statusTotal employed full time3Unemployed4Full time labour forceTotal population aged 15+Unemployment rate3Participation rate6
EmployersSelf-employed, not employing othersWage and salary earnersUnpaid family workersEmployment status not specified

The way data was collected has varied over time. This table has been reviewed and revised for the 2000 Yearbook to make the concepts used more transparent and consistent.

1The following definitions of the full-time labour force (or the economically active population) have been used:

1896–1936 All those, irrespective of age, who were either (a) employed (full time or part time); or

(b) unemployed and seeking either full-time or part-time work.

1945–1981 All those 15 years and over who were either (a) employed for 20 hours or more per week; or

(b) unemployed and seeking either full-time or part-time work.

1986–1996 All those 15 years and over who were either (a) employed for 30 hours or more per week; or

(b) unemployed and seeking either full-time or part-time work.

As can be seen in the definition above, between 1896 and 1936 those under 15 years of age were not explicitly excluded from the labour market statistics. However, the number of people under the age of 15 made up only a small proportion of the full-time labour force. For example, of the full-time labour force reported in the table above for 1896, 5,951 males and 1,761 females were under the age of 15. This number reduced in subsequent censuses.

2Māori excluded before 1951. Of the figures reported above for 1951, 847 employers were Māori (777 male, 70 female); 2,781 self-employed and not employing others were Māori (2,537 male, 244 female); 27,689 wage and salary earners were Māori (21,497 male, 6,192 female); 399 unpaid family workers were Māori (329 male, 70 female); 143 employment status not specified were Māori (107 male, 36 female); 766 unemployed were Māori (641 male, 125 female). Of the population aged 15 and over, 62,025 were Māori (32,007 male, 30,018 female).

3Prior to 1945 no distinction was made between part-time and full-time work, so the 'total full-time employed' is the total employed (regardless of the number of hours worked per week). Between 1945 and 1981, all those employed 20 hours or more per week were full-time employed. From 1986 onwards, all those who worked 30 or more hours per week were full-time employed.

4Those who indicated they were unemployed and seeking work (full-time or part-time).

5Those unemployed (as defined in footnote 4) as a percentage of the full-time labour force (as defined in footnote 1).

6Participation rates are calculated as the ratio of the full-time labour force aged 15 years and over to the total population aged 15 years and over. Prior to 1945 the full-time labour force included some of those who were under the age of 15. This has exaggerated the participation rate which has been calculated as the ratio of the full-time labour force of any age to the total population aged 15 years and over. The participation rates on the following page have this bias removed. They have been calculated by removing those under the age of 15 from the full-time labour force.

Participation Rates:    1896    Male: 96.5    Female 24.9    Total: 63.6

1901    Male: 97.4    Female: 26.6    Total: 64.4

1906    Male: 96.9    Female: 26.3    Total: 64.4

1911    Male: 96.7    Female: 27.5    Total: 64.6

1916    Male: 92.1    Female: 25.4    Total: 58.7

The necessary data to recalculate these participation rates was unavailable from the 1921, 1926 and 1936 censuses.

7In 1996 there were 84,861 people who did not specify a labour force status (i.e. employed, unemployed or not in the labour force). These people have been excluded from the above table. Thus the participation rate has been calculated as the ratio of the full-time labour force aged 15 years and over to the total population aged 15 years and over who have specified a labour force status.

 numberpercent
Male -
189628,81842,599132,72720,959 225,10314,759239,862242,3626.299.0
190134,00247,317166,43218,341 266,0928,467274,559275,2543.199.7
190641,47646,936203,98723,253 315,6528,189323,841328,8492.598.5
191143,92756,708231,65324,416 356,7047,152363,856371,6702.097.9
191643,25655,755220,78312,1873,716335,6975,920341,617366,5831.793.2
192147,59164,152269,0366,752577388,10811,071399,179428,6342.893.1
192648,22662,226305,1209,5862,448427,60610,694438,300481,7892.491.0
193653,53664,069322,09510,9282009452,63751,996504,633561,77310.389.8
194547,52454,961359,9313,970136466,5225,823472,345572,1801.282.6
195163,57071,235423,17419661116561,0617,902568,963683,3981.483.3
195666,86472,239476,6371208252617,2005,558622,758744,2370.983.7
196162,23161,862540,316766657665,8324,674670,506805,1250.783.3
196666,17061,975610,7323121281740,4705,125745,595897,4750.783.1
197159,81562,185651,4992502,463776,2128,757784,969966,3441.181.2
197670,98776,751699,3266702,972850,70614,392865,0981,087,9001.779.5
198164,32975,840696,89114913,573842,12434,482876,6061,130,3403.977.6
198681,846100,383651,8583,4443,810841,34148,279889,6201,210,3925.473.5
199178,300101,841541,1375,0677,938734,28390,708824,9911,262,08511.065.4
1996783,109109,743551,71811,82021,924778,31469,198847,5121,305,3188.264.9
Female -
189616275,73137,1685,907 50,4332,63753,070205,8475.025.8
190120108,75048,0885,464 64,312135965,671239,6982.127.4
19062,3337,93155,4918,117 73,872137275,244279,9381.826.9
19112,7669,65964,26412,369 89,058120390,261321,4691.328.1
19162,6297,90474,3028,32493594,094115695,250368,7681.225.8
19212,9388,76088,4315,408118105,6552,154107,809407,7682.026.4
19263,3587,70596,4251065559109,1122,434111,546461,5042.224.2
19365,0049,627118,963892589135,0753,509138,584549,2702.525.2
19454,9976,272148,936169450161,9491090163,039618,2000.726.4
19515,9337,683154,5201248423169,8071726171,533685,4531.025.0
19565,9837,856176,7211038118191,7162,378194,094746,5671.226.0
19614,6916,045210,5661122209222,6332,224224,857810,9171.027.7
19667,2547,856260,081488783276,4623,982280,444907,0451.430.9
19718,10310,101307,064353834326,4557,411333,866986,6642.233.8
197612,50014,760363,8443,205981395,29011,945407,2351,113,2782.936.6
198114,05217,289392,2354,9411446429,96325,776455,7391,166,3645.739.1
198619,43124,663383,5267,2901959436,86960,915497,7841,257,91212.239.6
199120,39426,433358,6596,7624,668416,91673,062489,9781,328,19914.936.9
1996725,05332,730387,44711,97317,256474,45967,308541,7671,396,04712.438.8
Total -
189630,44548,330169,89526,866 275,53617,396292,932448,2095.965.4
190136,01256,067214,52023,805 330,4049,826340,230514,9522.966.1
190643,80954,867259,47831,370 389,5249,561399,085608,7872.465.6
191146,69366,367295,91736,785 445,7628,355454,117693,1391.865.5
191645,88563,659295,08520,5114,651429,7917,076436,867735,3511.659.4
192150,52972,912357,46712,160695493,76313,225506,988836,4022.660.6
192651,58469,931401,54510,6513,007536,71813,128549,846943,2932.458.3
193658,54073,696441,05811,8202,598587,71255,505643,2171,111,0438.657.9
194552,52161,233508,8675,664186628,4716,913635,3841,190,3801.153.4
195169,50378,918577,6943,2141539730,8689,628740,4961,368,8511.354.1
195672,84780,095653,3582,246370808,9167,936816,8521,490,8041.054.8
196166,92267,907750,8821888866888,4656,898895,3631,616,0420.855.4
196673,42469,831870,81380020641,016,9329,1071,026,0391,804,5200.956.9
197167,91872,286958,5636033,2971,102,66716,1681,118,8351,953,0081.457.3
197683,48791,5111,063,1703,8753,9531,245,99626,3371,272,3332,201,1782.157.8
198178,38193,1321,089,1296,4295,0191,272,09060,2551,332,3452,296,7044.558.0
1986101,277125,0461,035,38410,7345,7691,278,210109,1911,387,4012,468,3017.956.2
199198,694128,274899,79611,82912,6061,151,199163,7701,314,9692,590,28712.550.8
19967108,162142,473939,16523,79339,1801,252,773136,5061,389,2792,701,3729.851.4
Total labour force5: 1971–1996
Census yearEmployment statusTotal employedUnemployed6Total labour forceTotal population aged 15+Unemployment rate7Labour force participation rate8
EmployersSelf-employed, not employing othersWage and salary earnersUnpaid family workersEmployment status not specified

5The total labour force is defined as all those aged 15 years and over either employed (full time or part time) or unemployed and seeking full-time or part-time work.

6Those who indicated they were unemployed and seeking work (full time or part time).

7Those unemployed (as defined in footnote 2) as a percentage of the total labour force (as defined in footnote 1).

8Participation rates are calculated as the ratio of the total labour force aged 15 years and over to the total population aged 15 years and over.

9In 1996 there were 84861 people who did not specify a labour force status (i.e. employed, unemployed or not in the labour force). These people have been excluded from the above table. Thus the participation rate has been calculated as the ratio of the total labour force aged 15 years and over to the total population aged 15 years and over who have specified a labour force status.

 numberpercent
Male -
1971     784,8718,757793,628966,3441.182.1
1976     864,00914,392878,4011,087,9001.680.7
1981     862,13734,482896,6191,130,3403.879.3
198683,925109,683687,9754,5754,176890,33448,279938,6131,210,3925.177.5
199180,817116,268581,9766,9729,036795,06990,708885,7771,262,08510.270.2
1996987,090127,587623,88622,29929,145890,00769,198959,2051,305,3187.273.5
Female -
1971     374,2747,411381,685986,6641.938.7
1976     467,58211,945479,5271,113,2782.543.1
1981     525,08725,776550,8631,166,3644.747.2
198625,40138,004529,51213,4912,679609,08760,915670,0021,257,9129.153.3
199127,44743,125513,92713,5097,326605,33473,062678,3961,328,19910.851.1
1996935,21757,777589,24231,71026,856740,80267,308808,1101,396,0478.357.9
Total -
1971     1,159,14516,1681,175,3131,953,0081.460.2
1976     1,331,59126,3371,357,9282,201,1781.961.7
1981     1,387,22760,2551,447,4822,296,7044.263.0
1986109,326147,6871,217,49018,0666,8521,499,421109,1911,608,6122,468,3016.865.2
1991108,264159,3931,095,90320,48116,3621,400,403163,7701,564,1732,590,28710.560.4
19969122,310185,3641,213,12854,00955,9981,630,809136,5061,767,3152,701,3727.765.4

Table 14.2 shows the average number of males and females employed on a full and part-time basis in the years ended September 1994 and September 1999. Women still make up the bulk of the part-time employed, although the number of part-time workers of both sexes has increased in recent years. Males working part-time increased by 27.9 percent between 1994 and 1999, while the number of females working part-time increased by 18.9 percent over the same period.

Table 14.2. PERSONS EMPLOYED BY FULL-TIME AND PART-TIME STATUS, 1994 AND 19991

 MaleFemaleTotal

1Annual averages for the years ended September 1994 and September 1999.

Source: Household Labour Force Survey

 199419991994199919941999
(000)(000)(000)
Full-time employed787.7840.7439.1489.51226.81330.1
Part-time employed85.4109.2251.9299.4337.2408.5

Hours of work. Data regarding the number of hours worked in a week is presently collected by Statistics New Zealand from two sources:

  • The Household Labour Force Survey, which asks respondents for the number of hours they actually worked in the survey reference week and for the hours they usually work each week. Where the actual and usual hours differ, the main reason for the difference is also collected.

  • 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.

Average total weekly paid hours increased on an annual basis during the early to mid-1990s. Decreases in overtime hours were more than compensated for by increasing ordinary time hours. The substitution of overtime hours for ordinary time hours is most likely related to the introduction of the Employment Contracts Act in 1991 which extended the range of hours defined as 'ordinary time'.

This increase in hours continued until February 1995 when the average full-time equivalent employee worked 38.93 hours per week. Since that time, average total weekly paid hours have decreased each consecutive year. This may reflect stronger growth in part-time work as well as decreasing ordinary time and overtime hours, as highlighted in table 14.3. The decrease in average total weekly paid hours can be seen for both male and female employees.

Ditch digging during the Depression, 1932.

Table 14.3. AVERAGE TOTAL WEEKLY HOURS PAID FOR, 1989–19991

Year as at FebruaryTotal hours paid for
MalesFemalesTotal
Ordinary timeOvertimeTotalOrdinary timeOvertimeTotalOrdinary timeOvertimeTotal

1Figures have been backcast. For a technical report see the Statistics New Zealand website.

Source: Quarterly Employment Survey

198937.522.7540.2735.491.1036.5936.652.0438.69
199037.372.8540.2335.251.1336.3836.452.1038.55
199137.412.4439.8635.280.9736.2536.471.7938.27
199237.742.2239.9635.500.8036.3036.741.5938.33
199338.112.2240.3336.680.7236.4037.021.5438.57
199438.282.1440.4135.760.7136.4637.141.4938.64
199538.502.2540.7435.970.7336.7037.361.5638.93
199638.562.1140.6835.980.6536.6337.401.4538.85
199738.381.9440.3235.890.6136.5037.261.3438.60
199838.311.7940.1035.640.6136.2537.091.2538.34
199938.431.5940.0235.630.5436.1737.141.1038.24

Table 14.4. EMPLOYED PERSONS BY ACTUAL HOURS WORKED1

Actual hours worked per weekMalesFemalesTotal
19941999Change19941999Change19941999Change

1Annual average for the year ended September..

. . . Denotes estimates fewer than 1,000. 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 hours53.460.012.456.764.914.5110.1124.913.4
1–929.335.621.566.076.616.195.3112.317.8
10–1931.340.930.781.598.120.4112.8138.923.1
20–2938.146.321.590.0108.020.0128.0154.320.5
30–3451.853.32.965.469.96.9117.2123.25.1
35–3942.145.17.159.659.90.5101.7105.03.2
40242.2240.2-0.8155.1166.67.4397.3406.82.4
41–4443.344.11.823.426.513.266.770.65.8
45–49101.5116.114.433.643.429.2135.1159.518.1
50 and over238.7268.212.458.675.028.0297.3343.115.4
Not specified1.3......1.1......2.4......
              Total873.1949.88.8690.9788.814.21564.01738.711.2

Table 14.4 shows how actual hours worked per week (as opposed to usual hours) have changed between 1994 and 1999. The 40-hour week was still worked by the largest number of people. However, the number of people working these hours showed a relatively small increase (2.4 percent) over the five years. The biggest percentage increase was in the number of people working 10–19 hours per week, followed by those working 20–29 hours per week. This illustrates the growth in people working part-time.

Between 1994 and 1999, the largest increases for males were in the 10–19 hours band (up 30.7 percent) the 20–29 hours band and the 1–9 hours band (both up 21.5 percent). For females, the largest increase was in the 45–49 hours band (up 29.2 percent) followed by the 50 hours and over band (up 28.0 percent).

People employed who worked zero hours are those who were not at work during their reference week for the Household Labour Force Survey. This may have been for a variety of reasons including holiday leave or illness.

Pea canning at Watties Canneries, Hastings, 1940s.

Status in employment

Table 14.5 shows that the majority of the employed were wage or salary earners, in their main job. In the year ended September 1999, an average of 78.9 percent of employed people were wage or salary earners. Those people who were self-employed and not employing others made up the next largest category, accounting for 12.6 percent of the employed.

Males dominate the employer and self-employed categories, comprising 70.2 percent and 68.7 percent respectively for the year ended September 1999. The unpaid in family business category was dominated by females, who made up 64.2 percent of this group.

The restructuring of the New Zealand economy during the latter half of the 1980s, coupled with the economic recession of the early 1990s, have seen shifts in the number of people employed by type of employment status. The total number of employed people increased by 174,700 (11.2 percent) between the years ended September 1994 and 1999. Wage or salary earners increased by 145,000 (11.8 percent), self-employment by 36,200 (19.8 percent) and those employing others by 900 (0.7 percent). The number of people working unpaid in a family business fell by 2,300 (13.2 percent) over the five years.

Table 14.5. STATUS IN EMPLOYMENT OF EMPLOYED PERSONS, 1994 AND 19991

StatusMalesFemalesTotal
19941999Change19941999Change19941999Change

1Annual averages for the years ended September. ...Denotes estimates fewer than 1,000. 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
Wage or salary earners642.4700.49.0583.8670.814.91226.21371.211.8
Employer92.993.30.439.039.61.5132.0132.90.7
Self-employed128.9150.716.954.368.726.5183.2219.419.8
Unpaid in family business5.75.4-5.311.79.7-17.117.415.1-13.2
Not specified3.1......2.1......5.2......
              Total873.1949.88.8690.9788.814.21564.01738.711.2

Industry structure of the labour force

Over the last decade the structure of the New Zealand economy has changed. More people are now employed in the services sector (wholesale and retail trade, restaurants and hotels; business and financial services; and community, social and personal services) and fewer people are engaged in manufacturing activities.

Table 14.6 shows the average numbers of employed people by industry in the year ended September 1999. The industries shown are grouped by major divisions of the New Zealand Standard Industrial Classification (NZSIC). The largest number of employed people work in the community, social and personal services division (27.3 percent); followed by the wholesale and retail trade, restaurants and hotels division (21.2 percent); and manufacturing (16.3 percent). Divisions employing the least number of people are mining and quarrying; followed by electricity, gas and water, each employing less than 1 percent of the total employed.

Table 14.6. EMPLOYED PERSONS BY INDUSTRY AND SEX, 19991

Major divisionMaleFemaleTotalPercentage distribution
MaleFemaleTotal

1Annual average for the year ended September 1999. ...Denotes estimates fewer 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)
Agriculture, hunting, forestry and fishing111.652.5164.111.76.79.4
Mining and quarrying3.3...3.80.3...0.2
Manufacturing197.484.2281.520.810.716.2
Electricity, gas and water7.11.98.90.70.20.5
Construction95.512.5108.010.11.66.2
Wholesale and retail trade, restaurants and hotels186.0183.1369.119.623.221.2
Transport, storage and communication74.134.5108.67.84.46.2
Business and financial services110.6105.5216.211.613.412.4
Community, social and personal services162.7312.5475.217.139.627.3
Not adequately defined1.61.63.30.20.20.2
          Total949.8788.81,738.7100.0100.0100.0

Female employment is concentrated in three of the four divisions that make up the services sector (76.2 percent), compared with just under half of all employed males (48.4 percent). Male employment is highest in the manufacturing division, followed by the two largest divisions of the services sector. Combined they account for 57.5 percent of male employment.

Occupation structure of the labour force

Over the last decade the proportion of New Zealanders in each occupation has remained relatively constant. Table 14.7 shows the spread among the differing occupations. The largest occupation groups are service and sales workers, and clerical workers. Together these two occupation groups account for 27.9 percent of all employed people. The smallest occupation group is elementary occupations (7.6 percent of all employed people).

ETHNIC EMPLOYMENT

By major industry group

FULL-TIME MALE EMPLOYMENT BY INDUSTRY

Table 14.7. EMPLOYED PERSONS BY OCCUPATION AND SEX, 19991

Major occupational groupsMaleFemaleTotalPercentage distribution2
MaleFemaleTotal

1Annual average for the year ended September 1999.

2Percentage calculations are based on adequately defined cases only. 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 managers133.477.7211.114.09.912.1
Professionals101.5123.5225.010.715.712.9
Technicians and associate professionals109.9101.7211.511.612.912.2
Clerks48.3179.1227.45.122.713.1
Service and sales workers93.1163.7256.79.820.814.8
Agriculture and fishery workers110.248.5158.611.66.19.1
Trades workers152.012.5164.516.01.69.5
Plant and machine operators and assemblers115.829.1144.912.23.78.3
Elementary occupations80.651.5132.28.56.57.6
Not adequately defined5.21.66.80.50.20.4
          Total949.8788.81738.7100.0100.0100.0

The largest occupation group for males is trades workers, with about one in six males involved in this occupation (16 percent). This is followed by legislators, administrators and managers, in which 14 percent of males are employed. The smallest occupation group for males is clerical workers (5.1 percent).

FULL-TIME FEMALE EMPLOYMENT BY INDUSTRY

OCCUPATIONS OF THE EMPLOYED, 1999

LABOUR FORCE PARTICIPATION RATE, 1999
Age specific

Women tend to be concentrated in a smaller number of occupation groups. Nearly a quarter of all employed females work as clerks (22.7 percent), with a further 20.8 percent employed as service and sales workers. The smallest occupation group for females is trades workers, accounting for only 1.6 percent of total female employment.

There is still some degree of occupation segregation in the New Zealand labour force, i.e. the so-called 'male' and 'female' occupations still exist. Males are over-represented in the occupations of trades workers and legislators, administrators and managers, while females are over-represented in the clerical and service/sales workers occupations.

EMPLOYMENT

UNEMPLOYMENT RATE, 1999
Age specific

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 Work and Income'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 does 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.

UNEMPLOYMENT RATE

The registered unemployment data is a count of all those enrolled with the Department of Work and Income who are actively seeking full-time work. All job seekers not currently in full-time employment may register, subject to certain age and residency criteria. In most cases registration is mandatory for those receiving the community wage or other work testable benefits. The department releases monthly updates of registered unemployment data.

Definition differences mean that people counted as 'unemployed' by one measure may be excluded by another. For instance, a person on the department 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 department 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 and medium term trends are measured by the quarterly HLFS which began in December 1985. The HLFS provides a timely picture of the labour force status of New Zealand's working-age population by classifying it into three categories, namely the employed, the unemployed and those not in the labour force.

Demographic and social characteristics of the unemployed

In the year ended September 1999, an average of 134,000 people were counted by the HLFS as being unemployed. This is equivalent to 7.2 percent of the total labour force. The unemployment rates for males and females were 7.4 percent and 6.9 percent respectively.

REGISTERED UNEMPLOYED
Excluding vacation workers

Woman worker during World War II.

Fintan Patrick Walsh.

Table 14.8 shows the average number of unemployed in the year ended September 1999 by educational attainment. The unemployment rate is highest among those people with no educational qualifications (11.7 percent) and lowest for those people with both school and post-school qualifications (4.7 percent).

Table 14.8. UNEMPLOYED PERSONS BY EDUCATIONAL ATTAINMENT, 19991

Educational attainmentNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Annual average for the year ended September 1999. . . . Denotes estimates fewer than 1,000. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000)percent
No qualifications27.818.145.912.410.711.7
School qualification17.016.933.97.26.76.9
Post-school but no school qualification9.56.315.88.010.98.9
Post-school and school qualification21.216.337.54.84.54.7
Not specified..................
          Total75.958.2134.07.46.97.2

Unemployment is highest among the younger age groups. As can be seen in table 14.9, nearly half of the unemployed are aged 29 or younger, whereas only 14.3 percent of the unemployed are aged 50 or over. As the graph of age-specific unemployment rates shows, the rate of unemployment for 15 to 19 year-olds is more than twice as high as the overall rate of unemployment. Similarly, the unemployment rate for 20 to 24 year-olds is significantly higher than the overall rate.

Table 14.9. UNEMPLOYED PERSONS BY AGE, 19991

AgeNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Annual average for the year ended September 1999.

. . . Denotes estimates fewer than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000)percent
15–1913.510.624.018.315.717.1
20–2414.49.724.113.711.112.5
25–297.67.715.36.57.87.1
30–347.46.513.96.06.86.3
35–398.76.615.36.35.96.1
40–447.15.612.75.75.15.4
45–495.63.99.54.93.84.4
50–545.14.19.15.14.85.0
55-593.92.86.75.45.25.3
60–642.5...3.06.1...4.7
65 and over..................
        Total75.958.2134.07.46.97.2

Over the past decade there have been a number of changes in the structural nature of the unemployed:

  • The percentage of the unemployed who are aged 35–49 years has increased from 19.7 percent to 28.3 percent, while the percentage aged 15–19 years has decreased from 21 percent to 17.8 percent.

  • The percentage unemployed with post-school and school qualifications has risen from 15 percent to 28 percent.

  • The percentage unemployed over one year has increased from 14.5 percent to 18.7 percent.

Table 14.10. UNEMPLOYED PERSONS BY ETHNICITY, 19991

Ethnic groupNumber unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Annual average for the year ended September 1999.

. . . Denotes estimates fewer 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
NZ European/Pākehā46.034.680.65.55.15.3
Māori16.813.230.018.916.817.9
Pacific Islands6.44.911.314.313.413.9
Other6.75.412.111.711.411.6
Not specified..................
        Total75.958.2134.07.46.97.2

Unemployment rates for Māori and Pacific Islands people are considerably higher than the rate for Europeans/Pākehās. Table 14.10 shows the average unemployment rate for the European/Pākehā ethnic group was 5.3 percent, Māori at 17.9 percent and Pacific Islands at 13.9 percent for the year ended September 1999.

Table 14.11. PERSONS UNEMPLOYED, BY DURATION OF UNEMPLOYMENT AND SEX1

Average for the year ended Septemberweeks53 weeks and overNot specifiedTotal
1–45–89–1314–2627–52

1Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

(000)
Male
19899.17.87.010.012.410.77.864.8
199010.07.16.210.611.815.47.868.8
199112.19.28.316.318.822.56.894.0
199211.08.18.015.521.032.76.6102.8
199310.57.16.514.017.133.86.795.7
199410.26.86.010.815.429.97.186.2
199510.35.85.78.610.918.25.965.4
199611.46.55.68.79.514.15.561.2
199712.87.36.010.610.314.05.266.1
199813.48.86.712.513.215.15.875.5
199911.09.46.413.013.515.86.775.9
Female
19899.15.45.66.26.65.16.144.0
199010.66.34.77.07.05.96.648.1
199112.07.77.010.411.210.86.065.3
19929.87.26.310.812.914.95.767.7
199310.46.46.09.712.016.26.166.9
199410.56.05.68.89.714.65.460.7
199510.15.64.37.07.79.36.650.6
199612.46.15.37.36.88.05.551.5
199712.27.45.38.37.37.65.753.8
199813.28.36.18.39.78.06.059.5
199912.87.35.68.78.89.25.858.2
Total
198918.213.212.516.219.015.813.9108.8
199020.513.511.017.618.721.214.4116.9
199124.116.915.326.730.033.312.9159.3
199220.815.214.326.433.947.612.3170.5
199320.913.512.523.729.250.012.8162.6
199420.712.811.619.625.244.512.5146.9
199520.311.410.015.618.527.512.6116.0
199623.712.610.916.116.322.210.9112.7
199725.014.811.318.917.521.710.8119.9
199826.617.112.820.822.923.111.7135.0
199923.816.712.021.822.325.012.5134.0

Duration of unemployment

In the Household Labour Force Survey, short-term unemployment is defined as unemployed for 26 weeks or fewer and long-term unemployment as for 27 weeks or more.

The long-term unemployed accounted for an average of 36.7 percent of those unemployed who specified a duration in the year to September 1989. However, five years later in the year ended September 1994 they accounted for more than half (51.9 percent). In the year to September 1999 an average of 38.9 percent of those unemployed who specified a duration were long-term. Table 14.11 shows how the numbers of people unemployed by duration 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 that will improve its competitive advantage as a small player in a global economy. Equipping New Zealanders with tomorrow's skills improves not just individual job prospects but the economic prospects of the nation.

Skill New Zealand: Pūkenga Aotearoa

Skill New Zealand: Pūkenga Aotearoa, the business name of the Education and Training Support Agency, is a Crown entity established by the Education Amendment Act 1990. It reports directly to the Minister of Education through its Board. Skill New Zealand's mission is ‘skills development for work’, reflecting a commitment to raising New Zealanders' skill levels.

Skill New Zealand oversees a range of initiatives designed to build a highly skilled and adaptable workforce. The agency prepares school leavers to start their working lives, assists unemployed people to re-enter the workforce, and facilitates training to raise the skills of people currently in employment. Particular attention is given to those under-represented in the labour market or in particular areas of training. Such groups include Māori, Pacific Islands people, school leavers with low or no qualifications, and older workers with redundant or unrecognised skills.

The agency works with many stakeholder groups including industry, educators, Māori and Pacific Islands people. It purchases quality training on behalf of the Government for these groups. Skill New Zealand works closely with the Ministry of Education, the Department of Work and Income, Te Puni Kōkiri and senior schools. With 11 regional offices and three satellite offices, there is an extensive regional structure, as well as a national office based in Wellington.

The agency 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. Skill New Zealand maintains a close working relationship with the New Zealand Qualifications Authority to ensure all training is carried out to nationally recognised standards.

Skill New Zealand is funded through Vote: Education, under a Document of Accountability negotiated annually with the Minister of Education, and Vote: Work and Income, through a Memorandum of Understanding with the Department of Work and Income. In the year to June 1999 Skill New Zealand received from the Government $18.6 million operational funding ($19.3 million in 1998). Skill New Zealand also receives some funding from fees paid by migrants for English language training, through a Memorandum of Understanding with the New Zealand Immigration Service.

Skill New Zealand is responsible for the following major training initiatives: Training Opportunities, which with Youth Training, replaces the former Training Opportunities Programme; Industry Training; Skill Enhancement (formerly Māori Trade Training); and English for Migrants. The agency also works directly with employers (Working with Enterprises) and schools (including assisting with the Secondary Tertiary Alignment Resource – STAR).

Training Opportunities. This is a fully-funded programme targeted towards those people who are most disadvantaged in the labour market, particularly long-term unemployed people, domestic purposes beneficiaries and Workbridge clients.

Skill New Zealand works under contract to the Department of Work and Income and purchases services on its behalf.

Training Opportunities 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. Trainees may remain in the programme until they have accumulated up to 240 credits on the National Qualifications Framework. Work-based training, which places trainees with employers for on-job training is available.

There was an average of 8,884 trainees in place in the six months to 30 June 1999. Of these, 43 percent of trainees were women, 50 percent Māori and 11 percent Pacific Islands people. Training was purchased from 411 providers in 1999. The average cost for Training Opportunities for the year to 30 June 1999 was $215 per trainee per week and the total expenses of Training Opportunities were $95 million. This figure includes the Vote: Work and Income funded portion of the former Training Opportunities Programme in the six months to 31 December 1998.

Youth Training. Youth Training, introduced on 1 January 1999, provides an alternative stream of education and training experiences for young people aged 16 and 17 years, who have left school without qualifications. The training allows them to explore work options, expand their understanding of the world of work and develop skills relevant to the job of their choice. The training is designed to assist trainees to gain credits towards nationally recognised qualifications, which will assist their employment or further education.

There was an average of 5,246 trainees in place in the six months to 30 June 1999. Of these, 44 percent were female, 48 percent Māori and 12 percent were Pacific Islands people. Training was purchased from 335 providers in 1999. The average cost for Youth Training in 1999 was $218 per trainee per week. For the year to 30 June 1999, the total expenses of Youth Training were $55 million. This figure includes the Vote: Tertiary Education funded portion of the former Training Opportunities Programme in the six months to 31 December 1998.

Skill Enhancement. This programme provides training for young Māori and Pacific Islands people 16 to 21 years of age. The emphasis is on training for the workforce and a minimum of 20 percent of training is conducted in the workplace. There are courses at private tertiary establishments, polytechnics, marae and wānanga. In 1998 a distinction was made between the two cultural strands of the Skill Enhancement programme. These are Rangatahi Maia for Māori, and Tupulaga Le Lumana'i for Pacific Islands people. This has allowed training providers to focus and develop the training along ethnic and cultural dimensions. New programmes purchased for 1999 covered areas such as nursing, mental health, graphic design, and Māori business management. There was continuing emphasis on achievement of nationally recognised qualifications at levels three and four.

There was an average of 646 trainees in the year to 30 June 1999 (599 in 1998). As at 30 June 1999 there were 849 trainees in place (688 as at 30 June 1998). Of these, 48 percent were female, 86 percent Māori, and 14 percent were Pacific Islands people. Training was purchased from 68 providers in 1998/99 (63 in 1997/98). The average training cost for Skill Enhancement in 1998/99 was $245 per trainee per week ($244 in 1997/98). For the year ended 30 June 1999, total expenses of Skill Enhancement were $8.7 million ($8.4 million in 1997/98).

Industry training. Since the implementation of the Industry Training Act in 1992, industries have progressively taken over responsibility for developing, implementing and administering their own training. Industries that had structured training in the past have now revised their existing qualifications to be part of the National Qualifications Framework.

Industry training is now taking place in a much wider range of industries. At 30 June 1999 there were 52 Industry Training Organisations (ITOs). Most of New Zealand's industry sectors can now choose to be involved in the new training arrangements, with ITOs and National Standards Bodies having the potential to cover 90 percent of the workforce. By June 1999, a third of all industry trainees were in areas which prior to 1992 had no systematic training arrangements.

Skill New Zealand 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). Ninety percent of the subsidised training is at levels three and four of the National Qualifications Framework. During 1999, new funding arrangements designed to move the focus from costs and inputs to maximising trainee achievement were announced.

Pacific Islands job seekers, 1995.

Sonja Davies.

In the year to 30 June 1999 there were 13,173 new trainees (13,800 in 1997/98) and a total of 49,577 trainees at 30 June 1999 (45,392 in 1998). A total of 21,571 STMs were achieved (20,567 in 1997/98). The total expenses of Industry Training for the year ended 30 June 1999 were $44.7 million ($52.4 million in 1997/98).

English for Migrants. A new programme to offer English language training was introduced in 1999, under an agreement with the New Zealand Immigration Service (NZIS). The target client group includes business migrants and non-principal applicants in general skills categories. The English for Migrants programme heralded a new approach to the purchase of training as the training is not on behalf of the Crown, but directly on behalf of the learner who has paid the tuition fee as part of the immigration process. Skill New Zealand identifies quality providers and contracts them to provide a range of English language tuition options.

By 30 June 1999, contracts to deliver English language training to migrants had been signed with 33 providers, and 36 migrants had paid their English tuition fee through NZIS.

Work with enterprises. The agency works with individual enterprises to assist them to link into training which leads to national qualifications. For the majority of these enterprises, it is the first time that their employees have had the opportunity of gaining structured workplace learning which can be formally recognised.

In 1998/99, Skill New Zealand worked with 256 new enterprises nationwide to encourage participation in the industry training strategy. A total of 99 of these enterprises have since developed systematic workplace training.

Secondary Tertiary Alignment Resource (STAR). The aim of STAR is to provide secondary school students with industry-focused training options. STAR is administered by the Ministry of Education. The role of Skill New Zealand is to provide a brokerage and consultancy service that assists selected schools to form training links with other providers and enterprises. In addition it offers schools advice on the management of purchasing processes and contracts, programme design, work experience and industry requirements.

In the year to June 1999, 95 schools were assisted with application or implementation of STAR programmes.

Special projects.

Te Ararau – The aim of the Te Ararau initiative, which ran until 31 December 1998, was to increase the number of Māori in vocational and workplace training through a variety of mechanisms. These have included: joint venture purchasing with Ngāti Whatua, Ngti Porou, Te Ohu Kai Moana and Ngāi Tahu; a pilot project in Auckland involving managing agents (or brokers) who arrange industry training agreements for young Māori; and placement of Māori Training Opportunities graduates into employment with training agreements. A total of 537 placements were achieved through Te Ararau. A parallel initiative, Takiala, placed 88 young Pacific Islands people in training agreements by 31 March 1999.

Commissioned Youth Action Training (CYAT) – A short-term intervention targeted at those who are highly disadvantaged by social, educational and/or mobility issues, CYAT is intended to supplement other training programmes by assisting trainees who are not ready for entry to other programmes such as Youth Training and Training Opportunities. CYAT was delivered under a contract with the Department of Work and Income. About 750 individuals participated in this training from 1 October 1998 to 30 June 1999.

Career Services rapuara

A Crown entity and New Zealand's leading provider of career advice, planning and information, Career Services contracts with the Minister of Education to deliver a range of services to private and public sector clients.

Offices are open to the general public and services are also 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 more than 44,200 clients through its network of 14 centres throughout the country in the year to June 1999.

Career planning. Career Services consultants work with clients to: identify skills; investigate career and training options based on up-to-date information; develop career plans; teach interview and job search techniques; and prepare CVs.

In the year to June 1999 7,096 people received career plans. In addition more than 1,100 targeted individuals received funded career action plans.

KiwiCareers (www.kiwicareers.govt.nz). The KiwiCareers website is the most comprehensive source of career information in New Zealand. It provides free up-to-date information and links to jobs, vacancies, industries, training, qualifications and funding in New Zealand.

KiwiCareers is funded by the Government. On average it receives a million hits per month.

Other products include: Courses Galore, a quick-reference book containing around 5,000 course and training opportunities available in New Zealand; Jobs Galore, a quick-reference book containing descriptions on 693 occupations available in New Zealand; Planit, a series of career planning workbooks produced for intermediate, junior and secondary school students; CareerQuest and JobQuest, self-help computer-aided career guidance programs designed to assist people who are making career decisions or looking for job and training ideas.

Employment assistance measures

One of the roles of the Department of Work and Income is to provide employment assistance to New Zealanders. It provides a range of services to assist job-seekers into paid employment:

Information, job search assistance and work confidence programmes – help with motivation and confidence in seeking paid work, provides information on job search techniques and resources.

Work experience – unpaid experience in a workplace or in a situation resembling work that helps develop or maintain self-esteem, motivation, work discipline, work ethic and dignity.

Work transition grants – financial help to remove small financial barriers that prevent job-seekers from making the transition to unsubsidised employment.

Wage subsidies – an incentive for employers to provide work that gives job seekers experience to develop confidence, work ethics and skills.

Skills training – programmes that aim to improve job-related skills, increasing the chances of finding employment.

Self-employment assistance – financial help and advice for long-term unemployed people to move into self-employment.

New initiatives programmes that are developed by the Department of Work and Income to:

  • Respond to local labour markets.

  • Meet the emerging needs of job seekers, employers and communities.

  • Trial new types of products and services.

  • Promote learning and awareness of best practice in the design and delivery of work services.

The number of people starting programmes within each service type in the year to 30 June 1999 were:

Service typeNumber
Information, work search assistance and work confidence6,372
Work experience24,067
Work transition grants7,469
Wage subsidies17,575
Skills training1,660
Self-employment assistance6,584
New initiatives1,660

Job placements. In the nine months to 30 June 1999, the Department of Work and Income placed 25,463 people into work. (The department began operations on 1 October 1998.)

Employment and training for Māori. Under the Māori Development Act 1991, Te Puni Kōkiri is responsible for providing advice on key policies as they affect Māori, including those policies that lead to improvements in Māori achievements in employment and training. It does this through giving policy advice to the Minister of Māori Affairs, Cabinet and government departments and agencies that purchase or provide training and employment services for Māori.

Te Puni Kōkiri is also involved in facilitating consultation between government training and employment agencies and iwi, hapū and other Māori organisations and individuals. This includes helping Māori, at local level, to access appropriate government service delivery agencies.

Community Employment. Community Employment is part of the Department of Work and Income. It works in partnership with communities and local groups to create opportunities for employment and self-sufficiency.

Community Employment encourages communities to tailor employment solutions to their own needs using resources available to them. Priority is given to overcoming the labour market disparities experienced by Māori, Pacific peoples, women, rural and urban disadvantaged communities.

A network of field staff (community employment advisors) report to 13 regional commissioners and assist communities and groups by:

  • Providing information and advice.

  • Assisting the development and implementation of ideas.

  • Facilitating community planning.

  • Providing brokerage services to access financial, technical and expert assistance.

  • Promoting and supporting projects that may be useful models for other communities.

  • Encouraging private sector help, such as finance and expertise.

  • Advising on appropriate legal structures for community groups.

  • Providing small, one-off grants to kick-start projects.

Sir James Wattie, right, by the spaghetti production line at his Hastings factory, 1972.

The group offers communities the following services:

Community Planning Services – offers a variety of planning techniques to assist communities develop action plans so that they can improve local opportunities for employment.

Small Town Self Help – investigates employment, training and local economic development opportunities in rural towns.

Enterprise Development – supports local organisations that provide training and advisory services to help new businesses succeed.

Heritage – helps communities attract visitors and creates opportunities for employment by restoring, developing and marketing their history.

Tourism – helps to develop community-based tourism initiatives which reflect New Zealand's culture and lifestyle.

GreenWorks – works within community networks to encourage opportunities for employment and enterprise in the growing recycling industry.

Company Rebuilders – offers access to retired business people who provide advice to help save businesses in danger of collapse.

Labour Market Shocks – helps to ease the impact on displaced workers by moving them towards retraining and employment options. Also, work with communities to help them cope with downstream effects, and implement strategies for the future.

Capacity Building – works with community organisations to maximise their potential.

Volunteer Centres – centres which match and train people interested in voluntary work (many of whom are unemployed) by providing them with useful work experience.

14.4 Incomes

Growth in average hourly earnings were relatively modest in the last decade of the century, particularly in the first half of the last decade. Over the 10 years from November 1989 to November 1999 average hourly earnings increased by $4.15 to reach $17.44 – an increase of 31 percent.

Looking at average weekly earnings shows that overtime earnings for full-time equivalent employees have been steadily decreasing throughout the 1990s. This is due to a trend towards expansion in the range of hours that are considered to be 'normal', reflected by the steady increase in ordinary time earnings as overtime earnings have been decreasing. However, the average employee has been working fewer and fewer hours since 1995, and this is also reflected in the steady decrease in overtime earnings.

The Quarterly Employment Survey is one measure of employment-related earnings. The survey was designed to measure quarterly estimates of change in, and levels of, average hourly and average weekly earnings, average weekly paid hours and the number of filled jobs. The survey covers all business locations in surveyed industries that employ staff. Industries excluded from the survey are: agriculture, services to agriculture, commercial fishing, international sea transport, private households employing staff, residential property owners, and non-civilian defence staff.

Other sources of information about employment-related earnings include the Labour Cost Index introduced in 1992 and the New Zealand Income Survey introduced in 1997.

Table 14.12. AVERAGE WEEKLY EARNINGS BY SEX1

Year as at FebruaryMalesFemalesTotal
Ordinary timeOvertimeTotalOrdinary timeOvertimeTotalOrdinary timeOvertimeTotal

1Figures have been backcast. For a technical report see the Statistics New Zealand website.

Source: Quarterly Employment Survey

1989522.0245.21567.23407.4515.69423.14472.9832.58505.56
1990553.8350.06603.89428.8217.43446.26499.3535.84535.19
1991577.4045.00622.40450.6315.76466.40521.4532.10553.55
1992599.1640.93640.09466.2713.10479.37539.8428.50568.34
1993607.1540.20647.35468.6611.68480.33545.0627.41572.47
1994615.2439.05654.29474.5811.72486.30551.9826.76578.73
1995631.1241.65672.77485.4812.26497.75565.6728.44594.11
1996652.5540.00692.55500.3511.15511.49583.7026.95610.65
1997676.1838.01714.18521.8811.13533.02606.6625.90632.56
1998689.1235.82724.94536.0611.09547.15619.1924.52643.71
1999711.9431.85743.79554.049.69563.73638.7921.59660.38

Income distribution

The major sources of information on income distribution are:

  • Household Economic Survey (HES) – this allows analysis of after-tax income at a household or individual level. It was the major source for the in-depth report on income distribution – New Zealand Now: Incomes.

  • Inland Revenue personal tax data that Statistics New Zealand holds a sample of – this contains detailed income information about individuals, and permits analysis of subgroups such as high income earners.

  • New Zealand Income Survey – this enables analysis of earnings and transfer income by various socio-demographic variables such as age, sex, occupation, education and ethnicity.

The New Zealand Income Survey

The New Zealand Income Survey (NZIS) is conducted every June quarter as a supplement to the Household Labour Force Survey (HLFS). The first survey was undertaken from April to June 1997. The NZIS collects gross income data on wages and salaries, self-employment, government transfers, private pensions and annuities for those aged 15 years and over. It excludes interest and investment income. Consequently, the reported income may not represent the entire income of an individual or a household.

The exclusion of interest and investment income in the NZIS impacts mostly on the older age groups. The 1997/98 HES shows for those aged 60 years and over, interest and investment income made up 16 percent of their total income, with 61 percent of people in this age group receiving some income from these sources. Therefore, care should be taken when interpreting statistics from this survey, especially for those aged 60 and over.

All HLFS respondents are surveyed in the NZIS. No data from proxies is accepted, except for people who are unable to answer the survey on health or language grounds. All questions except for the annual income question relate to the respondent's most recent pay period. The following are collected:

  • actual and usual gross wages and salaries per week and per hour for up to three current jobs

  • gross income received from self-employment

  • sources of and amount received from government transfers (e.g. benefits)

  • gross private superannuation payment(s) and annuities received per week

  • total annual gross income (using the same income bands as the census).

The New Zealand Income Survey allows short-term comparisons over time and is a better information source for analysis of income components than the five-yearly population census. Census income data consists of all income received in the 12 months preceding census night, and is collected in bands; this makes adjustments for inflation difficult and hence comparisons over time are problematic.

A full set of definitions for the NZIS is available from Statistics New Zealand. The collected data refers to cash only (pre-tax income was collected wherever possible) and does not include any noncash fringe benefits.

High income individuals

The characteristics of low income individuals and low income households are frequently examined. In contrast, the characteristics of high income individuals and high income households are seldom analysed. The best data source for analysis of high income individuals is the sample of Inland Revenue (tax) data that Statistics New Zealand holds for the purposes of statistical analysis. This sample only includes those people for whom tax data is available. The data is individual and not household or family based. A major strength of this data source is that it includes a greater number of people than does either the HES or the NZIS.

Preparing meals for unemployed women, Unemployed Relief Committee kitchen, Wellington, 1932.

Advertisement for nursery care at Wellington Railway Station, 1937.

Using tax data it is possible to show the amount of tax different groups of individuals pay. Table 14.13 shows the percentage of tax paid and taxable income received by each income decile for the 1996/97 tax year. Income deciles are grouping of tenths of the population (individuals) ranked by income, in this case ranked by taxable income. The bottom decile therefore has the bottom 10 percent of individuals in terms of taxable income. As can be seen from table 14.13, for all but those in the top two deciles of taxable income, the percentage of total taxable income received is greater than the percentage of total tax paid in the 1996/97 tax year. Decile 10 receives 34.5 percent of the total taxable income of the population but pays 41.3 percent of the total tax paid by the population.

Table 14.13. PERCENTAGE OF TAXABLE INCOME RECEIVED AND TAX PAID BY DECILES OF INDIVIDUALS

DecilePercentage of taxable income receivedPercentage of tax paid1

1The concept of tax used includes personal income tax, family support, relevant rebates and the surcharge on New Zealand superannuation.

Source: Sample of Personal Tax Returns, 1996/97

1 (under $2,200)0.3-0.5
2 ($2,200-$7,199)2.11.0
3 ($7,200-$9,599)3.82.8
4 ($9,600-$12,299)4.83.6
5 ($12,300-$14,799)5.94.4
6 ($14,800-$19,999)7.66.3
7 ($20,000-$26,599)10.39.6
8 ($26,600-$34,099)13.313.0
9 ($34,100-$45,699)17.318.3
10 ($45,700 and over)34.541.3

If the amount of tax paid were evenly distributed throughout the population then each decile of the population would pay 10 percent of the total tax paid. As can be seen from table 14.13, those in deciles 1 to 7 pay less than 10 percent each of the total tax while those in deciles 8 to 10 pay more than 10 percent each.

An examination of the characteristics of those who receive high incomes shows that of the 41,800 people (1.4 percent of the population) who received a taxable income of $100,000 or more for the 1996/97 tax year, 82.8 percent (34,600) were male and 17.2 percent (7,200) were female.

High income households

It is commonly assumed that income is shared within households. On this basis it can be argued that income inequality is best analysed at a household level as opposed to an individual level. Table 14.14 shows the proportion of taxable income received and tax paid by each household gross income decile. This table shows that the top 10 percent of households receive 28.6 percent of total income and pay 36.0 percent of personal income tax.

Table 14.14. PERCENTAGE OF TAXABLE INCOME RECEIVED AND TAX PAID BY HOUSEHOLD GROSS INCOME DECILE

Household gross income decilePercentage of taxable income receivedPercentage of tax paid1

1The concept of tax used includes personal income tax, family support, relevant rebates and the surcharge on New Zealand superannuation.

Source: Household Economic Survey, adjusted to year ended 31 March 1998

1 (under $13,900)1.70.5
2 ($13,900-$19,299)3.31.1
3 ($19,300-$24,099)4.32.2
4 ($24,100-$30,799)5.63.3
5 ($30,800-$38,899)7.05.5
6 ($38,900-$47,999)8.88.2
7 ($48,000-$58,499)10.810.9
8 ($58,500-$71,799)13.113.8
9 ($71,800-$93,299)16.618.6
10 ($93,300 and over)28.636.0

Gender income differences

The New Zealand Income Survey (NZIS) permits analysis on the income disparity between the personal income of males and females. The distribution of usual weekly income for the total adult population (see table 14.15) shows that in deciles 1 to 7 there are more females than males. In comparison, the top three income deciles comprise more males (68 percent) than females (32 percent).

Table 14.15. PERCENTAGE OF MALES AND FEMALES BY INCOME DECILE

DecileMalesFemales
Source: New Zealand Income Survey, June 1999 quarter
 percent
1 (loss-$0)36.963.1
2 ($0-$130)37.562.5
3 ($131-$203)45.654.4
4 ($204-$252)43.156.9
5 ($253-$327)31.668.4
6 ($328-$429)40.859.2
7 ($430-$539)48.151.9
8 ($540-$679)59.140.9
9 ($680-$920)65.434.6
10 ($921 and over)78.521.5

Table 14.16 shows that the gap between male and female weekly wage and salary income for full-time workers exists across all age groups. For each age group the median full-time weekly wage and salary income is higher for males than females. Between the ages of 35 and 54 the median full-time wage and salary income for males is at least 25 percent higher than for females.

Table 14.16. MEDIAN WAGE AND SALARY INCOME FOR FULL-TIME WORKERS BY AGE AND SEX

Age groupMalesFemalesDifference
Source: New Zealand Income Survey, June 1999 quarter
 $ per week
15–1936034020
20–2449648016
25–2961557045
30–3470064060
35–39750598152
40–44767556211
45–49750575175
50–54780560220
55–59700600100
60–64720575145

Table 14.17 illustrates that the difference between male and female full-time weekly wage and salary income exists among different ethnic groups also.

Table 14.17. MEDIAN WAGE AND SALARY INCOME FOR FULL-TIME WORKERS BY SEX AND ETHNICITY

EthnicityMaleFemaleDifference
Source: New Zealand Income Survey, June 1999 quarter
 $ per week
European/Pākehā690575115
Māori57548095
Pacific Islands50048812

LABOUR COST

Movement of Labour Cost Index (LCI)

Table 14.18 shows that the proportion of males in each occupation working full time who receive income above $40,000 is higher than that of females. This is true even in occupations that are dominated by females, such as clerks and service and sales occupations.

Table 14.18. OCCUPATION OF FULL TIME WORKERS BY SEX AND PERCENTAGE WITH INCOME OVER $40,000

OccupationMalesFemales
Total number in occupationPercentage receiving $40,001 and overTotal number in occupationPercentage receiving $40,001 and over
Source: 1996 Census of Population and Dwellings
Legislators, administrators and managers112,75858.054,44428.0
Professionals79,85462.975,52528.5
Technicians and associate professionals83,96143.056,80516.7
Clerks35,97918.3111,7594.7
Service and sales workers57,25223.366,8913.6
Agriculture and fishery workers85,51517.227,57011.6
Trades workers127,04416.66,7924.6
Plant and machine operators and assemblers95,04616.721,0691.9
Elementary occupations48,8619.917,5381.7

However, in the five occupations which had the highest proportions of full-time workers receiving income below $20,000 (service and sales, agriculture and fishery, plant and machine operator and assemblers, trade, and elementary occupations), the proportion of males was higher than the proportion of females in all but the service and sales occupation group.

Table 14.19 shows the median wage and salary income of adult male and female full-time workers by their highest qualification. In each level of attainment the median income of males is higher than that of females.

Table 14.19. MEDIAN WAGE AND SALARY INCOME FOR FULL-TIME WORKERS BY SEX AND QUALIFICATION

Highest qualificationMaleFemaleDifference
Source: New Zealand Income Survey, June 1999 quarter
 $ per week
No formal qualification540440100
School certificate57548095
Sixth form certificate671540131
Other school qualification600476124
Higher school certificate61453777
Vocational or trade qualification700585115
Degree951748203
Other post-school qualification690534156

The NZIS figures given here for full-time wage and salary earners and the census figures for full time workers show that gender differences in income exist in age, occupation, qualification and ethnic groups.

The differences between the personal incomes of males and females do not mean that females are less well off than males. It is also important to consider household income, where individuals may pool income or wealth.

After adjusting for the effects of different size and composition using the revised Jensen Scale:

  • Sole parent households have the lowest disposable household incomes, followed by one-person pensioner households and young-couple-with-children households.

  • Couples with no children, mature couples with children and non-family households have the highest income.

Labour Cost Index

The Labour Cost Index measures movements in base salary and ordinary time wage rates, overtime wage rates, and non-wage labour-related costs. This index began in the December 1992 quarter and replaced the Prevailing Weekly Wage Rates Index.

The Labour Cost Index is different from the Quarterly Employment Survey in that it is a quality-controlled measure. Only changes in salary and wage rates for the same quality and quantity of work are reflected in the index. For this reason, increases due to service increments and merit promotions are excluded.

Each quarter, businesses in the sample are asked to provide information about wage and salary costs for specific job descriptions in a variety of occupations. Businesses will in future be asked to provide information on non-wage labour-related costs in the June quarter of each year, as the release of the non-wage and all-labour-cost indexes has recently become annual. The next release will be for the June 2000 quarter.

Salaries and wages account for the majority of labour costs. The December 1992 quarter base weights for the index are shown in table 14.20.

Table 14.20. LABOUR COST INDEX WEIGHTS

All sectors combined December 1992 quarter base weights
Component costWeight
percent
Salary and ordinary time wage rates80.34
Overtime wage rates2.69
          All salary and wage rates83.03
Annual leave and statutory holiday11.08
Superannuation2.22
ACC employer premiums1.72
Motor vehicles available for private use1.53
Medical insurance0.31
Low interest loans0.10
          All non-wage labour costs16.97
          All labour costs100.00

Salary and wage rates

Surveyed salary and wage rates (including overtime) for the June 1999 quarter were 1.4 percent higher than a year earlier. Pay rates for the private sector for the same period increased by 1.6 percent while those for the public sector increased by 1.2 percent. Prior to this, for a period of nearly four years, annual increases for the public sector were generally of 2 percent or more. This strong growth came from the central government sector and particularly from education and the public service. For all sectors combined, 58 percent of surveyed salary and wage rates did not increase from the June 1998 quarter to the June 1999 quarter. Of those that increased, the average rise was 3.4 percent.

Table 14.21. SALARY AND WAGE RATES (INCLUDING OVERTIME): BY SECTOR1

 Local government sectorCentral government sectorTotal public sectorPrivate sectorAll sectors combined

1Base: December 1992 quarter (= 1000).

Source: Labour Cost Survey

Indexes
1997 – Jun10711073107310761075
        – Sep10761081108010811080
        – Dec10811084108410851085
1998 – Mar10861087108710901089
        – Jun10881102110010941096
        – Sep10941108110610981100
        – Dec10981111110911021104
1999 – Mar11031113111111071108
        – Jun11041115111311111111
Percentage change from same quarter of previous year
1997 – Jun1.93.53.32.22.5
        – Sep1.73.23.12.22.4
        – Dec1.42.52.42.12.2
1998 – Mar1.61.91.91.91.9
        – Jun1.62.72.51.72.0
        – Sep1.72.52.41.61.9
        – Dec1.62.52.31.61.8
1999 – Mar1.62.42.21.61.7
        – Jun1.51.21.21.61.4

Table 14.22. LABOUR COSTS BY TYPE OF COST1

 Salary and ordinary time wage ratesOvertime wage rates2All salary and wage rates3All non-wage labour costs4All labour costs5

1Base: December 1992 quarter (= 1000).

2Indexes measure changes in rates paid for actual hours worked as overtime in the base period (i.e. the December 1992 quarter). Some of these pay rates have fallen to ordinary time levels in subsequent quarters.

3Including overtime.

4Indexes measure changes in all surveyed non-wage labour costs (i.e. annual leave and statutory holidays, superannuation. ACC employer premiums, medical insurance, motor vehicles available for private use and low interest loans).

5Indexes measure changes in all surveyed labour costs (i.e. all salary and wage rates and all non-wage labour costs).

Source: Labour Cost Survey

Indexes
1997 – Jun10761042107511531088
        – Sep10821046108011601094
        – Dec10861049108511581097
1998 – Mar10901051108911381097
        – Jun10971050109611311102
        – Sep11021053110011301105
        – Dec11051056110411251107
1999 – Mar11101050110811011107
        – Jun11131051111110851107
Percentage change from same quarter of previous year
1997 – Jun2.52.22.52.92.5
        – Sep2.51.92.42.92.4
        – Dec2.21.52.21.92.1
1998 – Mar1.91.41.9-0.41.4
        – Jun2.00.82.0-1.91.3
        – Sep1.80.71.9-2.61.0
        – Dec1.70.71.8-2.80.9
1999 – Mar1.8-0.11.7-3.30.9
        – Jun1.50.11.4-4.10.5

Non-wage labour-related costs and all labour costs

Non-wage labour-related costs grew strongly from 1994 through to mid-1997. By the September 1997 quarter, non-wage costs were 16.0 percent higher than in the December 1992 quarter (the index's base period), having grown at twice the rate of salary and wage rates (up 8.0 percent). Since then, however, non-wage costs have declined, with annual movements turning negative in the March 1998 quarter. From the June 1998 quarter to the June 1999 quarter there were decreases of 1.9 percent for annual leave and statutory holidays, 7.8 percent for superannuation, 8.5 percent for ACC and 7.8 percent for other non-wage costs.

The decline in the employer cost of superannuation has been due to falling participation, some scheme closures and reductions in employer contributions following actuarial reviews. In particular, many local and central government employees were affected by reductions in the employer contribution to defined benefit schemes.

The recent annual falls in the cost of annual leave and statutory holidays were partly due to the employers having to pay fewer employees for all 11 statutory holiday in 1998 and 1999. This was because one statutory holiday in 1998 and two in 1999 fell at weekends (Anzac Day and Waitangi Day). Employees who do not normally work on the day these statutory holidays fall do not get paid for that holiday.

ACC employer premiums fell in the June 1998 quarter and, a year later, in the lead-up to deregulation, were split into two parts: an ongoing 'residual claims levy' to fund historical injuries and a 'base premium'. When combined, these premium rates were lower in the June 1999 quarter than in the June 1998 quarter.

Other non-wage costs, comprising medical insurance, motor vehicles available for private use and employment-related low interest loans, have been declining in recent years due mainly to falling vehicle prices (in part due to the removal of import tariffs) and falls in the prescribed interest rate used to calculate the fringe benefit value of low interest loans. Lower premiums for medical insurance as a result of fewer claims and some employers no longer providing cover have made a smaller downward contribution to other non-wage labour costs.

Lower non-wage costs have driven down the size of the increases in total labour costs in recent years. For the March and June 1999 quarters the all labour costs index remained unchanged, limiting the increase from the June 1998 quarter to the June 1999 quarter to just 0.5 percent.

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.

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 cooperation 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.

Hawke's Bay wife and husband team renew road markings in Wellington, 1960.

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:

  • 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 aged 16 to 19.

  • Protection from unlawful deductions from wages.

  • Eleven paid public holidays where the holiday would otherwise be a working day.

  • Three weeks paid annual leave after 12 months employment.

  • Five days special leave after six months employment.

  • Parental leave and employment protection.

  • Equal pay for men and women doing substantially the same work.

  • 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 cannot 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.

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 for each subsequent 12 months of employment. Special leave that is unused cannot be carried over. Special leave can be taken if: an employee is sick; the employee's spouse is sick; a dependent child, or dependent parent of the employee or the employee's spouse, is sick; or on the death of an employee's spouse, parent, child, brother, sister, grandparent, father-in-law or mother-in-law, or any occasion on which the employer accepts that by reason of the death of any person an employee has suffered a bereavement.

Parental leave. Under the Parental Leave and Employment Protection Act 1987, parental leave is available to employees who are having a child, and to their partners. It is also available to employees, male or female, who are adopting a child under five years old. A medical certificate may be required as proof of pregnancy, or in the case of adoption, a letter from the Department of Child, Youth and Family. 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.

TOTAL WORKDAYS LOST

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.

MOVABLE PUBLIC HOLIDAYS

1The Queen's actual birthday is 21 April 1926.

Source: Industrial Relations Service, Department of Labour

 2000200120022003
Good Friday21 April13 April29 March18 April
Easter Monday24 April16 April1 April21 April
Queen's Birthday15 June4 June3 June2 June
Labour Day23 October22 October28 October27 October

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.

A joint private/public sector funded Equal Employment Opportunities Trust was established in 1991. The EEO Trust encourages the enhancement of employer awareness, acceptance and implementation of EEO principles and EEO best practice in the workplace. It does this to improve employers' effectiveness, efficiency and competitiveness through the successful management of diversity policies.

A wide range of EEO resources are available from the EEO Trust, many compiled by specialists in their field both nationally and internationally.

The New Zealand Council of Trade Unions (CTU) is the national advocate of worker interests. The CTU was formed in October 1987 to unite private and public sector unions previously represented by separate national organisations. It organises unions on issues of mutual concern and represents New Zealand workers internationally. Twenty unions (representing 80 percent of all union members) are affiliated to the CTU. Its Internet address is www.union.org.nz

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 advocating public policy which supports an open, competitive economy and private enterprise.

Work stoppages

For statistical purposes, work stoppages are defined not only as those disputes which result in the complete withdrawal of labour by workers or a lockout by employers, but also disputes in which there is an organised 'go-slow', refusal to work overtime, or other methods of passive resistance. Instances when several stoppages occur over the same period over the same issue are treated as one stoppage.

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). It should be noted that the statistics regarding the number of workers involved in work stoppages includes workers who, while not directly participating in the stoppage, are suspended because of the unavailability of normal work.

Work stoppage statistics are compiled by Statistics New Zealand from the 'Record of Work Stoppage' forms collected by the Department of Labour. These forms collect information that principally focuses on the economic impact of stoppages, and do not focus on other forms of unrest such as stopwork meetings, protest marches, and public rallies. The Department of Labour identifies stoppages by scanning newspapers and through 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 placed restrictions on the ability of employees to strike and the ability of employers to lock workers out. The right to strike and lockout is recognised, but the legislation attempts to minimise the extent and wider economic impact of industrial action. It should be noted that work stoppages are recorded, for statistical purposes, even where they are illegal.

Table 14.23 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 1930s. The 1998 calendar year recorded 35 work stoppages compared with 71 in 1991 and 215 in 1986 (pre Employment Contracts Act). The number of employees involved in work stoppages has also decreased. In 1998, some 15,205 people were involved in work stoppages – this was approximately twice the number involved in 1997 stoppages, but still far below the hundreds of thousands involved in stoppages during the 1970s and 1980s.

Women in a procession of striking miners and their supporters, Waihi, 1912. This was a postcard made in response to a newspaper report that there were only 600 marchers.

Table 14.23. WORK STOPPAGES: 1921–98

YearTotal stoppagesNo. of employees involvedPerson days of work lostAverage days lost per employee involvedEstimated loss of wages and salaries
Source: Department of Labour and Statistics New Zealand
 $(000)
19217710,433119,20811.43180
1926596,26447,8117.6365
1931246,35648,4867.6389
1936437,35416,9802.3126
19418915,26126,2371.7269
19469615,69630,3931.9480
195110936,8781,157,39031.386,223
19565013,57923,8701.76168
19617116,62638,1852.30299
196614533,13299,0952.99878
197131386,009162,5631.892,109
1976487201,085488,4412.4310,840
1981291135,006388,0862.8720,411
1986215100,6331,329,05413.21119,496
19917151,96299,0321.9111,577
19925426,803113,7424.2419,372
19935821,30323,7701.122,863
19946916,04238,2632.394,580
19956932,04853,3521.666,813
19967242,30769,5141.649,768
1997427,64624,6163.23,126
19983515,20511,7780.81,886

LOCKOUTS

As a percentage of all stoppages

NUMBER OF STOPPAGES

Further information

Employment and Incomes

Census 96: Employment and Unemployment and Census 96: Unpaid Work. Statistics New Zealand, 1997.

Household Labour Force Survey. Statistics New Zealand.

Labour Cost Survey. Statistics New Zealand.

Labour Market Statistics (1999). Statistics New Zealand.

National Advisory Council on the Employment of Women (NACEW) Annual Report.

Quarterly Employment Survey. Statistics New Zealand.

Report of the Careers Service (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. 1996. Department of Labour.

Martin, John 1996. Holding the balance: A history of New Zealand's Department of Labour, 1891–1995. Canterbury University Press.

Looking at the distribution of stoppages over different industries shows that manufacturing accounted for more than one-quarter of the 35 stoppages that occurred in the 1998 calendar year. However, the education industry held the record for the greatest number of employees involved (11,861 or over three-quarters of the total number involved). Education also had the greatest number of person-days of work lost (6,584 days or over half of all working days lost).

Table 14.24. WORK STOPPAGES IN SELECTED INDUSTRIES1

 Total number of stoppages2Number of employees involvedPerson-days of work lost3,4Average days lost per employeeEstimated loss in wages and salaries5

1ANZSIC: Australian and New Zealand Standard Industrial Classification.

2Stoppages 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.

3Previously termed working days lost.

4Rounded to the nearest whole day.

5Rounded to the nearest $1,000.

6This is a combination of industries. Mining, Electricity, Gas and Water Supply; Construction; Wholesale Trade, Retail Trade, Accommodation, Cafes and Restaurants; Finance & Insurance, Property and Business Services; Cultural, Recreational, Personnel and Other Services.

7The 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
1994334,02812,8183.181,457
1995265,12323,2974.552,687
1996223,47518,3955.292,704
199714167014,1838.51,692
19981091524502.71,285
Health and Community Services
1994152,7125,5102.03638
19952........
19961252310261.96203
199758859661.1121
19989117117911.5272
Education
1994317052,4821.46276
19951319,03022,4091.183,072
19961022,15617,9930.812,963
199753453260.941
1998611,8616,5840.61,204
Government Administration and Defence
1994511745500.4772
199592,3117021.6089
199698,79414,6761.671,706
19977179027091.5343
19981........
Transport, Storage and Communication Services
199435,88215,6302.662,028
199582,8114,4841.60690
19968104820541.96268
199742,5154,1121.6578
19981........
Other6
19941054112742.35109
199511........
1996116,31115,3702.441,924
199774412,3185.3350
199889056880.899
Total all stoppages7
19946916,04238,2632.394,580
19956932,04853,3521.666,813
19967242,30769,5141.649,768
1997427,64624,6163.23,126
19983515,20511,7780.81,886

Contributors

14.1      Statistics New Zealand
14.2      Statistics New Zealand.
14.3      Skill New Zealand; Department of Work and Income; Career Services; Te Puni Kōkiri; Community Employment Group.
14.4      Statistics New Zealand.
14.5      Department of Labour; New Zealand Council of Trade Unions; New Zealand Employers' Federation; EEO Trust; Statistics New Zealand.

Special articles

'Employment', Martin, Dr John E, Department of History, Victoria University; Statistics New Zealand; Department of Labour; Student Job Search; New Zealand Employers' Federation.

Chapter 15. Science and technology


A one day old shore plover chick, i999.

15.1 Organisation of science

From 1989 to 1992 the science sector in New Zealand underwent significant reform. A key element was the separation of the Government's involvement in science and technology policy from the purchase of research and the ownership of research institutions. Science and technology policy, including science priorities and overall funding levels, is decided by Cabinet and based on the recommendations of a Cabinet committee. 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 Ministry of Research, Science and Technology (MoRST): Te Mānatu Putaiao. The Ministry's roles include:

  • Being the primary adviser to the Government on science and technology policy. This includes advice on science priorities and investment in the New Zealand innovation system.

  • Working at a strategic level to identify issues, establish directions, and work with stakeholders in response to the challenges facing research, science and technology in New Zealand.

  • Gathering and disseminating statistics and descriptive information on research, science and technology activities.

  • Representing the Government's interests in research, science and technology.

To achieve this, the ministry interacts at many levels with purchase agents, government departments, providers and end-users of science and technology. The total public investment in research, science and technology (approximately $625 million (including GST) in 1999/2000) is managed through the ‘science envelope’. Investment is balanced between research targeted at achieving defined economic, social and environmental objectives, and untargeted research directed toward building the knowledge base and human resource capacity for the national science system. The ministry's website is www.morst.govt.nz

1999/2000 estimates
This diagram refers to direct investment in science programmes and does not include system development and communications activities such as human resource development, science and technology promotion, international science and technology linkages, and contract management.

Hans Geiger (left) and Sir Ernest Rutherford in the physics laboratory, Manchester University, 1913.

The Crown Company Monitoring Advisory Unit (CCMAU) provides ownership monitoring advice to, and manages issues on behalf of the shareholding minister of Crown research institutes, hospital and health services, state-owned enterprises, and other Crown companies. The CCMAU website is www.ccmau.govt.nz

Science and research funding

The Independent Biotechnology Advisory Council (IBAC) was set up by the Government in May 1999 to help New Zealanders explore and consider issues in biotechnology. It provides independent advice to the Government on the environmental, economic, ethical, social, and health aspects of biotechnology. IBAC consults extensively with the public and departments, agencies and organisations involved in biotechnology. The council's website is www.ibac.org.nz

15.2 Science and research funding

Research in New Zealand is funded by the Government, the private sector and the universities. In 1997/98 the total expenditure for research and development was $1,107.4 million, equivalent to 1.1 percent of GDP.

Table 15.1. PUBLIC INVESTMENT IN RESEARCH, SCIENCE AND TECHNOLOGY

Output class1999–00 Estimates% VoteResponsible agents

Key: MoRST – Ministry of Science, Research and Technology; FRST – Foundation for Research, Science and Technology;

HRCHealth Research Council; RSNZRoyal Society of New Zealand; IRL – Industrial Research Ltd.

Source: MoRST

Research, science and technology
Public good science and technology326,98576.71FRST, HRC
Non-specific output funding26,7666.28FRST
Marsden fund22,8395.36RSNZ
Technology New Zealand13,6943.21FRST
New economy research fund5,6251.32FRST
Human resources development5,2351.23FRST, HRC
Provision of national measurement standards4,5571.07IRL
Promotion of science and technology3,5110.82RSNZ. FRST plus others
International science and technology linkages1,0380.24RSNZ, MoRST
Science and technology publications0,4670.11RSNZ
RS&T total410,71796.36 
System overheads
Contract management for science and technology9,1112.14FRST, HRC, RSNZ
Policy advice for research, science and technology0,4000.09FRST
Science and technology policy advice5,3481.25MoRST
Management of contracts for non-departmental outputs0,5730.13MoRST
Overhead totals15,4323.62 
Convention Du Metre0,1000.02NZ contribution
Vote: RS&T total426,249100.00 

Government funding

Public Good Science Fund (PGSF). The PGSF is the Government's major investment in strategic science, technology and research. It is administered by the Foundation for Science, Research and Technology (FRST) and had a value of $296.4 million in 1999/2000.

The fund supports 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 important 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 invested through a contestable bidding system open to all organisations and individuals involved in research and development.

Government priorities for investments are guided by a wide consultative process, involving both scientists and end-users. Priorities have previously been expressed by setting five-year funding targets for broad areas to which the research, scientific services and technology are expected to contribute. Following on from the Foresight Project (see separate entry), Government published the document Blueprint for Change which identified what it wished to achieve through its investment rather than how much it proposed to spend. The goal of Blueprint for Change – to develop a knowledge society characterised by knowledge-led innovation – applies not only to the PGSF but to all research, science & technology.

Marsden Fund. The Marsden Fund is for the support of scientific and technological research -including research into the humanities – which is characterised by excellence, irrespective of topic or research area. In 1999/2000 $22.8 million was invested. The fund is managed by the Royal Society of New Zealand (RSNZ).

New Economy Research Fund. The New Economy Research Fund was established in 1999. It supports basic research aimed at developing capability and knowledge in areas where industries are yet to emerge, such as new high technology businesses. This fund will invest $5.6 million in 1999/00 growing to $36.3 million in 2000/01.

The Technology New Zealand scheme helps businesses develop and adopt new technology through three investment programmes:

  • Technology for Business Growth (TBG) – encouraging technological innovation in product and process development and strengthening technology management skills by part-funding research projects.

  • TechLink – providing access to local and international technology information sources and advisory services.

  • Graduates in Industry Fellowships (GRIF) – funding people to research and develop new technologies within businesses.

In the 1999/00 year, investment for the scheme was $13.7 million.

Health Research Council (HRC). The HRC is the Crown entity responsible for purchasing health research on behalf of the Government. The council consults with the wider health research and user communities to set priorities for investment in public good health research. A budget of $43.4 million in 1999/00 was provided from $33.3 million from Government's direct research, science and technology investment and $10.1 million from funds available through New Zealand universities.

The website for HRC is www.hrc.govt.nz

Other Funding. Other areas funded by Vote Research Science & Technology include human resource development ($5.2 million), promotion of science and technology ($3.5 million) and international science and technology linkages ($1 million). The Animal Health Board (primarily concerned with the eradication of bovine tuberculosis) and the Agricultural and Marketing Research and Development Trust (primarily involved in promoting and encouraging the agricultural, pastoral, horticultural and forestry industries) also support the country's research efforts.

Waikato Times Taking water samples at a Hamilton treatment plant for research funded by Technology New Zealand, 1998.

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.

The New Zealand Science and Technology Promotion Programme was launched by the Government in May 1998 to foster appreciation of the value of science and technology within a knowledge economy. It is jointly run by the Ministry of Research, Science and Technology; Foundation for Research, Science and Technology; Health Research Council; and Royal Society of New Zealand. The programme has developed the Wow! it's science campaign, provides an advanced website (www.science.net.nz), a calendar of events and networks to help science and technology communicators, educators, parents and students. It includes research on attitudes and investment trends for science and technology and fosters events which reach all New Zealanders.

The New Zealand Science and Technology Post-Doctoral Fellowships recognise outstanding talent in young New Zealand scientists, engineers, researchers and technologists by providing early career financial support. Twenty-one fellowships were awarded in 1999/2000 from a fund of $2.5 million.

The aim of the Tuāpapa Putaiao Māori Fellowships is to develop and promote Māori in science, technology, engineering and research by providing fellowships for suitably qualified Māori students to undertake postgraduate study. Nine fellowships were offered in 1999/2000 from a fund of $0.4 million.

James Cook Research Fellowships are administered by the Royal Society with funding from the New Zealand Government. The fellowships are awarded to senior researchers who will make a significant contribution to New Zealand's knowledge base. They allow recipients to concentrate on their chosen research for two years. A selection committee, chaired by the Governor-General, Sir Michael Hardie Boys, awards fellowships to New Zealanders, regardless of location. They are awarded, as funding permits, in a number of categories: social sciences; research of relevance to the peoples of New Zealand and/or the Southwest Pacific; biological sciences; physical sciences; health sciences; and engineering sciences and technologies. From its inauguration in 1969 to celebrate the Cook Bicentenary, until a brief suspension in 1991, the scheme provided for one 2- or 3-year fellowship at a time. From 1996 to 1999 10 fellowships were awarded. Five of the current fellows will complete their fellowships during 2000.

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: Tuāpapa Toha Putea, Whakatakoto Kaupapa Rangahau, Putaiao. The foundation is a statutory authority with an independent board, reporting to the Minister of Research, Science and Technology. In the 1999/00 year the foundation has a budget of $340 million and is responsible for funding the following:

  • Providing independent policy advice on science and technology to Government.

  • Investing in science through the Public Good Science Fund and the New Economy Research Fund.

  • Encouraging technological innovation through the Technology New Zealand scheme.

  • Administering the New Zealand Science and Technology Post Doctoral Fellowship and Tuāpapa Putaiao Māori Fellowship schemes, and the Bright Future scholarships.

The Public Good Science Fund (PGSF) 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 applications from Crown research institutes (CRIs), 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.

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 the 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.

The Association of Crown Research Institutes (ACRI) coordinates inter-CRI activities.

Forest Research is a major provider of research and development to the forestry and related industries, both in New Zealand and offshore. Based in Rotorua, 430 staff undertake science and technology research from genetics and nursery technologies, through forest management and harvesting, and the development of new products and processes, to the trade and marketing of wood-based products.

The company provides customised solutions to forest- and wood-related problems, to both domestic and international clients, and tailors research projects to meet individual needs. The Forest Research website is www.forestresearch.co.nz

AgResearch (New Zealand Pastoral Agricultural Research Institute Limited) works in the field of biotechnology and ecotechnology with a focus on delivering new agricultural-based products. Established in 1992 as a government-owned company, it inherited the research capability that has contributed to New Zealand's reputation as an efficient, low-cost producer in these fields.

Greenpeace protesters oppose the trial crop of genetically-altered rapeseed, December 1996.

The organisation's life science research capabilities enhance New Zealand's international competitiveness. The institute has research capabilities through 11 science platforms: agricultural systems; animal health; animal genomics; biocontrol and biosecurity; ecosystem biology; food science; food systems and technologies; land and environmental management; science leader, nutrition and behaviour; plant breeding and genomics; and reproductive technologies.

AgResearch has over 1,000 staff at five locations around New Zealand: Ruakura (Hamilton); Invermay (Dunedin); Grasslands (Palmerston North); Lincoln (Christchurch); and Wallaceville (near Wellington). The AgResearch website is www.agresearch.cri.nz

HortResearch (Horticulture and Food Research Institute of NZ Limited) is New Zealand's largest horticulture and food research organisation, helping to grow exports and develop new markets.

Since 1970 horticultural exports have grown from $14 million to more than $1.5 billion in 1998. To remain internationally competitive and profitable for growers, vigorous research and development is vital. HortResearch scientists work alongside some of New Zealand's largest plant-based and food processing industries.

HortResearch's research spans molecular biology, plant and tree breeding, crop production, food processing, fruit storage and transport, and the evaluation of consumer preferences. New fruits developed to meet consumer requirements have resulted from HortResearch's breeding programmes.

With 494 permanent science and support staff and up to 150 casual workers in 11 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 and development covers a large range of crops of economic importance to New Zealand including fruit, cut flowers, forest trees, ornamentals and vegetables. The HortResearch website is www.hort.cri.nz

The New Zealand Institute for Crop & Food Research Limited: 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 with a focus on safe and environmentally sustainable food production. 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, sustainable technology for 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; and plant products, extracting and identifying natural plant products such as bioactive compounds, pigments and essential oils. Further information is available at www.crop.cri.nz

Landcare Research New Zealand Limited: Manaaki Whenua focuses on sustainable management of land resources for primary production and for conservation. There are about 400 staff working on all aspects of resource management: developing sustainable land use; managing weeds and pests;

A step in the process of artificially cross-fertilising wheat, 1930s.

German mini-submarine used to look at a sleeping under-sea volcano off East Cape and hydrothermal vents near White Island, 1999.

maintaining the quality of land and water resources; and conserving New Zealand's indigenous biodiversity. Attention is given to economic, social and cultural impacts of using land as well as to protecting important natural habitats. Landcare Research is committed to excellence in science and to delivering practicable advice on vital issues such as the efficiency and effects of various land-use practices, pest management and biosecurity risks, conservation, key indicators for environmental monitoring, urban ecology, and clarifying the relationship between carbon storage, greenhouse gases and climate change. The research benefits New Zealand and overseas governments, local and regional authorities, corporates, private enterprises and industries, recreational land-users, and all land owners. The major share of funding is provided through the Foundation for Research, Science and Technology, but other government departments and local authorities are also important partners. Landcare Research collaborates extensively with scientists in other Crown research institutes, universities, overseas research agencies, and also with the end-users of research. Its website is www.landcare.cri.nz

The Institute of Geological & Nuclear Sciences Ltd (GNS) is New Zealand's leading supplier of earth and isotope scientific research and consultancy services. As well as public good research, activities include: resource evaluation for the petroleum exploration industry, assessment and mitigation of natural hazards, geological mapping, engineering geology, geophysical surveys, assessment and development of geothermal fields, assessment of groundwater quality and quantity, environmental chemistry, marine geology, and the application of isotope sciences to age dating and to the medical, environmental and manufacturing industries.

GNS has a 130-year history in earth sciences. It has 250 staff and its library, databases and fossil collections are of national importance. GNS has nine sections: hydrocarbons; geothermal and minerals; groundwater; earthquakes; volcanoes; active landscapes; mapping; isotope applications; and geological time. It has offices at Wellington, Wairakei and Dunedin.

GNS' research and commercial services benefit a wide range of private sector companies and government organisations in New Zealand and overseas. To strengthen effectiveness the institute has developed many partnerships with private sector companies, SOEs, universities, and international research organisations. GNS has a website at www.gns.cri.nz

The mission of Industrial Research Limited 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. Further information is available at www.irl.cri.nz

The National Institute of Water and Atmospheric Research Limited (NIWA): Taihoro Nukurangi conducts research and provides related services to establish 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.

NIWA has 560 staff and a revenue of over $65 million. Its research base covers the following:

  • Atmosphere and climate: research and consultancy on the physical and chemical processes affecting the atmosphere and climate, including global effects, stratospheric research, and interactions with the surface and oceans.

  • Freshwater: research on the chemistry, physics and biology of lakes and rivers, the complex interactions influencing these ecosystems and their response to environmental disturbances.

  • Marine and coastal: research and surveys on the geological, biological and physical properties of oceans, coastal waters, estuaries and harbours.

  • Fisheries: fisheries stock assessment; fisheries modelling and population dynamics; fish biology and ecology, genetics and pathology.

  • Aquaculture and fisheries enhancement: research on breeding, early life history, growth, hatchery technology and other research designed to lead to commercial development.

NIWA is the owner and operator of New Zealand's major research vessels, Tangaroa (deep water) and Kaharoa (coastal) through its vessel operating subsidiary company. NIWA also has an established subsidiary in the United States through which it has partnerships with several significant US science institutions. The NIWA website is www.niwa.cri.nz

The Institute of Environmental Science and Research Limited (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 300 staff who work from four science centres around New Zealand: the Mt Albert and Mt Eden Science Centres in Auckland; the Christchurch Science Centre; and the Kenepuru Science Centres in Porirua. There is also a corporate office at Kenepuru. Each science centre is equipped with advanced technologies and information systems to support teams of nationally and internationally recognised scientists.

Library Equipment used by CK Westland to photograph Halley's Comet, 1910.

The Royal Society of New Zealand is an independent, statutory body incorporating the national academy of sciences and a federation of scientific and technological societies. Its membership is comprised of elected fellows, regional branches, constituent scientific and technological societies, and more than 20,000 professional people throughout New Zealand and elsewhere.

The society includes the fundamental, applied and human dimensions of the biological, earth, engineering, mathematical, medical, physical, social and technological sciences. It is charged with the statutory responsibility to foster a culture supportive of science and technology in New Zealand and to initiate appropriate international linkages. It also provides 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; and 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 1997. The website for the society is www.rsnz.govt.nz

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: Te Papa Tongarewa.

Carter Observatory. The Carter Observatory was established by act of Parliament in 1938 and is named after Charles Rooking Carter, a prominent pioneer in Wellington and the Wairarapa. The act was amended in 1977 to recognise the Carter Observatory as the National Observatory of New Zealand.

The Wellington-based observatory has a full-time equivalent staff of eight, plus specialist honorary consultants and honorary research associates. It has four distinct functions: astronomical research, astronomical education, public astronomy and heritage preservation.

In 1999 research emphasis was on improving our understanding of the ways in which galaxies, star clusters and stars are formed and evolve. Some of this was funded through a Marsden Fund grant and formed part of the Microlensing Observations in Astrophysics (MOA) Project, a major collaboration between astronomers at the Carter Observatory, universities in Auckland, Wellington, and Christchurch, and seven Japanese institutions.

The observatory has a three-year government contract, which began in 1998, to provide support for the astronomy strand in the science curriculum. It offers programmes for visiting school groups; resource booklets and a video on cosmology as viewed from a Māori perspective; special workshops for teachers; evening courses leading to a Carter Observatory Diploma of Astronomy; special school holiday programmes; and ‘Overnight Extravaganzas’ (when groups of children and accompanying adults sleep-over at the observatory).

A van De Graaft accelerator at the DSIR's Institute of Nuclear Sciences, 1915, whose uses include producing short-lived isotopes.

Through government and local body contracts, the observatory also caters for the information, recreation and leisure needs of New Zealanders and overseas tourists. It manufactures its own planetarium programmes, audio-visual shows and displays; offers a public information service in astronomy; broadcasts a monthly radio programme; produces a monthly newsletter and a range of information leaflets; offers annual Carter Memorial Lectures throughout New Zealand; and maintains a website.

As the national repository for astronomical heritage, the observatory has collections of instruments and archives relating to important New Zealand amateur and professional astronomers. Staff have also been involved in the restoration of the Thomas King Observatory, one of the earliest observatories, in the Wellington Botanic Garden. The observatory website is www.vuw.ac.nz/~carter

The Cawthron Institute, a private scientific research centre with 90 staff, was established under the Thomas Cawthron Trust Act 1924. Operations are based in central Nelson, with an aquaculture research facility near the city. Its testing laboratories are IANZ registered, and accredited by the US FDA for shellfish testing.

The institute undertakes research into marine and freshwater microbiology and ecology. Most of this work is funded by the contestable Public Good Science Fund. It also provides commercial services to the seafood industry, specialist scientific advice to resource managers and users on environmental issues, and analytical and microbiological laboratory services for a wide range of clients across New Zealand.

Research interests include: aquaculture, particularly shellfish; shellfish breeding and husbandry; and seaweed.

Biosecurity is another area of interest as invasions by foreign marine organisms are a threat to New Zealand's biosecurity. Joint projects with other laboratories and shipping companies have examined the efficiency of ballast water exchange practices and methods of treatment to remove unwanted organisms. Recent work has centred on hull fouling as a source of introduction and dispersal.

A third area of interest is coastal, estuarine and freshwater resource management. This work includes resource surveys and impact assessments such as the effects of discharges and land use on the aquatic environment, baseline surveys, monitoring of coastal and freshwater environs and oil spill contingency planning. Research into the impact of guided trout fishing in back country rivers on other anglers has also generated much interest.

Cawthron Institute scientists work closely with other research organisations and have good links with overseas groups. Combined research with Shizuoka University in Japan concerns natural products and pharmacology. Research on toxic algal blooms has resulted in a close relationship with researchers at Tohoku University and the Japan National Fisheries Agency in Sendai, Japan. The website for the Cawthron Institute is www.cawthron.org.nz

The Malaghan Institute of Medical Research is another private medical research organisation (see Chapter 8).

Government departments carry out research and development to support their own activities. This includes research which supports the development and effective implementation of policy. Departments with substantial internal research capabilities, some of which also purchase external research, include the New Zealand Defence Force; Department of Conservation; Ministry of Agriculture and Forestry; Ministry of Fisheries; and the Ministry for the Environment.

Universities and polytechnics offer a wide range of tertiary education studies, which includes science in all cases and aspects of technology in most. As well as this education and training function, the eight universities carry out basic and strategic research and make substantial contributions in applied science and technology fields. Several universities also have formal links with CRIs. There are 24 polytechnics in New Zealand that offer certificate and diploma courses in a variety of subjects related to science and technology such as building, engineering, manufacturing, software engineering, agriculture, horticulture, forestry and viticulture.

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 value of products from New Zealand's farms and forests.

The nine 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

  • Logging Industry Research Organisation

  • 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, e.g. the New Zealand Council for Educational Research (see Chapter 9) and the New Zealand Institute for Economic Research (Inc); commercial market research firms, private research consultancies and research or analysis units within private enterprises; and voluntary agencies.

15.3 Technology services

Patents, trademarks and designs

The Intellectual Property Office of New Zealand is administered by the Business and Registries Branch of the Ministry of Economic Development. 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, trademarks, designs and geographical indications.

The main function of the Intellectual Property Office is to examine patent, trademark 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 trademarks and designs).

Table 15.2. APPLICATIONS FOR PATENTS, TRADEMARKS AND DESIGNS

Year ended 30 JunePatentsTrade marksDesigns
Source: Intellectual Property Office of New Zealand
19954,50312,325807
19964,80013,291881
19975,23014,998903
19985,55715,529887
19995,72517,364887

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 Information Centre at the Intellectual Property Office 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 eight million documents, a growing number now on CD-ROM.

Letters Patent were sealed on 3,806 applications during 1999. Most of these applications were in the areas of organic chemistry, biochemistry and microbiology.

Analysing metals, Dominion Laboratory, 1946.

Trademarks. The owner of a trademark 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. Trademarks may remain registered indefinitely by the payment of a renewal fee from time to time.

Anyone proposing to use a trademark in New Zealand may either consult the on-line trade marks database at www.iponz.govt.nz or 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 trademark may, for a fee, request an official opinion on whether it is eligible for registration.

During 1999, 21,744 trademarks 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.

There were 809 designs registered in the June 1999 year. Design applications relating to extrusions, bottles, the tread of tyres and vehicle accessories continued to be the most popular.

The office maintains a public register of designs from which anyone may search and copy for a nominal charge.

The website for the Intellectual Property Office is www.iponz.govt.nz

Other intellectual property rights

Plant variety rights. The Plant Variety Rights Office, based in Lincoln, Canterbury, administers intellectual property rights in relation to new plant varieties. A plant variety right gives the breeder of a new plant variety exclusive control over the selling of reproductive material or plants of the variety. The Plant Variety Rights Office also operates under the auspices of the Ministry of Economic Development.

Copyright. Copyright is granted automatically upon the completion of any original literacy, dramatic, musical or artistic work, sound recording, film, broadcast, cable programme or published edition. Copyright legislation is administered by the Competition and Enterprise Branch of the Ministry of Economic Development.

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.

Telarc Limited

Telarc Limited is a registered company owned by the Testing Laboratory Registration Council. Telarc provides assessment and recognition services for management systems. It operates from four locations throughout New Zealand: Auckland, Hamilton, Wellington and Christchurch.

Recognition services. Telarc provides recognition of achievement to quality and environmental management systems to the following standards:

Quality Management Systems certification to the ISO 9000 series of standards and TQS1. Telarc has provided the ISO 9000 certification service since 1983, being the first organisation in New Zealand to achieve formal accreditation by the Joint Accreditation System – Australia and New Zealand JAS-ANZ).

Telarc Q-Base – a basic, entry-level management system, based on the ISO 9000 series of standards. Telarc Q-Base identifies the basic quality management disciplines essential for managing the quality of small to medium size enterprises.

Environmental Management Systems certification to ISO 14001 standard. Telarc has provided this service since 1994 and was the first organisation in New Zealand to be accredited by JAS-ANZ to certify ISO 14001 standard, in 1996.

Assessments. Telarc provides assessment services for a wide range of management systems including: quality award criteria, health and safety, risk management, food safety, and rail safety.

Training. Telarc works in close association with the New Zealand Quality College to provide training courses to promote excellent management system practice.

International Accreditation New Zealand

International Accreditation New Zealand (IANZ) is the accreditation service of the Testing Laboratory Registration Council. It is a user-funded statutory body responsible for ensuring technical professional service standards are met in New Zealand's industrial, scientific, commercial, regulatory, health care and administrative sectors. All laboratories, radiology services and inspection bodies previously registered with Telarc New Zealand are now accredited by IANZ.

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. Accreditation is to ISO/IEC 17025 standard.

Inspection body accreditation – provides formal recognition that an inspection body, or food safety assessment body, is capable of meeting standards of quality, performance, technical expertise and competence. Accreditation is to ISO/IEC 17020 standard.

Radiology service accreditation – providing radiology services with formal recognition of their skills, expertise, competence, systems, procedures and facilities based on independent, peer group assessment. Accreditation is to a version of ISO/IEC 17025 standard.

Pharmacy accreditation – providing pharmacies with formal recognition of their skills, expertise, competence, systems, procedures and facilities based on independent, peer group assessment. Accreditation is to a version of ISO/IEC 17025 standard.

Good Laboratory Practice – the Government has designated IANZ as the Compliance Monitoring Authority in New Zealand for the OECD Principles of Good Laboratory Practice. This programme is relevant to research laboratories undertaking non-clinical safety trials for new veterinary pharmaceuticals and agricultural chemicals.

CE Marking – the Government has also appointed IANZ as the ‘Designating Authority’ for Conformity Assessment Bodies approved as competent to undertake testing or inspection against European Directives for CE marking purposes. This appointment is under the New Zealand/ European Union governmental Mutual Recognition Agreement.

Environmental Choice NZ – a voluntary environmental labelling programme initiated by the Government to help consumers identify products that ease the burden on the environment. To carry the Environmental Choice Label, a product is assessed against specifications that comply with standards being developed internationally. IANZ manages and operates the programme under an agreement with the Minister for the Environment.

International. IANZ represents New Zealand in international conformity assessment fora and maintains close liaison with similar national organisations overseas. It currently has formal mutual recognition agreements with the national accreditation authorities in Australia; Austria; Belgium; Chinese Taipei; Czech Republic; Denmark; Finland; France; Germany; Hong Kong, China; Ireland; Italy; Japan; Korea; the Netherlands; Norway; Portugal; Singapore; Spain; South Africa; Sweden; Switzerland; the United Kingdom; and the United States of America.

Training. The New Zealand Quality College is the training division of IANZ and provides training in association with IANZ and Telarc Limited, together with a select number of organisations recognised as national experts in their fields. The college is registered as a private training establishment with the New Zealand Qualifications Authority.

Standards New Zealand

Standards New Zealand (SNZ) is the trading arm of the Standards Council, a Crown entity operating under the Standards Act 1988.

A NIWA balloon, launched from the atmosphere research station in Central Otago.

The Standards Council, an appointed body with representatives from all sectors of the community, oversees the development and adoption of standards and standards-related products.

SNZ has a full-time staff of 45 and is supported by over 2000 New Zealanders who volunteer their time to serve on the many and varied boards and committees.

It is entirely self-funded; revenue is from contracts with industry and the Government for the development and support of standards and from the sales of standards publications.

The principal services of SNZ are:

  • Standards development and design.

  • Sales of all standards and information services.

  • 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.

SNZ is heavily involved in the development and application of national, regional and international standards, many of which developed in partnership with Australia. As New Zealand's representative in the International Organisation for Standardization (ISO) and its sister organization, the International Electrotechnical Commission (IEC), SNZ ensures that New Zealand's voice is heard worldwide.

The full text of all New Zealand standards and Joint Australian/New Zealand standards is available on CD-ROM from SNZ. The website for Standards New Zealand is www.standards.co.nz

Contributors

15.1Ministry 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 (as listed); Royal Society of New Zealand; Carter Observatory; Cawthron Institute.
15.2Intellectual Property Office; Ministry of Economic Development; Telarc Limited; International Accreditation New Zealand; Standards New Zealand.

Special articles

Royal Society of New Zealand; Ministry of Research, Science and Technology; Antarctica New Zealand; New Zealand Institute of Economic Research.

Further information

The Bulletin. Intellectual Property Office of New Zealand (quarterly).

New Zealand patent office journal (CD-ROM) (only electronic). Intellectual Property Office of New Zealand (monthly).

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 Te Manatu Putaiao (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 (bimonthly).

The Ministry of Research, Science and Technology publishes a number of newsletters and reports. Its website is at www.morst.govt.nz

The Foundation for Research, Science and Technology publishes a number of discussion, occasional and position papers. The website is www.frst.govt.nz

The website for Technology New Zealand is www.technz.co.nz

The website for The Royal Society of New Zealand is www.rsnz.govt.nz

The Intellectual Property Office of New Zealand publishes booklets to assist registration of patents, trade marks and designs. Information is also available on their website at www.iponz.govt.nz

The website of Standards New Zealand, the trading arm of the Standards Council, is www.standards.co.nz

The World Intellectual Property Organisation has information about the Patent Corporation Treaty (PCT) available online at www.wipo.org

Chapter 16. Land and environment

These bar-tailed godwits migrate 12,000km from the Northern Hemisphere winter each year to feeding grounds at the Firth of Thames.

Environment

Introduction

Life on earth depends on interrelated ecosystems: fresh/marine water, air, earth, flora and fauna. During the 19th and 20th centuries human activity has had a considerable impact on the delicate balance that sustains life. Population increase and industrialisation has changed every part of the planet, even remote Antarctica. Numerous plant and animal species have become extinct or are endangered. Air, water and soils have been polluted. Humanity faces a major challenge in the new millennium: can we ensure sustainability of life on this planet?

New Zealanders greeted the beginning of the twentieth century with hopes for progress and faith in the environment's resilience. They created rolling grasslands in the South Island, while dairying similarly transformed the bush-clad North Island. Māori settlement resulted in some species becoming extinct, but the number of extinctions increased sharply after the arrival of Europeans and their passengers – possums, rabbits, stoats, rats, cats and weasels. Over the 19th and 20th century road and rail infrastructures developed and expanded and the population gathered in urban centres. Some New Zealanders became aware of the environmental costs and environmental and conservation groups were established in the first decades of the 20th century. The most enduring of these was the Forest and Bird Society which was founded in March 1923. In the final part of the last century, increasing environmental concern prompted the passing of the Resource Management Act in 1991, which focused on sustainable management of the environment.

History of land use

Clearance of natural habitat. Native forest covered over half of New Zealand at the time of European settlement, but by the mid-20th century forest cover had dropped to less than a quarter. Settlers burned and clear-felled large tracts of forest. Bush clearing accelerated in the 14 years from 1909 under the Government's lands for the people policy. Native forest disappeared at an average of 128,640 hectares per year. This deforestation radically reduced habitat available for native flora and fauna as well as increasing water run-off, causing erosion and increasing the risk of flooding.

PLANTED PRODUCTION
Net production stocked area.

In response the Government developed river protection schemes and encouraged exotic plantings. Exotic forest became increasingly important and by 1935 12 percent of timber cut was pinus radiata. Today logging of native forest is minimal with most production coming from sustainable exotic plantations. By the mid-1990s exotic plantation forest covered about 5 percent of New Zealand's total land area.

Much of the remaining area of native forest is now protected as national or forest parks and reserves. New Zealand acquired its first national park after Te Heuheu Tukino gave the Crown land around the volcanoes of the central plateau in 1887. Today there are over 30 national and forest parks and numerous reserves. A total of 8 million hectares of land is protected.

Land development. When British settlers arrived in New Zealand they cleared bush to recreate their home landscapes and replaced native plants with introduced grasses and crops. Farming expanded rapidly between 1885 and 1935 with the area of land under cultivation rising from 2.6 million hectares to 7.9 million hectares. Sown grass dominated almost 90 percent of cultivated land. Burgeoning pastures supported an equally rapid rise in livestock numbers. In 1886, over 16 million sheep grazed New Zealand pastures and numbers increased rapidly in the 20th century, eventually peaking at over 70 million in 1982. Cattle numbers increased from 853,000 to almost 8 million over this period.

ROUGH SAWN PRODUCTION
Rough sawn production of native softwood timbers

Pastoral agriculture puts heavy demands on the environment. Dairying in particular is very intensive and more damaging than sheep farming. Cattle produce large amounts of effluent, which contaminates land and waterways. They also require rich pastures. By the 1930s decades of overgrazing land and clearing forest caused rapid deterioration of soils, which hastened the demand for the introduction of artificial fertilisers. In 1927, farmers topdressed over 600,000 hectares with superphosphate or lime. After World War II planes became available for topdressing, resulting in a much wider area of New Zealand being reached by fertilisers. By the 1990s farmers applied more than 2 million tonnes of fertiliser annually to maintain production on New Zealand's grasslands. New Zealand's fertiliser use, however, is low compared to countries such as Germany and Japan but its use is increasing rather than declining.

NITROGEN AND PHOSPHATE FERTILISER USE, 1980 AND 1995
Apparent consumption per km2 of agricultural land for selected OECD countries

Effects of land development on water quality. Agriculture has a profound impact on the purity of New Zealand's rivers and lakes. Over the 20th century deforestation and the development of agriculture allowed pollutants to enter exposed surface and groundwater systems. New Zealand irrigates 234,000 hectares of agricultural land and in the mid-1990s irrigation used over half of the 2,000 million cubic metres of water consumed annually. Farmland runoff includes fertilisers and animal waste, containing nitrates and phosphates. Between 105,000 and 110,000 tonnes of nitrogen is released into New Zealand surface waters every year. These chemicals cause lakes to become nutrient rich (eutrophic), which causes oxygen depletion by stimulating weed growth and increasing the demand for oxygen. Flora and fauna in lakes and rivers decline and the water body may effectively die as an ecosystem. It is estimated that 10–40 percent of New Zealand's shallow lakes are eutrophic. Increased demand for agricultural land has also resulted in the draining of wetlands over the past 150 years. It is believed that land drainage has caused an 85 percent reduction in wetlands.

Groundwater comprises about 91 percent of all freshwater resources and is the main source of drinking and irrigation water. New Zealanders currently extract about 0.6 percent of total groundwater per year, up 0.2 percent from the mid-1980s. While most groundwater sources are clean, fertilisers, effluent from stock grazing and pesticide spraying can pollute shallow aquifers.

In general, however, the quality of New Zealand's fresh water is very good. In most places drinking water is clean and does not require filtering. Local government monitors water quality. Regional councils have responsibility for water quality and assess bacterial concentration per 100 millilitres of water. If the faecal conform count is zero to four then water is assessed as suitable for shellfish gathering. Counts of 15 to 200 mean the water is suitable for swimming while counts of 1000 or more mean the water is not suitable for any use including livestock watering.

The effect of land development and fishing on biodiversity. The islands of New Zealand have been geographically isolated for over 100 million years, resulting in the evolution of unique flora and fauna. There are over 9,000 species of insects (90 percent of which are endemic to New Zealand), 38 native species of reptile, 87 species of seabirds and 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. With the exception of two species of bat, New Zealand has no indigenous land mammals, which meant that many species developed without natural predators. Some species of birds became flightless: the now extinct moa (of which there were 12 species), the kiwi, kakapo, takahe and weka, and many others nearly so, such as the extinct huia and kokako.

The arrival of humans and their introduction, both deliberately and accidentally, of exotic species of birds, mammals, plants and insects, have disrupted this fragile and unique ecosystem. Hunting and habitat conversion caused the extinction of some endemic species and reduced populations of surviving species. Since the arrival of humans the following have become extinct: one-third of indigenous land and freshwater birds, almost a third of sea birds, three of seven native frog species, one fish, one bat, possibly three reptile species, plus 11 plants. The number of threatened species is even more extensive: about 1,000 known animal and plant species, including three-quarters of all birds.

Introduced species pose one of the greatest threats to New Zealand fauna and flora. In the 19th century acclimatisation societies introduced some species for hunting and fishing: deer, chamois, moose and trout. Other species came as domestic pets (such as the cat), to control introduced pests such as rabbits (stoats and weasels), or to provide the makings of a fur industry (possum). The main impact of deer, tahr and other browsers has been on native vegetation and soil stability in the New Zealand high country. Stoats, weasels, cats and rats feed on native birds and their eggs as well as insects and reptiles. Their impact is greater because of the previous lack of predators. Possums are New Zealand's greatest threat: by 1980 they numbered 60–70 million and covered more than 90 percent of the country.

Human settlement has greatly depleted native fauna, as large areas of native habitat have been cleared for farmland and colonised by exotic plants. Almost half of New Zealand's vascular plant species are introduced: there are approximately 2,400 native plant species and 2,068 introduced plants growing wild. The Department of Conservation (DOC) has classified 240 naturalised plants as invasive weeds – these are threatening 77 native species with extinction.

In the marine environment the Government has created the Quota Management System to manage fishing pressures on fish stock and the environment. The fishery resource is important to New Zealand's economy and to Māori as an integral part of their culture. However, there are significant competing pressures of demand for fish and need for environmental management. Fishing activities can damage marine life, as every year seabirds, seals and sea lions are caught in the nets of trawlers or tangled in long lines.

NEW ZEALAND'S ENDANGERED SPECIES (CATEGORY A)
BirdsMammalsReptiles and amphibiansInvertebratesPlants
Source: Department of Conservation
Fairy ternBatHamilton's frogGiant land snailDactylanthus
Kākāpō Grank skinkWetaTaylorii
Takahe Otago skink Coastal cress
Subantarctic teal Brothers tuatara Kowhai
(2 species) Striped skink Ngutukaka
Black stilt    
North Island weka    
Buff weka    

In the past century humans became more aware of environmental consequences. Legislation allowing the protection of native birds was passed in 1886 but a list of protected species was not compiled until 1907 (these included the tui and kaka). Several new acts, most recently the Fisheries Act of 1996, have provided better safeguards for aquatic ecosystems and non-target species. The Wildlife Act of 1953 consolidated the protection of native animals by conferring protection on most native vertebrates (with some exceptions for hunting and pest control). The Department of Conservation is working to protect native flora and fauna through the establishment of protected habitats, pest eradication and captive breeding programmes.

Development of human settlement

Population growth. At the beginning of the 20th century New Zealand was a sparsely populated country with less than a million people (815,862 at 31 March 1901). New Zealand's population more than quadrupled over the century to reach an estimated 3.8 million people in 1999. Even today population density is low by international standards (about 13 people per square kilometre compared to the United Kingdom which has 240 people per square kilometre), but New Zealand's increase in population has still placed a strain on the natural environment.

POPULATION GROWTH IN MAIN URBAN AREAS

Increasing urbanisation has stretched infrastructure facilities such as water supply and sewage with environmental effects around large urban areas. In the main urban areas water usage per person varies from about 190 to 900 litres per day. Large urban areas such as Auckland and Christchurch face increasing pressure upon their water supplies, while emissions from transport and industry pollute both air and waterways. Runoff from stormwater systems contains heavy metals and chemicals. These become suspended and deposit sediments that discolour and pollute waterways. Until the 1960s and 1970s, most human sewage overflowed directly into waterways and oceans. There were only five treatment stations in 1950, but by 1980, 59 percent of the population were connected to public waste water treatment plants. Today, damaged old sewerage systems and septic tanks hasten the deterioration of water quality and introduce diseases such as giardia.

Disposal of household and industrial waste is also a significant problem. In the mid-1990s household waste was 390 kilograms per person, which is higher than many other OECD countries. In Auckland alone the amount of waste being deposited in landfills in the region increased from 650,000 tonnes in 1993/4 to 821,000 tonnes in 1995/6. Landfills pose problems because material does not break down easily and can contaminate the environment through leachates into soil and groundwater. Fortunately proportions of hazardous waste are low by international standards since New Zealand has little heavy industry and does not generate nuclear waste.

Marine environment. New Zealand has the seventh longest coastline of any nation in the world and most of the population lives near the coast. Construction, land reclamation, drainage and shoreline developments adversely alter the coastal environment. Roads, houses and seawalls have transformed areas from natural to man-made environments, destroying plants and marine animals.

Oil spills are the most common form of marine pollution. Over 100 spills occur every year in New Zealand harbours. New technology, safety practices and incentives have been adopted to deal with this problem, including special oil-soaking booms and large fines for negligence. Pollutants from rivers or drains also result in marine pollution being deposited directly into estuaries. Other pollutants include non-biodegradable litter, such as plastic bags and bottles. These pollutants harm plant life by inhibiting plant growth and endangering the lives of marine animals.

Industry. New Zealand is not a heavily industrialised nation but the manufacturing industry was a significant element in New Zealand's economy over the 20th century. The number of manufacturing establishments grew steadily throughout the century and in 1998 this sector employed more than a quarter of a million workers. This growth has two major impacts on the environment: increasing demand for energy supplies and the production of industrial waste. In the 1930s industry used over a third of total annual electricity consumption, but by 1996 this had increased to almost half. In 1996 industry also used two-thirds of gas production and coal production.

INDUSTRY
Selected industries, percentage of total industries

Over the century new industries such as plastics manufacture, aluminium smelting and petrol refineries, which are extremely energy hungry, increased electricity demand. The aluminium smelter at Bluff takes virtually the entire output of the Manapouri power scheme, a total of 700 MW. Industry tended to become less labour intensive and more energy intensive over the 20th century. But while the number of industries increased, environmental controls over industries were tightened. The Resource Management Act requires companies to obtain resource consents to utilise the environment.

In the 1990s industry consumed around half of New Zealand's annual consumption of solid fuels, which emit heavy metals and contaminants into the atmosphere. It also produced approximately 10 percent of New Zealand's CO, emissions. Industry consumed 260 billion litres of water per year (slightly more than the domestic user), and discharged an estimated 9 percent of sewage wastewater. This discharge can include such harmful substances as industrial chemicals.

FUEL USE, PRIVATE DWELLINGS, 1996

Domestic. The increase in New Zealand's population has placed greater demands on energy resources. Domestic consumption accounts for 13.5 percent of gas use and 34 percent of electricity use but only 2 percent of coal consumption. Transport uses 90 percent of oil and New Zealand's fleet of private vehicles (1,685,000 cars, motorcycles and mopeds in 1996) is a significant contributor to oil consumption. At the beginning of the 20th century most homes were coal and wood-heated, but by the end of the century electricity had become the predominant energy source. In the 1996 Census, however, almost 50 percent of dwellings still used wood and 12 percent used coal.

Transport. In 1900 the average New Zealander had limited access to private transport. Most people relied on trams for city transport and railways or shipping for longer trips. New Zealand's rail network expanded rapidly during the first years of the century from 3,366 km in 1899/ 1900 to reach a peak of 5,641 km in 1950. The rise of road transport along with the development of air transport, have transformed settlement and transport patterns over the century. The development of public transport (trams and buses) early in the 20th century allowed the expansion of urban areas, although the private motor car in the latter half of the century, has been the major contributor to urban sprawl.

Usage of cars has been increasing recently. For example, on census day in 1996, 54 percent of employed people drove a car, truck or van to work. In comparison 46 percent of the employed labour force drove a private vehicle to work in 1986.

REGISTERED MOTOR VEHICLES AND POPULATION OF NEW ZEALAND

Air pollution. Generally, New Zealand does not experience the levels of air pollution that plague the densely populated cities of Northern Europe. Our relatively small population, limited heavy industry, distance from other continents and regular westerly winds in many places limit air pollution to localised areas.

Industry, domestic heating and transport all contribute to air pollution. Common pollutants from these sources are particulate matter, sulphur dioxide, nitrogen oxides and carbon monoxide. New Zealand has few large industrial plants that emit pollutants in large quantities and domestic emissions from the burning of wood and coal for home heating are often a more serious problem in urban areas. Over the years, sulphur dioxide emissions decreased with declining domestic coal use and greater use of slow-combustion, enclosed wood-burning fires. Smoke pollution has been recognised, however, as a problem in many urban areas following an increase in the extent of air quality monitoring since 1990.

Motor vehicle emissions are another significant source of localised air pollution. Carbon monoxide concentrations can exceed the guidelines, especially on or near busy roadways, and concentrations of nitrogen dioxide at roadside sites appear to be approaching guideline concentrations. The Government gradually phased out leaded petrol between 1989 and 1995 and lead concentrations have declined from around the guideline value to well below 10 percent of the guideline. Benzene has been added to petrol instead of lead, and a recent national monitoring programme for benzene found concentrations in some urban areas that could result in detrimental health effects if emissions are not curtailed. Motor vehicles are also responsible for most of the nitrogen oxide emissions in New Zealand, which has the fifth highest level of emissions per person in the OECD.

Energy use and mineral exploitation

During the century the increasing demand for energy has changed the New Zealand landscape. New Zealanders have cut trees to fuel fires, extracted coal, built electric power stations and drilled for oil and gas. Although New Zealand is largely self-sufficient with regards to energy resources, over the century it has become heavily dependent on imported oil. During the 1990s oil supplied approximately two-thirds of New Zealand's energy requirements with the remainder being supplied by electricity, coal, gas and wood.

Energy generation. Currently, hydroelectricity meets 80 percent of New Zealand's electrical energy needs with geothermal and thermal generation providing the remaining 20 percent. Although hydroelectricity is one of the cleanest forms of energy, dams have a transforming and sometimes detrimental effect on the landscape, affecting rivers, aquatic life and drowning surrounding land.

Electricity supply began in the 19th century, pioneered by gold-mining companies. During the 20th century governments have built large hydroelectric power stations to service major cities and established power boards to extend distribution networks. During the 1950s the Government developed alternative means of power generation such as thermal and geothermal power stations. There are currently six thermal stations in New Zealand. Thermal production relies on non-renewable fossil fuels such as coal, gas and oil, and releases air pollutants such as nitrogen oxides.

INCREASE IN ELECTRICITY SUPPLY

Despite its clean and renewable image, geothermal power also has draw backs. There are now four geothermal stations and two more under construction. At present these power stations use 90 petajoules of geothermal energy and it has been estimated that between 21 and 43,000 petajoules of recoverable geothermal energy exists. Unfortunately, overuse of geothermal reserves depletes them and since the 1950s we have lost nearly 100 geysers. Extracting fluid and heat has also resulted in other environmental impacts, such as subsidence of neighbouring land. Geothermal production itself releases sulphur into the atmosphere, polluting air and creating unpleasant odours.

INCREASE IN ELECTRICITY SUPPLY

Environmental impacts from thermal, geothermal and even hydroelectric generation set limits for future development. The latest review of renewable energy opportunities has concluded that small hydro schemes, biofuels, and wind power will be more environmentally sustainable. New Zealand's prevailing northwesterly climate favours wind power, which has the potential to generate 2,000MW of electricity. The first wind farm in New Zealand, Hau nui, situated in the Southern Wairarapa, began generating electricity in 1996.

TOTAL ENERGY SUPPLY

Mineral exploitation. The discovery of gold in the 1850s and 1860s altered the New Zealand landscape. Gold was retrieved either by washing alluvial gravels, silts and sands; crushing gold-bearing veins of quartz or hydraulic sluicing. Later dredges worked the riverbeds to recover gold. These techniques scarred the landscape, leaving piles of tailings and rivers and lakes with high concentrations of minerals. Currently, there are three opencast goldmines in New Zealand, and a number of small two- or three-person operations. The large goldmines crush material to extract gold, and the ground waste material contains a toxic combination of minerals and acids.

Oil was first discovered in New Zealand in the 19th century but serious oil exploration and extraction did not begin till the 1950s and 1960s. Today offshore rigs extract gas and oil, which is transported to the mainland for conversion into petrochemical products and electricity generation. Extraction and transportation of oil and gas involves the risk of spill and leaks, which can kill marine bird and mammal life.

MINERAL PRODUCTION 1900–1996
Mineral190019201940196019801996
Source: New Zealand Official Yearbook 1998
Gold (kg)10,5006,0005,30090020011,571
Coal (000 tonnes)1,7383,0433,8174,1472,1973,610.60
Oil (m3(m))     2,587
Gas(m3(m))22.396.3 160.41,069197.93

Coal is New Zealand's largest energy resource with recoverable reserves of approximately 8.6 billion tonnes available. Opencast coal mining has caused environmental problems in the past; for instance in the 1970s the mines at Huntly discharged huge loads of silt into the Waikato river. The Government has since tightened regulations and mining companies are now required to treat waste and remove deposits before water can be discharged.

Current and future issues

Sustainable development. Current environmental issues will continue to concern New Zealand until well into the next millennium. The 1999 Labour-led Government has a key goal of protecting and enhancing the environment. Increasingly, the Māori view of the environment has also been recognised. Māori have developed many conservation practices based on the concept of kaitiakitanga which ensures all resources are used in a sustainable fashion while the mauri (life force) is protected. Māori approach environmental management incorporating the needs and values of all people and recognising the relationship between the different parts of the natural world. These ideas are proving useful in the fight to protect and improve New Zealand's environment. Internationally, too, there is increasing concern about the deterioration of the world's environment. New Zealand has contributed to major world conferences on the environment and climate change and has signed a number of international accords that commit us to reducing our contributions to climate change.

In response to these pressures the Government is establishing Environmental Performance Indicators (EPI) in accordance with the Environment 2010 Strategy. The Ministry for the Environment is developing EPIs to provide an accurate picture of the state of the New Zealand environment. The various indicators cover the marine environment, air, fresh water, land, and terrestrial and freshwater biodiversity. As yet these are in the early stages of development but in the future they should give us a measurable indication of the state of the New Zealand environment.

The Resource Management Act will continue to be an important part of sustainable development in New Zealand. The act requires any person or company to obtain a resource consent (except for basic life sustaining use) to use a natural resource.

Biodiversity. New Zealand has a long history of exploiting its native flora and fauna, often to unsustainable levels. The Department of Conservation has launched a biodiversity strategy. Its goal is to restore and maintain existing indigenous biodiversity. The Government would also like to sustain the genetic resources of introduced species that are important to New Zealand for economic, biological and cultural reasons.

Climate change and ozone depletion. Climate change, through what is known as the greenhouse effect, and ozone depletion have emerged as two of the most significant environmental problems facing New Zealand and the world.

The greenhouse effect occurs when gases in the atmosphere trap solar radiation, warming the atmosphere. This process occurs naturally, but human developments have intensified the process.

CARBON DIOXIDE EMISSIONS, MID-1990S
Tonnes per capita

The gases that cause the greenhouse effect are predominantly water vapour, carbon dioxide and methane. The global average temperature has increased over the past 100 years by 0.45°C, although New Zealand's average temperature increased by 1.1°C between the decades 1861–70 and 1981–90. Climate models predict that the mean average global surface temperature will rise by between 1 and 3.5°C by 2100 and that the global mean sea level will rise by 15 to 95 cm over the same period.

On a global scale New Zealand makes a small contribution to the creation of greenhouse gases, although per capita the contribution is high compared to less developed nations. New Zealand's CO2 emissions per capita are approximately twice the world average. The country produces 0.1 percent of the world's CO2 emissions, 0.09 percent of the OECD's sulphur oxide emissions, and 0.5 percent of the OECD's nitrogen oxide emissions. Between 1980 and 1995, however, New Zealand increased its carbon dioxide emissions by 63 percent, compared with an OECD average of 5 percent. New Zealand also has high emissions of methane due to our heavily pastoral economy. Methane is caused by the decomposition of organic matter and gases from animals. Per capita emissions of methane are approximately 7 times the OECD average and 9 times the world average.

PERCENTAGE CHANGE OF CARBON DIOXIDE EMISSIONS SINCE 1980

Of particular concern to New Zealand is the depletion of ozone, an atmospheric gas which screens out most of the sun's harmful ultraviolet (UV) rays. Globally the amount of ozone screening has decreased by 3 percent over the last decade. The greatest changes are over the Antarctica and the Arctic. Most UV radiation arrives in the summer months, and in the New Zealand region there has been an average decrease in summertime ozone of about 5 percent per decade in the last 20 years. In the summer of 1998 the peak level of UV measured at NIWA Atmospheric Research Laboratory in Lauder, Central Otago was about 12 percent more than 10 years ago when measurements began. Even relatively small increases in UV radiation can have serious impacts on human and animal health, the biosphere, and materials. International efforts to halt the decline in ozone led to the formation of the Montreal Protocol in 1987. Unfortunately human produced ozone-depleting substances have a long lifetime, and it will be at least 50 years before ozone recovery will be significant.

Scientists have attempted to assess the future consequences of global warming and ozone depletion. Predicted climate changes in New Zealand are uncertain, but one model suggests that drought problems may increase in the already drought-prone eastern regions. The western regions could become even more vulnerable to flooding. Warmer temperatures and fewer frosts could lead to increased problems from pests, and industries based on snow and ice, such as skiing, could become increasingly vulnerable.

When New Zealand considers its prospects for the next millennium the effect on the environment is likely to be part of any planning. The development of the Government's Environmental Performance Indicators will increase our ability to make more accurate assessments of environmental impacts helping us to preserve New Zealand's unique ecosystem. The challenge will be to find the balance between economic and social needs, and the needs of the environment.

MEAN SUMMER OZONE
Lauder, New Zealand

ESTIMATED UV INDEX
Lauder, New Zealand

Selected bibliography

Air Quality, Climate Change and the Ozone Layer. 1998. Statistics New Zealand, Wellington.

Australasian Impacts of Climate Change: An Assessment of Vulnerability. 1999. UNEP Intergovernmental Panel on Climate Change, Cambridge University Press.

Environment 2010 Strategy. 1995. Ministry for the Environment, Wellington.

Environmental Performance Reviews New Zealand. 1996. OECD, France.

Forest & Bird, no.287, Feb 1998, no.288, May 1998.

Grey, Alan 1994. Aotearoa and New Zealand, A Historical Geography. Canterbury University Press, Christchurch.

Measuring up New Zealanders and the Environment. 1993. Statistics New Zealand. Wellington.

New Zealand Historical Atlas Ko Papatuanuku e Takoto Nei. 1997. David Bateman, Historical Branch, Department of Internal Affairs, Auckland.

Peat, Neville 1994. Manapouri Saved! Longacre Press, Dunedin.

Pests and Weeds A Blueprint for Action. 1999. New Zealand Conservation Authority, Wellington.

The State of New Zealand's Environment. 1997. Ministry for the Environment, Wellington.

Towards Sustainable Development Environmental Indicators. 1998. OECD, France.

16.1 Land resources and ownership

Land Information New Zealand

Land Information New Zealand (LINZ) advises the Government, administers the Crown's interests in land and makes government-held land information available to the public. It is the government spatial referencing authority, and the steward and standard setter for core national land databases including: the spatial referencing system, cadastral system, land titles, topography, hydrography and Crown property (excluding the conservation estate). From July 1998, as part of the restructuring of Valuation New Zealand, the Office of the Valuer-General was established within LINZ. The Valuer-General sets standards for rating valuations carried out by local authorities.

The 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, LINZ 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, and administration of Crown land and the management of Crown land liabilities.

  • Assist the Government and its agencies to 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, topographic, hydrographic and property activities.

The main acts administered by Land Information New Zealand are: the Crown Grants Act 1908; Deeds Registration Act 1908; The Hunter Gift for the Settlement of Discharged Soldiers Act 1921; Land Act 1948 and regulations; Land Transfer Act 1952 and regulations: New Zealand Geographic Board Act 1946; Public Works Act 1981 (Parts II to VI and VIII) and regulations; Rating Valuations Act 1998 and regulations; Various Reserves and Other Lands Disposal Acts; Survey Act 1986 and regulations; and the Unit Titles Act 1972. The Chief Executive has statutory functions under the Public Works Act relating to the disposal of surplus land. More than 450 other statutes give Land Information New Zealand specific responsibilities for land transactions.

Surveying, mapping and land information

Surveying infrastructure. The New Zealand survey system provides a national spatial reference framework for the accurate location of land and seabed rights and resources.

The spatial reference framework is based on a national network of survey control marks, including trig stations, connected to the global reference framework. Land Information New Zealand (LINZ) administers the survey system primarily to provide for the reliable identification and definition of land boundaries for recording land rights for Crown, Māori, leasehold and freehold tenures. The system also makes it possible to integrate other land and geographic information for activities such as defining electoral and other administrative boundaries, land development, resource management, granting mining licences and marine licences, location of utilities, engineering and construction, topographic mapping and hydrographic charting, scientific studies, the location of marine and air navigation aids both nationally and internationally, and the determination of New Zealand's national and economic zone boundaries.

The extent and location of boundaries of rights and interests in land are defined and documented by registered land surveyors, mainly in the private sector. They submit records of surveys to LINZ for validation against existing records. LINZ maintains registers of rights and interests in land and undertakes checks to ensure new rights do not conflict with existing rights. This ensures certainty and security as to the extent of land rights and interests irrespective of tenure.

Currently access to the extensive cadastral survey records held by LINZ is gained by a computerised spatial index, the Digital Cadastral Database (DCDB). This will be superseded by a new ‘Landonline’ system, which will automate many of the survey and title processes and provide for online access to survey and title records. Landonline is to be implemented progressively in each of the LINZ regional offices over the next two years.

LINZ's website address is www.linz.govt.nz/services/surveysystem

Aerial photography. Extensive use is made of aerial photography to support the revision of New Zealand's national mapping programme.

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.

Topography and hydrography. The topographic database which consists of 1:50,000 and other core topographic maps (including maps of the Pacific and Antarctic), the digital topographic database, and Crown copyright aerial photographs provide a reliable and authoritative record of New Zealand's land form and its features. This information is used for planning, construction, development, environmental assessment, local government administration, emergency services, search and rescue, and defence purposes.

Hydrographic charts and publications must be carried by commercial ships navigating in New Zealand waters. This is a statutory requirement which contributes to safety at sea. Recreationalists are encouraged to use the information for small craft navigation. Charts range from detailed representations of harbours and their entrances to depictions of deep-sea passages.

The National Topographic/Hydrographic Authority of Land Information New Zealand manages national topography and hydrography.

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 LINZ, as is the keeping of title records.

The outcomes of LINZ's title services are primarily:

  • to provide state-guaranteed certainty of title to land

  • 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

  • both current and historic owners

  • a summary of registered legal documents concerning the land.

Documents listed on a certificate of title may include mortgages, leases, various types of charges, and 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 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
1994863,74342,94716,019137,7131,024,426282,0133,378,87316,077
1995873,88348,83917,726145,773982,846273,7844,878,01740,068
1996925,26350,66516,462182,3941,048,717287,3945,927,28646,050
1997859,16263,01218,995184,995948,565257,638..47,884
1998799,37056,64316,866183,276861,720226,624..50,783
1999777,23653,14313,610195,974862,449195,088....

Table 16.2. MARKET SALES OF FREEHOLD RURAL LAND

Half year endedNo. of salesTotal sale price $(million)Index number1Percentage change from previous half year

1Base (=1000) half year ended December 1989.

Source: Quotable Value New Zealand

Dec 19931510469.21696+5.9
Jun 19942,2161,018.61988+17.2
Dec 19941393556.22073+4.3
Jun 199520131,094.12270+9.5
Dec 19951153483.02,295+1.1
Jun 199620061,133.92,323+1.2
Dec 19961121452.72,334+0.5
Jun 19971365635.02,272-2.7
Dec 19971023411.52270-0.1
Jun 19981160559.22,192-3.4
Dec 1998718299.02,224+1.5
Jun 19991347701.92,243+0.9

Farmer working on a swamp drainage ditch, c1910.

Acquisition of New Zealand land by overseas parties

The Overseas Investment Regulations 1995 repealed the provisions of the Land Settlement Promotion and Land Acquisition Act 1952 (LSP Act) and amended the Overseas Investment Regulations 1985 governing the acquisition of New Zealand rural land by overseas parties. The regulations provide a more liberal approach and set clearer criteria for consent, either by a joint ministerial decision from the Treasurer and Minister for Food, Fibre, Biosecurity and Border Control, or by the Overseas Investment Commission, under delegated authority.

The regulations among other things:

  • Define land 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) which exceeds 0.4 hectares in area

    3. exceeding 0.4 hectares in area that is on, includes or adjoins foreshore, certain-sized lakes, or land provided as reserve, or is an historic place or is conservation land

    4. over $10 million in value.

Where land is to be used for agricultural purposes, the applicant's planned use, and whether it is for experimental or research work, is considered. When persons wish to farm the land individually, their capacity to do so is noted while consideration is given to any intention to reside permanently in New Zealand. Additionally, the applicant is required to demonstrate that the acquisition makes material contribution to the regional or national economy.

  • Stipulate the need for applicants to:

    1. have relevant business experience and acumen

    2. demonstrate a financial commitment to the overseas investment.

  • Require that the following ‘national interest’ benefits accrue:

    1. creation of new job opportunities in New Zealand or retention of existing jobs

    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 when evasion or non-compliance with the regulations is suspected.

  • Provide for the joint consents of the Treasurer and Minister of Lands or for the revocation of consents when appropriate.

The Overseas Investment Commission administers the legislation while Land Information New Zealand provides technical assistance and advice to the commission and ministers.

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 individual 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, that is, 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:

  • maintains records of title and ownership of Māori land

  • provides accurate and accessible information from the Māori Land Court and Crown records

  • provides support and services through the Māori Land Court Business Unit within the Department for Courts.

In 1999, the Māori Land Court simplified the processing of land applications and created a computer database of Māori land for each title. This includes information on the block, ownership, management and memorial schedules, and a sophisticated search facility.

The next step is to copy most of the original record held by the court into electronic format to ensure its protection, preservation and improved accessibility.

Māori land development. Former government programmes aimed at the development of Māori land have largely been concluded, and Te Puni Kōkiri encourages administration of Māori land by Māori landowners.

A significant proportion of the more than 2 million ownership shares in Māori land are believed to be held by deceased or absentee owners. This hinders decision making and utilisation of Māori land, and makes it more difficult for the Māori Land Court to ascertain the wishes of the owners when a proposal comes before the court for approval or confirmation.

To help address some of these issues Te Puni Kōkiri and the Māori Land Court produced a series of booklets aimed at educating Māori land owners. Five booklets have been produced. They are:

  • Guide to Succession

  • Guide to Māori Land Trusts

  • Māori Incorporations

  • Māori Reservations

  • Guide to Loan Securities.

Table 16.3. LAND ADMINISTERED BY MAORI LAND COURT 1999

Māori Land Court districtsTotal blocks administered
Source: Māori Land Court
Tai Tokerau3,941
Waikato/Maniapoto5,298
Waiariki5,183
Tai Rawhiti1561
Takitimu1856
Aotea5,092
Te Wai Pounamu3,817
        Total26,748

The Department for Courts has made it a strategic goal to make the services of the Māori Land Court, in particular the provision of title and ownership information, easily accessible to Māori.

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 is administered by: service delivery departments where the land is required for the running of the business; the Department of Conservation in the case of reserves etc; Land Information New Zealand in the case of residual Crown-owned lands.

Lands administered by Land Information New Zealand. L1NZ is responsible for the administration and eventual disposal or alienation of residual Crown-owned lands pursuant to the:

  • Land Act 1948 and various endowment acts, comprising unalienated Crown land (2,736 properties).

  • Crown Pastoral Land Act 1998, comprising 2.4 million hectares of South Island High Country Crown pastoral leasehold (354 properties).

  • Crown Forest Assets Act 1989, comprising Crown forest land over which Crown forest licences have been issued (98 licences).

  • Public Works Act 1981, comprising land no longer required to be held by the Crown for the public work purpose for which it was acquired, including hydro-electric power development, post offices, public works depots and government office accommodation (197 properties).

  • Railways Corporation Restructuring Act 1990, comprising land no longer required for railway operations (1,524 properties).

The department is managing the process and policy for the review of South Island High Country Crown pastoral leasehold land. This tenure review process results in significant conservation and freeholding outcomes providing opportunities for better land use and sustainable land management objectives.

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 an estimated 150 Crown land-related liabilities such as contaminated sites, subsidence areas and residual issues concerning Crown land.

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 and 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 1.5 million stock units on 122 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 and marketing to enhance profitability and support its products in the market.

Landcorp Investments is responsible for some 874 leases, licences, and mortgages.

Landcorp's head office is in Wellington. There are business centres in Rotorua and Christchurch.

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.

Quotable Value New Zealand (QVNZ) competes with other providers to gain contracts with local authorities to assess values of real estate for local rating purposes. The Valuer-General audits the work of QVNZ and other providers.

Valuers are required to determine:

  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

  3. the value of the improvements (if any) upon the land.

'Improvements' on land are defined as items of work done or structural additions resulting from materials used on, or for, the benefit of the land.

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 when required. District valuation rolls are revised at least once every three years. Objections can be lodged against revaluations, and taken to the Land Valuation Tribunal.

Rating valuations. By law, every local authority is required to maintain the district valuation roll. 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 when a valuer is charged with incompetent, improper or unethical behaviour. In the year ended December 1999 there were 22 complaints and six inquiries held from which four valuers were found guilty. Of the 1,431 valuers registered as at year ended December 1999,961 held annual practising certificates. The remaining 420 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 TODAY1

Type of landApproximate areaPercentage of total urea

1As at 29 November 1999.

Source: Ministry or Agriculture and Forestry

 hectares (million) 
Total forested land8.129.9
Pasture and arable land13.850.9
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.

LAND USE

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 in the past, on whether an activity is or is 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, not necessarily in this order:

  • 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.

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, again, not necessarily in this order:

  1. Kaitiakitanga (the exercise of guardianship).

  2. The ethic of stewardship.

  3. The efficient use and development of natural and physical resources.

  4. The maintenance and enhancement of amenity values.

  5. Intrinsic values of ecosystems.

  6. Recognition and protection of the heritage values of sites, buildings, places or areas.

  7. Maintenance and enhancement of the quality of the environment.

  8. Any finite characteristics of natural and physical resources.

  9. The protection of the habitat of trout and salmon.

The Minister of Conservation provides a management framework for the coast through the New Zealand coastal policy statement. The minister's functions and powers also include approval of regional coastal plans and, in certain situations, a consent-granting function for coastal permits.

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.’

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 have joint responsibility with territorial authorities for natural hazards mitigation and hazardous substances.

They also have joint control (with the Minister of Conservation) 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 have joint responsibility with regional councils for 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 inclusion of ‘amenity values’ in the definition of ‘environment’ is important. 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 up to councils to identify appropriate ways to maintain those qualities and characteristics, of which controls on the man-made environment may be one.

Hazardous substances and new organisms. The Hazardous Substances and New Organisms Act (1996) reforms the law relating to management of hazardous substances and new organisms. The Environmental Risk Management Authority has been established to administer the act.

The purpose of the act is to protect the environment and the health and safety of people and communities by preventing or managing the adverse effects of hazardous substances and new organisms.

Although enacted in 1996, the act has not yet been brought fully into force. Those parts of the act relating to new organisms came into effect in July 1998, while those relating to hazardous substances are expected to commence in the early part of 2000.

Hazardous substances managed under the act include explosives and substances which are: flammable, oxidising, corrosive, toxic and ecotoxic. (Radioactive substances are managed under the Radiation Protection Act.)

The degree of control will be related to the hazardousness of the substance. The controls will be ‘performance-based’, in other words they will be expressed in a way that allows for changing technology and alternative means of compliance. The controls are designed to set national minimum consistent standards for resource consents under the Resource Management Act that involve hazardous substances.

In addition, the controls are designed to provide consistent standards with workplace and transport legislation relating to hazardous substances. The act is also designed to work closely with regulations of specific use areas, for example, when hazardous substances are also medicines, veterinary medicines or agricultural components.

New organisms managed under the act cover the deliberate introduction of new species, such as for primary production or for biological control of pests, and genetically modified organisms. The development, testing or release of genetically modified organisms all require separate approval. This part of the act stands alongside the Biosecurity Act which sets out to prevent the unintended introduction of unwanted species into the country.

Well-sinking equipment, c1900s.

The principles for the new legislation require that all hazardous substances and new organisms are assessed prior to the introduction, development or manufacture in New Zealand, and that they all follow a similar assessment process. Most assessments are publicised and open to public comment, and the final decision is also made public.

Management of the adverse effects of hazardous substances on the health and safety of people and the environment need to focus on more than just the end use. Hazardous substances are to be controlled at all points in their life cycle where the environment and the health and safety of New Zealanders may be 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.

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 that 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 mineral programmes for coal and for minerals other than coal and petroleum come into effect on 1 October 1996.

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 achieved through the Resource Management Act 1991, with protection against flooding covered by the Soil Conservation and Rivers Control Act 1941. Both acts are administered by the Ministry for the Environment.

The management of water use, control of rivers, mitigation of erosion, assessment of coastal, landslip, and flooding hazards, and the protection of scenic and recreational waterways are achieved through these acts by 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. Water flowing through hydro-station turbines can be used again. On the Waikato River, including its tributaries, 10 state-owned hydro-electric 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 (relatively dry areas sheltered from rain-bearing winds by hills). 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 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. Regional policy statements and regional plans are the statutory vehicle for water quality policies, objectives and rules.

The Resource Management Act continues earlier legislation which provided for water conservation orders to be placed over rivers, streams, wetlands 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. At the end of 1999, nine water conservation orders had been approved.

The Ministry for the Environment assists regional councils to manage water resources by producing guidelines for setting river flows, improving water quality and so on. Guidelines allow regional councils discretion in developing appropriate local standards.

While having high quality fresh and coastal waters has major benefits, achieving it everywhere would incur considerable costs. For example, it has been estimated that providing secondary treatment schemes for all urban communities around New Zealand coasts could cost at least $1 billion over the next decade.

A major freshwaster microbiological research programme is under way to examine the health, environmental and agricultural risks related to disease-causing organisms in fresh water. The programme is a joint venture between the Ministries of Environment, Health, and Agriculture and Forestry.

Pilot studies for this research and some previous studies indicate that giardia and Cryptosporidium are widespread in New Zealand waters. These organisms, which appear to be mostly at low levels but in some places were found at higher levels than expected, can cause stomach upsets and diarrhoea.

Contamination in fresh water is primarily due to farm runoff. Because new techniques are being used in this research, it is not clear whether these water quality problems have existed for some time or are increasing. However, New Zealand does have relatively high rates of illnesses that can be spread through water. Once the sources of the contamination have been identified, preventative action such as fencing stock off from waterways and upgrading sewage treatment systems can be taken.

The research will lead to guidelines for fresh water used for bathing, stock drinking water quality and improving the drinking water guidelines. The programme is scheduled to conclude in 2002.

River control. River control projects carried out by local government 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 highly-productive agricultural lands.

A catchment-wide approach to water and soil problems is encouraged. Comprehensive catchment control schemes embrace land retirement from grazing and protection planting of trees in the upper catchment; bank protection works in the middle reaches; and flood alleviation and drainage works in the lower reaches of a river. Increasingly, flood plain management planning is being adopted to identify and mitigate risks associated with flooding.

Soil conservation. The change from forest cover to pastoral land use in many parts of New Zealand has resulted in disturbed soil conditions. 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. Nearly 10 percent of land is classified as having severe to extreme erosion problems.

Successful techniques developed to control erosion include control of burning and animal pests, oversowing, topdressing, strict grazing control, soil conservation fencing, gully control, contour ploughing, terraces, grassed waterways, and open and close-tree planting.

Pollution and waste

The Resource Management Act 1991 establishes the framework for local government to deal with pollution and waste management.

Water pollution. The problems of water pollution are being addressed by regional councils under the Resource Management Act. Pollution of rivers and lakes can be caused by soil erosion, farm runoff, industrial waste, domestic sewage or urban runoff. The act provides for the control of waste discharges through discharge permits and rules in plans. These include conditions ensuring that the discharge has had adequate treatment sufficient to protect the receiving waters.

Diffuse forms of pollution such as erosion and farm run-off require different approaches, such as changing land-use practices or fencing streams. The Ministry for the Environment has developed a sustainable land management strategy which, in part, addresses the impacts of agriculture on aquatic ecosystems and water quality.

Regulations under the Resource Management Act control dumping of waste and other matters and discharge of contaminants within the coastal marine area (12 nautical mile limit). Controls of dumping and discharges beyond the coastal marine area come under the marine protection rules of the Maritime Transport Act 1994. This covers the area extending from the 12 nautical mile limit to the edge of New Zealand's economic zone (200 nautical miles).

Waste and landfills. Landfills are the traditional means of disposing of most solid waste in New Zealand. In the past ‘rubbish tips’ were poorly managed and there was a lack of control on acceptance of hazardous wastes. Since the introduction of the Resource Management Act 1991 and more stringent environmental controls, many of the older tip sites have been closed. Some councils are now cooperating by establishing modern regional landfills with strict controls on environmental effects. Some communities, councils and businesses are also adopting waste reduction and cleaner production initiatives.

In 1997 the Minister for the Environment set up the Hazardous Waste Management Programme to improve management of hazardous waste in New Zealand. The Ministry for the Environment is developing a national definition for hazardous waste that is tailored to the New Zealand situation while providing consistency with international approaches to defining hazardous waste.

J McMillan, Timaru District Council
Timaru transfer station, waste disposal, 1993.

During 2000, the ministry will continue to develop a national strategy for hazardous waste management. The strategy will provide an integrated, cohesive national hazardous waste policy framework to set strategic direction for a range of policy initiatives, including regulatory controls.

The Ministry for the Environment is responsible for policies on waste minimisation and waste management. Activities undertaken by the ministry include:

  • monitoring of landfill management practices

  • guidelines for waste analysis and landfill management

  • support for cleaner production practices by industry and business through the Sustainable Management Fund

  • a voluntary packaging accord with industry to reduce unnecessary packaging waste

  • a used oil recovery programme for the collection and appropriate reuse or disposal of used lubricating oil.

Contaminated sites. Estimates suggest that New Zealand has about 1,500 seriously contaminated sites and more than 6,000 other sites with some level of contamination, for example, old sheep dips. Seriously contaminated land includes sites used for landfills, service stations, sawmills, timber treatment plants, railway yards, engine works, metal industries and chemical manufacturers.

The Ministry for the Environment has been working with other departments, local government and industry to develop guidelines for managing and cleaning up contaminated sites. Guidelines produced to date cover chemicals found on sawmills and timber treatment sites, petrol stations and oil storage depots, and old gaswork sites. The ministry has also provided guidance for local government on collecting and managing information on contaminated sites.

Under the Resource Management Act, the owner, occupier or polluter can be required to clean up a contaminated site when the contamination occurred after 1991. The Government proposes that for sites contaminated earlier than 1991, the same three parties will be made potentially liable. However, an ‘innocent landowner’ defence is to be introduced for sites contaminated prior to 1991 that need to be cleaned up. This means that those landowners who could show that they had no knowledge of, or association with, the contamination of the site would no longer be potentially liable.

In addition, a clean-up fund has been established to help fund the management of ‘orphan’ sites if there is no clearly liable party or party capable of paying. The Ministry for the Environment is to develop rules covering liability and funding. The fund will be first used to assist the Tasman District Council clean up the old Fruit growers Chemical Co site at Mapua near Nelson. Stormwater discharge from this site (contaminated with the organochlorine pesticides DDT and dieldrin) has adversely affected the marine environment nearby.

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, brought together the largest number of heads of government and state and senior politicians ever assembled at a meeting of this kind.

UNCED produced the Rio Declaration, a list of principles for governments, individuals and the world community to follow; Agenda 21, a forward-looking action plan setting benchmarks for behaviour and identifying directions in which the world community should move; and a statement of forest principles for the protection and sustainable management of all of the world's forests. The Framework Convention on Climate Change and the Convention on Biological Diversity were opened for signature by governments, with over 150 countries doing so at Rio de Janeiro. The UNCED also established the Commission on Sustainable Development (CSD) to monitor progress with implementation of Agenda 21.

New Zealand played its full part in the UNCED process. The development of the New Zealand approach involved consultation with a wide range of interests, including government departments, environment and development groups, business interests and 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, 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 on 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 about NZ$10.4 million to the 1994–96 replenishment of the Global Environment Facility which provides funding for projects addressing four global environmental problems (climate change, biodiversity loss, ozone depletion and international waters). A further contribution of NZ$8.3 million to a second replenishment of the facility was agreed in 1998 and is to be drawn down over a 10-year period. New Zealand participated actively 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 was 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 Islands 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, and in the 1999 UN Special Session to review the Barbados Programme of Action. In 1995 New Zealand signed the Waigani Convention to Ban the Importation into Forum Island Countries of Hazardous and Radioactive Wastes and to Control the Transboundary Movement and Management of Hazardous Wastes within the South Pacific Region.

Domestic implications. Having ratified the UN Framework Convention on Climate Change (UNFCCC) in September 1993. New Zealand, along with other developed countries, has an obligation to reduce its emissions of greenhouse gases and to protect and enhance (forest) sinks. New Zealand must report its progress in annual greenhouse gas inventories, and detail its policies, measures and associated greenhouse gas projections in national communications periodically.

The current Labour/Alliance Coalition Government has noted that New Zealand needs to improve its record in greenhouse gas control and its knowledge of the impact of climate change. The Government has announced that it aims to ratify the Kyoto Protocol by mid-2002 when the Rio Plus 10 earth summit meets.

Under the Kyoto Protocol, assuming it is ratified, New Zealand is required over the first commitment period 2008–2012 to return emissions of greenhouse gases to 1990 levels, on average. Current projections are that CO2 emissions from energy and industry will have increased by about 40 percent. However non-CO2 emissions which in total represent about 60 percent of equivalent greenhouse gases (primarily ruminant methane and nitrous oxide from agricultural soils) are expected to be lower than 1990 levels due to lower agricultural production levels.

The protocol allows developed countries some flexibility in meeting their targets including the opportunity for international emissions trading, credit for projects in developing countries under the Clean Development Mechanism and recognition for some forest activities that sequester carbon (i.e. sinks).

The Government has formed a ministerial group on climate change to oversee the domestic programme and ensure that it meets the ratification schedule. Early indications are that the Government will especially push for the early implementation of practical measures in the energy efficiency and conservation areas, including transport. There is expected to be a close link between climate change policy and the Energy Efficiency Strategy which is to be developed as a result of the recently passed Energy Efficiency and Conservation Act.

Announcements of Government policy to address emissions across all sectors are expected in stages. Timing of the announcements will depend on the need for further analysis and stakeholder consultation. Legislation that lays out how New Zealand plans to meet its protocol commitments will need to be passed prior to ratification.

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; about 3,500 reserves, including marine 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 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 conflicts with the aims of the act. Development in wilderness areas within national parks 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.

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 Ngāti 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. They 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 sea lion. 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. The total area of the national reserves is 96,300 hectares.

Scientific reserves – are generally smaller areas reserved to protect examples of rare or endangered plants, animals or unique geographic features for scientific research or education. Entry may be prohibited if this is considered necessary to prevent disturbance. Their total area is 10,300 hectares.

Secondary school students march in support of the environment and conservation issues, 1974.

Whale environment. The International Whaling Commission (IWC) has established two large whale sanctuaries. The Indian Ocean Whale Sanctuary was set up in 1978, and the Southern Ocean Whale Sanctuary in December 1994. All New Zealand waters south of 40° are included within the latter. Although all whales arc supposedly fully protected within these sanctuaries, Japan has lodged an objection to the inclusion of the Southern Hemisphere minke whales in the Southern Ocean Whale Sanctuary, and continues to kill 440 minke whales a year from sanctuary waters, including the Ross Sea, for the purposes of ‘scientific research’.

WHALE SANCTUARIES

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). Their total area is 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. Their total area is 18,500 hectares.

Marine reserves and parks

New Zealand's sixteenth reserve and largest mainland marine reserve, Te Tapuwae o Rongokako, at 2,450 hectares, was formally opened in 1999. It is situated 16 kilometres north of Gisborne. The Kermadec Islands Marine Reserve is the largest reserve at 748,000 hectares. 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 were gazetted in the years since 1990: 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), Piopiotahi (690 hectares), Pohatu Marine (218 hectares), Te Angiangi Marine Reserve (446 hectares), Pollen Island (500 hectares) and Long Bay-Okura (980 hectares). A 948 hectare marine reserve between Cable Bay and the Glen, north of Nelson, was approved by the Minister of Conservation in 1999. When gazetted, it will bring the total number of reserves to 17.

There are two marine parks, Mimiwhangata and Tawharanui, protected by fisheries regulations. The Sugar Loaf Islands, previously a marine park, are now a marine protected area under their own act.

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 1km 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 Ngā 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 Ngā Whenua Rahui Fund uses a range of mechanisms to achieve protection, with covenanting being the most suitable. Iwi perceive the use of covenants acceptable in lessening the sense of alienation from the land. Ngā Whenua Rahui in particular wants to encourage 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. Ngā 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 14 conservation boards serviced by the Department of Conservation (DOC). Conservation boards are statutory bodies that provide community advice on the conservation areas, policy, activities and responsibilities of DOC. They ensure the community has a voice in conservation management and represent the long-term public interest, including that of tangata whenua, in conservation.

New Zealand Fish and Game Council. This council represents nationally the interests of anglers and hunters, and provides coordination 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 assessing 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 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.

At June 1999, there were 1,251 registered covenants protecting natural features on 47,503 hectares of land throughout New Zealand. Of the 101 covenants registered in the year to 30 June 1999, 84 protected indigenous forest blocks, 16 protected wetland areas and one an arboretum.

The trust also owns property, most of which has been gifted or bequeathed and encompasses a range of natural, cultural, scientific or aesthetic values.

In 1999 the trust received an operating grant of $1,193 million from the Government. It also generated funds from its own activities and investments.

New Zealand Historic Places Trust. This is a non-profit organisation which exists to identify, record and preserve New Zealand's historic buildings, archaeological sites and wāhi tapu, 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 non-governmental organisations

New Zealand has many private organisations actively involved in conservation and environmental issues. These vary from local clubs concerned with the protection or restoration of the local environment to national and international groups concerned to preserve the environment for its ecological, scientific, recreational or scenic value.

The Royal Forest and Bird Protection Society is the oldest environmental NGO with branches in most cities and many towns. Federated Mountain Clubs is a national federation of recreation groups and has a strong environmental focus. Greenpeace New Zealand has the largest membership and is based in Auckland. Environment and Conservation Organisations of New Zealand (ECO) is a national umbrella group of around 70 large and small organisations. The Bush Society is a network of ecological restoration groups.

Contributors

16.1Land Information New Zealand; Māori Land Court; Quotable Value New Zealand; Department of Conservation; Land Corporation Limited.
16.2Ministry for the Environment; Ministry of Foreign Affairs and Trade; Ministry of Commerce; Ministry of Agriculture and Forestry.
16.3Department of Conservation; Queen Elizabeth II National Trust; New Zealand Fish and Game Council; New Zealand Historic Places Trust; ECO.

Special articles

‘Environment’, Cardno, Blair and Goodyear, Rosemary, Regional and International Statistics, Statistics New Zealand; Māori Trustee; Ministry for the Environment; Royal Forest and Bird Protection Society; Department of Conservation; Environmental Risk Management Authority; Antarctica New Zealand; Ministry of Foreign Affairs and Trade; Survey Board of New Zealand; New Zealand Geographic Board.

Further information

Land resources and ownership

Annual Report. Land Corporation Limited.

Annual Report New Zealand Valuation (Parl paper G.26).

Annual Report of Terralink NZ Limited.

Conveyancing Bulletin. Butterworths (eight times a year).

Geographic Information: Australian and New Zealand land use codes. 1999. Wellington Standards, New Zealand.

Listings of rural, commercial, and industrial sales. Quotable Value New Zealand (quarterly).

Residential Sales Summary. Quotable Value New Zealand (quarterly).

Report of the Ministry of Justice (Parl paper E.5).

Report of the Department of Survey and Land Information (Parl paper C.14).

Rural Property Sales Statistics. Quotable Value New Zealand (six-monthly).

Urban Property Sales Statistics. Quotable Value New Zealand (six-monthly).

Environmental and resource management

Air Quality, Climate Change and the Ozone Layer – Environmental Statistics Series. 1998. Statistics New Zealand.

Hackwell, K and Bertram, G 1999. Pests and weeds: The cost of restoring an indigenous dawn chorus: a blueprint for action against the impacts of introduced pest organisms on the New Zealand environment. Wellington; Conservation Authority.

Managing our impacts of New Zealand's Marine environment. 1999. Ministry for the Environment.

Measuring up: New Zealanders and the environment. 1993. Statistics New Zealand.

New Zealand's National Report to the United Nations Conference on Environment and Development. 1992. Ministry for the Environment and MERT.

Statistics of the Forests and Forest Industries of New Zealand. Ministry of Forestry (annual).

Summary of Environment 2010 Strategy. 1994. Ministry for the Environment.

Toward a New Zealand definition of hazardous waste: issues and options. 1999. Ministry for the Environment.

National parks and reserves

Annual Report of the Department of Conservation (Parl paper C.13).

Report of the New Zealand Conservation Authority (Parl paper C. 10) (annual).

Report of the Queen Elizabeth the Second National Trust (Parl paper C.2) (annual).

Chapter 17. National economy

The 'Kindle Club', 1932, set up to provide unemployment relief work.

The economy

Introduction

For the New Zealand economy, the 20th century divides into three. At its beginning, New Zealand was just starting to benefit from the impact of refrigeration. Real incomes were growing and this was translating into private consumption, while banks and public institutions were enthusiastically erecting buildings which at the end of the century were often the focus of conservation issues.

The Depression of the 1930s introduced the next major change of direction. In an attempt to avoid international determination of local living standards, the New Zealand Government turned to 'insulationism'. For 50 years, security often overshadowed growth as a policy objective. Living standards stabilised, and then rose. But gradually it became evident that living standards in New Zealand were not as high by international comparison as they had been, and dissatisfaction grew. Structural problems emerged in the economy, particularly growing foreign debt. From 1984, a new Government reoriented policy towards encouraging the use of New Zealand resources to service international demand.

Each of these major changes built on what had been achieved, and economies do not change direction without reservations and hesitations. Furthermore, the broad trends are often apparent only with hindsight. Contemporary preoccupations were with more specific events and institutions such as the Arbitration Court, the establishment of producer boards, import licensing and exchange controls, and corporatisation and privatisation.

By the end of the 20th century, New Zealand was a much richer and more complex society and economy than it was in 1900. The population had grown almost five-fold and had an older age profile and more balanced sex ratio than at the start of the century. New Zealanders also had more educational experience, lived longer and on average exercised command over a much greater range of goods and services. But at both ends of the century they debated how they wanted economic and social development to proceed. In 1900, there was disagreement over whether the Liberal Government had really taken advantage of the opportunities of refrigeration, or whether it had resorted profligately to foreign borrowing and revealed the futility of its innovations; at the end of the century there was further questioning of social and economic trends. In both cases, there was little positive wish to reverse specific changes, but many claims that change was too fast and that modifications should be imposed.

The 19th century background

In the early period of Māori and European contact, Māori were eager participants in economic activity and development. Māori, however, were quickly outnumbered by British and other migrants. In addition, the population was depleted by newly introduced diseases and conflict with the British. By the end of the century, the New Zealand economy was firmly based on the European mould. Current efforts to rectify breaches of the Treaty of Waitangi owe a great deal to the injustices that accompanied the process by which the economy developed.

The development of the New Zealand economy was as part of the international economy. Initially, local resources which were portable could simply be recovered and transported. For example, gold contributed over 50 percent of total exports in the early 1860s. But that was a brief and unrepresentative experience. New Zealand's principal resource was the combination of land and climate which provided a long grass-growing season and made it possible to rear farm animals cheaply. Wool grown in New Zealand could compete successfully in the North Atlantic economy, while providing incomes in New Zealand which were comparatively high. Exports financed a wide range of imports so New Zealanders had much the same pattern of consumption as members of the industrialised countries of Europe and North America, and other similar economies such as Australia.

The New Zealand economy was therefore built around trade in agricultural products. At the turn of the century meat, wool and dairy products made up over two-thirds of New Zealand's exports.

The high incomes which could be earned in New Zealand attracted a continuing inflow of immigrants and induced a high rate of natural population increase. Most people did not work directly on farms but in urban centres. Agriculture required many services and inputs, and even before the development of refrigerated products, exporting was preceded by some processing. Some imports could be transported more cheaply in bulk or as components, with the final packaging or assembly performed locally. New Zealand towns, while small by international standards, supported economic activity for which both production and consumption occurred entirely within New Zealand. 'Modernisation' was significantly different from the kind of 'industrialisation' occurring elsewhere. In this sense it is possible to describe New Zealand as a 'born free' economy, one which achieved high income levels without industrialisation, although this didn't happen without hard work in agriculture, urban industries and services, and in the households of farmers and others.

As shown in the graphs of major export markets and import sources, New Zealand's trade in the refrigeration boom was concentrated on Britain. In 1900, 82 percent of New Zealand's exports went to Britain. Britain did not restrict imports and had a strong demand for New Zealand products. In turn British goods satisfied a large part of consumption demand in New Zealand, making up almost two-thirds of imports at the turn of the century. This was also convenient for firms which could organise both exporting and importing. The political relationship between Britain and New Zealand was of secondary importance – New Zealand very early gained de facto control of its own trade relations – and while New Zealand governments provided some tariff preferences for British goods, they were not of great importance.

Insulationism

The refrigeration boom petered out in the 1920s and ended in the Great Depression of the 1930s. For trading patterns, the key event was not the Great Depression itself, but the introduction of import licensing and exchange controls in December 1938. As incomes in New Zealand recovered from depression levels, the country's demand for imports rose. Faced with a balance of payments crisis, and unwilling to restrain imports by deliberately cutting incomes, the Government attempted instead to protect overseas reserves by licensing commodity imports and instituting exchange controls for other items involving overseas payments.

Import and exchange controls varied in severity over time and gradually declined in importance before their abolition in 1984 (see box on page 382, 'Controlling merchandise imports'). They survived largely because of the protection they afforded particular industries.

Although import and exchange controls were introduced mainly because of a balance of payments crisis, their protective implications were quickly recognised. Politicians defended the controls for their ability to promote industrial growth, even though they were well aware that New Zealand's real income was reduced when local industry grew as a result of the exclusion of cheaper imports. The profits and jobs of many firms came to depend on the shelter afforded by import controls, and the fear that they might be jeopardised made it politically difficult to manage the controls to contain foreign exchange payments within the limit of export earnings. And yet workers in protected firms might have contributed more income in other occupations. In retrospect, the 1938 measures can be seen as a crucial component of the post-depression policy of 'insulating' the New Zealand economy from overseas influences. As such, they mark a significant discontinuity in the country's economic history.

The initial impact of the controls on trade patterns was to intensify concentration on Britain. The Labour Government even planned a specific trade agreement with Britain. But that thinking was outmoded and from the 1950s New Zealand's trade, as shown in the graph Exports, became more geographically diverse. The big change was the growth of all markets other than the United Kingdom. In the somewhat unusual early 1950s, Britain took up to 80 percent of New Zealand's exports; by the end of the century the analogous figure was about 6 percent.

IMPORTS
By country of origin

EXPORTS
By destination

Diversification

In the post-war era, demand in Britain for New Zealand's exports did not grow enough to satisfy New Zealand aspirations. Britain was growing less rapidly than many other countries, and increasingly wished to reserve its domestic market for its own farmers. From the late 1950s onwards, there was always the prospect that Britain would eventually join the European Economic Community (EEC) and accede to its protectionist regime for agriculture. The objective for New Zealand therefore became diversification, both of markets for traditional exports, and of the range of goods exported.

There was considerable success in this endeavour. Even by the time Britain joined the EEC in 1973, it took less than 20 percent of New Zealand's exports. Over the same period, New Zealand's exports became more varied than the traditional frozen lamb, wool, and butter and cheese. Much diversification occurred within agriculture, most obviously in the widening range of dairy products and the growth of beef exports. Furthermore, forest products became an important export. There were moves towards exporting manufactured goods, eventually generating a wide range of exports. By the end of the 20th century, manufactured goods and machinery and transport equipment made up 29 percent of New Zealand's exports, compared to just over 1 percent in 1950. Meat, dairy and wool – the 'traditional exports' – provided only 33 percent of total exports by the end of the century.

Towards the end of the 1960s, there were hopes that government constraints on New Zealand's growth rate could be removed. In 1967, the Government took the opportunity created by a realignment of sterling with other international currencies to devalue even further than sterling. New Zealand production became more competitive, especially for manufactured goods in Australia. Further, international commodity prices boomed, mainly in response to the impact of the Vietnam War on the United States economy.

The hopes proved to be misplaced. There were many reasons, but the main one was that in 1973, Middle East oil producers succeeded in implementing and sustaining a very sharp increase in the price of oil. In effect, a significant slice of world income was redistributed away from oil importers to oil producers, and New Zealand's export markets, although markedly more varied than they had once been, were overwhelmingly oil importers. Diversification proved to be no answer when all markets contracted together.

Government and development

In the 19th and early 20th century, there was little interest anywhere in the idea of real income per capita. However, New Zealanders were aware that their standards of living were better than those of Britain, and the government sought to maintain that position while building a larger population. The objective of 'development' involved achieving extensive growth while maintaining average real incomes. Contemporary discussion focused on concrete examples of growth, such as new railways, new industries, or newly-farmed land rather than abstract concepts. The Government was directly responsible for building and operating railways, and also provided insurance and financial services where it was judged useful to achieving this 'development'. Governments depended heavily on customs duties for their revenue and, in designing tariffs, preference was given to activities which were established in New Zealand although, as far as possible, not at the expense of exporters.

The government's role was largely supplementary to the private sector rather than seeking to control it. It was nevertheless a major role, illustrated by the extent of government expenditure on public works. The activity is best symbolised in the creation of a railway network which reached a peak of about 5,700km in the early 1950s, but just as important was the creation of ports which could receive overseas ships – and there were over 20 of them in the 1870s, after which there was some slow rationalisation. Public works accounted for 19 percent of government expenditure in 1900 and, although this figure fluctuated over the years, it generally remained at 20 to 30 percent until beginning to decline steadily from the 1960s.

As we saw, a major addition to the development role of government came with import and exchange controls and 'insulation'. However, it was overtaken by World War II. All countries use controls in wartime but what was unusual in New Zealand was that they were associated with deliberate government policy and extension of the welfare state rather than with a wartime emergency.

At the end of World War II, many controls were dismantled, but not import and exchange controls. Throughout the 1950s and 1960s, the basic structure of the economy depended on them. Import controls did not work through limiting their total value, but through ensuring that imports were mostly materials and equipment used in New Zealand activity. Businesses in New Zealand knew that they would be protected from competing final goods while generally being able to acquire needed inputs. Domestic investment was thereby enhanced since entrepreneurs could be confident about their markets, and even if they had misjudged the level of demand, errors would not be greatly penalised since population and income growth would before long enable the investment to be utilised. Because of the high levels of private investment, New Zealand maintained a remarkably low level of unemployment (less than 1 percent until the mid-1970s). High levels of employment and aggregate demand meant that there was always a tendency for the demand for imports to run ahead of what could be financed from export receipts -the economy experienced a foreign exchange constraint. Bank credit was subject to direction by the Reserve Bank and was a major instrument in reducing demand when necessary. The government's own substantial investment programme could also be used to some extent.

The disadvantage of these arrangements was that they did not deliver economic growth as fast as was being achieved overseas. New Zealand gained less than other countries from efficiency promoted by international trade in manufactured goods, and domestic policies also did not direct attention to effective use of resources, except in agriculture. This became more apparent with the international oil crisis of 1973. The Government responded with the 'growth projects', especially after a further rise in the relative price of oil in 1979.

At the same time, reduced real incomes fed anxieties among groups of wage-earners and among recipients of other forms of income that they were not receiving a 'fair share'. Arguments about relative incomes became more bitter. Wage and salary claims were pursued vigorously, and relative levels of professional incomes were guarded jealously. As a consequence, inflationary pressures were intensified. New Zealand's inflation had previously been in line with international trends but eventually became much higher, making it more difficult to evaluate investment projects, and diverting attention from production to securing shelter against the impact of inflation. Prices tripled between 1925 and 1970 and increased 10-fold between 1973 and 1993. Unemployment began to grow. The Government borrowed overseas, initially in line with international recommendations for dealing with the increased financial reserves of oil producers, but the borrowing was maintained for too long, and was and then defended as a sensible way to develop New Zealand's resources while supporting domestic consumption. The Government extended assistance not just to exporters, but also to agriculture, with the result that producers were given no incentive to look at trends in world markets, and much of the benefit went to urban suppliers of inputs to farmers.

The economic achievements of the years between World War II and 1984 should not, however, be overlooked. The diversification process required changes throughout the economy. Agricultural productivity grew substantially – the long-term growth of outputs relative to all inputs was about 1 percent per annum, which does not sound much but is difficult to achieve and adds up. Labour productivity increased dramatically, with output rising while the size of the workforce declined until the late 1960s. The rise in output per employee was partly the result of substitution of machines and other capital equipment for labour. For example, in 1938, the tractor stock was only about one-tenth as big as the more powerful and versatile stock of the 1970s. Also, much of the increase in agricultural capital took the form of buildings and improvements such as drainage and irrigation schemes. These too increased the area of land and the total output which could be managed by one farmer. The amount of land used by farmers remained stable, as new areas brought into cultivation were balanced by farms lost to suburban development.

Substitution of capital for labour increased the complexity of the farmer's task. Greater mechanical expertise was required, and perhaps even more demanding were the difficult decisions to be made about financing capital improvements. Mere substitution of capital for labour does not increase the ratio of output to inputs, and it is higher productivity in this sense that makes a society richer. Farm management in all its aspects – crop and animal husbandry, application of fertiliser, and adjustment of the mix of products to market trends – created real productivity gains. Some other agricultural systems, which were more able to take advantage of the hybrid crops resulting from research in botanical genetics, achieved greater increases. But given the high level of productivity which New Zealand farming had already reached in 1938, and the scientific difficulty of animal improvement, it was a creditable record.

Manufacturing too required competence in handling new technology, whether for processing exports or for serving the domestic market. The range of goods produced expanded as ingenuity throughout the world created new products and brought new machines into use. There was a far greater variety of principal products manufactured in New Zealand in 1976 than in 1951–52, including radios, television sets (black and white, and colour sets), refrigerator-freezers, washing machines, and tumbler-driers. Not all changes were visible to the consumer. For example, motorists noticed little difference in their petrol, but from 1964 it was made from imported crude oil at the Whangarei refinery.

Although not all developments were economic uses of New Zealand resources, they were achievements nevertheless, and they provided employment for a wide range of talents and interests. By the mid-1980s, the issue became the price which New Zealand as a whole was prepared to pay for these social gains, and not surprisingly, there was disappointment for those whose efforts were no longer valued.

Because the productivity of services could not be improved as much as the productivity of processes for making goods, the relative prices of services (for example, barbers, laundries) in New Zealand rose, as they did elsewhere. Resistance to price rises caused personal services to decline while more professional services survived and grew. Personal services were often replaced by home labour with the aid of household durables such as electric razors. The passing of cheap personal services was sometimes regretted, but the loss was simply part of economic growth. Surviving services had to provide incomes equal to those available in other occupations; few personal services could do so.

At the same time, the growing size of the economy permitted more specialisation, especially within those services supplying businesses rather than individuals. An early development was hire purchase facilities. Other services such as guaranteeing mortgages in return for a small commission were added. Finance companies proliferated, and the older banks markedly expanded their range of products. What was sometimes seen as an unsavoury growth of city money-power was simply the reflection in the financial sector of the increased sophistication of economic institutions.

Post-1984

While it is important to recognise the efforts of those who grappled with policy issues, managed business enterprises of all kinds in the 1960s and 1970s, and others in all sectors who worked diligently and intelligently, it is nevertheless true that New Zealand's average income was falling relative to other countries. Although New Zealand's gross domestic product grew quite strongly in the late 1970s and early 1980s, an increasing share of the gains was returned to overseas lenders rather than to New Zealanders, while internal problems were suppressed rather than resolved.

From 1984, there was a major change in policy and in the basic structure of the economy in response to those pressures. Economic policy became focused on efficiency and equity. Both elements were controversial, but throughout the 1980s and 1990s, there was continual and searching scrutiny of what Government should attempt in the economic and social fields, and what instruments would best promote the objectives of government. To describe this as a crusade is not misleading, especially for the Labour Government of 1984–90, which wanted to be seen by historians as a reforming government, comparable with the those of the 1890s and 1930s.

COMPOSITION OF EXPORTS, 1900–1999

Changes were introduced in both the direct activities of the public sector and the legislative and regulatory environment within which the private sector operated. In the public sector, particularly important innovations were the commercialisation and privatisation of government trading activities, and reform of public sector management (in which a key element was a change from funding programmes to purchase by ministers of defined services from government departments). Furthermore, the Reserve Bank was granted a high level of autonomy and charged with controlling inflation, a responsibility which it discharged with great success.

The importance attached to providing an environment in which producers and decision makers were induced to respond to market signals is shown most clearly in the Government's removal of producer subsidies and the reduction of import protection. Encouraging decision makers to respond to market opportunities meant removing barriers in their way, and the Government therefore implemented a process of regulatory reform. The intention was to remove inappropriate regulations, not all regulation. However, as the process started from a position where official controls were excessively detailed, it was not easy to maintain that distinction in popular discussion.

Governments accepted the argument for 'transparency' – that if there are reasons for government to facilitate the operations of some group in society, they should be exposed for public scrutiny and debate. Ironically, the governments involved, both the Labour Government of 1984–90 and its successor National Government of 1990–93, were widely criticised for breaking electoral commitments. There is weight in this argument, which had a part in the 1992 referendum decision to change the electoral system, but it underestimates the difficulty of telling people what they do not want to hear. Whatever the final verdict on that issue, these two governments did engage in an unusually searching analysis of what they were trying to do.

The whole process of restructuring, the reorientation of New Zealand firms and enterprises towards being international businesses rather than providers to a protected domestic market, and the reform of the public sector, had to be managed within an overall stance of fiscal policy. It was not easy for the Government to manage its revenue and expenditure to support the restructuring it wished to promote. On tax policy, the key actions were to implement a switch from direct to indirect taxation (recommended by various bodies since at least 1967) and broadening the tax base to obtain a given total revenue from a lower average tax rate. The switch to indirect tax was achieved through the wide-ranging goods and services tax (GST), a value-added tax implemented with unusually few exemptions and now widely recognised internationally as a model. New Zealanders often felt highly taxed; by international comparisons they were not, but an unusually high proportion of tax came from income tax – 68 percent in the 1970s compared with about 46 percent at the end of the century.

Tax policy was controversial enough, but it was the general stance of fiscal policy which attracted most dissent. The Government chose to withdraw from dealing in foreign currency, and to allow the exchange rate to be determined in a free market. It gave up direct controls on wages, prices and interest rates, but made a determined assault on inflation. Such changes were radical and far from understood. The issues were complex and no action could avoid all problems. The Government's need to borrow required it to offer attractive interest rates, and these attracted investors from overseas as well as within New Zealand. As investment funds flowed into a free foreign exchange market, the exchange rate rose and exporters, both agricultural and otherwise, found their returns from overseas sales worth less in New Zealand currency. Consumers gained from cheaper imports, but the loss of jobs from industry was more visible and painful. While there were some apparent countervailing gains by 1987, the international stock market crash of that year impacted heavily, revealing the unstable nature of some companies which had seemed to prosper in the new environment. The background to all fiscal policy decisions was a level of overseas debt that was regarded as undesirable. There was never any prospect (after the election campaign of 1984) that New Zealand would not be able to meet its obligations, but the level of overseas public debt was high. It was expensive to service, and would become more so if international rating agencies decided that the riskiness of existing instruments had increased. Interest payments on the total debt (and not only on the overseas portion) constituted a significant fraction of total government spending, and reduced the Government's freedom to manoeuvre. The lessons of the 1930s had not been forgotten, but Government's management of its own affairs had become markedly more important than it was in the 1950s and 1960s. There was, therefore, always concern with the level and nature of its expenditure. But that expenditure was critical to activities which were seen by many as essential to the social life of New Zealand. As a result, the reduction of Crown debt from 50 percent of GDP in 1990 to less than 20 percent by the end of the century provoked much controversy about restraints on public expenditure.

Discussion of the budget deficit and the general strategy of fiscal policy is often regarded as technically demanding and of interest only to economists, but it is at the core of a social strategy. The Government's essential policy decisions after 1984 had as many social as economic dimensions: for example, the relative share of adjustment costs borne by those dependent for employment and incomes on the tradeables sector, compared with those similarly dependent on government expenditure. Most important of all to social structures was the judgement that New Zealanders should not force future generations to finance current consumption.

It is conventional now to say that, after 1984, the Government took action in the wrong sequence, that it should have moved first on labour and goods markets and only later deregulated the financial markets. There are obvious intellectual attractions in timing policy interventions according to the relative responsiveness of private sector participants, but such a choice was never available to policy makers. Exchange controls were breaking down anyway in 1984, as they were widely seen to be both ineffective and inappropriate in the face of technical change in communications. It simply was not feasible to delay change in financial markets until after change was implemented elsewhere.

Economic and social strategy did not become any less controversial in the 1990s. What some saw as sensible steps towards using New Zealand resources to satisfy international demand, others saw as a retreat from the civilising role of the State. Many did not see any connection at all between economic growth, the incentive effects of the ratio of welfare benefits to wage levels, and who was responsible for managing telephone services. Most controversial was which education and health services could be allocated by price mechanisms.

Conclusion

The notion of a simple encompassing 'development' role for government, as New Zealand interacted with a predominantly familiar and congenial international economy, certainly did not persist from 1900 to 2000. By the end of the 20th century, the very idea of the importance of the international economy was under some challenge, although more through international debate about the World Trade Organisation than specifically within New Zealand. The idea of merely maintaining income levels while building a more complex society had certainly gone. Although there were worries about environmental costs, there were even more about whether all the changes of the post-1984 era had really been justified by greater real per capita incomes. The gains in labour productivity – real GDP per person employed – are shown in the graph, but they merely begin the analysis of employment and productivity trends. Statistical measurement, whether of 19th century 'progress' or of 21st century ‘sustainable management’, was a constant source of controversy.

The key issues facing the economy at the start of the 21st century also show some continuity. They are the balance of local concerns with participation in the international economy, and the extent to which growth of material prosperity should be sacrificed in the interests of other goals. It appears likely that the early years of the new century will include efforts to modify the international economic impacts on New Zealanders, although not to return to 'insulationism', and to moderate the pace of change even at some cost to income growth. However, many New Zealanders are mobile and will not tolerate great discrepancies between what they can experience in New Zealand and elsewhere, and the range within which governments can modify international influences is modest.

Bibliography

Bassett M 1998. The State in New Zealand: Socialism without doctrines? Auckland: Auckland University Press.

Condliffe J B 1959. New Zealand in the Making. London: Allen & Unwin, 2nd ed.

Condliffe J B 1959. The Welfare State in New Zealand. London: Allen & Unwin.

Dalziel P & Lattimore R (eds) 1999. The New Zealand macroeconomy: a briefing on the reforms. Auckland: Oxford University Press, 3rd ed.

Gould J D 1982. The Rake's Progress? The New Zealand economy since 1945. Auckland: Hodder & Stoughton.

Gould J D 1985. The Muldoon Years: An essay on New Zealand's recent economic growth. Auckland: Hodder & Stoughton.

Hawke G R 1985. The Making of New Zealand: An economic history. Cambridge: Cambridge University Press.

Silverston B, Bollard A & Lattimore, R (eds) 1996. A Study of Economic Reform: The case of New Zealand. Amsterdam: Elsevier.

Inaugural New Zealand National Economy conference, c1931, where representatives of all political parties discussed solutions to the worsening economic situation.

17.1 National accounts

Every day there are countless transactions taking place in the New Zealand economy:

  • businesses are buying and selling goods and services

  • government is collecting taxes and making transfer payments to beneficiaries

  • individuals are being paid for their labour and using this income to buy their groceries or pay their rent.

Measuring all of these transactions is a huge and complex task but one which is essential if we are to understand how the economy operates. In New Zealand, as in most other countries, this myriad of transactions is classified, measured and recorded in the national accounts. These provide a convenient summary of all of the key economic and financial flows in New Zealand. Moreover, they provide a framework in which to analyse and compare important economic variables such as household consumption and savings. The national accounts are organised within the framework of the New Zealand System of National Accounts (NZSNA). This framework, containing data collected from a wide and varied range of surveys and censuses, provides the necessary basis for subsequent socio-economic analysis.

The national accounts capture all types of transactions. They do so for the economy as a whole, or for certain groups or sectors within it such as business, government or households. This provides information on economic activities such as:

  • The production of goods and services and the costs involved in producing them.

  • The incomes earned by various groups within the economy, and what they do with them.

  • The economic relationship with the rest of the world.

National accounts are produced both annually and quarterly. Annual accounts for the year ended 31 March are published each year. For the latest March year, provisional estimates are prepared only for the consolidated accounts of the nation (see tables 17.2–17.5). Revised estimates for previous years are also prepared along with more detailed breakdowns. 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.

The provisional national accounts in current prices for the year ended March 1999 confirm that economic growth in New Zealand has slowed. Gross domestic product (GDP) in current prices is estimated to have increased by 0.9 percent between 1998 and 1999. Over the same period GDP in constant prices is estimated to have fallen by 0.1 percent. The fall in economic activity was influenced by the downturn in Asian economies which occurred in the first half of the 1998 calendar year, and a second season of drought.

GDP represents the income earned from production in New Zealand, whether that is carried out by New Zealanders or foreign firms operating within New Zealand. It does not measure the final incomes which New Zealand residents earn. Gross national income (GNI), which in the past has been referred to as gross national product, is a better measure of New Zealanders' income or claim on resources, as it excludes income remitted abroad (dividends, interest and other transfers) and includes similar income earned by New Zealanders from overseas investments. Further adjustments, to take account of depreciation and transfers from the rest of world, give an even better measure of income (national disposable income) from which New Zealanders can actually save and consume.

The ratio of GNI to GDP shows what proportion of income from domestic production remains available to New Zealanders after adjusting for net profits, interest and dividends remitted abroad. The ratio remained steady, at over 98 percent, for over 25 years to 1973. Following the oil price rise in 1974, when the New Zealand Government increased its overseas borrowing, the ratio began to fall. The ratio declined markedly through to 1986; thereafter the Government set about reducing its debt. The ratio has since been historically low as the private sector has increased its borrowing with financial market liberalisation and increased foreign ownership of New Zealand business (e.g. banks, Telecom, Tranz Rail, etc). By 1997 the ratio of GNI to GDP had fallen to 92 percent and in the last two years has remained at proportions which are the lowest recorded in the post-war period.

GDP AND GNI
GNI as a percentage of GDP

Explanation of some terms 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 New Zealand publication New Zealand System of National Accounts 1998.

Consolidated accounts of the nation

The consolidated accounts of the nation comprise four accounts:

Gross domestic product and expenditure. Gross domestic product is a measure of the value added from all economic activity in New Zealand. The account shows the various forms of income generated by production, and the categories of the final expenditure on the available goods and services.

National disposable income and its appropriation. National disposable income is the value of income available to New Zealanders, consisting mainly of the incomes generated in New Zealand. Adjustments are made for the income paid to, and received from, the rest of the world. The account also shows that part of disposable income which was spent by New Zealanders on current consumption, and the portion of income which was saved.

Capital finance. Capital expenditure is recorded in this account. The difference between the accumulation of capital assets and the sources of funds (mainly savings and the income set aside for the replacement of capital equipment) gives a residual to be borrowed from (or lent to) the rest of the world.

External transactions. This account brings together all transactions with the rest of the world. The residual ‘surplus of the nation on current transactions’, when adjusted for net capital transfers, records New Zealand's net borrowing from the rest of the world.

Table 17.1. PRINCIPAL AGGREGATES: 1964–1999

Year ended MarchGross domestic product (GDP)Gross national income(GNI)Net national income(NNI)Net national disposable income(NNDI)GDP at 1991/92 prices
(1)(2)(1)(2)(1)(2)(1)(2)(2)

1Excludes stock valuation adjustment.

2Includes stock valuation adjustment.

GNI = GDP plus net primary incomes from the rest of the world.

NNI = GNI less consumption of fixed capital.

NNDI = NNI plus net current transfers from the rest of the world.

Source: Statistics New Zealand

 $(million)      
19643,397.3,377.3,112.3,109.39,302
19653,721.3,699.3,412.3,410.41,704
19664,012.3,981.3,664.3,644.44,245
19674,190.4,148.3,775.3,754.45,923
19684,375.4,328.3,938.3,921.45,527
19694,642.4,610.4,184.4,174.46,497
19705,133.5,092.4,626.4,613.48,845
19715,832.5,791.5,268.5,260.50,653
19726,871.6,834.6,276.6,306.51,942
19737,887.7,846.7,223.7,267.54,244
19749,181.9,162.8,455.8,501.58,136
197510,107.10,049.9,226.9,245.60,479
197611,712.11,579.10,604.10,628.61,497
197714,162.13,936.12,820.12,828.61,586
197815,51114,97015,21414,63414,00813,46714,01313,47259,992
1979.16,958.16,549.15,252 15,21960,115
1980.19,795.19,335.17,867 17,87861,649
1981.22,992.22,481.20,809 20,84962,312
1982.27,891.27,276.25,350 25,38265,374
1983.31,409.30,551.28,305 28,41665,793
1984.34,839.33,564.30,875 30,99867,595
1985.39,346.37,344.34,103 34,29370,929
1986.45,282.42,762.38,936 39,12571,476
1987.54,725.51,958.47,466 47,74572,973
1988.61,641.58,371.53,142 53,37473,275
1989.66,454.63,136.57,372 57,58072,989
1990.70,773.66,003.59,834 60,07973,607
1991.72,248.68,005.61,480 61,60473,174
1992.72,277.67,853.60,969 61,08572,278
1993.74,578.71,514.64,111 64,20073,124
1994.80,824.76,867.69,167 69,43877,740
1995.86,556.81,819.73,633 73,81381,920
1996.91,461.85,614.76,952 77,03885,016
1997.94,940.87,011.77,796 78,52987,211
1998.98,025.91,218.81,517 81,99388,949
1999.98,913.91,302.81,177 81,51788,872

Table 17.2. GROSS DOMESTIC PRODUCT AND EXPENDITURE

ItemYear ended 31 March
199419951996199719981999
Source: Statistics New Zealand
 $(million)
Compensation of employees35,26337,52339,75341,97943,32343,388
Operating surplus26,75728,99730,55030,69031,68932,076
Consumption of fixed capital7,7008,1858,6619,2149,70210,125
Indirect taxes11,40812,17012,81013,37113,62313,627
Less subsidies304319313314312302
Gross domestic product80,82486,55691,46194,94098,02598,913
Final consumption expenditure – general government12,57812,53513,21813,80514,76915,139
private49,02652,94356,57659,62562,12464,274
Value of the physical increase in stocks1,7291,4381,161689885-128
Gross fixed capital formation14,76817,60719,25120,23619,82118,996
Gross national expenditure78,10184,52290,20694,35597,59998,289
Exports of goods and services25,31127,17327,42327,54028,45930,328
Less imports of goods and services22,58825,13926,16926,74527,80529,677
Expenditure on gross domestic product80,82486,55691,46195,14998,25398,940
Statistical discrepancy000-209-229-26

Table 17.3. NATIONAL INCOME AND OUTLAY

ItemYear ended 31 March
199419951996199719981999
Source: Statistics New Zealand
 $(million)
Final consumption expenditure
    government – central10,88710,76111,33811,82612,81013,088
    government – local1,6921,7741,8801,9791,9592,051
    private – households48,08151,95955,56458,52661,02363,122
    private – non-profit organisations serving households9459831,0121,0991,1021,152
Savings7,8348,3377,2455,0995,1002,104
Appropriation of national disposable income69,43873,81477,03978,52981,99381,517
Compensation of employees35,26337,52339,75341,97943,32343,388
Compensation of employees from the rest of the world, net
Operating surplus26,75728,99730,55030,69031,68932,076
Property and entrepreneurial income from rest of world, net-3,957-4,737-5,847-7,930-6,806-7,611
Indirect taxes11,40812,17012,81013,37113,62313,627
Less subsidies304319313314312302
National income69,16773,63376,95277,79681,51781,177
Current transfers from the rest of the world, net27118086733476340
National disposable income69,43873,81477,03978,5281,99381,517

Table 17.4. CAPITAL FINANCE

ItemYear ended 31 March
199419951996199719981999

1Includes all government-owned producer enterprises.

Source: Statistics New Zealand

 $(million)
Value of the physical increase in stocks1,7291,4381,161689885-128
Gross fixed capital formation private12,78715,28017,01417,60116,91816,393
central government11,1481,4521,3301,6271,8161,605
local government18338749071,0081,0871000
Purchase of intangible assets from rest of world, net------
Net lending to rest of world78-1,060-2,371-4,958-5,501-6,509
Gross accumulation16,57417,98518,04115,96715,20512,361
Savings7,8348,3377,2455,0995,1002,104
Consumption of fixed capital7,7008,1858,6619,2149,70210,125
Capital transfers from the rest of the world, net1,0411,4632,1351,445175105
Statistical discrepancy00020922926
Finance of gross accumulation16,57417,98518,04115,96715,20512,361

ANNUAL REAL GDP CHANGE
Annual change in real GDP and real GDP per head

SAVING AND BORROWING
National savings and net overseas borrowing

BALANCE AND DEFICIT
Balance of trade and the current account deficit

Table 17.5. EXTERNAL TRANSACTIONS

ItemYear ended 31 March
199419951996199719981999
Source: Statistics New Zealand
 $(million)
Current
Exports of goods19,67020,74320,30520,73221,86322,790
Exports of services5,6426,4307,1186,8076,5977,538
Compensation of employees from the rest of the world------
Property and entrepreneurial income from the rest of the world7785611,2131,0791,4381,359
Other current transfers from the rest of the world7758847901,3751,1741,136
Current receipts26,86428,61929,42629,99431,07232,823
Imports of goods17,80820,03220,84321,25422,00123,031
Imports of services4,7805,1075,3265,4915,8046,646
Compensation of employees to the rest of the world------
Property and entrepreneurial income to the rest of the world4,7355,2987,0609,0098,2448,971
Other current transfers to the rest of the world504704704643698797
Surplus of the nation on current transactions-963-2,523-4,506-6,403-5,676-6,614
Current disbursements26,86428,61929,42629,99431,07232,823
Capital
Capital transfers from the rest of the world, net1,0411,4632,1351,445175105
Surplus of the nation on current transactions-963-2,523-4,506-6,403-5,676-6,614
Capital receipts78-1,060-2,371-4,958-5,501-6,509
Net lending to rest of world78-1,060-2,371-4,958-5,501-6,509
Capital disbursements78-1,060-2,371-4,958-5,501-6,509

From 1994 to 1996, there was a marked improvement in the level of national savings. This was in part attributable to the Government running budget surpluses over the same period, surpassing $3 billion for the June 1996 year. It has used the surplus to retire public debt. However, despite this savings improvement New Zealand continues to be a net borrower from abroad – a situation which has persisted since the mid-1970s (1994 being a notable exception). Most of the overseas borrowing is now by the private sector with business savings and depreciation being insufficient to fund increases in business investment.

In the year to March 1999, the two key components of national income – employment income and business profits, measured in current prices – recorded little growth. In spite of this sluggishness, income remitted out of New Zealand by foreign investors increased while there was a drop in dividends earned by New Zealand companies from overseas investments. Furthermore, with increases in both private and government spending, national savings fell to the lowest level recorded in New Zealand since the 1970s. As a percentage of national disposable income, savings at 2.6 percent were the lowest recorded since the series began in 1962.

With the level of savings historically low, the need to increase borrowing has been further exacerbated by the decrease in capital income brought in by migrants, which, after peaking in 1996 at more than $2 billion, has been negligible in the last two years. The result has been that New Zealand's level of international borrowing rose $1,008 million in 1999 to the highest level recorded. At $6,509 million, net external borrowing was 6.6 percent of GDP.

New Zealand's transactions with the rest of the world in current prices continue to be characterised by a surplus on trade in goods and services. The surplus, however, continues to be more than offset by a deficit in net investment income flows and other transfers, resulting in an overall current account deficit. This deficit, offset by any net capital transfers, must be financed by overseas borrowing. Since 1994, the current account deficit has increased as real import growth has outstripped that for exports, and as investment income flows abroad have remained high.

Gross domestic product at constant prices

Gross domestic product (GDP) and expenditure on GDP at constant prices are calculated by removing the effects of price changes from current price production accounts and expenditure totals respectively. The constant price series are valued at 1991/92 prices.

Tables 17.6 and 17.7 contain production-based GDP statistics. 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 estimate 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 Statistics New Zealand's publication Quarterly Gross Domestic Product, Sources and Methods.

Industry groups are combined to form the following broad groupings:

  • Primary industries (agriculture and hunting; fishing; forestry and logging; mining and quarrying),

  • Goods-producing industries (manufacturing; electricity, gas and water; construction).

  • Service industries (wholesale trade; retail trade; restaurants and hotels; transport and communications; finance, insurance, real estate and business services; personal and community services).

The 'unallocated' category includes unallocated indirect taxes (import duties, GST and taxes on capital transactions) and the nominal industry.

Business activity (table 17.7) fell by 0.2 percent during the year ended March 1999. Growth in business activity peaked in 1994 with an annual rate of 7.2 percent. Since then the rate of growth has declined each year. The fall in the latest year was consistent across primary and goods production industries with the largest decrease in 1999 occurring in manufacturing.

The effects of two consecutive dry summers proved difficult for farmers. The falls in meat and dairy production carried through into primary food manufacturing, which fell 9.0 percent. The largest fall in manufacturing, however, occurred in the machinery and equipment manufacturing industry, with the closure of local car assembly plants and restructuring being the main cause.

Forestry and logging made a good recovery following a dramatic slump with the downturn in Asian markets, but activity was still down for the year as a whole. The sluggish housing market in the first half of the year resulted in total construction activity falling markedly, by 6.7 percent for the March year.

Although service industries recorded an annual growth rate of 2.4 percent, the rate has continued to slow from the high of 7.0 percent recorded in 1995. Over the last six years, the volume of activity in the communications industry has almost doubled with telecommunications being the main driver. The transport industry remained subdued for most of the year, but picked up in the March quarter on the back of recovery in the export markets for logs, while activity in distribution was buoyed by consistent strength in consumer spending throughout the year.

Table 17.6. GROSS DOMESTIC PRODUCT AT CONSTANT PRICES1

Year ended MarchBusiness activity2General governmentOwner-occupied dwellingsUnallocatedGross domestic product
Primary industriesGoods-producing industriesService industriesTotal business activity

1Base is year ended 31 March 1992.

2See table 17.7 for breakdown of broad groupings.

Source: Statistics New Zealand

 $(million)
19895,93919,20331,34556,4878,1355,7052,66272,989
19905,78319,18531,71456,6828,3115,7312,88473,607
19916,54018,11931,32155,9808,5096,0022,68473,174
19926,67817,40231,16955,2498,4716,2142,34372,278
19936,02717,78632,17555,9888,6186,2692,24773,124
19946,89919,04134,10360,0438,8306,4172,45077,740
19956,77020,41136,47763,6588,9366,5152,81181,920
19967,09520,98038,41066,4859,0966,6142,81885,016
19977,56621,17339,81968,5589,3286,7102,61487,211
19987,69721,47141,02770,1959,4516,8072,49888,949
19997,45120,61941,98970,0599,4986,9062,41188,872

Table 17.7. BUSINESS ACTIVITY AT CONSTANT PRICES1

Year ended MarchPrimaryGoods-producingService industries
AgricultureFishing, forestry, miningManufacturingElectricity, gas & waterConstructionWholesaleRetail tradeAccomm., restaurants & hotelsTransport & communicationFinance, insurance & bus. serv, etcPersonal & community servicestotal business activity

1Base is year ended 31 March 1992.

Source: Statistics New Zealand

 $(million)
19894,1541,78514,0171,9803,2065,3203,9471,4275,71911,1113,82156,487
19903,8321,95113,8042,0523,3295,5783,9931,4055,88511,0073,84656,682
19914,5142,02613,1682,1292,8225,5043,9031,3286,01510,7023,86955,980
19924,5172,16112,9062,1072,3895,0983,8441,3016,31010,6423,97455,249
19933,8212,20613,4542,0302,3025,3993,9571,3366,67310,7304,08055,988
19944,6162,28314,3842,1482,5095,7214,1691,4017,26611,1374,40960,043
19954,5552,21515,3732,2242,8146,1404,4791,5368,02511,4254,87263,658
19964,8302,26515,6302,3063,0446,3054,6051,5999,02711,7435,13166,485
19975,2012,36515,7272,2903,1566,3114,6541,6479,59512,1755,43768,558
19985,3202,37716,0992,2763,0966,5194,7521,6629,92812,6605,50670,195
19995,1352,31615,4992,2302,8906,5354,8021,67610,58812,9595,42970,059

Gross fixed capital formation

This records the outlays of producers on durable real assets, such as buildings, motor vehicles, plant and machinery, hydro-electric construction, 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.

Japanese-owned wood products factory at Masterton.

BUSINESS ACTIVITY
Sector contributions to annual change

RATES OF INFLATION
Annual change in CPI and PPI

The slow-down of growth in the economy in recent years has reflected a slow-down in the growth in investment. After peaking at 18.2 percent in the March 1994 year, growth in gross fixed capital formation slowed to 2.4 percent for the year ended March 1998 and then dipped to 1.2 percent in 1999, in line with the contraction in the economy. In spite of this, investment in some asset types increased, most noticeably in plant, machinery and equipment, with smaller lifts in investment on infrastructure and non-residential buildings.

Real investment in housing fell 15.1 percent. Investment did, however, pick up in the December 1999 and March 2000 quarters, after four quarters of decline. The turnaround coincided with mortgage interest rates being at their lowest in more than two decades.

Table 17.8. GROSS FIXED CAPITAL FORMATION: ALL SECTORS BY ASSET TYPE

Year ended MarchResidential buildingsNon-residential buildingsOther constructionLand improvementsTransport equipmentPlant, machinery, and other equipmentTotal
Source: Statistics New Zealand
 $(million)
Current prices
19892,7972,9251,5161629704,52212,893
19903,3422,8121,4771751,6374,86114,303
19913,4202,3921,5651531,4424,82413,796
19922,9501,5961,7521631,2173,85811,537
19933,0971,5311,3941821,6324,44112,279
19943,8061,8451,3562042,0005,55214,769
19954,7052,4241,4421842,4136,43817,607
19965,0662,8671,6962162,5306,88219,262
19975,5312,9851,9642512,8196,68520,236
19985,7092,8962,1472292,1816,66619,824
19994,8782,9192,1842122,1316,67418,998
Constant 1991/92 prices
Year ended MarchResidential buildingsNon-residential buildingsOther constructionLand improvementsTransport equipmentPlant, machinery, and other equipmentTotal
 $(million)
19893,1173,0701,6681641,0294,69913,744
19903,5112,8791,5471791,7584,90214,776
19913,4842,4201,5771541,5194,85114,005
19922,9511,5961,7511641,2183,85711,538
19933,0331,5621,3731701,4734,34711,961
19943,5491,8381,3201911,7095,52514,136
19953,9862,3381,3611622,0526,67716,572
19963,9822,6871,5661902,1627,58218,168
19974,1412,7091,7931912,4738,13719,444
19984,2142,6201,9741761,9388,98219,904
19993,5792,6611,9871681,8989,36719,660

Household sector

Table 17.9 shows the amount of income accruing to New Zealand residents (GNI) which is earned by households in the form of market income (from wage employment, self-employment and net investments) plus the income from imputed home ownership; the amount that is available as disposable income (after receipt of government benefits, payment of income tax and other net transfers); and how much is saved.

Disposable income for households equals market income and imputed home ownership income adjusted for direct taxes paid, government benefits received and other transfers such as gambling, insurance claims received and subscriptions paid to non-profit organisations. Since household incomes are measured before tax, a major outlay for households is income tax. Note that indirect taxes (such as GST) are included in the value of consumer spending on goods and services.

All outlays on consumer goods and services by private households are included. Examples are expenditure on durables such as motor vehicles and furniture, payments made by the government on behalf of households, and the imputed rent of owner-occupied dwellings. Households consist of New Zealand resident individuals and families and consumption expenditure relates to their outlays both within New Zealand and overseas.

Table 17.9. HOUSEHOLD INCOME AND SAVINGS

Year ended 31 March199419951996199719981999
Source: Statistics New Zealand
 $(million)
Gross national income76,86781,81985,61487,01191,21891,302
Gross national income earned by households
     - from employment35,26337,52339,75341,97943,32343,388
     - from business ownership9,0129,79410,89911,07211,01111,539
     - from imputed home ownership5,4745,7646,4736,8777,1847,444
     - from net investment1,9522,0012,1792,2311,8551,562
      Total51,70155,08259,30462,15963,37363,933
less depreciation on own homes507545595651713772
Net national income earned by households51,19454,53758,70961,50862,66063,161
less taxes, fines, fees and ACC levies14,97616,02817,16917,71418,01717,330
plus government grants and benefits13,39913,64914,35315,02315,94016,326
plus other current transfers (net)120-1617653354
      Household disposable income49,73752,14255,91058,88260,61662,211
less consumer spending on goods and services (excl. GST)44,17047,71251,06053,80556,11158,070
less goods and services tax (GST)3,9114,2474,5044,7214,9125,052
      Savings1,654185348355-408-908

Table 17.10. HOUSEHOLD CONSUMPTION EXPENDITURE BY PURPOSE

March yearFood & beveragesClothing & footwearHousingHousehold goods & servicesHealth & medicalTransportRecreation and educationHotels & restaurantsOther goods & servicesNet tourist expend.Total
Source: Statistics New Zealand
 $(million)
Current prices
19896,4282,0067,8204,4882,3066,4133,3893,0194,294-27039,900
19906,9222,1848,4764,6682,4956,8073,5643,2084,822-41542,736
19917,5312,1909,1874,7132,7796,7063,7963,2425,166-37244,936
19927,4632,1239,4474,8253,1496,3073,7803,1895,201-56044,921
19937,6262,1469,5055,1263,3366,2033,9953,3075,235-68545,796
19947,6982,2489,7865,7283,6256,5194,4763,5875,340-92348,081
19958,1342,37010,4206,1913,8357,5115,0634,1145,588-1,26951,959
19968,5252,36911,3966,4604,2808,3405,5234,3976,227-1,95155,565
19978,6922,38312,1726,5694,5028,9715,8634,6186,433-1,67658,526
19989,1112,42712,7666,8534,9278,5036,1784,7816,800-1,32361,023
19999,5752,50913,1727,0285,1678,7346,5414,9046,973-1,48163,122
Constant 1991/92 prices
19897,4642,2209,0464,8883,1406,9113,7893,4325,257-14146,006
19907,2542,3389,1734,8773,0767,2183,7663,4535,338-38346,110
19917,4542,2419,3184,7733,1326,7683,8083,3305,421-31645,929
19927,4612,1229,4474,8273,1496,3083,7763,1905,201-55744,928
19937,5422,1259,5545,0133,2006,1203,8603,2645,149-78445,046
19947,5862,2019,6625,5043,2936,3364,1973,4855,222-98646,502
19957,9642,3389,7825,8743,3847,1404,7113,9325,412-1,24449,293
19968,2112,3629,9266,0933,6457,8125,0174,0955,878-1,74551,286
19978,2942,38510,0616,1463,7368,4335,3544,2035,971-1,42053,164
19988,5142,43210,1976,3723,9928,1385,6034,2596,265-1,05054,721
19998,6622,49310,3346,4923,9798,6135,6694,2706,301-1,35755,459

HOUSEHOLD SPENDING
Changes in spending, by type

While households' disposable income has consistently remained above two-thirds of gross national income, and has been as high as 71 percent, households in recent years have saved very little of it. With consumer spending continuing to increase faster than income, the overall effect has seen households dissaving for a second successive year in 1999, following the level of savings having been negligible in the three previous years, 1995–97.

In real terms, household consumption was up 1.5 percent for the March 1999 year, well below the average increase of 4.0 percent over the previous five years. The high rates of unemployment, which remained around 7.5 percent for the year to March, may have contributed to the expenditure slowing. Apart from the June quarter, consumer spending was strongest for durable goods, noticeably furniture, appliances and cars. The strength of this spending probably reflects the combined effect of interest rates being at low levels after October, tax cuts, cashing in of shares following the AMP demutualisation and lower prices for cars following the removal of tariffs in May 1998.

Expenditure by purpose classifies household spending by the use made of the goods and services purchased. 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.

External trade

In spite of primary production being depressed by the drought and, for part of the year, by the Asian economic downturn, export volumes rose 2.3 percent in the year to March 1999. This was the result of strong growth in the exports of services more than offsetting a fall in the volume of goods exported. Travel services were the main contributors to the lift in total services, with visitor numbers from Australia, the United States and the United Kingdom more than making up for the drop in tourists from Asia.

Growth in imports peaked in March 1995. With the trade-weighted exchange rate moving against importers from April 1997 through to December 1998, the growth in imports has slowed to 3.1 percent. The rise in volumes reflects increased investment in imported machinery, increased household spending on cars following the removal of tariffs, and increased spending by New Zealand tourists overseas, especially in the first half of the March year.

Table 17.11. EXPORTS OF GOODS AND SERVICES

Year ended MarchDairy productsMeat and meat productsSeafoodOther food and beveragesWood and wood productsCrude materialsMachinery and transport equipmentOther manufactured goodsTotal exports of goodsExports of servicesTotal
Source: Statistics New Zealand
 $(million)
Current prices
19892,1642,1507331,3711,1343,9498731,61913,9944,07118,065
19902,2792,4417671,5041,3453,8469611,88615,0314,12219,153
19912,7872,5407561,6131,5243,3561,0692,04215,6874,27419,961
19922,7082,7951,0501,7441,7263,5061,2152,28417,0284,65121,681
19933,2023,1041,1622,0092,0483,4171,2692,58218,7935,09723,890
19943,3093,0121,1731,9132,5333,5051,4182,80819,6695,64525,314
19953,2572,7241,1792,0662,5294,0051,5783,40620,7426,43027,172
19963,2082,6811,2262,1582,6243,8111,6282,97320,3077,11927,423
19973,9562,7281,1292,1172,3443,8181,6582,98120,7326,80727,540
19984,2882,9471,1142,1372,3733,8431,9043,25021,8636,59728,460
19994,8602,8671,2332,4152,3383,6952,0603,31522,7907,54130,332
Constant 1991/92 prices
Year ended MarchDairy productsMeat and meat productsSeafoodOther food and beveragesWood and wood productsCrude materialsMachinery and transport equipmentOther manufactured goodsTotal exports of goodsExports of servicesTotal
 $(million)
19892,4392,7288851,5741,1473,0959521,71414,5354,58219,117
19902,0022,6018681,5801,3063,0089661,88414,2134,43618,649
19912,6632,5189081,8451,5043,0021,0611,94515,4454,39219,837
19922,7092,7961,0511,7441,7253,5051,2152,28717,0334,65121,681
19932,6762,8869741,8081,9143,1431,2582,48017,1405,09322,233
19942,8742,8291,1011,8491,9283,4181,5092,82118,3285,67123,999
19953,2822,8741,0641,9072,0593,5381,8053,11319,6426,38226,024
19962,9293,1241,1682,1912,0793,3781,9133,02519,8076,90126,707
19973,9333,0281,1642,1812,1763,6281,8823,13221,1236,56327,686
19984,3043,2931,1752,2582,2463,5682,2903,40122,5366,24328,779
19994,3972,9431,1792,1222,2213,6072,4263,55222,4457,00429,449

New Zealand wool fashion on the world's catwalks, 1999.

Table 17.12. IMPORTS OF GOODS AND SERVICES

Year ended MarchFood and beveragesMineral fuelsCrude materialsTextiles and clothingChemicalsMetalsTransport equipmentMachinery and electrical equipmentNon-food manufacturesTotal imports of goodsImports of servicesTotal
Source: Statistics New Zealand
$(million)
Current prices
19897796487297861,5835681,4013,0212,06511,5834,00015,583
19909729568181,0252,0117442,2793,5912,47414,8714,06718,938
19919651,2938331,0151,9776221,9474,1162,47015,2374,20319,440
19929841,1068241,0882,0745781,6843,5692,57514,4834,62219,104
19931,1241,1289331,2502,5156672,0184,0322,86516,5335,17521,708
19941,2341,0799671,2542,6887142,3884,5482,93717,8084,78022,588
19951,3501,1069931,4142,8968072,8955,3183,25120,0335,10725,140
19961,3991,2241,0521,3453,0028052,8755,6953,44520,8445,32526,169
19971,4191,4411,0081,3612,9187653,2795,5973,46521,2555,49126,746
19981,5731,3781,0591,5453,0527633,0885,7933,75322,0015,80027,801
19991,7501,3681,1511,5803,4447483,1685,8653,95823,0326,65029,675
Constant 1991/92 prices
Year ended MarchFood and beveragesMineral fuelsCrude materialsTextiles and clothingChemicalsMetalsTransport equipmentMachinery and electrical equipmentNon-food manufacturesTotal imports of goodsImports of servicesTotal
$(million)
19898509357658851,4566271,6632,9982,18512,3655,12917,495
19909941,0448501,0951,9177012,6163,4962,51715,2294,69519,924
19919781,1308271,0681,9326122,1654,1152,53715,3654,48719,852
19929851,1078231,0892,0745771,6853,5702,57314,4834,62219,104
19931,0851,0799211,1922,5276611,7513,7672,67215,6564,86020,516
19941,2431,2001,0391,2342,9088001,9474,4062,77217,5494,60222,151
19951,3631,3361,0401,3923,2378912,3465,5603,12120,2865,02225,309
19961,4501,4901,1011,3423,3328292,3406,5233,32921,7355,43627,171
19971,4431,6651,0861,3983,5168582,7837,1333,51823,4035,72629,130
19981,5501,6201,1111,5123,6388312,5588,0593,78724,6645,86730,535
19991,6181,8331,1421,4143,7997842,6738,3733,83425,4746,01231,486

Expenditure on GDP: summary

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. Statistics measuring expenditure on GDP are summarised in table 17.13.

Table 17.13. EXPENDITURE ON GROSS DOMESTIC PRODUCT

Year ended MarchFinal consumption expenditureIncrease in stocksGross fixed capital formationGross national expenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDP
PrivateGeneral government
Source: Statistics New Zealand
 $(million)
Current prices
198940,52411,023-6112,89364,38018,06115,58366,858
199043,45611,7421,40614,30270,90719,15218,93871,121
199145,75812,293-11813,79471,72719,96119,44072,248
199245,80612,2668511,54069,69821,68319,10372,278
199346,68012,68275712,27872,39623,89021,70874,577
199449,02912,5791,72914,76978,10425,31422,58880,830
199552,94312,5351,43817,60784,52427,17225,14086,556
199656,57613,2181,16119,26590,20727,42126,16991,460
199759,62513,80569020,23694,35627,54026,74595,149
199862,12414,76988519,82497,59828,45927,80598,252
199964,27415,139-12818,99898,28930,32829,67798,940
Constant 1991–92 prices
198946,70511,882-15913,74472,17219,11517,49573,794
199046,86112,1851,14814,77774,97318,64719,92473,696
199146,73812,2728214,00473,09519,83719,85273,081
199245,80612,2668511,54069,69821,68319,10372,278
199345,94612,63359211,96171,13222,23320,51672,849
199447,48712,4971,42214,13675,54323,99922,15177,391
199550,35012,4071,42516,57380,75526,02425,30981,469
199652,41112,82086818,16884,26626,70427,17183,799
199754,35813,14357619,44487,52127,68629,13086,077
199855,96613,84468019,90490,39428,77930,53588,638
199956,77813,841-25519,66090,02429,44931,48687,987

IMPORTS AND EXPORTS

BALANCE OF PAYMENTS
On current account

Growth in the economy since 1993 has been driven by both consumer spending and fixed investment, with growth in investment being exceptionally strong in 1994 and 1995. In the year ended March 1999 internal demand fell in real terms, in spite of continued, albeit reduced, growth in consumer spending. Moreover, the proportion of internal demand being met from imports has increased from just over one-quarter to more than one-third in the last 10 years, reaching 35 percent in 1999.

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

  • 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.

Statistics New Zealand compiles balance of payments statistics in accordance with conceptual guidelines contained in the International Monetary Fund (IMF) Balance of Payments Manual. Successive editions of the manual have been published since 1948 with the latest, the fifth edition, being released in 1994. Statistics New Zealand is progressively incorporating the latest changes.

Since July 1998 changes have included:

  • expanding the coverage of travel to include the expenditure of students and medical patients who have travelled abroad for more than one year

  • a more detailed breakdown of services.

The final stage which is expected to be complete by June 2001 includes: expanding the coverage of financial items (e.g. taking account of financial derivatives); using a 10 percent threshold for direct investment (against the 25 percent threshold currently used by Statistics New Zealand); and introducing a symmetry in the definition of direct investor in respect of both inwards and outwards direct investment. The current series based on the fourth edition of the Balance of Payments Manual will be maintained until this work is completed.

Table 17.14. ANNUAL BALANCE OF PAYMENTS
Current account balances

Year ended MarchBalance on goodsBalance on servicesBalance on incomeBalance on current transfersBalance on current account

Note:Data may not add to stated totals due to rounding.

Source: Statistics New Zealand

 NZ$(million)
19881,698-734-3,475230-2,280
19893,319-964-3,097237-504
19901,350-1,308-3,298275-2,982
19911,560-1,444-2,735236-2,380
19923,591-1,437-4,775245-2,376
19933,411-1,706-3,865241-1,918
19943,135-899-4,521430-1,857
19952,093-592-5,956348-4,107
1996865-141-6,026255-5,048
1997982-525-7,264841-5,966
19981,399-1,073-6,399581-5,492
19991,465-1,220-6,394453-5,697

Table 17.15. 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)
19934,093-2,570
19944,4133,388
19954,3432,718
19965,701-1,802
19972,900-2,368
19983,411750
19991,8741,933

Table 17.16. ANNUAL BALANCE OF PAYMENTS STATISTICS
Summary of major components1,2

ItemYear ended March
199719981999P
Credit DebitCredit DebitCredit Debit

1These tables are prepared in general accordance with principles laid down by the International Monetary Fund, in the fifth edition of the Balance of Payments Manual. Data for other sectors not available at time of publication.

2Data may not add to stated totals due to rounding. Note:Some figures have been revised.

Source: Statistics New Zealand

 NZ$(million)
Exports/imports of goods20,939 19,95722,032 20,63322,994 21,531
Balance on merchandise trade 982  1,399  1,465 
Exports/imports of services6,590 7,1176,539 7,6127,437 8,657
Balance on services -525  -1,073  -1,220 
International investment income265 7,5281,217 7,616314 6,707
Balance on investment income -7,264  -6,399  -6,394 
Inflows/outflows of current transfers1,381 5401,184 6021,140 688
Balance on current transfers 841  581  453 
Balance on current account -5,966  -5,492  -5,697 
Capital transfers2,189 744987 812939 834
Balance on capital transfers 1,445  175  105 
Direct investment2,900 -2,3683,411 7501,874 1,933
Portfolio investment-285 636927 3,073667 1,004
Other investment1,761 1,4742,638 -2,5543,059 1,726
Reserve assets... 613... -659... -875
Net errors and omissions509 ...-1,048 ...3,779 ...

BALANCE OF PAYMENTS

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, using the results from two surveys:

  • Annual 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.

Until 1997 the overseas debt was measured four times a year: 31 March, 30 June, 30 September and 31 December. From 31 March 1997 the total overseas debt figure has been produced annually as at 31 March.

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.

The Media Credit Union offers an alternative to banks, 1999.

OVERSEAS DEBT
By currency

Bank's foreign exchange room, 1997.

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 including either loans, bills, bonds, deposits, accounts payable or 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.

Table 17.17. OVERSEAS DEBT

ItemAt 31 March
19951996199719981999
Source: Statistics New Zealand
 $NZ(million)
Official government sector23,41821,89620,64919,96917,384
Corporate sector46,55753,52958,94579,58584,556
        Total69,97575,42579,59499,554101,940

Table 17.18. OVERSEAS DEBT BY LIABILITY TERM

ItemAt 31 March
19951996199719981999

1Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Note:Some figures have been revised.

Source: Statistics New Zealand

 $NZ(million)
Current liabilities24,71827,64529,89233,74136,635
Current portion of long-term liabilities3,5873,9292,9292,5913,938
Long-term liabilities29,04927,37627,34345,18043,939
Domestically issued securities10,73713,69016,94815,15012,539
Unallocated estimate11,8832,7852,1812,8934,888
        Total69,97575,42579,59399,554101,940

Table 17.19. OVERSEAS DEBT BY CURRENCY OF DENOMINATION

ItemAt 31 March
19951996199719981999

1Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Note:Some figures have been revised.

Source: Statistics New Zealand

 $NZ(million)
NZ dollars30,85739,81943,80553,71648,314
US dollars23,18519,61820,85827,29233,027
Japanese yen6,0484,7123,9544,9395,463
Australian dollars3,3943,7193,0933,7284,346
Other currencies4,6074,7725,4036,9875,901
Unallocated estimate11,8832,7852,4812,8934,888
        Total69,97575,42579,59399,554101,940

Table 17.20. OVERSEAS DEBT BY DEBT INSTRUMENT

ItemAt 31 March
19951996199719981999

1Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Note:Some figures have been revised.

Source: Statistics New Zealand

 $NZ(million)
Loans22,12225,01528,06743,98544,962
Bills and bonds17,29316,13413,26920,83820,128
Deposits16,53316,50117,67915,17118,896
Accounts payable1,4061,3001,1501,518527
Domestically issued securities10,73713,69016,94815,15012,539
Unallocated estimate11,8832,7852,4812,8934,888
        Total69,97575,42579,59399,554101,940

Table 17.21. OVERSEAS DEBT BY MATURITY PROFILE

ItemAt 31 March
19951996199719981999

1Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Note:Some figures have been revised.

Source: Statistics New Zealand

 $NZ(million)
At call4,7586,9587,2155,5416,006
2–89 days20,12619,06722,56821,93924,234
90 days and under 1 year8,43610,8728,13013,46313,556
1–5 years17,01117,16221,00234,96630,472
Over 5 years17,76018,58218,19820,75322,783
Unallocated estimate11,8832,7852,4812,8934,888
        Total69,97575,42579,59399,554101,940

Table 17.22. OVERSEAS DEBT RATIOS

DateAt 31 March
Overseas debtGDPExport of goods and servicesRatio of overseas debt to:
GDPExport of goods and services

Note:Some figures have been revised.

Source: Statistics New Zealand

 $NZ(million)percentpercent
199569,97586,55826,93280.8259.8
199675,42591,46027,23882.5276.9
199779,59395,06027,35683.7291.0
199899,55498,19428,249101.4352.4
1999101,94098,39029,960103.6340.3

17.4 International investment position

International investment position statistics are relatively new in New Zealand. New Zealand's international investment position statement shows 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.

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'.

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 financial account of the balance of payments statement. International investment position statistics can be linked to the financial transactions shown in the financial 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 financial 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.

Table 17.23. INTERNATIONAL INVESTMENT POSITION1,2,3

ItemAt 31 March
19951996199719981999

1These tables are prepared in general accordance with principles laid down by the International Monetary Fund, in the fifth edition of the Balance of Payments Manual.

2Data may not add to stated totals due to rounding.

3Data from 1996 onwards includes the international investment activities of New Zealand fund managers, as surveyed through the Reserve Bank of New Zealand's Managed Funds Survey.

Note:Some figures have been revised.

Source: Statistics New Zealand

 NZ$(million)
New Zealand investment abroad
Direct investment abroad11,74913,1639,70610,42113,521
Equity capital and reinvested earnings14,35318,81218,83819,34030,134
Other capital-2,603-5,649-9,132-8,920-16,313
    Claims on affiliated enterprises2,9432,8802,4652,9193,605
    Liabilities to affiliated enterprises-5,546-8,529-11,597-11,839-20,218
Portfolio investment abroad2,6298,5739,25311,68612,707
    Equity securities31,8886,4977,0408,3378,330
    Debt securities37402,0762,2133,3484,377
Other investment abroad4,4616,2597,6415,0586,783
Trade credits2,0922,1082,2391,6301,847
Loans31,7372,6833,7411,9543,478
Currency and deposits6218021,143859694
Other assets12666519616764
Official reserve assets6,0956,7486,4957,5687,256
Total NZ investment abroad24,93534,74233,09634,73340,267
Foreign investment in New Zealand
Direct investment in NZ39,38149,21253,92062,95362,487
Equity capital and reinvested earnings31,96640,69543,64150,61850,003
Other capital7,4158,51810,27912,33512,484
    Claims on direct investors-1,943-1,764-1,342-667-893
    Liabilities to direct investor9,35810,28211,62113,00213,377
Portfolio investment in NZ30,50428,54329,00331,72332,808
    Equity securities2,2834251,503376422
    Debt securities28,22128,11827,50031,34732,386
Other investment in NZ26,10927,84730,04329,38030,909
Trade credits1,0389561,0641,2421,307
Loans9,8599,88710,16511,99911,400
Currency and deposits15,07616,88918,31515,12518,095
Other liabilities1361155001,014107
Total foreign investment in NZ Net international investment95,994105,603112,966124,056126,204
position-71,060-70,860-79,870-89,323-85,937

REAL INVESTMENT
Annual percentage change

INTERNATIONAL INVESTMENT

TWI AND 90-DAY BILLS
Trade-weighted index and 90-day bills

Table 17.24. INTERNATIONAL ASSETS AND LIABILITIES1,2,3

ItemAt 31 March
19951996199719981999

1These tables are prepared on a balance sheet basis.

2Data may not add to stated totals due to rounding.

3Data from 1996 onwards includes the international investment activities of New Zealand fund managers, as surveyed through the Reserve Bank of New Zealand's Managed Funds Survey.

Note:Some figures have been revised.

Source: Statistics New Zealand

 $NZ(million)
International assets
Equity assets317,31625,49226,39027,89038,701
Lending9,01312,79613,15211,78115,421
    General government572843969381497
    Corporate sector38,44011,95212,18311,40014,924
Official reserve assets6,0956,7486,4957,5687,256
Total international assets32,42445,03646,03847,23961,378
International liabilities
Equity liabilities34,24941,12045,14450,99350,425
Borrowing69,23474,77680,76485,56896,890
    General government23,43421,91220,63720,22217,595
    Corporate sector45,80052,86460,06965,34679,295
Total international liabilities103,484115,896125,907136,562147,315
Net international investment position
Net equity position-16,933-15,628-18,754-23,103-11,724
Net debt position-54,126-55,232-61,116-66,219-74,213
    Net general government overseas debt-16,766-14,321-13,230-12,273-9,842
    Net corporate sector overseas debt-37,360-40,912-47,886-53,946-64,371
Net international investment position-71,060-70,860-79,870-89,323-85,937

New Zealand international investment position statistics are derived from data collected from the:

  • Annual capital accounts survey, conducted by Statistics New Zealand.

  • Managed Funds Survey, conducted by the Reserve Bank of New Zealand.

  • Official statistics, produced by the Reserve Bank of New Zealand.

The major data source is the annual capital accounts survey. This is a survey of about 3,000 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

  • value of New Zealand's other financial liabilities to foreigners.

17.5 Business statistics

A linked set of annual and quarterly surveys provides comprehensive information about business in New Zealand. The Annual Enterprise Survey collects financial information on some 240,000 businesses. Most 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.

Irregular economic censuses have supplemented the Annual Enterprise Survey for specified industries. The 1987 Economy Wide Census gathered data on most non-farming, market-orientated businesses for the 1986/87 financial year, covering over 130,000 separate businesses and more than 500 different industrial activities. The information gained is used in the national accounts, price indexes, inter-industry tables, and several major econometric models, as well as by businesses themselves. The present census strategy is to cover all industries at regular intervals, but not all in the same year (as was done in 1987). In 1992 the censuses of distribution and mining and quarrying were conducted. 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 Frame 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 businesses. This survey (together with data from the Inland Revenue Department and various other sources) is used to update the Business Frame, which is the population register for Statistics New Zealand's business surveys and censuses.

Up until 1994, business demographic 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 geographic units and full-time equivalent (FTE) persons engaged in Table 17.25 are derived from a snapshot of the Business Frame. The table uses the Australian and New Zealand Standard Industrial Classification (ANZSIC), for comparability with the Annual Enterprise Survey results presented elsewhere in this book. A 'geographic 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' equals 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.

EMPLOYMENT, UNEMPLOYMENT
Number of employed and unemployment rate

Made redundant, this woman got a job at another factory, which subsequently closed, 1999.

Table 17.25. BUSINESSES1 AND FTE PERSONS2 IN ECONOMICALLY SIGNIFICANT ENTERPRISES (BY ANZSIC)

ANZSIC RangeANZSIC description1998 geographic units1999 geographic units1998 Full-time equivalent persons engaged1999 Full-time equivalent persons engaged

1Generally defined as those enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

2Full-time equivalent (FTE) persons engaged equals the sum of the full-time persons engaged plus half the part-time persons engaged. FTE numbers have been rounded and sums of component items may not match totals.

Source: Statistics New Zealand

A021Services to agriculture3,6353,60115,80014,910
A022Hunting and trapping108100230220
A030Forestry and logging5,3535,0938,8808,380
A041Marine fishing160915883,5503,870
A042Aquaculture343337900960
B110Coal mining4847840760
B120Oil and gas extraction2023560560
B131Metal ore mining8476560620
B141Construction material mining30029216701600
B142Mining nec1818110130
B151Exploration454517080
B152Other mining191635120
C211Meat and meat product manufacturing32532725,24024,420
C212Dairy product manufacturing1451288,4407,570
C213Fruit and vegetable processing1011084,1603,890
C214Oil and fat manufacturing3431380370
C215Flour mill and cereal food manufacturing4237830820
C216Bakery product manufacturing2662655,7205,520
C217Other food manufacturing60756812,3101170
C218Beverage and malt manufacturing2662753,4803,900
C219Tobacco product manufacturing76490400
C221Textile fibre, yarn and woven fabric manufacturing15314729502850
C222Textile product manufacturing5875754,4204,220
C223Knitting mills1059316501600
C224Clothing manufacturing11059939,3808,590
C225Footwear manufacturing57551001010
C226Leather and leather product manufacturing18817624602450
C231Log sawmilling and timber dressing5785408,0707,480
C232Other wood product manufacturing145214599,6709,380
C233Paper and paper product manufacturing1361347,5007,300
C241Printing and services to printing1399137111,7701430
C242Publishing80677510,0109,330
C243Recorded media manufacturing and publishing16183045
C251Petroleum refining22480340
C252Petroleum and coal product manufacturing nec3833330280
C253Basic chemical manufacturing2292233,9303,810
C254Other chemical product manufacturing4184165,4505,260
C255Rubber product manufacturing11211118201440
C256Plastic product manufacturing5285218,6208,210
C261Glass and glass product manufacturing13512412501160
C262Ceramic manufacturing216220950880
C263Cement, lime, plaster and concrete product manufacturing4114373,9404,090
C264Non-metallic mineral product manufacturing nec9296750640
C271Iron and steel manufacturing1751693,1002850
C272Basic non-ferrous metal manufacturing181812501140
C273Non-ferrous basic metal product manufacturing969221602130
C274Structural metal product manufacturing97110068,0607,770
C275Sheet metal product manufacturing3523504,0903,860
C276Fabricated metal product manufacturing171716099,5209,210
C281Motor vehicle and part manufacturing6095855,4203,720
C282Other transport equipment manufacturing8308018,7709,170
C283Photographic and scientific equipment manufacturing30630115301530
C284Electronic equipment manufacturing3493353,7403,870
C285Electrical equipment and appliance manufacturing4144108,4908,340
C286Industrial machinery and equipment manufacturing2,9632,87217,16016,280
C291Prefabricated building manufacturing108101850790
C292Furniture manufacturing184818089,5509,300
C294Other manufacturing10049873,9409,790
D361Electricity supply3553416,9005,580
D362Gas supply2928720490
D370Water supply, sewerage and drainage services29626018501710
E411Building construction11,80511,59429,14028,350
E412Non-building construction1661162915,15015,870
E421Site preparation services147314635,6905,540
E422Building structure services2,5712,4946,2706,150
E423Installation trade services7,4007,47522,39022,660
E424Building completion services8,6248,57918,37018,180
E425Other construction services142614204,9104,970
F451Farm produce wholesaling133513215,9005,510
F452Mineral, metal and chemical wholesaling106910616,8406,410
F453Builders supplies wholesaling1557158911,58011,510
F461Machinery and equipment wholesaling4,6744,53627,84025,930
F462Motor vehicle wholesaling170017238,0208,260
F471Food, drink and tobacco wholesaling2,1512,13916,45015,870
F472Textile, clothing and footwear wholesaling8978743,6903,630
F473Household good wholesaling6696653,5203,250
F479Other wholesaling5,1035,05220,17020,140
G511Supermarket and grocery stores2,6712,66932,00031,920
G512Specialised food retailing6,6386,54123,62023,840
G521Department stores25727611,69011,400
G522Clothing and soft good retailing3,6773,49011,92011,280
G523Furniture, houseware and appliance retailing3,2243,19014,31014,140
G524Recreational good retailing2,4752,4649,1609,540
G525Other personal and household good retailing8,5158,25723,42024,590
G526Household equipment repair services135013503,2203,230
G531Motor vehicle retailing2003193113,62013,010
G532Motor vehicle services8,2128,23032,32033,070
H571Accommodation3,4153,43321,43021,230
H572Pubs, taverns and bars108811187,8407,850
H573Cafes and restaurants4,6824,70530,64032,270
H574Clubs (hospitality)40740322302320
I611Road freight transport5,1704,96222,22021,630
I612Road passenger transport2,8732,8459,1009,120
I620Rail transport18418820802030
I630Water transport21219121501880
I640Air and space transport5375578,6508,060
I650Other transport8097180220
I661Services to road transport117131450520
I662Services to water transport1901823,3802820
I663Services to air transport928714301350
I664Other services to transport2120203012,09011,590
I670Storage41143227302590
J711Postal and courier services3,2983,34914,30014,940
J712Telecommunication services77456811,79012,530
K731Central bank33290310
K732Deposit taking financiers1669161025,89023,620
K733Other financiers38835414601340
K734Financial asset investors3,7633,82911401090
K741Life insurance and superannuation funds164914013,0502660
K742Other insurance5014775,4705,460
K751Services to finance and investment148316585,7205,840
K752Services to insurance157015334,7904,700
L771200Commercial property operators and developers nec32,43231,69912,28011,500
L771210Commercial property body corporates1942086080
L772Real estate agents8,1507,35413,35013,200
L773Non-financial asset investors2,41318881070900
L774Machinery and equipment hiring and leasing2,4992,5976,4706,690
L781Scientific research2272376,0305,540
L782Technical services5,5195,65218,76018,740
L783Computer services4,7755,37312,84015,390
L784Legal and accounting services4,9495,23027,67028,280
L785Marketing and business management service10,31211,04130,65033,130
L786Other business services7,8457,92438,91042,310
M811Government administration1935184442,06040,640
M812Justice14315323402270
M820Defence717012,10011,860
N841Preschool education2,21922086,5606,860
N842School education2,7432,77656,70059,750
N843Post school education13013326,43026,070
N844Other education2,3462,32611,68012,250
O861Hospitals and nursing homes33433143,99042,000
O862Medical and dental services5,3785,54514,23016,040
O863Other health services3,9304,16218,77020,790
O864Veterinary services54754123802370
O871Child care services6516744,0404,500
O872200Residential care services nec9099315,3505,410
O872900Non-residential care services nec9089585,3105,860
P911Film and video services94510043,0003,250
P912Radio and television services2692344,2903,940
P921Libraries27327828103,380
P922Museums17016612101200
P923Parks and gardens16917616601650
P924Arts1631169726702660
P925Services to the arts4184739901170
P931100Horse and dog racing63860918401650
P931200Sports grounds and facilities nec7357523,5503,920
P932Gambling services1761803,0101860
Q951Personal and household goods hiring54755117101880
Q952Other personal services6,7386,69118,45018,550
Q962100Business and professional associations91290924502150
Q962200Labour associations148144690470
Q963Q963 public order and safety services1670166215,87017,030
Q970Private households employing staff18157560
 Total281,407279,1241,353,9201,347,770

Table 17.26 is also based on a snapshot of the Business Frame and shows full-time equivalent persons engaged by regional council areas, as at February 1999. The table is not a measure of total employment. Farms are not included, nor are some other businesses, namely: property owners; nonprofit organisations; non-trading and dormant companies; religious organisations; and sporting and recreational clubs.

WEEKLY EARNINGS
Change in average total weekly earnings

Contributors

17.1–5 Statistics New Zealand.

Special articles

'The Economy', Professor G R Hawke, Chair of Economic History, Victoria University; Statistics New Zealand.

Further information

Balance of payments

Balance of payments, concepts, sources and methods 1991. 1992. Department of Statistics. Balance of payments manual (4th ed). 1997. International Monetary Fund. Balance of payments manual (5th ed). 1993. International Monetary Fund.

Overseas debt

Debt stocks, debt flows and the balance of payments. 1994. Bank for International Settlements et al. External debt: definition, statistical coverage and methodology a report. 1998. The World Bank et al.

National accounts

Grindell D (ed) 1981. Consolidated national accounts for New Zealand on an SNA basis, Research Paper No 32. Reserve Bank of New Zealand.

Key Statistics. Statistics New Zealand (monthly).

New Zealand institutional sector accounts: issues and experimental series 1987–1995. 1996. Statistics New Zealand.

New Zealand System of National Accounts. Statistics New Zealand (annual).

New Zealand System of National Accounts, concepts and design. 1983. Department of Statistics.

Quarterly Gross Domestic Product, sources and methods. 1996. Statistics New Zealand.

Quarterly predictions. NZ Institute of Economic Research (quarterly).

A System of National Accounts. Rev. 3. Studies in Methods, Series F, No. 2. 1968. Department of Economic and Social Affairs, Statistical Office of the United Nations.

Tourism Satellite Account 1995. 1999. Statistics New Zealand.

Inter-industry studies

Inter-industry study of the New Zealand economy, 1986–87. 1991. Department of Statistics.

Business statistics

Australian and New Zealand Standard Industrial Classification. 1993. Australian Bureau of Statistics, Statistics New Zealand.

New Zealand Business Activity Statistics. Statistics New Zealand (annual).

Chapter 18. Agriculture

Some of the 10 identical Fresian calves cloned from one adult cow by AgResearch Scientists, 1998.

Farming and horticulture are major industries, providing a high proportion of New Zealand's export earnings. Traditionally farming has centred on sheep and cattle to produce sheepmeat, beef, wool, dairy produce and hides, although since the 1970s new types of livestock have included deer 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 more than half 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 countries. However, the GATT Uruguay Round Agriculture Agreement began to take effect in 1995. This Agreement imposes progressive reductions on the subsidies that other countries can give to agricultural production and exports. One effect is to increase access opportunities for New Zealand exports into overseas markets.

Table 18.1. Land Use by Farm Type, as at 30 June 1996

Farm typeNumber of farmsGrazing arable fodder and fallow landLand in horticulturePlantations of exotic timberOther landTotal land

1Symbols 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 statistical quality.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1996

 hectares
Sheep-beef cattle farming4,1392,149,704..s28,109225,5692,406,150
Sheep farming12,0766,7221,183,37952,563342,1897,120,249
Beef cattle farming8,731944,351..s7,013135,2631,088,281
Dairy cattle farming16,4651,892,9453,06326,28795,4592,017,754
Poultry farming (meat)410..s..s..s..s..s
Poultry farming (eggs)1713,125109..s..s3,642
Pig farming74529,078197396..s30,423
Horse farming1,08727,942..s..s..s29,157
Deer farming2,179274,8962973,82512,577291,596
Mixed livestock1749470,961..s25,74838,820537,685
Livestock farming nec223....s1280..s..s
Grain-sheep and grain-beef cattle farming734140,559..s8581167143,785
Grain growing1076157,0014,5829531533164,069
Vegetable growing278086,50643,9751496..s135,750
Grape growing6537,8847,429..s..s16,007
Apple and pear growing175812,45318,849902..s33,520
Stone fruit growing281..s1947..s..s3,272
Kiwi fruit growing172212,52411,6271072166526,889
Citrus growing534..s2,6161343726,113
Berry fruit growing3162804..s1974695,671
Fruit growing nec98910,4334,288..s..s17,157
Plant nurseries7082,3682,553..s..s5,570
Cut flower and flower seed growing1640..s2,671..s..s13,493
Tobacco and hops growing..s..s..s..s..s..s
Cultivated mushroom growing2555188..c..c644
Crop and plant growing nec32..s3,092..s..s..s
Plantations3,416195,7498521,526,794544,4092,267,805
Idle land107722,65958034957,95481,542
              Total all farm types66,04513,265,431122,9881,683,2161,475,47916,547,113

New Zealand's milk production for the year ended May 1999 was 10,881 million kg, down 4.4 percent due to an unfavourable spring and a dry summer. The number of dairy cows in milk was estimated at 3.4 million as at 30 June 1999. The average dairy company payout for the 1998/99 season was $3.58/kg of milk solids, up 2.6 percent from the previous season's level. Production for the season ending 30 May 2000 is expected to reach 967 million kg of milk solids.

Total sheep numbers are estimated at 45.2 million as at 30 June 1999, a fall of 2.2 million from June 1996. Sheepmeat production fell 5.2 percent to 516,900 tonnes for the year ended September 1999. Wool production fell 6 percent to 184,800 tonnes for the year ended June 1999.

The New Zealand beef cattle herd is estimated at 4.6 million as of June 1999. Beef and veal production fell 11.5 percent to 561,300 tonnes for the year ended September 1999.

Table 18.2. Farmland Use by Regional Council Area as at 30 June 1996

Regional CouncilNumber of farmsGrazing, arable, fodder and fallow landLand in horticulturePlantations of exotic timberOther landTotal land

1Symbols 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 statistical quality.2Chatham Islands data has been combined with the South Island total.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1996

 hectares
Northland RC5,523606,5557,069..s89,998855,468
Auckland RC5,033220,86911,107..s28,587300,895
Waikato RC11,4281,291,0789,863..s172,4251,755,461
Bay of Plenty RC5,169286,30012,795222,793100,442622,329
Gisborne RC1338507,696..s..s78,590736,490
Hawke's Bay RC3,627737,28917,125221,788124,7991,101,000
Taranaki RC3,810416,446135423,46052,934494,194
Manawatu-Wanganui RC6,344362,95910,262..s120,4701,609,691
Wellington RC2,243421,8182,212..s41,934513,146
              Total North Island44,5145,851,01083,9041,243,583810,1797,988,675
Tasman DC1855114,171..s..s..s267,428
Nelson CC114..s..s..s..s14,990
Marlborough DC1365546,957..s..s..s698,815
West Coast RC858175,902..s27,297181,361385,746
Canterbury RC91393,121,32317,847..s3,406,299
Otago RC3,7892,2793394,671..s2,487,441
Southland RC4,3681,117,658..s..s..s1,237,550
              Total South Island21,5317,414,42139,083439,633665,3018,558,438
              Total New Zealand66,04513,265,431122,9881,683,2161,475,47916,547,113

Topdressing

Topdressing with artificial fertilisers has been an important factor in the intensification of grassland farming. Increasingly nitrogen fertiliser is used to make up for feed deficits.

Over the years there has been a marked changeover from straight superphosphate as the principal fertiliser for grassland and crops – usual variants are reactive rock phosphates, or a mixture of superphosphate with potash, additional sulphur or a trace element. Fertiliser sales for 1998–99 are estimated to be slightly down from the previous year (-1.5 percent): 1997–98 was down 3.8 percent from 1996–97. Fertiliser sold in 1998–99 was estimated at 2,158,700 tonnes.

The nutrient value of the total fertiliser applied is now higher, as a result of the changeover from superphosphate fertiliser to other fertilisers that have higher nutritive values. The productive response to the total fertiliser applied in the 1990s is therefore higher than when similar tonnages were applied in the early 1980s.

Table 18.3. Farm Employment, as at 28 February 1996

Farm typeWorking ownersPaid workersUnpaid workers
Full-time1Part-time2Full-timePart-time2Full-time1Part-time2

1Full-time = 30 hours or more per week.

2Part-time = fewer than 30 hours per week. Note: Caution should be used when interpreting this data. 1995 employment data is released with a caveat because of under statement for some entries.

3 ‘..s’Denotes an estimate that has been suppressed for reasons of very poor statistical quality.Note: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.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1996

Plant nurseries6503401470540..s3155
Cut flower and flower seed growing1320940640800..s490
Vegetable growing2760126024401980..s800
Grape growing430310870770..s180
Apple and pear growing135092020301260..s340
Stone fruit growing150..s110110..s..s
Kiwi fruit growing124010909901730185..s
Citrus growing320320230..s..s230
Berry fruit growing220200..s..s..s..s
Fruit growing nec490720210410..s400
Grain growing1050390330230..s..s
Grain-sheep and grain-beef cattle farming780..s230150..s220
Sheep-beef cattle farming3,7201480194012904701280
Sheep farming11,8304,1503,7303,03014604,070
Beef cattle farming4,2205,3907106806403,070
Dairy cattle farming22,2606,0307,4503,09017304,040
Poultry farming (meat)330210350..s..s..s
Poultry farming (eggs)210..s220260..s..s
Pig farming590370400120..s..s
Horse farming450650..s..s..s360
Deer farming12501290390320150760
Mixed livestock1380970490430..s820
Plantations68014001190..s..s970
Livestock farming nec..s..s..s..s..s..s
Tobacco and hops growing..s..s..s..s..s..s
Cultivated mushroom growing..s..s120..s..s..s
Crop and plant growing nec..s..s140..s..s..s
Idle land330520200..s..s..s
              Total58,56029,97027,49019,8006,59019,960

Table 18.4. Manufactured Fertiliser and Other Fertiliser Sold by Fertiliser Works

Year ended 30 JuneSuper-phosphatic fertiliserOther fertiliser including phosphatic rockTotal
Source: Meat and Wool Economic Service of New Zealand
 tonnes
19881,092,53099,3461,191,876
19891,215,288157,0181,372,306
19901,309,602194,4461,504,048
19911,095,457217,5531,313,010
19921,216,531421,6991,638,230
19931,493,108456,0961,949,204
19941,629,889593,9572,223,846
19951,424,316622,9242,047,240
19961,577,928627,6402,205,568
19971,480,760798,1352,278,895
1998Pn.an.a2,192,100
1999En.an.a2,158,700

Agricultural production indicators

Table 18.5. Agriculture Production Account: Analysis of Intermediate Consumption

ItemYear ended March
1991–921992–931993–941994–951995–96

1This series does not measure total capitalised development.

Note:Some figures have been revised.

Source: Statistics New Zealand

 $(million)
Purchase of livestock625804815581436
Feed and grazing374509491544636
Animal health and breeding275338359348355
Weed and pest control159197179178181
Fertiliser, lime and seeds663864846788834
Fuel and power354384350387328
Repairs and maintenance704811794689702
Freight150164158158133
Other (not elsewhere classified)1,5011,6281,8611,8361,735
Sub-total4,8065,6995,8545,5115,340
Less capitalised development11915252322
              Total intermediate consumption4,7875,6845,8295,4885,318

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 top dressing, weed-spraying, harvesting, threshing, shearing, and scrub-cutting. Other services included are herd testing and artificial insemination. Farms operated as trading enterprises by government departments and other organisations are included.

The ‘account' includes all income derived from the activities of the establishments covered, including their characteristic farming activities, and also their ‘other' productive activities. However, investment income (such as dividends and interest) accruing to the proprietors of farming establishments is excluded.

Table 18.6. Gross Agricultural Production

CommodityYear ended March
1990–911991–921992–931993–941994–951995–96

1Wool output has been revised due to changes in wool stocks methodology.

2Other products nec have been revised due to timber stock change now being recorded separately and a revision of timber sales figures.

3Revisions have occurred to stock changes as a result of methodology updates.

4Non-farm income category, introduced in July 1994, includes rental, income from farm-stays etc.Note:

Note:Some figures have been revised.

Source: Statistics New Zealand

 $(million)
Wool1859811729702951780
Sheep8838451,0321,2161,1021,047
Cattle1,3731,4431,5511,5311,3791,221
Pigs126126133147140142
Dairy products1,6372,2342,5232,5842,5933,114
Poultry products208196206219225237
Crops and seeds312314342361312360
Fruit, nuts and oilseeds692833725591736699
Vegetables419390447506577564
Other horticultural products160177195208229221
Agricultural services758807876941860960
Other products nec2150177237220205310
Value of change in stock3
    Sheep58-63-829-49-43
    Cattle741175641224947
    Pigs, deer and goats4923-2229-24-12
    Timber263135534341
Sales of live animals671701876887624475
Non-farm income4115135170169186163
              Gross output8,5709,29710,02910,78510,33810,327

Farm price indexes

Table 18.7. Farm Expenses Price Index – All Farms1

Input typePercentage of base expenditurePrice index for quarter ended
1998 SepDec1999 MarJunSep

1Base: December quarter 1992 (= 1000).

Source: Statistics New Zealand

Administration4.911541152115911731171
Animal health and breeding4.110931096109710941095
Dairy shed expenses0.510481079107110701058
Electricity1.611501150115011401142
Feed, gazing, cultivation and harvesting7.610641065107510781076
Fertiliser, lime and seeds9.2954954943942945
Freight1.9887887885882877
Fuel3.8884882878880963
Insurance premiums1.710211023102810291047
Rent and hire2.213461340139213991417
Repairs, maintenance, motor vehicle repairs10.310681071107310791083
Packaging costs3.5901898898889866
Shearing3.711501150114911521151
Weed and pest control2.910651067108110841084
Livestock purchases10.710211025100310231030
              Sub-total excluding livestock57.910471047105010531058
              Sub-total including livestock68.610431044104310481054
Local and central government rates and fees3.611911180118011801191
Interest rates17.31013858842772751
Wages and salaries10.510791083108410891090
              All inputs excluding livestock89.310501020101910081008
              All inputs including livestock10010471021101810091010

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 18.8. Farm Expenses Price Index1

QuarterSheep and beef farmsDairy farmsHorticultural farmsCropping and other farmsAll farms

1All inputs excluding livestock. Prices used exclude GST, Base: December quarter 1992 (= 1000).

Source: Statistics New Zealand

1997-Mar10361050101010411035
          Jun10361039101110331027
          Sep10331039101110371031
          Dec10441048101710431040
1998-Mar10461050102110401042
          Jun10531062102810461050
          Sep10541064102510461050
          Dec10221026100410311020
1999-Mar10211023100310331019
          Jun1008100699810281008
          Sep1009100499710331008

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 referred to in the following sections.

Ministry of Agriculture and Forestry (MAF). On 1 March 1998, the Ministry of Agriculture and the Ministry of Forestry merged together into a new Ministry of Agriculture and Forestry, Te Manatu Ahuwhenua, Ngaherehere. Its mission is to help the Government create an environment allowing the food, fibre and timber industries to make the best contribution to sustainable economic growth and environmental quality, while managing risk to human, animal and plant health and safety, and to resources.

MAF Policy advises the Government on policies and legislation affecting agriculture and forestry. There are five directorates: international policy; biosecurity policy; sector performance; sustainable resource use; and policy information.

MAF Policy also contributes to and comments on relevant policies and positions being developed by other departments, represents government policy both domestically and internationally, and provides information to promote and facilitate sustainable resource use practices and agricultural and forestry development on Maori land.

In 1999 the MAF Regulatory Authority was separated into the Biosecurity Authority and the Food Assurance Authority. The Biosecurity Authority manages risks to plant and animal health. It has four units: animal biosecurity; animal welfare; plants biosecurity; and forests biosecurity. The Food Assurance Authority sets standards for primary production and processing of meat, game and dairy products for both the domestic and export markets. There are seven units: animal products; dairy and plant products; agricultural compounds and veterinary medicine; compliance and investigation; programme development; policy coordination; and business services.

MAF Operations has three subgroups:

The Quarantine Service provides inspection and clearance services for incoming passengers, cargo and vessels or aircraft, and identifies and protects against potential biosecurity risks; ensures that import health standards and export standards are complied with; and maintains capability to respond to exotic diseases and pests.

The Verification Agency validates inspection processes, verifies and certifies the following products: export and domestic meat; game and game meat products and by-products; dairy products; seafood and by-products; plants; pet food; and food preparation, packing and storage facilities.

The New Zealand Animal Health Reference Laboratory and Exotic Disease Control Centre at Wallaceville has responsibility for national reference and diagnostic services, and management and contingency planning of responses to exotic diseases and pests.

Two State Owned Enterprises (SOEs), Asure New Zealand Ltd and AgriQuality New Zealand Ltd replaced MAF Quality Management in November 1998. The two SOEs are targeting specific areas of MAF's business, while MAF retains control of regulatory functions and the certification process.

Avante garde apparel in grass for the Ag Artwear competition at Hamilton's Fieldays event, 1999.

Asure New Zealand Ltd provides front line meat inspection services, solutions to food safety issues and other services to the meat processing industry. AgriQuality New Zealand Ltd provides services covering farm quality and animal health, quality assurance for food products, and biosecurity and food safety services. Health surveillance and emergency disease and pest response, as well as border quarantine control, are the types of functions retained by MAF.

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 lamb 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 where irrigation is possible.

Livestock are rarely housed, but feeding of small quantities of supplements, such as hay and silage can occur, particularly in winter and during very dry periods. 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 was that it had more than 20 times as many sheep as people (now closer to 13 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 14 years the sheep population has declined from 70.3 million at June 1982 to stand at around 46.2 million at June 1999. The beef cattle population fell to 4.4 million at June 1999. The total number of dairy cattle at June 1999 is estimated to have risen to 4.44 million.

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, and more recently the East Friesian, Finn and Texel, to get hybrid vigour and better meat production.

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 the year to 30 June 1999, 15.85 million tonnes of chilled and frozen venison valued at $138 million were exported, compared with 14.51 million tonnes for $137 million in 1998. Germany, Belgium and the United States were the top three of the 51 export markets for the year to 30 June 1999. In recent years elk from Canada and deer from Europe have been imported to cross with New Zealand's red deer.

Table 18.9. Farming Since 18611

YearFarmsArea in occupationTotal cattleSheep2PigsDeerGoatsFertiliser spreadLand in plantationsLand for horticulture
Dairy cattleBeef cattle

1Because 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.

2The sheep number peaked in the early 1980s at around 70 million.

Source: Statistics New Zealand

 hectares tonneshectareshectares
 number(000)(000)(000)(000)(000)(000)(000)(000)(000)(000)
1861....193        
187110,211..436 2,76143     
188124,147..699 9,701151     
189138,08312,896832 2,985200     
190162,78614,1281257 18,128309     
191173,87616,2842020 20,233251     
192184,07617,6233,139 23,996347     
193183,81617,4984,080 23,285350     
194186,37317,3564,576 29,792476     
195190,23017,4655,060 31,752769     
196173,16617,6716,446 34,786564     
197164,88217,4233,1984,79658,911552  2,219507 
198172,51521,2502,9225,11369,884420109683,508953 
199180,43917,4503,4294,67155,1624071130792..132991
199568,77616,5784,0905,18248,8164311179..3,2731599124
199666,04516,5474,1654,85247,39442411922282,8661683123

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. There are currently around 1.2 million deer in New Zealand.

Goats. In the 1980s goats were being farmed commercially in New Zealand for their milk, mohair and meat production as well as for weed control. Goat's milk is the only expanding enterprise involving goats at the present time.

Table 18.10. Distribution of Livestock, as at 30 June 1996

Regional CouncilTotal dairy cattleTotal beef cattleTotal sheepTotal PigsTotal deer

‘..s’denotes an estimate that has been suppressed for reasons of very poor statistical quality. Chatham Islands data has been combined with the South Island total.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1996

Northland RC402,230544,411706,3375,25911,304
Auckland RC162,334184,191399,92626,275..s
Waikato RC1,553,004771,5863,367,98079,485148,822
Bay of Plenty RC318,634150,853575,582..s68,180
Gisborne RC9,151363,6762,046,895240222,174
Hawke's Bay RC35,898523,8654,370,41710,484102,393
Taranaki RC613,697141,753857,256..s13,012
Manawatu-Wanganui RC324,459782,9847,216,17740,755130,909
Wellington RC93,363201,8072,115,651..s27,086
              Total North Island3,512,7703,665,12721,656,222234,770547,761
Tasman DC54,42260,432405,397..s33,790
Nelson CC1454..s17,439..s340
Marlborough DC24,93579,081897,065..s16,830
West Coast RC91,02259,931172,864..s..s
Canterbury RC246,230490,0879,370,769143,164278,082
Otago RC96,695283,6837,317,03919,21999,026
Southland RC137,552204,1077,457,393..s190,630
              Total South Island652,3281,187,05125,737,685189,304644,377
              Total New Zealand4,165,0984,852,17947,393,907424,0731,192,138

Table 18.11. Cattle Categories

CategoryAs at 30 June
19951996
Source: Agriculture Production Survey, Statistics New Zealand, for the years ended 30 June 1995 and 1996.
Dairy cows and heifers in milk or calf3,153,2303,219,546
Dairy cows and heifers not in milk or calf158,391182,158
Dairy heifer yearlings and calves (including bobby)740,648730,994
Dairy bulls for breeding31,54332,400
Other dairy cattle6,004-
              Total dairy4,089,8174,165,098
Beef cows and heifers bred from1,616,8601,595,548
Beef cows and heifers not bred from501,460527,855
Bulls – all ages692,273548,201
Other beef cattle2,371,9142,180,575
              Total beef cattle5,182,5084,852,179
              Total cattle9,272,3259,017,277

Prize-giving at Morrinsville calf club day, 1937.

Table 18.12. Sheep Categories

As at 30 JuneBreeding ewes including hoggetsOther sheepTotal sheep

1Changes in survey population definition introduced in 1994.

2Figures 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
1994135,75413,61849,4662
199534,99913,81848,816
199634,39212,97246,364

18.3 Meat

Meat industry products are traditionally New Zealand's largest export income earner, accounting for over 17 percent of total New Zealand produced merchandise exports in the year to 1 July 1999. New Zealand's main meat exports are lamb, mutton and beef. Approximately 91 percent of lamb, 79 percent of mutton and 83 percent of beef produced in New Zealand was exported overseas in the September 1998–99 season. Increasingly lamb exports are further processed as high value bone-in cuts. Mutton tends to be exported as boneless cuts and carcass product and beef as boneless cuts. The domestic market absorbs over 99 percent of the pigmeat and poultry produced in New Zealand.

Meat types

Sheepmeat

Lamb – is a young sheep under 12 months of age or one that does not have any permanent incisor teeth in wear.

Hogget – is a young male sheep or maiden ewe having no more than two permanent incisors in wear.

Ram – is an adult uncastrated male sheep having more than two permanent incisors in wear.

Mutton – includes ewes and castrated males (wethers) with more than two permanent incisors in wear. A wether must not show any ram characteristics.

Beef

Steers, heifers, cows and bulls – a steer is a male bovine castrated when young. A heifer is a female bovine which has no more than six permanent incisors. Cows have more than six permanent incisors. A bull is an entire 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.

Table 18.13. Meat Production1

CarcassesYear ended September
1992R1993R1994R1995R19961997P

1Inspected meat production at meat export works and abattoirs.

Source: Ministry of Agriculture and Forestry

 tonnes (000)
Beef522558523606606620
Veal141414232726
Mutton158134125144134124
Lamb400352398389375419
Pigmeat474949515048
              Total114111071109121311921237

Table 18.14. Livestock Slaughter at Meat Export Works and Abattoirs

AnimalsYear ended September
1992199319941995R1996R1997R
Source: Ministry of Agriculture and Forestry
 head of stock (000)
Lambs28,02023,34226,17426,64624,68026,402
Sheep7,6826,5645,7966,8246,2805,555
Adult cattle2,1332262,0422,4102,4362,424
Calves and vealers7807938141,2371,3891,387
Pigs87817822846813772

A compulsory standard system of classifying export meat on animal type, including maturity, sex, fat content and muscling, has been in use in New Zealand for many years. The Meat Board Act 1997 allowed for the replacement of mandatory beef and sheepmeat classification with a voluntary carcass description from 1 October 1999. A significant number of companies have chosen to retain the Meat New Zealand developed system, now audited by ASURE New Zealand on a voluntary basis, although some plan to develop their own system in the medium to long term.

Table 18.15. Export Meat Production

Type of meatYear ended September
199119921993199419952

1Figures may not add due to rounding.

21995 figures are provisional.

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 – manufacturing207.2219242.0216.898.7
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
Total1703.9753.6721.3730.7794.5

Table 18.16. Average Net Schedule Prices

Classification1993–941994–951995–961996–971997–981998–992

1Includes skin and one kilogram wool pull.

21999 figures are provisional.

Source: Meat and Wool Economic Service of New Zealand

Lamb ($/head)1
PL 9.1–13.2kg35.2326.8327.2831.3927.9425.89
PM 13.3–17.0kg41.3234.5938.0143.9839.5341.20
YL 9.1–13.2kg34.0126.0726.6131.3827.8525.93
Mutton ($/head)1
MX < 22kg26.8822.5824.8031.5328.2923.54
ML < 22kg28.4825.1028.4235.0432.0125.74
Beef (cents/kg)
P2 Steer 245.5–270kg270.9213.4172.2176.2206.8237.7
K2 Steer 245.5–270kg270.3216.0    
M Cow 145–170kg200.1157.3119.8139.3179.1196.2
M Bull 245.5–270kg259.5210.0173.1181.7222.9253.4

Schedule prices

Some meat processors publish their schedules of stock purchase prices in the weekly Agrifax publication, daily newspapers and in company newsletters. Producers can sell their stock on schedule, on a pool account system, on the hoof, on contract or by auction.

Season average net schedules are compiled by the New Zealand Meat and Wool Economic Service of New Zealand and are reproduced for the last six years in table 18.16. The schedule prices quoted are inclusive of pelt, slipe wool and hide payments.

Red meat production

The New Zealand production season runs from 1 October to 30 September. New Zealand accounts for 1 percent of global beef and veal production, and 7.0 percent of global lamb and mutton production.

The 1998–99 farming year was dominated by La Niña summer patterns that brought predominantly easterly weather to the whole country. This led to a second year of drought in some areas and unseasonable hot dry conditions in many parts of the country.

As a result, stock numbers have been lower in the past two years. Sheep numbers at 30 June 1998 totalled 46.2 million and were down 1.8 percent on the previous June. This figure remained almost static at 46.1 million for the year ending 30 June 1999. Beef cattle numbers at 30 June 1998 totalled 4.43 million, down 7.7 percent on the previous June, and continued to decline by another 1.5 percent to 30 June 1999.

The New Zealand Meat Board (Meat New Zealand)

Meat New Zealand, the operational name for the New Zealand Meat Board, exists primarily to further the interests of New Zealand's 32,000 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, and provides market support through offices in Wellington, Brussels, London, Tokyo, Washington and Seoul.

Meat New Zealand funds a number of organisations including the Meat Research and Development Council, the Beef, Sheep and Goat Councils, and provides partial funding for the New Zealand Beef and Lamb Marketing Bureau and the Meat and Wool Economic Service of New Zealand.

Table 18.17. Meat New Zealand Levies, 1 October 1998

Class of meatCents per head1

1Excluding GST.

Source: Meat and Wool Economic Service of New Zealand

Lambs, sheep and goats40
Bobby calves20
Cows, vealers and other adult cattle360

Export marketing

At September 1999 New Zealand meat was sold overseas by 217 companies fully licensed by Meat New Zealand. New Zealand is a major exporter of sheepmeat, accounting for 53 percent of the world export trade. It is a smaller player in the global market for beef, accounting for 10 percent of all world beef exports.

New Zealand's major sheepmeat markets remain the United Kingdom, Germany, France, North America and the Middle East. The imposition of the United States Tariff Rate Quota in July 1999 has had a minor effect on the exports to that country.

North America and Asia (Japan, Taiwan, Hong Kong, Korea, Singapore and Malaysia) continued to be the major markets for beef and veal, although the effects of the economic situation in Southern Asia resulted in a drop in exports to that part of the region. All export figures quoted are in shipped weight.

Sheepmeat

During the 1998–99 season lamb exports totalled 270,468 tonnes, a decrease of 11,490 tonnes on the previous season. Lamb exports to the United Kingdom fell from 75,304 tonnes in 1997–98 to 67,982 tonnes in 1998–99, while lamb exports to the whole European Union dropped from 156,124 tonnes to 148,031 tonnes.

Total mutton exports decreased from 59,638 tonnes in 1997–98 to 54,005 tonnes in 1998–99. The United Kingdom remains the largest single market for mutton, taking 13,364 tonnes during 1998–99.

Under the GATT Uruguay Round agreement, New Zealand's sheepmeat exports to the European Union are limited by a tariff rate quota of 226,700 tonnes.

In July 1999, the United States imposed temporary tariffs and quotas on all lamb imports from New Zealand and Australia for a three year period. In the first year this means a quota of 14,500 tonnes, with a tariff of 9 percent within that quota and a 40 percent tariff out-of-quota. In the second and third years the in-quota tariff reduces to 6 and then 3 percent, with the out-of-quota tariff reducing to 32 then 24 percent. The United States has grown to become New Zealand's fourth largest lamb market by value.

Beef and veal

New Zealand's biggest market for beef and veal in 1998–99 remained the United States, with shipments totalling 191,465 tonnes, down from 223,696 tonnes in 1997–98. Canada was the next largest market, 28,923 tonnes, with Japan, at 16,680 tonnes, becoming the third largest market, closely followed by Taiwan, 14,552 tonnes.

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 18.19 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 18.18. London Wholesale Lamb Prices

Mid-month MarchP ClassY Class
9–12.5 kg13–16 kg16.5–20 kg9–12.5 kg13–16 kg

Source: Meat and Wool Economic Service of New Zealand

 Pence a kilogram
1994194.0191.8178.6194.0191.8
1995160.9164.2163.1158.7163.1
1996167.6167.5164.2162.0165.3
1997209.4209.4205.0203.9208.3
1998165.3162.0156.5163.1162.0
1999152.1147.7145.5149.9147.7

Table 18.19. United States CIF Beef Prices

Mid-month MarchManufacturing bullManufacturing cow
Source: Meat and Wool Economic Service of New Zealand
 US cents a kilogram
1994285.3282.0
1995215.9209.3
1996176.2165.2
1997220.3208.2
1998198.3182.8
1999198.3184.0

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. 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.

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-classer Huia Clarke inspects wool samples at 1998 Dunedin wool sale.

Net domestic consumption of wool in New Zealand is among the highest in the world on a per head basis.

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 18.20. Wool Production1

Season ended 30 JuneFlock sizeYield/headTotal wool production (clean)Average auction price (clean basis)

1Wool quantities are measured at point of sale rather than at source, and are therefore not strictly measures of production.

Source: WoolPro

 millionkgtonnes (000)cents/kg
199057.95.3227422
199155.25.4221437
199252.64.9193433
199450.35.6214414
199549.55.8213554
199648.85.5199494
199747.45.8203443
199847.05.7197449
199946.25.5185408

The New Zealand Wool Board

The New Zealand Wool Board promotes the use of New Zealand wool in new and existing markets; encourages efficiencies in the preparation, handling, distribution, shipping and selling of wool; and promotes and undertakes research and development work into wool, sheep and wool products. Sheep farmers fund the New Zealand Wool Board, each paying five percent of their annual wool sales. This levy money is then allocated to various business unit programmes. Further information can be found at the New Zealand Wool Board website www.woolboard.co.nz

Wool Production Technology Ltd (WoolPro) works to improve wool quality, sheep production and on-farm efficiency. It funds new wool production technologies that provide New Zealand wool growers with information to help them improve or fine tune their wool production, and to meet customer demands. WoolPro runs wool harvesting training programmes, and the Fernmark Quality Programme, which is the only programme in the world that assures quality throughout the wool production and supply pipeline.

Markets for wool

The most common way of selling wool in New Zealand is by open auction; 45 percent was sold this way in 1998–99. The auction season runs from July to the following June. Sales are held at two centres, Napier and Christchurch, and they attract buyers representing all the main wool importing countries. Growers can also sell their wool to merchants privately in New Zealand (41 percent of sales in 1998–99).

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: WoolPro
 tonnes (000)cents$(million)
1993116433517.3
1994125414568.3
1995119554656.5
1996107494520.0
1997104443448.0
199898449432.0
199984408336.0

Around 90 percent of the New Zealand clip leaves the country in a greasy, scoured, or slipe form. Seventy-seven 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 1998–99 the largest importers were China, the United Kingdom, India, Germany and Belgium.

Final destinations of end-products made from New Zealand wool are fairly stable. Much of the wool tends to be used in the same countries as it was years ago, even though the location of the early-stage processing may have changed. Countries such as the United States and West Germany use less wool fibre, but import made-up carpets from other countries. India and Nepal have emerged as large customers for New Zealand wool, mostly for processing into handknotted carpets for export to Europe and North America.

Table 18.22. Export Destinations of New Zealand Wool Fibre

Country1993–941994–951995–961996–971997–981998–99
Source: WoolPro
 clean tonnes
China60,26252,70250,86440,61735,54825,100
Nepal11,9076,7838,1968,6304,0074,935
United Kingdom22,95619,73717,09325,04027,72523,585
Japan14,91914,0069,8981,2288,8559,175
Belgium12,90111,1197,8828,48712,3681,966
India17,2287,5617,71612,67514,12614,741
Germany12,56314,06612,13912,03412,04712,083
Hong Kong11,93223,14316,3459,5219,0042,572
United States8,4499,7978,4338,8359,2688,657
Australia10,76113,0098,71310,28311,29510,189
CIS2,095-----
Other40,05945,85734,36137,89037,34735,066
              Total226,032217,780181,690185,240181,590158,069

Net domestic consumption of wool in New Zealand is among the highest in the world on a per head basis. In 1998 this was estimated at 2.9kg per head compared with the 1996 figures of 1.67kg in Australia, 1.31kg in Germany, 1.37kg in the United Kingdom, and 0.43kg 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 28 percent of wool product export earnings in 1998–99. Carpet yarn accounted for 22 percent and other yarn for 10 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 6 percent to $285 million in 1998–99. These exports are summarised in table 18.23.

Table 18.23. Wool Sector Export Earnings1

Product199419951996199719981999P

1Year ended 30 June.

Source: WoolPro

 $(million) fob
Carpets/rugs67.379.072.572.771.980.0
Wool yarn59.865.459.867.484.191.2
Wool apparel17.014.214.920.224.423.7
Sheepskin final products32.246.834.720.37.719.4
Sheepskins – raw and processed40.935.057.762.453.746.0
All other20.217.020.331.025.624.3
              Total237.4257.3260.0274.0267.4284.6
Wool fibre – greasy, scoured slipe 1252.91034.0946.6911.2734.8
              Total wool sector 1510.21294.0220.61178.61019.4
Wool sector as percentage of total merchandise exports 7.56.56.05.54.7

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.

Table 18.24. Milk Production and Utilisation

Product1991–921992–931993–941994–951995–961996–971997–981998–99
Source: New Zealand Dairy Board
 million litres
Production
Total milk production7,8718,0509,0238,9979,77410,64810,92910,451
Utilisation
Milk sent to diary factories7,4547,6298,6038,6339,32510,33910,54510,068

Packing butter in a dairy factory, 1940s.

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 eight cooperative dairy companies, which operate around 25 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 cooperatives 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 11 billion litres of milk into more than 1.3 million tonnes of dairy products, of which over one million tonnes is exported. The balance is consumed in the relatively small domestic market.

Table 18.25. Dairy Factory Production

Product1993–941994–951995–961996–971997–981998–99

1A variety of products which fall under all the product categories.

Source: New Zealand Dairy Board

 tonnes
Butter223,513213,329241,537291,789270,929232,948
Anhydrous milkfat48,90452,00455,83259,09872,72984,527
Frozen cream8,6977,8638,65211,0694,2738,198
Cheese193,342197,370229,086253,638265,635238,535
Whole-milk powder306,448312,387298,307337,854355,871347,308
Nutritional products26,32529,60734,86936,16240,52234,705
Skim-milk powder135,953143,775172,149192,267177,573172,611
Buttermilk powder26,66327,23029,98432,71037,77030,371
Casein products79,37770,31179,15792,157103,65986,653
Lactose29,84714,67320,1326,01529,21329,578
Whey powders17,82619,0052,41420,74621,70322,017
Other115,68240,38840,67155,66761,09290,019

Milk sold on the New Zealand market, known as town milk, has traditionally been produced by different farmers from those who supply dairy factories. However, during recent years some companies which have interests in both town milk and manufacturing dairy products have ceased drawing milk from separate sources but they have offered a winter premium for town milk supplies to reflect the additional input costs in producing out-of-season milk.

New Zealand Dairy Board. The board is the single organisation responsible for marketing dairy produce manufactured for export. As the exporting and administrative arm of the industry, it links manufacturing and industry growth plans with export market requirements.

The board exports to over 100 countries annually and has its own marketing distribution network in all of these countries. With more than 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 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.

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 1999. The fall in dairy product prices that occurred in 1998 continued into 1999, with the prices of skim-milk powder and butter falling to levels last seen nearly ten years ago, at around US$1200/tonne for both products. There were smaller price drops for the other principal dairy products, whole-milk powder and cheese, which resulted in product prices reaching lows not seen for several years.

Novel advertising campaign by Preston Herd Testing Group, 1920s.

The main factor behind the fall in prices was continuing financial problems in South-East Asia, Latin America and in Russia, all major importers of dairy products, which led to a reduction in demand. The Russian financial crisis in particular had a major impact on the butter and cheese markets. Russia was the world's largest importer of butter and cheese in 1997, taking one third of all cheese exports and sizeable quantities of butter from New Zealand. The lack of sizeable replacement markets led to a drop in prices.

Despite the decrease in demand, New Zealand dairy product exports grew slightly in 1998–99 to 1,355,000 tonnes. This was despite a 4 percent drop in New Zealand production as a result of drought conditions in much of the country.

Dairy produce payment systems

Dairy farmer suppliers are paid for their milk by their cooperatively owned dairy companies, who are in turn paid by the Dairy Board based on a commercial pricing model. Under this model, dairy companies receive a price for standard products, based on the international commodity price.

Four business segments have been established by the Dairy Board to pay companies for their products depending on the value they have added to the product. These are: commodity products; standard products with value added from marketing; products to which both the manufacturer and marketer add value; and speciality products.

Table 18.26. Prices for Milkfat and PROTEIN

Season ended 31 MayMilkfat componentProtein componentMilk solids
Source: New Zealand Dairy Board
 cents per kg
1993253.57422.62325
1994198.56413.66290
1995194.82442.79300
1996233.7531.13360
1997214.94457.33318
1998205.49428.09300
1999219.68467.38325

18.6 Pigs, poultry and bees

Pigs

Domestic pork production in terms of volume of meat produced and in the number of pigs slaughtered has generally been declining since 1995 due to increasing pressures from the importation of competitively priced Canadian, Australian, American and Danish frozen pork, and relatively high feed costs.

The Agribase agricultural statistics show that there were about 2,600 farmers who owned pigs in New Zealand in 1998, down from 4,663 in 1996. This shows a decline in the number of people who own pigs for their own use, or sell very small numbers into the market from time to time. Only about 900 of the 2,600 farms have more than 10 pigs and these account for 95 percent of the sows and 99 percent of the grower pigs. Over half the sows (56 percent) are concentrated in about 100 large farms with over 150 sows each.

For the year ending September 1999, 766,508 pigs were slaughtered, a decrease of 10,348 from the previous year. The tonnage of domestic pigmeat produced dropped to 47,618, a decrease of 720 tonnes from the previous year. During the same period New Zealand imported 17,381 tonnes (on a carcass weight basis) of pork products (an increase of 37 percent from the previous year) which, combined with domestic production resulted in consumption of 17.1kg per head. This represents an increase on the previous year when consumption was 16.7kg per head.

Table 18.27. PIGS

At 30 JuneBreeding sows and mated giltsOther pigs of all ages (including boars)Total pigs

1A shortened Agricultural Census was undertaken in these years and there was no question on the number of breeding sows.

2Change in survey population definition introduced in 1994.

PDenotes provisional figures.

Source: Statistics New Zealand and New Zealand Pork Industry Board

199050,990343,711394,701
19911....407,306
199251,324359,824411,148
19931....395,117
1994258,065364,701422,766
199559,250371,755431,004
1996P....424,000

New Zealand Pork Industry Board. The board is a statutory body which operates under the Pork Industry Board Act 1997. Board income is sourced from a compulsory levy on all pigs slaughtered at licensed premises. The board currently comprises seven members, five of whom are elected by producers and two who are appointed by the Government.

Government announced in May 1998 its intention to remove specific Producer Board legislation. The Board presented to government its plan for change which recommended reconstitution as an Incorporated Society and its intention to secure a Commodity Levy under the Commodities Levies Act 1990. At the 1999 Industry Conference the producers passed a resolution agreeing with the proposed structure being an Incorporated Society. Currently the process continues in order to secure a Commodity Levy by October 2000.

Sausage casing factory, c1910.

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. A similar taskforce has been formed to look at animal welfare issues in response to incorrect information being used to damage the profile of the pork industry.

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) system, complemented by industry-agreed minimum standards. PQIP accreditation in all sectors of the industry is the ultimate objective. So far almost 80 percent of the killing capacity in New Zealand has achieved the PQIP accreditation, four pork processors have achieved PQIP (Food Safety) and 17 producers have achieved PQIP on-farm. Industry-agreed minimum standards for other sectors (live transport, chilled transport, cutting floors and retail) are being developed.

Poultry

The poultry meat industry is relatively new in New Zealand and is expanding rapidly. It is now the major intensive livestock industry in this country. In 1998 the poultry industry produced 98,000 tonnes of poultry meat, almost solely for the domestic market. Of this total, over 95 percent was chicken meat produced from nearly 65 million broiler chickens, with turkey, duck and roasting fowl making up the remainder. Currently the industry earns almost $550 million in retail sales and provides about 3,000 jobs.

Declining prices in real terms, lifestyle changes and consumer perceptions have seen poultry consumption continue to increase, up from 14kg per capita ten years ago, to over 26kg per capita in 1998. Over this period total meat consumption has been relatively static, so the proportion of poultry meat consumed has increased from 15 percent to 25 percent, largely at the expense of sheepmeat. Increases in chicken consumption have been mainly in the fresh and further processed areas, with almost 65 percent of chicken now sold fresh, and under 40 percent of chickens sold as whole birds.

Poultry production maintains a competitive advantage over other meat industries because of genetic advantages and rapid rates of improvement, intensive land use, low transport costs, highly automated processing plants with continuous processing (rather than seasonal variation), consistent product quality, excellent product image, competition and economies of scale.

Table 18.28. Chicken Production

YearBirdsDressed weightFreshFrozen
Source: Poultry Industry Association of NZ Inc
 numbertonnespercentpercent
198842,146,00052,83549.250.8
198945,583,00058,73251.148.9
199043,469,00055,37955.244.8
199145,891,00059,03653.546.5
199248,187,00062,79255.045.0
199351,006,00069,57052.247.8
199455,844,00076,81158.641.4
199563,756,00089,15760.040.0
199660,712,00087,16565.434.6
199760,749,00088,90466.233.8
199864,667,00097,12064.635.4

Eggs. In 1998 New Zealand's estimated 2.2 million laying hens produced close to 63 million dozen eggs. Over 85 percent of eggs are sold as table eggs within the domestic market, with the remainder used in the baking and catering industries. Retail sales of eggs are worth upwards of $160 million.

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 5 percent of the total.

The late 1980s saw the abolition of both price and production controls in the egg industry and the disestablishment of the New Zealand Poultry Board. This change was followed by a dramatic reduction in returns to producers, though this was not always matched by a reduction in retail egg prices. Many producers now sell direct to the wholesale and retail trade rather than through cooperatives or other organisations.

New Zealand currently has around 130 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. The Egg Producers Federation of New Zealand Inc (EPF), funded via producer levies under the Commodity Levies Act, represents the industry and plays a growing role in research funding and direction.

A & P Show displays, c1910.

Poor profitability for egg producers during 1994 and 1995 resulted in a reduced egg supply as producers went out of business; by mid-1996 increased demand for eggs led to higher wholesale egg prices, though this was short-lived. The cyclical nature of the egg industry continues, with egg producers in 1998 seeing a continuous re-distribution of market share in an ever increasing competitive market.

There are some exports of specialist eggs to niche markets overseas, in addition to fertile egg and day-old chick exports to the Pacific.

Bees and beekeeping

The rich pasture lands of New Zealand and some of its forest and bush areas are favourable for agriculture, 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 pohutukawa (Metrosideros excelsa), manuka (Leptospermum sp) 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-floral source of honey) is produced from South Island beech forests. This source, with a strong, pronounced flavour, is exported primarily to Europe.

Honey bees have been kept in New Zealand for over 150 years. New Zealand is now recognised as one of the world's most advanced beekeeping countries, and is a leader in several important fields.

English missionaries were the first to successfully ship honey bees to New Zealand when they brought two basket hives (skeps) of bees into Northland in 1839. Many other importations soon followed, and beekeeping became a popular pastime with settlers. The first New Zealand beekeeping book was published in 1848.

The original stocks of bees brought to the country were the black strain from Western Europe and Britain. They were kept in traditional straw skeps or wooden boxes with frames. Around 1880 the first stocks of the yellow Italian strain were imported. They, along with movable frame ‘Langstroth' hives, provided the foundation for modern commercial beekeeping development.

Isaac Hopkins, a prominent commercial beekeeper, campaigned for bee disease control legislation in the last two decades of the 19th century, and in 1905 was appointed Government Apiarist. Shortly after, the first Apiaries Act was passed. The New Zealand Act was one of the first modern bee disease control laws anywhere in the world, and helped to make the commercial keeping of bees in New Zealand a viable farming activity.

Following World War I, beekeeping increased rapidly as more land was developed and returned servicemen were trained as beekeepers. Hive numbers doubled to nearly 100,000 by the end of the 1920s.

Beekeeping increased again after World War II, and by 1950 some 7,000 beekeepers were keeping over 150,000 hives. In 1955, the Honey Marketing Authority became the sole exporter of extracted honey produced in New Zealand for the next 25 years.

The late 1970s and early 1980s saw large changes occur in the beekeeping industry. The Honey Marketing Authority ceased operations, and private individuals and companies began exporting New Zealand honey products. The number of hives increased by over 40 percent to 335,000, spurred on by the demand for paid pollination services. Since then the number of beekeepers and hives has decreased until 1999 when there were 4914 registered beekeepers owning 302,988 hives of bees.

In 1992 researchers confirmed that manuka honey (Leptospermum scoparium) is unusually effective as an antiseptic dressing. Waikato University biochemists showed that it is particularly useful for wounds, burns and ulcers. Because of this both the demand and the price for manuka honey rose dramatically.

The total saleable crop for 1999 was assessed by AgriQuality New Zealand at 9,069 tonnes (30kg per hive), which exceeded the six-year average of 9,027 tonnes (30.8kg per hive). Exports of bulk, retail pack, comb and honeydew honey totalled around 2,500 tonnes. The 1994 crop of 11,819 tonnes was reported as the largest honey crop ever produced in New Zealand.

The industry's other products include beeswax, pollen, propolis (an antibiotic gum or resin collected from plants), royal jelly and live bees which include package bees and queen bees. Package bees are ventilated containers with usually 1.5kg of bees, a queen bee and some food supplies. The industry is determined to maximise New Zealand's advantages of relative freedom from bee pests and diseases in order to increase the trade in live bees.

Table 18.29. Apiaries and Honey Production1

DistrictBeekeepersApiariesHivesHoney production
199719981999199719981999199719981999199719981999

1Year ended 30 June.

Source: MAF Quality Management

 numbertonnes
Whangarei1,1351,1539962,6472,6192,35930,25231,52230,5057661,014615
Hamilton5225114752,8932,9552,71139,69248,72247,0928291,4041,617
Tauranga5185364883,2423,0292,85447,96446,85249,8929331,3141,800
Palmerston North1,3331,3651,2823,8313,7703,71937,05539,46041,5231,1121,2301,416
Blenheim4694874471,9861,8841,74622,89424,10225,405919598770
Lincoln7907997295,2945,0244,83658,45258,92659,9792,3391,2381,782
Invermay5195054973,8613,7463,56851,14949,33748,5921,6393,1191,069
              New Zealand5,2865,3564,91423,75423,02721,793287,458298,921302,9888,5378,0819,069

With the decline in the amount of kiwifruit grown 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, stone fruit, berry fruit and squash) has increased, and currently over 90,000 hives are hired by growers in New Zealand on an annual basis for pollination of all fruit, vegetable and legume seed production.

The National Beekeepers Association (NBA) levies beekeepers with more than three apiaries or ten hives, under the Commodity Levies Act 1991, to pay for its activities as well as their Pest Management Strategy. Further information, with links to worldwide beekeeping sites, is available on www.beekeeping.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 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.

Table 18.30. Grain and Peas 1996

CropArea sownYields
North IslandSouth IslandTotalNorth IslandSouth IslandTotal

‘..s’denotes an estimate that has been suppressed for reasons of very poor statistical quality. 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
Wheat..s43,45050,607..s239,386277,014
Oats8949,20010,0942,81138,40641,217
Barley12,05564,54676,60156,930310,251367,181
Peas1,34513,61514,9604,74641,62646,373
Maize17,801..s18,559201,941..s209,710

Tasman Bay roses for sale on the Internet, 1998.

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. Most wheat is grown in the South Island, in the Canterbury Regional Council Area.

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.

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.

Oats. Grown mainly for threshing and green feed, oats are also used to produce milled rolled-oats, oatmeal, and oaten foods. The main areas for oats are Canterbury and Southland.

Marketing promotion, 1979.

Canterbury chestnuts, 1998.

Seed certification. MAF 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 EU 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).

Fruit

Table 18.31 outlines the main types of fruitgrowing in New Zealand. Exports are dealt with in section 25.2.

Production and export of avocados, berryfruit, tamarillos, citrus fruit and feijoas are all making an impact on the local and international market.

Effective research is critical to the development of the horticultural sector. Forty percent of the total 1996 horticulture research expenditure of $9.7 million came from the industry as a whole.

Table 18.31. Areas Planted in Fruit

FruitAt 30 JuneMain regions
19931994119951996

1Change in survey population definition introduced in 1994.

2Areas 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 statistical quality.

Source: Agriculture Production Survey, Statistics New Zealand

Source: Apple and Pear Marketing Board

 hectares 
Citrus
    Grapefruit/Goldfruit156117117115Bay of Plenty
    Lemons283263..s330Northland
    Mandarins533619654637Northland
    Oranges760789757607Gisborne, Northland
    Tangelos357295316230Bay of Plenty
Pip fruit
    Apples12,93715,25715,91615,819Hawke's Bay
    Pears1,0681,2791,2661,151Hawke's Bay, Tasman
    Nashi (Asian Pears)484418413313Bay of Plenty, Auckland
Stone fruit
    Apricots804844831735Otago
    Nectarines845667705559Otago, Hawke's Bay
    Peaches869714738756Hawke's Bay
    Plums303342336303Hawke's Bay
    Cherries273274353339Otago, Marlborough
Berry fruit
    Blackcurrants795720714614Canterbury
    Blueberries340357377280Waikato
    Boysenberries223231222227Tasman
    Raspberries224199..s..sCanterbury
    Strawberries247331..s..sAuckland
Subtropicals
    Avocados1,2601,3751,5881,573Bay of Plenty, Northland
    Feijoas226161..s138Auckland
    Kiwifruit14,09912,17411,87311,640Bay of Plenty
    Tamarillos325299249188Northland, Bay of Plenty
    Passionfruit68545441Bay of Plenty
    Grapes (outdoor)25,6637,1607,3827,627Marlborough, Hawke's Bay, Gisborne
    Persimmons400412428361Auckland

Table 18.32. Apple and Pear Sales1

 19951996199719981999

1For year ended 30 September.

2The NZAPMB no longer controls market sales or the processing sector – these areas were deregulated in 1994. But the commercial operations figure is only the Board's revenue in this area.

 $(000)
Fresh fruit export556,662631,645519,725535,347536,624
Commercial operations2227,889242,236265,069211,77493,675
              Net return784,551873,881784,794647,121630,299

Avocados. The number of avocado trees planted has increased over the past few years. Much of the exported fruit goes to Australia, with smaller quantities to the USA, Korea and Singapore. New Zealand has an excellent climate for Hass avocados and the industry is seen to be coordinated, efficient and well positioned for growth.

Berryfruit. The blackcurrant industry is in a steady growth phase. It has proved to be internationally competitive and the quality of New Zealand blackcurrant concentrate to be as good as any produced anywhere in the world. Strawberry production is increasing steadily with most of the increase absorbed by the local market over a longer season. Boysenberries are anticipating a 10 percent growth in production each year for the next few years. Blueberries also face a positive long-term future although it is expected competition from South America and South Africa will lead to rationalisation of grower numbers in the short-term. Local demand for blueberries is increasing every year.

Citrus. Citrus growers have been restructuring their cultivar base to better cope with international competition. Orange growers have suffered from the effects of large Australian navel orange imports and have been shut out of the Japanese market by heavy volumes of Sunkist fruit. This situation is not expected to change, so local growers have adapted by planting mandarins and Yen Ben lemon to create a distinct niche which is expected to do better.

Feijoas. While still relatively unknown as a fruit, promotion of feijoas on the domestic market is proving successful and raising awareness of this fruit, which is also seen to have an appeal to Asian tastes. A similar promotional campaign to raise awareness of the fruit overseas is needed if there is to be export growth.

Persimmons. Persimmons are well known in the Asian market. New Zealand persimmons are well established in some markets and developing a presence in others. New Zealand is seen to produce excellent quality, blemish-free fruit and to have a strong and evolving industry.

Pipfruit. The New Zealand Apple and Pear Marketing Board (NZAPMB) is responsible for marketing all export-grade apples and pears from New Zealand, or giving other organisations permission to do so.

About 66 percent of the Board's product went to Europe (including the United Kingdom), while the rest was divided between the North American (19 percent), and the Asian (13 percent) markets. Fruit is sold to about 60 countries under the ENZA brand.

In 1999 the board exported about 17 million, 18kg cartons of apples and pears on behalf of approximately 1,500 New Zealand pipfruit growers. These exports generated $519,725,000 in sales revenue. However, at an average return of $10.96 per 18kg carton, returns to growers were $2.00 a carton down on the previous season's returns. This drop in returns reflects the increasingly competitive nature of the international pipfruit industry.

The board has established new grade standards that were used from the 1998 season, which are in keeping with the board's overall strategic marketing plan to differentiate its product in an oversupplied world market to achieve improved returns to growers.

Summerfruit. The New Zealand industry comprises approximately 3000 hectares and 550 growers. The main growing areas are the Hawkes Bay, Marlborough and Central Otago. They produce respectively 30 percent, 10 percent and 50 percent of the crop. Local markets take 60 percent of the product, with Taiwan, Australia and the United States taking another 25 percent, with process accounting for 10–15 percent mainly peaches and apricots.

Of the exports, cherries account for 17 percent, nectarines 2 percent, apricots 51 percent and peaches 5 percent. Plum exports are very low at 1 percent, though this is expected to improve.

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.

ZESPRI International is the world's largest marketer of kiwifruit and sells under the ZESPRITM New Zealand kiwifruit brand. It is the global marketing subsidiary of grower-owned Kiwifruit New Zealand (the New Zealand Kiwifruit Marketing Board) and has a head office in Auckland, an operational headquarters in Mount Maunganui and regional marketing offices in Antwerp, Tokyo, Vancouver, Kuala Lumpur, Taipei and Seoul. Kiwifruit New Zealand is responsible for industry governance and onshore grower equity issues, inventory, quality and administration. ZESPRI International is focused on international marketing.

In 1998, ZESPRI International sold 59.4 million trays of New Zealand kiwifruit in around 60 countries. Sales (by volume) are focused in five major markets: Europe (59 percent), Japan (17 percent), East Asia (8 percent), North America (8 percent) and developing markets (8 percent) which include South America, Australia, Middle East, South East Asia, India Ocean, New Zealand and Far East Russia.

While New Zealand growers supply about a quarter of world production, kiwifruit generally accounts for less than 1 percent of world fresh fruit production. Other major producers include Italy, Japan, China, Greece, Chile, the United States and France.

Table 18.33. Kiwifruit Production

Year ended 31 MarchAreaExport traysSales trays
Source: New Zealand Kiwifruit Marketing Board
 hectaresmillion
199114,98059.854.7
199214,59467.352.3
199312,26555.349.2
199410,16155.849.9
199510,21058.848.7
199610,32963.156.2
199710,24360.663.1
199810,01556.259.4

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 over 80 percent of production, is the major growing area. There are about 1,700 kiwifruit growers in New Zealand.

Table 18.34. Horticultural Exports

Year ended 30 June199519951996199619971997
Source: Fruit Research Council of New Zealand, Fruit research in New Zealand 1996
 $(million)percent$(million)percent$(million)percent
Fresh fruit862.659.8807.559.5768.559.0
Processed fruit148.710.3143.210.5166.912.8
Fresh vegetables195.113.5168.612.4150.811.6
Processed vegetables149.710.4150.611.1136.610.5
Flowers and foliage49.53.448.13.542.03.2
Seeds and plants37.82.640.63.037.72.9
              Total1,443.4100.01,358.6100.01,302.5100.0

Grape growing and wine production. The area planted in producing grape vines increased from 7,580 hectares in 1998 to an estimated 9,000 hectares in 1999. Marlborough (29,229 tonnes in 1999), Gisborne (22,133 tonnes) and Hawke's Bay (19,472 tonnes) are the major grape producing areas.

The 1999 season was New Zealand's largest ever wine vintage, producing 79,700 tonnes of grapes. Chardonnay (17,823 tonnes), Muller Thurgau (8,941 tonnes) and Sauvignon Blanc (20,580 tonnes) were the most popular grapes of the season.

Along with increased grape production, exports of wine also increased 10 percent from 15.2 million litres in 1998 to 16.6 million in 1999.

The United Kingdom, which imported 9,041 million litres of wine in the year to 30 June 1999, is New Zealand's major export market for wine. Australia, importing 2,201 million litres, follows as the second-largest export market.

The number of wineries in New Zealand has increased from 131 in 1990 to 365 in 2000. The website for the Wine Institute of New Zealand is www.nzwine.com

Table 18.35. Wine Industry Statistics

 199419951996199719981999
Source: Wine Institute of New Zealand
Producing area [hectares]6,1106,1106,6107,4107,5809,000
Average yield [tonnes per hectare]8.812.211.28.110.38.9
Crushed [tonnes]54,00074,50075,30060,00078,30079,700
Total production [million litres]41.156.457.345.860.660.2
Domestic sales [million litres]28.530.935.638.838.238.6
Consumption per capita [litres (NZ Wine)]8.18.79.910.410.110.1
Stock: sales ratio1.62:12.19:12.06:11.66:11.72:11.80:1
Export Volume [million litres]7.97.811.013.115.216.6
Export Value [$(million)]41.540.860.375.997.6125.3

Further information

Annual Review of the New Zealand Sheep and Beef Industry. Meat and Wool Economic Service of New Zealand.

Biosecurity. MAF Biosecurity Authority (eight times per annum).

Bollard EG 1996. Further prospects for horticulture. HortResearch.

Census of Agricultural Contracting Services, 1984–85. Department of Statistics.

Contacts in Agriculture. Horticulture and Forestry. Contacts Unlimited, Palmerston North (annual).

Export Levels of New Zealand Wool and Wool Products and Their Current Markets. New Zealand Wool Board (annual).

Farm Monitoring Reports. Ministry of Agriculture and Forestry.

Key Statistics. Statistics New Zealand (monthly).

Meat Matters, Meat New Zealand (fortnightly).

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.

New Zealand Dairy Board Corporate Profile.

New Zealand Meat Board Annual Report.

New Zealand Pork Industry Board Annual Report.

New Zealand Wool Board Annual Report.

Phytozone, MAF Regulatory Authority Plants and Forestry.

Report of the Ministry of Agriculture and Forestry (Parl paper C.5).

Situation and Outlook for New Zealand Agriculture. Ministry of Agriculture and Forestry (annual).

Statistical Handbook. Wools of New Zealand (annual).

Surveillance. (Reports on animal health). MAF Biosecurity Authority (quarterly).

Wine Institute of New Zealand Incorporated Annual Report.

Wool Market Review. New Zealand Wool Board (fortnightly).

Wool Report. New Zealand Wool Board (quarterly).

Parliamentarians inspect grape juice extracting machine, Corbans Winery, Henderson, 1960.

The latest Agricultural Production Statistics 1999 at www.stats.govt.nz

Chapter 19. Forestry and fishing

Stripping eggs from a rainbow trout at a state hatchery, 1940s.

19.1 Forestry

Forests cover nearly 30 percent or 8.1 million hectares of New Zealand's land area. Of this, about 6.4 million hectares are in natural forest and 1.7 million hectares in planted production forests. Of the total planted production forest estate, 91 percent is radiata pine (Pinus radiata), and 5 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 the low level of 15,000 hectares in 1991 to 52,000 hectares in 1998. Nearly all forested areas are being 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 74 percent increase between 1996 and 2010. The graph Past and future wood supply shows the increase expected to become available under the assumption that 60,000 hectares of new plantings is undertaken each year.

Forestry research is described in section 15.1: Organisation of science, while the role of the Ministry of Agriculture and Forestry is summarised in section 3.3: State sector.

Resources

Indigenous forests. New Zealand's 6.4 million hectares 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 significance includes 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 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 1 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.

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 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 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.

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 rights 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 94 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. 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.

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. Major purchasers of the first sale of state plantation forest resource were the established New Zealand forestry companies Carter Holt Harvey Limited, which purchased 94,000 hectares, and Fletcher Challenge, which purchased 49,000 hectares.

Several foreign-owned companies made significant investments in New Zealand plantation forests. Juken Nissho Limited acquired the rights to 43,000 hectares, 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. The Forestry Corporation of New Zealand continued to manage these forests for the Crown. At the end of 1995 the Corporation 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.

Table 19.1. Forestry Planting and Production: Summary 1920–1999

Year ended 31 MarchNew area plantedRough-sawn timberWood pulp2Paper and paperboard
StatePrivate

1Chemical and mechanical wood pulp.

Source: Ministry of Agriculture and Forestry

 hectareshectarescubic metrestonnestonnes
(000)(000)(000)
19201 726  
192568812....
19302316668....
193558575....
19403..79322113,079
19451..80315,68120,949
19502..113121,78122,136
195522145353,01640,917
1960321638221,408164,255
1965951739370,499316,104
19701581803521,654445,976
197521232086843,244546,834
1980182620001,122,456673,853
1985203623061,144,911770,098
1990..212,1211,233,809757,371
1995-982,9551,360,389876,187
1996-742,9041,405,307892,969
1997-843,0231,377,264877,152
1998-643,1951,412,165879,576
1999-52P3,2261,400,739814,314

The Dominion Gwavas Forest, Takapau Plain, central Hawke's Bay.

Private forestry. Around 37 percent of New Zealand's planted production forests are owned or managed by two major forestry companies (Carter Holt Harvey Limited and Fletcher Challenge Limited). Seven medium sized forestry companies own a further 20 percent of forests. Six percent of the forest area remains in central government ownership, managed primarily by the Ministry of Agriculture and Forestry and two state-owned enterprises. Local authorities own a further 3 percent of the area while the balance (34 percent) is owned by a large number of private owners including Māori trusts. Small private investors and landowners continue to develop an expanding area of planted production forests.

19.2 Timber and forest products

Timber

Roundwood. In 1997–98 logs from planted production forests supplied 15,700,000 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 370 sawmills, seven plywood and nine veneer plants, four particleboard mills, eight pulp and paper mills, and five fibreboard mills in 1998–99. This roundwood production does not include firewood.

Table 19.2. Estimated Roundwood Removals from New Zealand Forests

Year ended 31 MarchNatural forest removals totalPlanted production forest removalsTotal removals
Saw logsPulp logsExport logsOther1Total

1Other includes peeler logs, small logs and export chips.

Source: Ministry of Agriculture and Forestry

 cubic metres (000)
19922054,4314,1843,5781,50513,69813,903
19932065,0063,4754,5411,46214,48414,690
19942045,1713,7814,2531,46214,66714,871
19952055,3104,0604,7621,84615,97816,183
19961305,2713,7575,6081,92616,56216,692
19971105,4593,1425,4691,89415,96416,074
1998755,8103,1525,5942,07416,63016,705
19991255,8652,9714,8032,05015,68915,814

Sawn timber. Radiata pine accounts for about 94 percent of the total cut of exotics, Douglas fir for over 4 percent and other conifers for most of the remainder. Less than 1 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 requirements.

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 are used. The process also uses forest and sawmill residues which would normally be wasted.

Chip exports during the year ended June 1999 totalled 232,000 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 Agriculture and Forestry
 cubic metres (000)
1992542,2372,29191102,301
1993612,5632,62464102,634
1994722,7302,80286142,816
1995702,8632,93397162,949
1996482,8432,89176132,904
1997482,9643,01283113,023
1998323,1543,1866393,195
1999333,1853,2185383,226

Timber preservation. Over one 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 for particular uses; 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.

Table 19.4. Sawn Timber Production by Species

SpeciesYear ended 31 March
199419951996199719981999
Source: Ministry of Agriculture and Forestry
 cubic metres (000)
Natural forest-
Rimu and miro666644442830
Matāi112111
Tōtara1---1-
Kahikatea3211--
Tawa313111
Beech474754
Other121222
          Total natural forest species797955563838
Planted production forest-
Radiata pine2,4972,5912,6312,7612,9952,996
Douglas fir123128104122105143
Eucalypts455323
Other112146109815546
          Total planted production forest species2,7362,8702,8492,9673,1573,188
          Total all species2,8162,9492,9043,0233,1953,226

Quarantine and inspection. New Zealand's quarantine and 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. MAF 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 MAF 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.

Prince Phillip (centre, hands in pockets) visits Tasman Pulp and Paper's Kawerau ground wood plant, 1956.

Carter Holt Harvey Limited 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
Chemical1Mechanical2NewsprintOther printing and writing paperOther paper and paperboardTotal paper and paperboard

1Chemical includes semi-chemical pulp.

2Mechanical includes groundwood pulp, thermo-mechanical and chemithermo-mechanical pulp.

Source: Ministry of Agriculture and Forestry

 tonnes
1992673,949669,371356,35119,949403,716780,016
1993588,369682,928376,1058,795371,113756,013
1994701,630669,604370,85313,794450,966835,613
1995684,454675,935374,86514,924486,398876,187
1996702,575702,732391,43613,084388,449892,969
1997652,308724,956384,14711,870481,135877,152
1998675,453736,712393,54513,556472,475879,576
1999645,032755,707383,37211,586419,356814,314

Table 19.6. Veneer, Plywood, Particleboard and Fibreboard Production

Year ended 31 MarchVeneerPlywoodParticleboardFibreboard
Source: Ministry of Agriculture and Forestry
 cubic metres
199282,81057,864155,428513,877
1993117,72086,253164,877543,679
1994140,51696,953175,786553,670
1995235,444150,543175,995690,175
1996259,928160,481159,082632,019
1997300,648180,713233,988536,831
1998292,171189,447196,395613,345
1999285,825192,445169,569600,673

Overseas trade in forest products

Exports. Forest products are important earners of overseas funds. For the year ended June 1999 exports of forest products were valued at about $2,450 million ($2,332 million in 1997). Australia took 31 percent (by value) of exports, mainly in sawn timber, panel products and wood pulp. Japan took 23 percent, mainly sawn timber, panel products, pulp and paper, and paperboard. The remaining 46 percent was taken by smaller customers, of which the largest was Korea (12 percent).

Table 19.7. Volume of Timber Exports

Year ended 30 JuneSawn timberLogs and poles
From natural forestRadiata pineDouglas firOtherTotal
Source: Ministry of Agriculture and Forestry
 cubic metres (000)
1992270384478363,793
1993387056409694,734
1994285232359214,315
1995199442281,0654,802
1996189731199485,460
199721,01741231,0825,915
199811,10516301,1524,657
1999P11,20261341,2975,186

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 uses including large poles, cross-arms and wharf, bridge and constructional timbers. 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 78 percent of the value of total forest products imports in the year ended June 1999. As shown in Table 19.7, imports of forest products for the year ended June 1999 were valued at $975 million ($878 million in 1998).

Table 19.8. Volume of Timber Imports

Year ended 30 JuneHardwoodsSoftwoodsTotalLogs and poles
Source: Ministry of Agriculture and Forestry
 cubic metres (000)
1992819273
1993718253
1994823323
19951023342
19961324382
19971021323
19981119323
1999P1215294

Table 19.9. Overseas Trade in Forest Products

Year ended 30 JuneWood and wood productsWood pulpPaper and paper productsAll forest products
Source: Ministry of Agriculture and Forestry
Imports cif$(000)
199285,48916,949440,889543,327
199394,24518,470548,269660,984
1994114,80412,749485,560613,113
1995136,64114,070565,298716,009
1996163,35517,655596,785777,795
1997181,57811,855636,531829,964
1998202,9808,880666,511878,371
1999217,75318,710738,174974,637
Exports fob$(000)
19921,028,666379,168416,8851,824,719
19931,549,990352,709421,1092,323,808
19941,738,412326,977403,6662,469,055
19951,730,893480,862430,7822,632,537
19961,605,231456,788523,4382,585,457
19971,625,339344,086409,9542,379,379
19981,491,896350,785488,8302,331,511
19991,560,990353,918535,3822,450,290

Cabinet makers at the Disabled Servicemen's Centre, Christchurch, 1950s.

Table 19.10. Volume of Overseas Trade in Pulp and Paper

Year ended 30 JuneWood pulpPaper and paperboard
NewsprintOther paper and paperboard1Total

1Products manufactured from paper and paperboard are excluded.

Source: Ministry of Agriculture and Forestry

Importstonnes
199216,8506,022111,297117,318
199318,4423193,845193,848
199417,03787143,912143,999
199514,32465174,981175,046
199615,29924161,129161,153
199718,6901987226,047228,034
199811,209128247,463247,591
1999P21,662105303,342303,447
Exportstonnes
1992656,088271,469116,825388,293
1993625,382285,850117,294403,144
1994628,928251,712117,029368,741
1995665,274232,418116,516348,934
1996654,326245,972121,710367,682
1997667,682250,910121,914372,824
1998626,579262,060171,422433,482
1999P662,636246,385201,255447,640

19.3 Fisheries

Fishery resources

New Zealand's Exclusive Economic Zone (EEZ) is one of the largest in the world. At 1.3 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.

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.

Most New Zealanders, at some time or other, use the fisheries as a source of food, for work or for relaxation. The demands on the fisheries are steadily increasing. In less than 30 years the commercial fishing industry has expanded from a small, domestic industry to a billion-dollar-a-year export business. This growth can be measured as several billion investment dollars in seafood exports and the growth of job creation throughout the industry.

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. It also provides security for participants in the fishing industry to invest in harvesting and processing capacity. 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.

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.

Recreational fishers who fish for pleasure are growing in numbers. The customary values of fishing have now been recognised with the introduction of the Kaimoana Customary Fishing Regulations.

Emptying cod aboard a fishing trawler.

Customary Fishing Regulations

In 1992 the Fisheries Settlement Act provided a legislated settlement of fishing claims with two main impacts. First, the settlement addressed the right of Māori to a commercial stake in New Zealand's fishing industry and a role in its management. The second part of the settlement was less well known, but no less important. It addressed claims to a non-commercial, customary fishing right.

The Customary Fishing Regulations were developed by the Crown and Māori. They seek to effectively provide for customary non-commercial fishing, while ensuring the sustainability of the resource. The introduction to the Customary Fishing Regulations clearly states the relationship between the regulations, the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 and the Treaty of Waitangi itself. Also, the definition of customary food gathering in these new regulations refers to the traditional rights confirmed by the Treaty of Waitangi and the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992. The regulations for the South Island were effective from April 1998, and in the North Island from 1 February 1999.

What the Customary Fishing Regulations cover. The Customary Fishing Regulations cover noncommercial customary fishing only. They do not remove the right of tangata whenua to catch their recreational limits under the Amateur Fishing Regulations.

Table 19.11. Total Allowable Commercial Catch, 1999–20001

Fish or shellfishQuantity

1Excludes tuna species.

Source: Ministry of Fisheries

 tonnes
Alfonsino2,717
Barracouta32,410
Black cardinal fish3,670
Blue cod1897
Blue moki594
Blue warehou4,292
Bluenose2330
Elephant fish705
Frostfish3,858
Gemfish1590
Grey mullet1076
Gurnard5,132
Hake13,987
Hāpuku/bass/groper2,171
Hoki250,000
Jack mackerel60,536
John Dory1097
Ling22,103
Mixed flats6,660
Orange roughy20,344
Oreos23,933
Oysters505
Packhorse rock lobster40
Pāua1108
Red cod16,056
Rig1878
Scallop720
School shark4,406
Silver warehou9,502
Snapper9,139
Spiny rock lobster2,521
Squid123,332
Stargazer11,277
Tarakihi5,981
Trevally3,922
Yellow-eyed mullet68

Those given permission to take fish under the Customary Fishing Regulations cannot trade the fish, exchange the fish for money or accept any other form of payment, nor do they in any way provide for commercial fishing. Fish taken in freshwater fisheries are not covered by these new regulations.

The establishment of mātaitai reserves is also covered by the regulations. These reserves provide a tool for tangata whenua to manage all non-commercial fishing in some of their traditional fishing grounds. Generally there is no commercial fishing within mātaitai reserves.

How Customary Fishing Regulations will apply. The regulations only apply in an area where tangata whenua have appointed tangata kaitiaki/tiaki for North Island areas, and tangata tiaki/kaitiaki for areas in the South Island.

Tangata kaitiaki/tiaki and tangata tiaki/kaitiaki are individuals or groups who can authorise customary fishing within their rohe moana, in accordance with tikanga Māori. Their appointments are notified by the tangata whenua of an area.

Tangata whenua is defined in the regulations as the whānau, hapu or iwi which holds manawhenua manamoana over a particular area. To date more than 40 tangata tiaki/kaitiaki have been appointed in the South Island, and appointments of tangata kaitiaki/tiaki in the North Island are underway.

Te Ohu Kai Moana: Treaty of Waitangi Fisheries Commission

Te Ohu Kai Moana (TOKM), the Treaty of Waitangi Fisheries Commission, was 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 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 functions include:

  • The development of a method of allocating assets to iwi, according to the provisions of the Māori Fisheries Act 1989 as amended by 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 1997–99:

  • 38 iwi representative organisations signed an agreement to meet the commission's criteria for fisheries matters.

  • Iwi Helpline set up in 1996 to assist people of Māori descent to identify their iwi: 5,800 people called the Helpline by June 1999.

  • With a turnover of $324 million Te Ohu Kai Moana would rank at 60 in the top 200 New Zealand companies and at 35 on a comparison of assets.

  • 202 scholarships were provided in 1998 to Māori students.

  • Overall value of trade for the fishing industry is up, and hoki and greenshell mussels are the main contributors to growth.

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 a result of the Deed of Settlement and the Sealord purchase.

  • Pre-settlement assets (PRESA). This comprises the 10 percent quota Māori under the old Māori Fisheries Act and shares in Moana Pacific Fisheries and cash generated from these assets. Cash – approximately $50 million; Quota – approximately 60,000 tonnes; Shares – a 72 percent shareholding in Moana Pacific Ltd.

  • Post-settlement assets (POSA). A 50 percent shareholding in Nelson-based Sealord Group acquired in 1993 for $350 million. Cash and 20 percent of the quota for all new species entered into the Quota Management System (QMS) from January 1998.

Assets include shareholdings in a number of companies involved in the fishing and seafood industry including Moana Pacific Fisheries Ltd and Sealord Products Ltd.

Allocation of assets to iwi. The commission has formally recognised 78 iwi for fisheries matters. However, before fisheries assets can be returned to any iwi, its representative organisation is required to meet certain minimum constitutional standards with regard to representation (‘mandate') and organisational structures.

By late June 1999 the commission's ‘Agreement to meet Criteria for Mandate and Structures’ had been signed by 38 iwi representative organisations. Signing of this agreement is the first formal step towards the constitutional amendments necessary to meet commission mandate and representation criteria.

Liberating trout fry at Rotorua.

Aquaculture

Greenshell mussels, salmon and Pacific oysters continue to be the mainstay of New Zealand's aquaculture industry. In 1998 greenshell mussels and salmon exports totalled $NZ118.2 million and $NZ35.6 million respectively. The main markets are Japan, the European Union, Australia and the USA.

Production tonnages and the range of species farmed have substantially increased in recent times. The aquaculture industry is involved in research to extend the range of species and technologies involved. This includes consideration of turbot and brill, oysters, sponges for chemical production, kingfish and rock lobster as well as further enhancement prospects for several species such as pāua, scallops and snapper.

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. In 1998, 63 percent of the total catch was taken by domestic New Zealand-owned vessels. This is a significant increase compared to previous years.

New Zealand investment in specialised trawlers is resulting in declining use of chartered vessels in mid-water and deep-water fishing. An increasing proportion of the catch is being processed either in factory vessels at sea or landed to shore-based processing operations. The extent of further processing and the product forms selected are dependent on international market returns.

The charter fleet dominates the high volume deep-water 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.

Table 19.12. Registered Commercial Fishing Vessels1

YearForeign licensed vesselsForeign chartered vesselsDomestic vessels

1At 30 September.

Source: Ministry of Fisheries

199244792802
1993251672707
199432632,569
199532542,575
199622552,458
199716592170
199817521965
199910461861

19.4 Seafood trade

Exports. New Zealand seafood exports recovered significantly in 1998 from the effects of the Asian financial crisis. The prolonged price weakness in international markets for frozen finfish species turned around while concurrently the New Zealand dollar weakened. The Asian crisis, which began in mid-1997, affected seafood exports to the region, particularly to Japan. In the second half of 1998 north Asian markets, with the exception of Japan, showed marked signs of recovery in demand. As an example, sales to Korea recovered to historical norms.

Of particular note has been a dramatic increase in exports to markets in the European Union. Exports in 1998 were up 50 percent in value on 1997. Sales of hoki to the branded food processing sector in northern Europe accounted for much of the increase – sales of frozen hoki in fillet form increased by 300 percent over 1997.

Imports. In the year to December 1999, 16,153.1kg with a value of $84.3 million (cif) of fish and fish preparations were imported to New Zealand. 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.

Changes to industry organisation. The imposition by government of full cost recovery of fisheries management and related research costs on industry has stimulated reorganisation of commercial stakeholder interests away from national industry associations into a wide variety of new bodies. These focus on the management and research needs of individual and related fisheries. The new organisations have generally been established as companies with constitutions structured to represent the interests of quota owners and other commercial interests.

Table 19.13. Seafood Exports

Commodity exported19941995199619971998
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Seafood Industry Council
 tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)
 (000)fob(000)fob(000)fob(000)fob(000)fob
Finfish or Wetfish208.2760.0212.9791.1238.7762.0261.6746.1272.3861.3
Rock Lobster2.9119.63.0113.83.1114.52.9111.22.9101.6
Shellfish78.5287.3106.4333.186.7302.773.5268.175.2273.9
                Total289.61,166.9322.21,238.0328.41,179.2338.01,125.4350.41,236.8

Table 19.14. Value of Fisheries Exports to Principal Markets1

Country19941995199619971998
ValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exports

1Total includes exports to other markets.

Source: New Zealand Seafood Industry Council

 $(m) $(m) $(m) $(m) $(m) 
fobfobfobfobfob
Japan328.728.2351.028.4345.529.3283.425.2258.020.9
United States260.422.3252.120.4213.518.1195.517.4205.716.6
Australia131.111.2136.711.0127.910.8130.911.6146.711.9
    Total fisheries exports1,166.9 1,238.0 1,179.2 1,125.4 1,236.8 

Table 19.15. Principal Fish Exports

Species19941995199619971998
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Seafood Industry Council
 tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)
(000)fob(000)fob(000)fob(000)fob(000)fob
Abalone0.743.31.353.21.041.21.161.31.045.3
Barracouta9.511.311.515.713.616.312.815.410.313.4
Gemfish1.213.11.313.81.09.61.010.90.54.3
Hake2.318.05.927.76.326.18.330.68.13.5
Hoki44.3114.047.7130.848.8123.655.8136.968.5187.0
Ling8.948.19.251.49.048.39.952.710.462.2
Mackerel, blue0.80.71.91.72.62.53.32.82.72.9
Mackerel, jack22.716.716.115.222.817.524.320.420.618.1
Mussels17.870.221.386.826.997.627.187.033.2118.2
Orange roughy12.4167.812.3151.111.4124.710.0103.86.778.8
Oreo dory6.524.95.220.55.623.56.021.35.422.2
Rock lobster2.9119.43.0113.83.1114.52.9111.22.9101.6
Salmon2.723.73.824.45.634.23.628.23.832.2
Scallops1.023.40.714.60.48.50.68.90.49.6
Scampi0.711.00.612.91.121.41.019.80.816.4
Snapper6.357.05.449.86.147.46.243.25.639.4
Southern blue whiting3.26.01.62.61.62.12.43.33.85.9
Squid55.0119.878.8158.654.4117.940.272.636.764.0
Tuna7.929.48.535.49.824.59.820.112.433.4
Warehou6.118.85.9519.117.726.69.328.78.623.1

New Zealand Seafood Industry Council

During 1997 the New Zealand Fishing Industry Board (NZFIB), which oversaw orderly, profitable industry development, contracted out most of its operations to a newly formed industry-owned company, the New Zealand Seafood Industry Council Ltd (SeaFIC). The financing of operations remained as before, through a statutory levy collected by the NZFIB on all fish caught and processed by the New Zealand industry.

SeaFIC has combined most of the operations of the NZFIB, the Fishing Industry Association and the Federation of Commercial Fishermen. Its focus is on issues of a generic concern, such as refinement of fisheries law and regulation, further development of property rights in capture fisheries and aquaculture, fisheries science and research, trade policy and trade development, and information services to industry. The Seafood Industry Training Organisation operates as a business unit of SeaFIC.

Fish factory workers, date not known.

Table 19.16. FISHING INDUSTRY: STATISTICAL SUMMARY
Ocean, coastal and fishing, fish farming and fishing consulting
New Zealand Standard Industrial Classification (NZSIC) = Division 13

Statistical item1996–971997–98Percentage change

Source: Statistics New Zealand's Annual Enterprise Surveys

..C = confidential.

 $(million)$(million)percent
Inventories:
    Closing stocks384518.6
    Opening stocks33368.3
Income:   
    Sales of goods and services872824-5.5
    Interest, dividends etc3554.9
    Government grants and subsidies1270.6
    Other income including extraordinaries91674.1
    Total income886847-4.3
          Total income adjusted for stocks890856-3.8
Expenditure:
    Salaries and wages paid to employees83853.1
    Redundancy and severance..C..C49.9
    Salaries and wages to working proprietors (SW to WPs)1712-31.3
    Fringe benefit tax (FBT)0037.5
    Purchases and other operating expenses635596-6.2
    Interest, donations, grants, royalties etc2525-1.7
    Indirect taxes (excl FBT)22-0.7
    Depreciation54598.1
    Non-operating expenses35110.2
          Total expenditure819784-4.3
Net profit before tax, extraordinaries, SW to WPs8274-9.7
Net profit before tax, SW to WPs8884-4.4
Fixed tangible assets:
    Purchases of plant, machinery, vehicles and equipment10063-36.8
    Purchases of land, buildings and other construction1124116.8
    Total purchases of fixed tangible assets11187-21.4
    Sales of fixed tangible assets2253145.1
Balance sheet:
    Shareholders funds or owners equity4564703.1
    Current liabilities31936012.9
    Other liabilities1841955.9
    Total capital and liabilities9581,0246.9
    Fixed tangible assets49457015.4
    Current assets214205-4.0
    Other assets250249-0.6
          Total assets9581,0246.9
Ratios:
Total income per FTE176,177178,7541.5
Net profit per FTE16,21715,532-4.2
 percentpercent 
Current ratio67.157.1
Quick ratio55.344.6
Profit margin on sales9.38.9
Return on equity17.915.7
Return on total assets8.57.2
Liabilities structure47.645.9

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. Since generating a record $1.2 billion in 1992, seafood export receipts remained about the same over the years, except for mid-1997. 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 Seafood Industry Council (SeaFic).

Statistics New Zealand produces broad economic data on the industry, through the Annual Enterprise Survey, which covers the activities of all businesses classified in Subdivision 04 of the Australian and New Zealand Standard Industrial Classification. A summary of results is given in table 19.16.

Contributors

  • 19.1 Ministry of Agriculture and Forestry; Statistics New Zealand.

  • 19.2 Ministry of Agriculture and Forestry.

  • 19.3 Ministry of Fisheries; Treaty of Waitangi Fisheries Commission.

  • 19.4 Ministry of Fisheries; New Zealand Seafood Industry Council; Statistics New Zealand.

Special articles

Ministry of Fisheries; Treaty of Waitangi Fisheries Commission; Parliamentary Commissioner for the Environment; Ministry of Agriculture and Forestry; New Zealand Seafood Industry Council Ltd.

Further information

Forestry

A National Exotic Forest Description as at 1 April 1999. 2000. Ministry of Agriculture and Forestry.

Branching Out – A Career in Forestry. 1995. Ministry of Forestry.

Business Activity Statistics 1998. Statistics New Zealand.

Forestry Handbook. 1995. New Zealand Institute of Forestry.

Forestry Insights (a series of five education resource kits held by most New Zealand schools). 1992–1995. Forestry Insights.

Forestry Projects – Sources of Assistance. 1995. Ministry of Forestry.

Forestry Report. Ministry of Forestry (quarterly).

Forestry Sector in New Zealand, The. 1993. Ministry of Forestry.

Forestry Sector Issues. 1997. Ministry of Forestry.

National and Regional Wood Supply Forecasts. 1996. Ministry of Forestry.

New Zealand Forestry Statistics 1997. 1999. Ministry of Agriculture and Forestry.

Regional Studies. 1994. Ministry of Forestry. (10 regions).

Report of the Ministry of Forestry. (Parl paper C.16).

Statistical Releases. Ministry of Forestry (series).

Fishing

Achieving sustainable fisheries. 1996. Ministry of Fisheries.

An introduction to the Fisheries Act. 1996. Ministry of Fisheries.

Changing course – Towards fisheries 2010. 1996. Ministry of Fisheries.

Economy Wide Census 1987. Department of Statistics.

NIWA Technical Report. NIWA.

New Zealand Journal of Marine and Freshwater Research. Royal Society of New Zealand (quarterly).

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

Electric-powered gold dredge at Kanieri, West Coast, 1930s.

20.1 Energy

Energy contributes about 3 percent to New Zealand's gross domestic product (GDP), and directly employs about 8,000 people, or around 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 1998 was 703 petajoules (PJ), a decrease of 1.1 percent over the previous year. Oil provides 29 percent, gas 28 percent, coal 7 percent, hydro 12 percent, geothermal 15 percent, and other renewables (which include electricity generation from wind, biogas, industrial waste and wood) 5 percent.

New Zealand is self-sufficient in all energy forms apart from oil. In 1997 New Zealand was 91 percent self-sufficient in its primary energy needs and 57 percent self-sufficient in oil, significantly higher than the 44 percent in 1996.

New Zealand's energy intensity (measured as energy use per dollar of GDP) is among 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 427.3PJ in 1998, which is equivalent to about 3,430 litres of petrol per person. New Zealand's consumer energy (energy used by final consumers) is dominated by oil, comprising 204PJ per year (48 percent), electricity 113PJ (27 percent), coal 32PJ (7 percent), gas 36PJ (8 percent), and 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.

The Ministry of Energy divested the generation and transmission assets of its electricity division to the Electricity Corporation of New Zealand Limited (ECNZ) when it was established in 1987. The Ministry of Energy itself was disestablished in 1989 and its remaining policy and regulatory activities largely transferred to the new Energy and Resources Division which in late 1997 was renamed the Resources and Networks Branch of the Ministry of Economic Development (previously Commerce).

In the late 1980s major energy sector changes 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.

The Government's energy policy objective during the 1990s 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 a stable regulatory framework set by the government.

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.

In 1994, Transpower was established as a stand-alone state-owned enterprise responsible for the national grid.

In 1996, New Zealand's major generator, ECNZ, was split into two state-owned enterprises with the formation of Contact Energy. In the same year a competitive wholesale electricity market was established.

ECNZ was further split into three competing state-owned enterprises on 1 April 1999 so that in total there were four competing generators formed from the initial ECNZ. The Government sold a 40 percent ‘cornerstone’ shareholding in Contact Energy to US based Edison Mission Energy in March 1999. A public share float closed in May 1999 with over 225,000 New Zealanders purchasing shares in Contact Energy.

There are a number of areas where government interventions are still 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.

The Government introduced ‘light-handed’ regulation in the early 1990s, which depends on Commerce Act provisions to prohibit anti-competitive actions. The Commerce Act is supported by regulations that require extensive disclosure of information; on the operation of electricity and gas lines in particular. There are legislative powers available through the Commerce Act to introduce price regulation if necessary.

In 1998, the Government instituted a further round of reforms to promote greater economic efficiency in the electricity generation, distribution and retail industries. The Electricity Industry Reform Act, passed in July 1998, required local power companies to separate the ownership and control of the line businesses from energy retailing and generation activity by April 1999 and dispose of one or other business by December 2003. The power companies rapidly complied well ahead of the specified time frame.

Environmental impacts. The Resource Management Act 1991 was 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 low level carbon taxes or tradeable emission permits. New Zealand is a signatory to the Kyoto Protocol, and the emission levels of greenhouse gases during the period 2008–2012 will have to be reduced to levels prevailing in the base year 1990.

Energy research and development. The government has 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), with a shift in focus from fossil fuels and traditional renewables (hydro and geothermal) to energy efficiency and non-traditional renewables (wind, biomass, biofuel etc).

These priorities were reviewed in 1998 and energy research and development funding increased by 11 percent between 1997/98 ($5.8 million) and 1999/2000 ($6.4 million), compared to an aggregate PGSF increase of 5 percent. Emphasis also shifted with the proportion of funding being expended in the energy efficiency and non-traditional renewables areas, which declined for 1999/00. The allocated expenditure across broad areas is as follows: energy efficiency and non-traditional renewables (28 percent), petroleum and coal (27 percent), geothermal (19 percent) and other non-specific areas (26 percent). A further review will occur in 2001.

Table 20.1. Total Primary Energy Supply

Calendar yearCoalImported oil and productsIndigenous oilGasHydroGeothermalTotalImported oil as % of total
Source: Ministry of Economic Development
 Petajoules
197660.5156.922.0 55.250.7401.939.0
197757.7146.831.5 52.547.8421.434.8
197853.4142.326.8 55.848.7408.434.8
197947.4147.017.9 65.743.8382.638.4
198050.8148.215.7 69.047.3390.438.0
198151.4139.221.0 70.144.7395.435.2
198250.9123.732.1 65.245.4420.729.4
198356.0124.231.5 70.469.1459.427.0
198452.7116.140.8109.272.681.2495.123.4
198552.1114.231.4140.670.276.9508.922.4
198657.777.558.6168.978.880.4543.914.2
198751.491.659.4162.878.169.8534.016.9
198849.479.861.7176.381.861.4536.414.9
198951.393.657.0181.580.472.7567.116.5
199052.4112.446.9180.982.688.2590.219.0
199146.8120.346.6196.381.693.5613.319.6
199249.3126.646.4208.275.294.3627.720.2
199354.5126.444.0203.183.799.6639.619.8
199443.7157.037.2188.992.194.1644.724.3
199548.2178.531.2179.298.191.4658.127.1
199645.4183.341.0204.292.691.9695.626.4
199748.0179.649.7218.984.996.0710.925.3
199850.5202.730.7193.286.9103.8702.828.8

Table 20.2. Trends in Consumer Energy Use

Calendar yearSolid1OilGasElectricityGeothermal2Total

1Solid fuels include wood and other renewables.

2Direct use of geothermal.

Source: Ministry of Economic Development

 Petajoules
19545559216..132
19644890230..170
197441151758..257
198440140488330341
198535136548431340
198641141538832355
1987421405410522363
198855147529413361
198957154449712364
1990711624010011384
1991731604110212388
1992691714110013394
1993751714010514405
1994R711863710713414
1995701963611013424
1996641973611313424
1997632023511313426
1998612043611314427

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 Economic Development's supply and demand projections prepared in 2000, between 1998 and 2020, consumer energy will grow by 1.1 percent per year for an assumed 3 percent GDP growth scenario. This represents a significant decline in the ratio of energy growth to GDP growth from around 1.3-to-1 in the past 25 years, to around 0.4-to-1 in the next 20 years as the New Zealand economy becomes less energy intensive.

Residential sector consumer energy is projected to grow at around 2.1 percent per year between 1998 and 2020, the industrial and commercial sector to decline by 0.3 percent, and the transport sector to grow by around 2.0 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 0.7 percent, oil by 1.9 percent, and gas is projected to decline by an average of around 2.6 percent. The decline in gas consumption will be affected by the drawdown of the Maui field in the early years of this decade, and the likely closure of petrochemical plants.

Table 20.3. Energy Supply and Demand Balance, 19981

 CoalOilGasHydroGeothermalOther renewablesElectricityTotal

1Year ended December.

Source: Ministry of Economic Development

 Petajoules
Supply
Indigenous production84.5105.4193.186.9103.835.0-608.6
    + Imports0.2256.9-----257.1
    - Exports34.281.1-----115.3
    - Stock change-7.5-0.1----7.4
    - International transport-40.3-----40.3
    Total primary energy supply50.5233.5193.286.9103.835.0-702.8
Transformation
Electricity generation-8.3--55.0-86.9-82.2-1.3120.8-112.6
Cogeneration-7.1--20.7--2.0-8.010.5-24.1
Liquid fuels production--8.4------8.4
Losses and own use-2.0-4.0-5.7--6.0--8.3-26.0
    Total transformation-17.4-12.4-81.4-86.9-90.2-5.9123.1-171.1
Non-energy use--8.0-76.0-----84.0
    Consumer energy (calculated)33.1213.135.7-13.629.1123.1447.7
Demand
Agriculture0.715.2----4.220.1
Industrial26.111.625.4-11.022.744.7141.5
Commercial3.54.24.9--0.125.037.7
Residential1.32.24.9-2.66.339.256.4
Domestic transport0.1170.90.5---0.2171.7
    Consumer energy (observed)31.7204.135.6-13.629.1113.2427.4
Discrepancies1.49.00.1---9.920.3

Maraitai hydro dam and powerhouse, 1952.

In the baseline scenario, around 2200 megawatts of new electricity generating capacity is projected to become economic between 2000 and 2020, as demand for electricity exceeds the economic capacity of the current system. Around 300 megawatts of gas combined cycle, 260 megawatts of geothermal and 675 megawatts of coal is projected to become economic in the same period, along with around 395 megawatts of hydro, 295 megawatts of cogeneration, 150 megawatts of wind and 125 megawatts 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. The share of electricity generation from the hydro system is expected to decline from 65 percent in 1998 to around 52 percent in 2020, and gas's share from around 20 percent in 1998 to around 15 percent in 2020. Electricity generated from coal is expected to experience rapid fuel share growth, from around 5 percent in 1998 to around 14 percent in 2020.

Carbon dioxide emissions are projected to increase by about 1.6 percent per annum between 2000 and 2020, 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. Liquified petroleum gas (LPG) production is included in indigenous oil production.

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 34 percent for gas and coal plants and 30 percent for cogeneration. Hydro and wind are taken as being 100 percent efficient and geothermal as 10 percent.

Consumer energy (calculated) = total primary energy supply + total transformation + non-energy used (primary energy used for other purposes e.g. bitumen for roads and natural gas as feedstock to produce methanol and ammonia/urea).

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.

Installing new power cables, Auckland, 1998.

20.2 Electricity

Fuel share. Currently, depending on demand, rainfall and lake storage conditions, around 75 percent of New Zealand's electricity demand is met by renewable resources, with hydro contributing most of this (about 67 percent in 1998) and geothermal 6.5 percent. Over two-thirds of hydroelectricity 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 (22 percent in 1998), 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 ECNZ generated 92 percent of electricity used in New Zealand from its 38 power stations. Their generating capacity ranged from 3 megawatts (MW) to New Zealand's largest, the 1000MW, four-turbine Huntly power station, which can run on gas or coal.

In 1999 the four generators, Contact (25 percent), Meridian (30 percent), Genesis (19 percent) and Mighty River Power (14 percent), arising from the original ECNZ, accounted for about 88 percent share of the total generation capacity. Smaller generating schemes ranging in capacity from 0.3MW to 78MW have a capacity share of a further 6 percent, while the remaining 6 percent of total generation capacity comes from on-site cogenerators.

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, several pulp and paper mills and large dairy factories) which accounted for 40 percent in 1998, followed by the household sector (32 percent) and commercial applications (21 percent). Annual per capita end use is about 31 gigajoules (8700 kilowatt-hours).

Electricity sector developments

Transmission. In April 1994, ECNZ's transmission business was separated from ECNZ into a new state-owned enterprise, Transpower (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 were a mixture of local authority, trust, and private ownership. Many amalgamations and mergers occurred particularly between neighbouring companies. The Electricity Industry Reform Act 1998 required power companies to separate the ownership and control of the line businesses from the energy retailing and generation activity.

From April 1999, the electricity industry, as required by the Government, has put in place a low cost system to enable domestic and small consumers of electricity to switch supplier if they wish to. Since that time competition has extended throughout the country with at least 10 different retailers in total supplying electricity, not all of them in every part of the country.

The wholesale market. New Zealand's wholesale market for trading electricity, the New Zealand Electricity Market (NZEM), came into effect on 1 October 1996. The rules of the NZEM cover every aspect of trading from entry criteria to the physical dispatch of electricity, and include procedures for the receipt of bids from purchasers and offers from generators as well as financial settlement. They allow for a number of generators to compete to offer varying amounts of electricity via a pooled arrangement for dispatch and transmission through the national grid (operated by Transpower). Buyers then compete to buy electricity from the pool for on sale to retail customers. As with other markets, the interaction between supply and demand establishes price. NZEM is a self-regulating market with a surveillance and compliance function built into its rules.

NZEM is administered by the Marketplace Company Limited (M-co).

Table 20.4. ECNZ Electricity Generation

StationCommissionedOperational capacityEnergy generation (year ended 30 June)
1995199619971998

1Seven months to 1 February 1996.

Source: ECNZ

 MWGigawatt-hours (GWh)
Huntly1982–198510003,9544,0685,4403,834
Te Awamutu199552-165200213
          Total thermal 10523,9544,2335,6404,047
Arapuni1929–1946172113011891015840
Aratiatia196484439441372303
Atiamuri1958–196284386388331316
Karapiro1947–194896645631578495
Maraetai1952–1971360111411361008789
Ohakuri1961–1962112522544463378
Rangipo1982–1983120620550298469
Tokaanu1973240963931743559
Waipapa196159327336295245
Whakamaru1956100648661572472
          North Island hydro 14276,7946,8075,6754,866
Aviemore196822010441079915950
Benmore1965–19665402,6462,7292,3392,421
Manapouri (installed 700MW)1969–19715854,7004,5254,0684,872
Ohau A19792641218116511651137
Ohau B19802121050980975952
Ohau C1983–19852121056983974944
Tekapo A195125136146145151
Tekapo B1977160551837935907
Waitaki1935–1936105580574502512
          South Island hydro 2,32312,98113,01812,01812,846
          Total hydro 3,75019,77519,82517,69317,712
Wellington wind turbine 0,2251111
          Total from plant to be retained by ECNZ 4,80223,73024,05923,33421,760
Station sold 7.4.95 (Arnold) -13---
Stations sold to Contact 1.2.96 -6,80142561--
Hydro stations to be sold 324151315361095938
Station being dismantled --18-15--
          Total generated by ECNZ 5,12632,03929,83624,42922,763
Generation purchased  -2,8171673-
          Total generated and purchased  32,03932,65326,10222,763

Table 20.5. Electricity Generation by Fuel Type

Calendar yearsHydroGeoOilCoalGasBiogasSteamWoodWindTotal

1Negative generation due to net import of electricity into the station to maintain station viability and system voltage stability.

Source: Ministry of Economic Development

Gigawatt-hours (GWh)
199220,882218018810447,005156633360.731,853
199323,2582,284595636,542156633361.033,262
199425,5792140105095,137162633361.033,938
199527,2592049476874,539202633361.035,153
199625,7132020159746,422227633118.235,742
199723,5942130(14)116148,1761976324613.536,018
199824,1652,331(1)114638,3481866138921.836,965

Table 20.6. Electricity Consumption by Sector

Year ended 31 MarchResidentialCommercialIndustrialTotal consumption
ConsumptionNumber of consumersAverage price (excl. GST)ConsumptionNumber of consumersAverage price (excl. GST)ConsumptionNumber of consumersAverage price (excl. GST)
Source: Ministry of Economic Development
 GWh(000)cents/KWhGWh(000)cents/KWhGWh(000)cents/KWhGWh
199210,47413268.875,55014811.5412,5841255.8028,609
199310,12413339.215,39714511.4712,2651306.0727,786
199410,25613439.705,58014611.0413,3921325.9929,228
199510,416135610.245,67513910.8613,8341325.8429,925
199610,584137110.735,59514111.1214,3421316.3330,522
199710,959137711.456,10113810.9914,2001366.1231,260
199810,824141811.866,98813710.7413,5771256.6231,390
199911,089142311.727,19514010.5613,7451276.7232,029

20.3 Oil

Oil, which includes condensate, crude oil and oil products, accounted for 233 petajoules (PJ) (33 percent) of primary energy and 204PJ (48 percent) of consumer energy in 1998. 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 31 December 1998, contained 60 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 108PJ in 1998, all from onshore and offshore fields in the Taranaki region. About 75 percent of total production comes from the offshore Maui field. Around 51 percent (50 PJ) of oil production is in the form of condensate produced from the Kapuni and Maui fields. The remaining 49 percent of oil production (48PJ) is as crude oil, produced mainly at the McKee, Kaimiro, Waihapa and Ngatoro fields, and more recently from Maui's F Sands production field (see table 20.7). The average daily production of crude oil and condensate is 0.3PJ (about 53,000 barrels or 8,500,000 litres). About 20 percent of local production is used for refinery feedstock, and the rest is exported.

Refinery. New Zealand's only oil refinery is located at Marsden Point, near Whangarei. The main feedstocks are imported crude oil (about 88 percent) and local crude oil and condensate (about 12 percent). The refinery produces petrol, diesel, aviation kerosene, fuel oils and bitumen.

Imports. New Zealand imports crude oil from Saudi Arabia, Australia, the United Arab Emirates, Malaysia and Indonesia. To meet demand the oil wholesalers also import refined petroleum. Imports of crude oil increased 40 percent from 1990 to 1998, in part due to the upturn in the economy.

Exports. New Zealand exported about 75 percent of local crude oil and condensate production in 1998. In addition, 2.9 percent of refined products is exported from New Zealand, and 18 percent is used by international transport.

Synthetic petrol. Varying amounts of New Zealand's petrol demand was supplied annually by synthetic petrol produced from Maui gas at the Motunui synthetic petrol plant. The synthetic petrol was blended with other petrol at the refinery, exported, or sold directly on the New Zealand market. Synthetic petrol production from methanol at the Motunui plant however ceased in February 1997 due to the higher relative price of methanol on world markets.

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. Self-sufficiency was at 53 percent for the year ended March 1998, with full production at Maui F Sands, but declined to 46 percent for the year ended March 1999 due to lower production at several key fields.

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.

Retailing. Traditionally, the four major oil suppliers, BP, Caltex, Mobil and Shell have serviced the market. In April 1998, Challenge entered the market. Towards the end of 1998 an Australian independent, Gull, also began selling. Challenge imports product directly into New Plymouth.

End use. New Zealand's consumer energy is dominated by oil, comprising 204PJ (48 percent) of the total consumer energy of 427PJ. Domestic transport dominates the consumer energy use of petroleum products, with 171PJ (or 84 percent) of oil consumption being used for transport and 74 percent of this for road transport. Annual per capita end use of petroleum products is 54GJ (about nine barrels or 1,430 litres).

Drilling for oil, Murchison district, c1925.

Unleaded petrol. Unleaded regular grade petrol was introduced into New Zealand in 1987. Since then there has been a steady increase in its use. It comprised about 74 percent of total unleaded petrol demand in 1998, with premium unleaded making up the rest. Leaded petrol sale has been banned since 1 October 1996.

Table 20.7. Oil and Condensate Reserves and Production

FieldReservesProduction
Ultimate RecoverableAs at 1 January 19991998
Mm3Mm3PJMm3PJ
Source: Ministry of Economic Development
Kaimiro0.560.2610.20,0431.59
Kapuni9.760.6924.00,1805.57
Kupe2.592.5995.4--
Maui34.9112.81427.32,40680.51
McKee8.232.1481.90,29311.18
Mangahewa0.130.124.60,0050.18
Ngatoro0.630.299.10,0652.05
Piakau0.240.228.60,0050.23
Tariki/Ahuroa0.840.7423.80,1013.38
Waihapa/Ngaere3.640.6826.9,02.89
Total61.4320.53711.83,165107.59

Table 20.8. Gas Reserves and Production

FieldReservesProduction 1998 (gross)
Ultimate RecoverableAs at 1 January 1999
Mm3PJMm3PJMm3PJ
Source: Ministry of Economic Development
Kamiro5181739513.030.11.16
Kapuni33,61890810,709401900.224.31
Kupe7,4763097,476309--
Maui103,0124,03338,83615393778.0145.92
McKee4,5311922,347100221.08.92
Mangahewa18807417596960.82.44
Ngatoro152869434.61.29
Piakau137713471.70.08
Tariki/Ahuroa2,744111207185167.18.86
Waihapa/Ngaere75527193713.50.53
      Total154,8235,68669,2812,5335207.0194.04

Table 20.9. Crude Oil and Condensate, Production and Trade

YearCrude oil and condensate
New Zealand productionImportsRefinery intakeExports
Source: Ministry of Economic Development
 Gross petajoules
198979.17137.88188.4627.56
199081.55143.28188.4840.24
199185.28143.84182.5244.88
199280.36141.52182.3640.50
199384.70158.38192.2847.58
199481.51175.84202.0251.35
199568.33169.37196.2844.11
199690.74165.55189.6156.83
1997120.56168.36212.3577.70
199895.67202.52217.7370.97

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 2500PJ. Kapuni and the, as yet undeveloped, Kupe field have about 12 percent each. The gas reserves are estimated to last until about 2014, with the Maui field possibly running out between 2010 and 2015.

Production. Natural gas production in the year ended March 1998 was 201PJ, 29 percent of total primary energy supply. Gas is produced predominantly in the Taranaki region with the Maui and Kapuni fields accounting for about 90 percent. The McKee, Kamiro, Waihapa and Ngatoro fields produced most of the remaining 10 percent (see table 20.8).

Distribution. Natural gas distribution occurs only in the North Island and comprises 2,600kms of high pressure gas transmission pipelines and low pressure distribution systems in most cities.

Petrochemicals. About a third of New Zealand's gas is used for the production of petrochemicals and chemical methanol at the Waitara and Motunui methanol plants. Crude methanol is produced from natural gas, primarily from the Maui and Kapuni fields, and then either distilled into high (‘AA') grade or made into synthetic petrol: the product mix depends on relative prices. Some Maui and Kapuni gas is also used in the production of ammonia/urea.

Other end use. Forty-three percent of New Zealand's gas is used for electricity generation, and 21 percent is reticulated to the commercial and residential sectors. Of the 41PJ of consumer energy reticulated in 1998, 30PJ was used in industry, about 5PJ each in the commercial and the residential sectors and 1 PJ in transport (as compressed natural gas or CNG). Annual per capita end use of gas is 11GJ (about 290 cubic metres).

Compressed Natural Gas. CNG is supplied through a shrinking 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 and exported.

Table 20.10. Gas Production and Demand

Calendar yearTotal gross natural gas productionGas re-injectedLPG extractedFlaredProduction losses and own useNet natural gas productionDirect sales (est.)Reticulated sales (est)
Source: Ministry of Economic Development
 petajoules
1992243.2325.157.691.884.30204.21164.8240.32
1993237.7024.797.981.574.41198.95158.8739.65
1994227.8428.668.141.854.77184.41142.0741.89
1995207.6719.417.611.244.72174.68132.0342.18
1996243.6227.678.942.485.43199.10154.0244.50
1997253.4320.489.783.975.76213.43161.2351.65
1998226.8521.129.543.095.57187.53131.0156.07

Gas display at Napier mardi gras, 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 for the year ended December 1998 was about 85PJ, or 3.3 million tonnes, mainly sub-bituminous. Of the 45 mines operating (down from 53 in 1995), 29 were opencast and 16 underground, and were responsible for about 78 percent and 22 percent of total coal production respectively. Only five mines produced over 200,000 tonnes of coal, and 18 operations had an output of less than 10,000 tonnes.

Exports. The markets for premium grade New Zealand coal in the year to March 1999 were (by energy content): Japan (35 percent), Chile (25 percent), Australia (14 percent), India (12 percent), China (11 percent), and USA (3 percent).

Table 20.11. Coal Production, Exports and Consumption

Calendar yearGross petajoulesTonnes (000)
Total productionExports1Total consumption2Total productionExports1Total consumption2

1Based on information obtained from Statistics New Zealand (INFOS database). Exports of coal include bituminous and lignite.

2This hybrid series includes exports, electricity generation (including cogeneralion) and basic metals consumption. The difference between production and consumption is a change in stock levels.

Source: Ministry of Economic Development

199273.4024.1576.902948.5769.73148.6
199379.2424.7176.103098.6787.63082.5
199476.4832.7481.282997.61043.63202.5
199591.5042.7191.633446.01333.83477.3
199696.2150.9098.923610.61589.53698.7
199786.8538.9090.713370.71243.63521.4
199884.5334.1981.383319.21092.83165.3

End use. For the year to March 1999 the main end users of coal in New Zealand were: electricity generation (including cogeneration), 31 percent; iron and steel, 32 percent; other industry (mainly cement, lime and plaster, meat, dairy products, forestry and timber products), 24 percent; commercial, 7 percent; and residential, 5 percent. Annual per capita end use is about 9GJ (330kg).

Miners at Westport Coal Company works, Granity, 1900s.

Table 20.12. COAL FLOW SUMMARY for the year to March 1999, in PJ

ProductionExportAdjustmentsUse (observed)
Source: Ministry of Economic Development
   Own use-2.0Electricity generation (includes cogeneration)14.3
Bituminous42.4   Iron and steel14.5
Sub-bituminous37.5 Difference between calculated production available for domestic use, and observed use- 1.0Other industry11.1
Lignite4.5   Commercial3.4
     Transport, agricultural, residential2.1
Total production84.4 −36.0 + -3.0= Total use45.4

Coal sector developments. The government's interests in coal operations, previously known as the Coal Corporation of New Zealand Limited (Coalcorp), now trades as Solid Energy Limited. Solid Energy produces about two-thirds of New Zealand's coal from 11 mines, and has major export contracts to Japan, Chile and Australia. It also supplies about 48 percent of the local market. The remainder is supplied by private operators of a further 34 mines.

Shooters boring hole in coal face, c1903.

20.6 Renewables

Renewables are a major part of New Zealand's total primary energy supply, contributing 226PJ or 32 percent. This is dominated by hydro and geothermal at around 87PJ and 104PJ per year, respectively. Total biomass and waste (wood and wood products) provided the next largest renewable contribution of 35PJ, with 31PJ from woody biomass and animal products, and under 3PJ from biogas and landfill gas.

Electricity generation. The major use of renewable energy resources is for electricity generation. About 73 percent of New Zealand's electricity is generated this way, predominantly from hydro (66 percent), and geothermal (7 percent).

Direct use. Apart from electricity, 43PJ per year or 10 percent of consumer energy is provided by the direct use of renewables. This is dominated by wood, with 29PJ per year. Direct geothermal use for heating contributed 14PJ, and wastes and biogas provided 0.5PJ. Annual per capita direct end use of geothermal energy is 4GJ per person, with per capita end use of biofuels, predominantly wood, estimated at 7GJ.

In New Zealand, major hydro and geothermal schemes are the ‘traditional’ renewable sources. Apart from the direct use of wood, ‘non-traditional’ renewable sources, such as biomass, micro hydro, wind and solar schemes make a very small contribution to overall supply, although they have the potential to make a greater contribution in the future.

Landfill gas. This is used to produce energy in plants in Auckland and in Wellington.

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. Several energy companies in the lower half of the North Island are considering wind farms as an alternative source of electricity generation. A new 31.7 MW wind farm is operating in the Tararua ranges and is the largest in the Southern Hemisphere.

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.

Table 20.13. Renewable Energy Data (PJ)

Calendar Year1992199319941995199619971998

1Totals and subtotals may not add up due to rounding.

2Refers to combustible renewables and waste only.

Source: Ministry of Economic Development

Total primary energy supply1200.39214.09216.79220.22219.65214.69225.64
Hydro75.1983.7492.1098.1592.5884.9586.85
Geothermal/Solar etc90.9995.7890.2087.2491.9196.00103.97
Geothermal90.9995.7890.2087.2491.8895.95103.79
Solar-------
Wind0,0030,0040,0040,0040,0300,0480,183
Tide, wave and ocean-------
Biomass and wastes1,234.2134.5634.4934.8235.1633.7434.83
Woody biomass and animal products31.1831.5431.3831.5631.3630.1731.33
Biogas and landfill gas1.931.932.012.132.672.432.34
Municipal waste-------
Industrial waste1.101.101.101.131.131.141.15
Total final consumption240.0541.4640.9141.4041.2440.9342.72

20.7 Energy intensity and efficiency

Greenhouse gas emissions. The energy sector contributes around 91 percent of New Zealand's national gross human-made carbon dioxide (CO2) emissions, with industrial processes contributing the remainder; gross CO2 emissions from energy sources and industrial processes were about 29 million tonnes in 1998.

New Zealand's emission of 7.6 tonnes of CO2 per capita, which has not changed much in recent years, compares 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 N2O and CH4 emissions.

Energy and Mineral Production: 1860–1990
Year ended 31 DecemberGold production1Coal production2Gas production3GasworksElectricity generation4
HydroOil/gasTotal

1Export figures only to 1940.

2Underground mining only 1925–1940.

3From 1975 includes natural gas. Unit of measurement from 1985 onwards is petajoules.

4Until 1928 includes electricity generated by industry but not for public supply.

Source: Statistics New Zealand, Ministry of Economic Development

 kgtonnes(000)Mm3no GWh 
186014      
186516,100      
187015,200      
18759,900      
18808,4004546.917   
18856,20086211.420   
18905,300116712.127   
18958,200127211.427   
190010,500173822.330   
190514,6002,45736.138   
191013,4003,38658.848  18
191511,8003,31178.656  37
19206003,04396.350  117
19253,2002,148105.950  310
19303,7002,582117.346  710
19355,1412,148108.146  916
19405,7753,817     
19453,9934,228146.644  2,274
195023804,067156.94429071233,030
19558223,767146.5374,1172494,366
196010374,147160.4335,45512796,735
19653773,545163.8288,830192110,751
19703513,014180.22411,0832,47813,561
1975852,412836.731216,5103,15319,663
19802002,1631069.0 19,0313,00522,036
19858862390135.09 19,5187,52127,039
19904,6262,588176.61R 22,9527,79930,751
Mineral production
 19971998
tonnes
Source: Ministry of Economic Development
Metals
Gold11.47.7
Silver31.722.7
Titomagnetite2,477,7282,224,335
Coal3,664,0343,303,880

Energy intensity and efficiency. The historically close connection between total consumer energy growth and economic growth may be weakening. In 1998 New Zealand's economy used only 14 percent more energy than it did in 1990. This was in spite of a 21 percent growth in overall economic activity, and a 12 percent growth in the New Zealand population over the intervening period.

Technical improvements made a key contribution to recent net improvements in energy intensity. Energy efficiency gains were achieved despite a growth in more energy-intensive activities within the economy.

Transport, the largest and fastest-growing energy-consuming sector in New Zealand, accounts for 40 percent of total consumer energy use. Between 1991 and 1998, both the overall passenger transport energy intensity and overall freight transport energy intensity decreased by 5 percent.

Between 1991 and 1998, the residential sector energy use per capita declined by a total of 5 percent. Energy use per household decreased by 6 percent and energy use per square metre of floor area declined by 9 percent.

The commercial sector's energy intensity declined by a total of 24 percent between 1991 and 1998. Energy use per working person declined by 13 percent; energy use per square metre of floor area decreased by 16 percent; and energy use per building declined by 9 percent.

The decline in the energy intensity is thought to be the combined result of increased energy efficiency of buildings and equipment, and improved energy management practices by occupants.

The industrial sector produced approximately 25 percent of New Zealand's GDP and used 33 percent of consumer energy in 1998. A few relatively large energy users dominate New Zealand's industrial sector with over 70 percent of the total industrial energy use occurring within the basic metals, food and paper products sub-sectors.

Between 1992 to 1998, industrial sector energy use decreased by approximately 9 percent. During the same period this sector's output (measured in constant 1991/92 prices) grew by nearly 26 percent, although the rate of change has not been constant. The consistently declining trend in the industrial sector's energy use and rising trend in the GDP growth since 1994 demonstrates that this sector has been able to decouple energy use from the level of economic activity.

Table 20.14 shows a decrease in government funding of energy efficiency activities over recent years, largely reflecting the expiry of funding for the Energy Efficiency Strategy and phase-out of the Energy Saver Fund.

Table 20.14. Government Expenditure on Energy Efficiency

Year ended 30 JuneActual expenditureBudgeted 2000
1996199719981999

1Established October 1992. NB:For summary programme explanations see Energy Efficiency section above. All figures are GST exclusive.

Source: EECA

 $(million)
Energy Efficiency and Conservation Authority (EECA)1 Crown funding5.55.54.54.13.5
Revenue from provision of services060.40.50.50.7
          Total funding6.15.95.04.64.2
Energy saver fund0.21.74.02.52.0
Crown loan scheme2.00.81.00.91.0

20.8 Minerals

New Zealand contains a wide variety of minerals reflecting its diverse geology and dynamic tectonic history. While it is best known for its gold production (over 7 tonnes in 1998) there is also production of silver, ironsand, coal, aggregate, limestone, clay, dolomite, pumice, salt, serpentine, zeolite and bentonite. In addition, there are resources or potential for deposits of titanium (ilmenite beachsands), platinum, sulphur, phosphate, silica and mercury.

Mineral legislation. Minerals and coal in New Zealand can either be Crown (government) or privately owned. All gold, silver, uranium and petroleum is owned by the Crown. The ownership of other materials is identified by Land Information New Zealand. Permits to prospect, explore or mine Crown-owned minerals are issued under the Crown Minerals Act 1991. The relevant minerals programme and regulations are administered by Crown Minerals, a group within the Ministry of Economic Development. A permit from Crown Minerals does not give land access which is negotiated with the landowner or occupier. Environmental impacts are regulated under the Resource Management Act 1991, with resource consents granted by district or regional councils.

Before metal crushing factories existed, limestone was split by hand.

Metals

Gold. Gold is present as lode gold in quartz veins, as disseminated gold finely dispersed through host rocks, and as alluvial (placer) gold in river gravels. The majority of gold production during 1998 came from two hardrock mines: Macraes Mine, at Macraes Flat in Otago, and Martha Mine, at Waihi in the Coromandel area. The other hardrock mine at Golden Cross ceased production in early 1998 and the site is being rehabilitated. The largest mine, Macraes, completed the first part of a two-stage expansion in September 1999 which is expected to lift annual production from 94,000 ounces mined in 1998, to 165,000 ounces by the end of 2000. The modern opencast version of the Martha Mine, which began operation in 1987, had expansion plans approved in December 1998 increasing production to about 110,000 ounces and extending the mine life to approximately 2007.

Alluvial gold mining occurs in the South Island predominantly on the West Coast, Otago and Southland. Extraction methods range from: small hand-held plants worked by up to three people; medium and large floating or skid-mounted plants fed by hydraulic excavators; the Grey River Dredge, one of the world's largest bucket-ladder dredges capable of processing 800 cubic metres of gold-bearing gravel per hour. The development of the versatile trommel and excavator mining method in New Zealand during the late 1970s provided a high throughput, low cost means of extraction bringing many operators into the industry. Plant numbers peaked in 1987–1988 at approximately 120 but have since declined to about 40. The current trend is away from small plants to those of medium and large size which have a high throughput, can mine to greater depths (30m) 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. Production in recent years has been from the Martha and Golden Cross mines.

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. Two deposits of titanomagnetite ‘ironsand’ are currently mined by BHP New Zealand Steel Limited. The deposit at Waikato North Head has been mined since 1969. Mining is currently carried out using two bucket wheel excavators. The titanomagnetite concentrate slurry is then pumped through an 18 kilometre pipeline to the Glenbrook steel mill, where it is reduced in a solid state process and smelted with scrap in an electrically-fired furnace to produce a range of steel products. The operation at Taharoa, carried out since 1972, pumps titanomagnetite concentrate slurry to ships moored offshore for export to Japan, South Korea and China.

Ilmenite and other heavy mineral sands. Ilmenite-bearing sands occur at intervals over 320 kilometres of coastline along the west coast of the South Island. The largest known ilmenite resource is at Barrytown where exploration by Westland Ilmenite Ltd has defined a 50 million tonnes resource. South of Westport, Austpac Titanium Ltd has defined an indicated resource of between 17 and 30 million tonnes of contained ilmenite. Ilmenite is a source of titanium dioxide which is used as an opacifier and a pigment in paint, paper, plastics, cloth and rubber. Garnet is a major component of the sand and zircon is a minor component.

Platinum group metals. Vancouver-based company Anzex Resources is exploring for platinum group metals in the Longwood Range layered complex, an area of Southland which has produced platinum previously. The complex shows many similarities to the Stillwater site in Montana.

Other metallic minerals. There are small deposits of manganese minerals in many localities. Some areas of Northland, Coromandel, Nelson and Westland have potential for base metals (copper, lead, and zinc) but there is currently little prospecting. Iron ore, stibnite (antimony), orpiment (arsenic), chromite, monazite (rare earths), nickel and rutile have all 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. Cinnabar, the principal ore of mercury, was historically produced in limited quantities from sinter deposits in Northland.

Non-metallic minerals

Aggregates. Aggregates are the product of a variety of rocks, gravels and sands and are used in road construction and in concrete. Suitable rock for aggregate production is found throughout New Zealand. Aggregate production is dominated by several large companies – Firth Industries, Winstone Aggregates, Stevensons and Fulton Hogan. There are also many smaller companies who supply produce for local needs.

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, as fillers in the manufacture of paper, paint, pharmaceutical and animal health products and as pelletising agents. White halloysite from Matauri Bay in Northland is exported for manufacture of fine ceramics and porcelain. Bentonite, which is found in substantial quantities in Hawke's Bay and Canterbury, is used as a bonding agent and for specialist drilling products. Although bentonite is still being imported for current drilling operations, because long established and reliable overseas sources are commonly preferred, New Zealand bentonite is being increasingly used.

Dolomite. Dolomite rock is produced near Collingwood. It is used in agriculture, glassmaking and for harbour protection blocks.

Greenstone. Nephrite and bowenite, popularly known as ‘greenstone', are present in north Westland and northern Fiordland. A deposit of nephrite boulders in Olderog Creek, a tributary of the Arahura River has been the main source of greenstone. The best known occurrences of bowenite, the serpentine variety of greenstone, are in Fiordland. Boulders of greenstone are reduced in size using a portable diamond saw, and airlifted by helicopter. Greenstone was recently returned to Ngai Tahu, the main South Island tribe, as part of their Treaty of Waitangi settlement.

Gold panning at the newly exposed Clutha riverbed, near Roxburgh, 1956.

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 and 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 domestic consumption.

Serpentine. Serpentine is a magnesium-rich rock used as a fertiliser additive and in the manufacture of decorative tiles. Deposits are mined at Wairere in Northland, and at Greenhills in Southland.

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, mainly used in the production of agricultural fertiliser, has been mined from Rotokawa near Taupo.

Zeolite. Zeolite is mined at Ngakuru in the central North Island. It is used in horticulture and as animal litter.

Other non-metallic minerals. The following non-metallic minerals, some of which have been mined in the past, are also present in New Zealand: diatomite (industrial filtration), barite (industrial uses, including glassmaking and fillers), asbestos (building material), feldspar (glassmaking, ceramics and enamels), magnesite (agriculture), mica (electronics), phosphate (fertiliser) and wollastonite (paper, asbestos substitute, ceramics, adhesives and plastics).

Mining and quarrying industry statistics

Statistics New Zealand's censuses of mining and quarrying provide 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 (AES). Both the censuses and AES cover the activities of all businesses classified in Division B of the Australian and New Zealand Standard Industrial Classification (ANZSIC). Because the design of the AES is still based on the New Zealand Standard Industrial Classification (NZSIC), the ANZSIC-based estimates in table 20.15 are probably of lower accuracy than previously released.

Coverage. The mining and quarrying division of ANZSIC 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. All supplementary activities aimed at preparing the crude materials for marketing are coded to this ANZSIC division. Excluded is the refining or smelting of minerals or ores (other than the preliminary smelting of gold). Where a business undertakes both mining activities and manufacturing activities to further process the mined material, but does not keep separate accounts for each, it is classified to manufacturing (ANZSIC division C).

Table 20.15. Industry B: Mining Australian and New Zealand Standard Industrial Classification (Anzsic) = Division B

Statistical item1996/9711997/982Percentage change

1Data is revised, but subject to additional changes while further analysis is done on the 1997/98 data.

2Data is provisional.

..CData is confidential

Source: Statistics New Zealand.

 $(million)$(million) 
Closing stocks981078.7
Opening stocks1071081.2
Sales of goods and services2,0631,951-5.4
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered..C..C14.0
Government grants and subsidies..C..C-85.6
Non-operating income..C..C-44.5
Total income2,1882,060-5.9
          Total income adjusted for stocks2,1792,058-5.5
Salaries and wages paid to employees191189-1.3
Redundancy and severance15472.7
Salaries and wages to working proprietors (SW to WPs)..C..C-24.0
Fringe benefit tax22-9.4
Purchases and other operating expenses852742-12.9
Interest, donations, grants, royalties, patent fees paid and bad debts written off9611823.4
Indirect taxes (excluding fringe benefit tax)..C..C-4.9
Depreciation410399-2.6
Non-operating expenses..C..C44.6
          Total expenditure..C..C-3.5
          Net profit before tax, non-operating items, SW to WPs5115201.8
          Net profit before tax, SW to WPs467405-13.4
Purchases of plant, machinery, vehicles and equipment7775-3.1
Purchases of land, buildings and other construction153151-1.3
Total purchases of fixed tangible assets230226-1.9
Sales of fixed tangible assets152459.8
Shareholders funds or owners equity2,5022,286-8.6
Current liabilities1,3851,247-10.0
Other liabilities1,5181,99831.7
Total capital and liabilities5,4055,5322.4
Fixed tangible assets2,6512,616-1.3
Current assets..C..C-42.6
Other assets..C..C105.7
          Total assets5,4055,5322.4
Ratios
Total income per FTE$551,238$584,6746.1
Net profit per FTE$128,647$147,55514.7
Current ratio..C..C 
Quick ratio..C..C 
Profit margin on sales24.8%26.6% 
Return on equity20.4%22.7% 
Return on total assets9.4%9.4% 
Liabilities structure46.3%41.3% 

Contributors

  • 20.1 Ministry of Economic Development; Ministry for the Environment.

  • 20.2 Ministry of Economic Development; Electricity Networks Association; Transpower; the Marketplace Company Ltd.

  • 20.3–20.8 Crown Minerals; Ministry of Economic Development; Statistics New Zealand.

Building the salt works at Lake Grassmere, 1947.

Special articles

Foundation for Research, Science & Technology (FRST); Energy Efficiency and Conservation Authority (EECA); Ministry of Economic Development.

Further information

Energy

Bradley DA 1983. Wave Power Generation.

Contact Energy Limited. Annual Report.

Electricity Corporation of New Zealand Limited. Annual Report.

Energy Data File. 1996. Ministry of Commerce.

Energy efficiency: A guide to current and emerging technologies. 1996. Centre for Advanced Engineering, University of Canterbury.

Energy Supply and Demand Scenarios to 2020. 1994. Ministry of Commerce.

Greenhouse Gas Emissions from New Zealand energy sources, Ministry of Commerce (annual).

Greenhouse Gas Emissions From New Zealand Energy Sources 1990–1992. 1994. Ministry of Commerce.

Key Statistics. Statistics New Zealand (monthly).

New and emerging renewable energy opportunities in New Zealand. 1996. EECA and Centre for Advanced Engineering, University of Canterbury.

Renewable Energy Opportunities For New Zealand. 1993. Ministry of Commerce.

Threshold 2000: can our cities become sustainable? Proceedings of the 6th Conference of the Sustainable Energy Forum, held at Auckland. 1999. Sustainable Energy Forum.

Wind Energy Resource Survey of New Zealand. 1987. New Zealand Energy Research and Development Committee.

Minerals

Cave MP, Lamb JT and Clelland L 1999. Geothermal Resources of New Zealand. Ministry of Commerce.

Coal Resources of New Zealand, The, Coal Geology Report 4, 1998. Ministry of Energy.

Economy Wide Census, Mining and Quarrying 1987. Department of Statistics.

Geothermal Resources of New Zealand, Resource Information Reports. 1993. Ministry of Commerce.

Kear D, ed 1995. Mineral Deposits of New Zealand. The Australasian Institute of Mining and Metallurgy.

Key Statistics. Department of Statistics (monthly).

Mineral Resources of New Zealand. 2000. Crown Minerals, Ministry of Commerce.

New Zealand Mining. Crown Minerals, Ministry of Commerce (six monthly).

New Zealand Petroleum Handbook. 1999. Louthean Publishing and Ministry of Commerce.

Taylor PC 1999. New Zealand coal resources survey programme, 1976–1989. Ministry of Commerce.

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

Waiting to fill gas bottles in preparation for Y2K.

Chapter 21. Manufacturing

Buzzy Bee toymaker Keith Lawson's first encounter with the whirring wooden pull-along toy was as a salesman in 1953. He took over as manufacturer in 1987.

Manufacturing environment

The environment in which manufacturers operate has undergone significant change over the past decade.

Key features affecting import policy were 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 tariffs over the period 1 July 1988 to 1 July 1992. This was followed by further annual reductions.

Under the 1997–2000 programme, all ad valorem tariffs were to 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.

A review of post-2000 tariff policy was conducted in 1998, in the context of a government decision announced in the 1997 Budget that all tariffs would reduce to zero well before 2010. Following that review, the Tariff (Zero Duty) Amendment Act 1998 was passed. It provided for the removal of most remaining tariffs on 1 July 2001, with all tariffs falling to zero by July 2006. The end to the process of unilateral tariff reductions came with the Government's announcement on 10 April 2000 that tariffs would be frozen until at least 1 July 2005. The Government also announced that reductions scheduled for 1 July 2000 would not take place and it would move urgently to repeal the previous Government's zero tariff legislation.

The Government would, however, continue to improve tariffs on beer, paper, paper products and printed material; reductions agreed as part of the GATT Uruguay Round of trade negotiations. In those cases, it said, New Zealand's major trading partners had also agreed to remove their tariffs over the same timeframe.

The Government said that it was continuing to negotiate with Singapore about a possible closer economic partnership.

Today, the state of the manufacturing sector 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 provide a competitive base to manufacturing and creates certainty for present and future investment decisions. Manufacturing is also dependent on the competitiveness of support industries and the services sector. This competitiveness has provided substantial flow-on benefits to the manufacturing sector through the lowering of input costs and the provision of more efficient, reliable and competitive services. This is especially notable in the deregulation of the transport, 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 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 seeking ISO9000 certification and implementing total quality management principles to impart the quality ethic within their organisations.

Skills training and education are also important for the continuous development of manufacturers' competitiveness. The National Qualifications Framework and the introduction of Industry Training Organisations have provided flexibility for industries to determine their own skill and training needs, and for these needs to be met by the educational framework in a timely manner. The Government recognises the importance of science and technology and is committed to increasing funding for manufacturing-related science, to $35.9 million per year by 2001, through the Public Good Science Fund (PGSF). The objective of the PGSF is to create new technology bases on which industry can draw.

The business environment, having changed substantially, now provides a more robust and outwardly focused economy. It also provides manufacturers with a strong framework in which to create and capitalise on opportunities. The sector, however, will continue to be faced by the constantly changing external environment and will need to respond.

Table 21.1. Manufacturing Sector Performance 1996–99

March yearContribution to GDP at 1991–92 pricesReal growth of GDP contributionGDP at 1991–92 prices
Source: Statistics New Zealand
 $(million)percent$(million)
199615,630R1.7R85,015
199715,727R0.6R87,211
199816,099R2.4R88,949
199915,499-3.788,923

Manufacturing groups

Below is a brief description of some of the major secondary industries in New Zealand.

Food. Since the 1990s governments have taken a number of initiatives to reform the framework for food administration, currently split between two ministries and a number of other agencies and providers, in order to improve its effectiveness and transparency. One successful outcome was the Australia New Zealand Joint Food Standards Agreement, implemented on 5 July 1996, which is helping to reduce trade barriers and widen consumer choice. A joint Australia New Zealand Food Standards Code, providing compositional and labelling standards for food in both countries, is expected to be ready for implementation by the end of 2000.

Wine. New Zealand exported 16.6 million litres of wine in 1999 valued at $125.3 million, an increase of 10 percent in volume and 28 percent in value on the previous year. Market access remains important to the industry with work to resolve these issues continuing in a number of fora.

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. Between 1992 and July 1999, carpet tariff rates reduced from 32 percent to 17 percent. Under the previous Government's post-2000 tariff programme, carpet tariffs were to reduce to 10 percent on 1 July 2004, to 5 percent on 1 July 2005 and to zero on 1 July 2006. These reductions have now been cancelled with tariffs frozen for at least five years.

Tufted and woven carpet production in the June 1999 year increased by 7 percent over the previous year to 10.1 million square metres. Production of wool-rich carpets (80 percent or more wool content) was 9,175 million square metres or 91 percent of total production. The remaining 9 percent of carpet produced was made from man-made fibres.

New Zealand manufacturers exported 2.78 million square metres of tufted carpet in the 12 months to June 1999, an increase of 45 percent compared to 1998. Australia was the principal purchaser taking 93 percent of our exports. In the year to June 1999, New Zealand imported 2.0 million square metres of carpet, with the most prevalent fibre being nylon.

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 were also more gradual than for most other industries, with tariffs on apparel imports in particular remaining significantly higher than those for most other industrial goods. Under the previous Government's (1997–2003) tariff reduction programme, apparel tariffs were reduced progressively to 15 percent by 1 July 2000, compared to the 5 percent for most other goods under the General Tariff Programme. Tariffs have now been frozen and no reductions will take place until at least July 2005.

Textiles experienced a one-third tariff reduction for most products in the period July 1993 to July 1996. The previous Government's tariff reduction programme provided that these tariffs would reduce to a maximum rate of 10 percent by 2000. Post-2000, textile tariffs were scheduled to reduce to 8 percent on 1 July 2004, to 4 percent on 1 July 2005 and to zero on 1 July 2006.

The removal of import licensing and a progressive reduction in tariffs have seen apparel imports from all sources increase significantly in the 1989 to 1997 period, from $129 million (cif) in 1989 to $616 million (cif) in the year ended June 1999. This has led to considerable rationalisation within the industry, with an accompanying reduction in employment levels. Employment in the apparel, textile and footwear industries fell from 28,451 to 25,578 between February 1995 and February 1997. However, taken together these industries remain significant employers.

During the 1989 to 1999 period, export success has been achieved in the apparel sector, with exports of apparel increasing from $49 million (fob) in 1989 to $185.7 million (fob) in the year ending March 1998. 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 (JAGs), supported by Trade NZ and industry, bring exporters together to develop strategies to overcome constraints and achieve export success.

The companies making up the New Zealand apparel industry are diverse in terms of size, structure, and the range of garments produced. They range from cut, make and trim operations that produce finished garments on a contract basis using fabrics supplied to them, through to vertically-integrated operations which produce their own fabric, manufacture their own garments, and sell these garments in their own stores. New Zealand manufacturers produce in all major garment categories including outerwear, underwear, hosiery, nightwear, swimwear, ties, headwear and leather apparel. A number of companies have recently moved their manufacturing operations offshore to take advantage of lower labour costs.

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. By July 2000 footwear tariffs will have reduced in four approximately even steps to 15 percent. Under the previous Government's post-2000 tariff programme, footwear tariffs were to reduce to 10 percent on 1 July 2004, to 8 percent on 1 July 2005 and to zero on 1 July 2006.

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 1986–1987 to 1.5 million pairs in 1997–1998.

The reduction in assistance has also led to a significant increase in the volume of footwear imports. In 1998 imports supplied more than 9.9 million pairs of the New Zealand footwear market compared with 7.7 million pairs in 1993 and 6.1 million pairs in 1990 (June years). Exports have increased from 623,000 pairs in 1992 to 704,000 pairs in 1998 (June years). As with apparel, Australia is the main destination for most of New Zealand's footwear exports.

Motor vehicles. The New Zealand motor vehicle assembly industry comprised, until 1998, the basic assembly of imported completely knocked down packs supplemented by locally made components.

A review of motor vehicle tariffs in late 1997 resulted in the reduction of tariffs from 15 percent to zero by 1 December 2000, or sooner if the New Zealand assembly plants closed.

Following this announcement, and together with a significant downturn in the new vehicle market in particular, the remaining four assemblers all announced their decisions to cease local production during 1998: Mitsubishi in June 1998; Nissan in July 1998; Honda in August 1998 and Toyota in October 1998. In response to a unanimous request from the motor vehicle industry, the Government then agreed to remove tariffs on all passenger and light commercial vehicles, excluding motor homes and ambulances. This decision was announced on Budget day, 14 May 1998, and took immediate effect. The decision aimed to remove the uncertainty from the vehicle market and achieve savings for New Zealand families and businesses. It represented the removal of a major cost impost and as such should contribute to lowering transportation costs across the economy, thereby improving the international competitiveness of New Zealand firms.

Although the automotive component manufacturing sector has been affected by the closure of the local assembly industry, it is still a significant sector in terms of production and exports. There are around 40 automotive component manufacturers producing about $400 million per year, with exports totalling around $180 million. Exports include tyres, alloy wheels, wiring harnesses, springs and windscreens. The automotive component sector employs around 4,000 people.

Auckland fabric firm Maxwell Rodgers won the contract to upholster 4,000 seats at the Sydney Olympic Stadium, using this wool-blend fabric woven in Timaru.

Making mallowpuff biscuits, 1950s.

Stitching shoe soles to uppers, R Hannah and Co, 1940s.

Table 21.2. MANUFACTURING: GEOGRAPHIC UNITS1 AND FTE PERSONS ENGAGED2, BY SIZE GROUP AND ANZSIC GROUP

February 1999 with 1997 full coverage, economically significant enterprises3
ANZSIC groupType of manufacturingSize group by FTE engaged
0 to 56 to 910 to 4950 to 99100 or moreTotal

1Geographic units are separate operating units engaged in mainly one kind of economic activity from a single physical location.

2FTEs (Full-time equivalents) are defined as the sum of full-time persons engaged plus half the part-time persons engaged. Numbers have been rounded and sums of component items may not match totals.

3Generally, enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

Source: Statistics New Zealand

C211Meat and meat product manufacturingGeographic units12429922359327
Full-time equivalents3002002350162019,95024,420
C212Dairy product manufacturingGeographic units4712311523128
Full-time equivalents1009572010705,5907,570
C213Fruit and vegetable processingGeographic units481525119108
Full-time equivalents11010054076023803,890
C214Oil and fat manufacturingGeographic units2046-131
Full-time equivalents3025180-130370
C215Flour mill and cereal Food manufacturingGeographic units163143137
Full-time equivalents3525330230200830
C216Bakery product manufacturingGeographic units11339821813265
Full-time equivalents2902801750117020305,520
C217Other food manufacturingGeographic units280841542426568
Full-time equivalents6305903,08016305,84011,770
C218Beverage and malt manufacturingGeographic units172246289275
Full-time equivalents390150136056014403,900
C219Tobacco product manufacturingGeographic units-31-26
Full-time equivalents-2018-360400
C221Textile fibre, yarn and woven fabric manufacturingGeographic units86133477147
Full-time equivalents1809083053012102840
C222Textile product manufacturingGeographic units423716777575
Full-time equivalents910480120051011304,220
C223Knitting millsGeographic units3713365293
Full-time equivalents80808303602301600
C224Clothing manufacturingGeographic units70093171209993
Full-time equivalents14406703,570138015408,590
C225Footwear manufacturingGeographic units226232255
Full-time equivalents50405201302601000
C226Leather and leather product manufacturingGeographic units121152884176
Full-time equivalents2601006305509002450
C231Log sawmilling and timber dressingGeographic units341561121714540
Full-time equivalents6803802680127024607,480
C232Other wood product manufacturingGeographic units108517217319101459
Full-time equivalents231012002870124017509,380
C233Paper and paper product manufacturingGeographic units4217351723134
Full-time equivalents10012081012205,0507,310
C241Printing and services to printingGeographic units91315427022121371
Full-time equivalents201010905,0901460177011,430
C242PublishingGeographic units551781061723775
Full-time equivalents980570210012004,4809,330
C243Recorded media manufacturing and PublishingGeographic units162---18
Full-time equivalents3512---50
C251Petroleum refiningGeographic units-1--12
Full-time equivalents-9--330340
C252Petroleum and coal Product manufacturing necGeographic units17691-33
Full-time equivalents253515055-280
C253Basic chemical manufacturingGeographic units1152560158223
Full-time equivalents2801901170109010903,810
C254Other chemical product manufacturingGeographic units24150104156416
Full-time equivalents5403602180105011405,260
C255Rubber product manufacturingGeographic units60143322111
Full-time equivalents140906101604401450
C256Plastic product manufacturingGeographic units264681492218521
Full-time equivalents6204803,050148025808,210
C261Glass and glass product manufacturingGeographic units10161313124
Full-time equivalents21045240905901160
C262Ceramic manufacturingGeographic units19112161-220
Full-time equivalents3608037080-890
C263Cement, lime, plaster and concrete product manufacturingGeographic units2586410555437
Full-time equivalents59046020603206604,090
C264Non-metallic mineral Product manufacturing necGeographic units7111112196
Full-time equivalents14080130100180630
C271Iron and steel manufacturingGeographic units113202934169
Full-time equivalents20013061018017402860
C272Basic non-ferrous Metal manufacturingGeographic units11231118
Full-time equivalents2515801009101140
C273Non-ferrous basic Metal product manufacturingGeographic units4714217392
Full-time equivalents1101004604709702130
C274Structural metal product manufacturingGeographic units604178213741006
Full-time equivalents136012303,8104209407,770
C275Sheet metal product manufacturingGeographic units186619184350
Full-time equivalents44044017105607103,860
C276Fabricated metal product manufacturingGeographic units12521531732651609
Full-time equivalents222011003,33017308309,210
C281Motor vehicle and part manufacturingGeographic units414828351585
Full-time equivalents93055016103802503,720
C282Other transport equipment manufacturingGeographic units601661021715801
Full-time equivalents1020470201011104,5409,160
C283Photographic and scientific equipment manufacturingGeographic units251232232301
Full-time equivalents4701603902003201540
C284Electronic equipment manufacturingGeographic units2552737610335
Full-time equivalents46019078046019703,860
C285Electrical equipment and appliance manufacturingGeographic units25052761418410
Full-time equivalents58035015209804,9008,340
C286Industrial machinery and equipment manufacturingGeographic units2,16432734723112,872
Full-time equivalents4,24022606,6601560155016,280
C291Prefabricated building manufacturingGeographic units65151911101
Full-time equivalents13010037080120790
C292Furniture manufacturingGeographic units14301572021451808
Full-time equivalents276010903,7808807909,300
C294Other manufacturingGeographic units82377861-987
Full-time equivalents1580540161070-3,800
 Total manufacturingGeographic units14,9412,4143,52644338421,708
Full-time equivalents30,35016,90070,21030,52086,250234,220

Suitcases come off the production line, J Wiseman and Sons, 1940s

MANUFACTURING Employment by industry type, 1999

Manufacturing statistics

The number of manufacturing geographic units, and the number of people employed in them, are included in Table 17.25 in section 17.6: Business statistics. Manufacturing is covered by ANZSIC Division C (C211 through C294 in the table). The totals are:

 19981999
Geographic units22,31621,708
FTE engaged245,080234,220

A breakdown into size groups is given in Table 21.2, and regional employment in manufacturing is shown on the maps in this chapter.

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 21.4. For a fuller description of these groups, refer to the ANZSIC catalogue.

The survey maintains a sample of approximately 1,800 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.

Making transformers and radio cells at Swan Electrical Co.

Table 21.3 has the data presented in the form of annual series during the March years of 1995 to 1999 for total manufacturing for some of the collected variables. Table 21.4 shows the sum of the four quarters for the year ended March 1999 with total manufacturing divided into the ANZSIC groups referred to previously.

The survey provides a quarterly sample estimate that is a useful short-term indicator of the manufacturing sector's activity. The Annual Enterprise Survey (AES) 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.

Table 21.3. THE MANUFACTURING SECTOR 1995–99

Year ended 31 MarchSales and other incomeStocks at end of yearAdditions to fixed assetsSalaries and wagesPurchases of goods and servicesHours worked by paid employees
MaterialsFinished goods
Source: Statistics New Zealand's Quarterly Survey of Manufacturing
 $(million)(000)
199549,0542,6473,8142,3597,57435,438477,607
199650,6152,6643,8922,6517,99536,382493,498
199751,0332,5153,7612,5058,21436,397488,889
199851,8462,5713,9832,9488,38437,360484,213
199950,0682,3653,8792,2218,20235,986460,009

Table 21.4. CONTRIBUTION BY INDUSTRY GROUPS TO NEW ZEALAND MANUFACTURING, 19991

Industry groups (ANZSIC)Sales and other incomeStocks1Additions to fixed assetsSalaries and wagesPurchases of goods and servicesHours worked by paid employees
MaterialsFinished goods

1Year ended 31 March

Source: Statistics New Zealand's Quarterly Survey of Manufacturing

 $(million)(000)
Meat and dairy products10,6821688606521,2059,12066,246
Other food, beverage and tobacco7,6893726953009275,37155,193
Textile, clothing, footwear and leather2,470214305545421,80136,416
Wood and paper products5,4202774382889163,65649,476
Printing, publishing and recorded media2,56873761546831,33036,497
Petroleum, coal, chemical and associated products5,7493714922418344,24144,687
Non-metallic minerals products1,58158967524699913,973
Metal products5,5132813961561,1143,78757,884
Machinery and equipment manufacturing6,7804344372551,4584,64680,546
Other manufacturing1,61511785452771,03519,091
All manufacturing50,0682,3653,8792,2218,20235,986460,009

REGIONAL EMPLOYMENT IN MANUFACTURING 1999 – NORTH ISLAND
By major types of industry, in full-time equivalents

REGIONAL EMPLOYMENT IN MANUFACTURING 1999 – SOUTH ISLAND
By major types of industry, in full-time equivalents

Business development

The Government's business development programme (BIZ) is aimed at improving the management capabilities of small and medium enterprises (SMEs), and therefore their performance. In doing so it aims to increase understanding of the value of seeking external assistance. The programme has two components:

  • A business development component, which involves contracting private providers to deliver services to SMEs aimed at improving their management capabilities.

  • An information and referral service which provides information on public and private business assistance initiatives through BIZ shops in 32 localities.

The essential elements for the programme are contestable funding for both design and delivery of services, and contracting out of all elements to private providers and non-governmental organisations.

Providers have been contracted to provide business development services that include:

  • enterprise development agencies

  • private consulting companies

  • Māori trusts

  • industry associations

  • newly-formed ventures

  • polytechnics

  • community-based initiatives.

Business services include:

  • Diagnostics/assessments of a firm's strengths, weaknesses and opportunities for development, leading to the formulation of an agreed action plan.

  • Skills training involving workshops, seminars, and interactive training on competencies such as business planning, quality, marketing, tax, finance and human resources.

  • Coaching involving a one-on-one counselling service, often following up on training.

  • Networking by providing a forum in which businesses in similar circumstances provide exemplars and advice to each other.

The website address is www.bizinfo.co.nz

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 Economic Development and are promoted annually. The Business Development Quality Awards are based on the US Malcolm Baldrige National Quality Awards and are open to all organisations.

The Business Development Quality Awards are proving to be an attractive incentive for New Zealand businesses to apply total quality management principles and to benefit from independent assessment. In the seven years since their inception the awards have attracted over 700 applications from private and public sector organisations.

Contributors

  • 21 Ministry of Economic Development; Statistics New Zealand.

Further information

Bollard A, Harper D with Theron M 1987. Research and Development in New Zealand: A Public Policy Framework. New Zealand Institute of Economic Research.

Business Activity 1999/2000. Statistics New Zealand.

Campbell C, Bollard A and Savage J 1989. Productivity and Quality in New Zealand Firms: effects of deregulation. New Zealand Institute of Economic Research.

Campbell-Hunt C, Harper D with Hamilton R 1993. Islands of Excellence?: a study of management in New Zealand. New Zealand Institute of Economic Research.

Census of Manufacturing Statistics. Statistics New Zealand.

The Emerging Challenges. 1996. Manufacturing Advisory Group.

Islands of Excellence? 1993. New Zealand Institute of Economic Research.

Key Statistics. Statistics New Zealand (monthly).

Leading the way – a study of best manufacturing practices in Australia and New Zealand. 1994.

Australian Manufacturing Council. Report of the Ministry of Commerce (Parl paper G.46).

Orr A. Productivity trends and cycles in New Zealand: a sectoral and cyclical analysis 1961–1987. New Zealand Institute of Economic Research.

A Season of Excellence?: an overview of New Zealand enterprise in the nineties. 1996. New Zealand Institute of Economic Research.

Chapter 22. Housing and construction

Real estate firm's houses for sale.

22.1 Housing

The housing sector forms a vital part of New Zealand's domestic economy. A good standard of housing, as with health and education, is vital. 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 rented dwellings (where rent paid was specified) increased from 267,348 dwellings at the 1991 Census to 292,347 dwellings at the 1996 Census, up 9.4 percent. A total of 95 percent of all private dwellings had access to a telephone.

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 1996, while families accounted for 74 percent of all private households, what was once considered the typical family (a couple with at least one dependent child) represented only 37 percent of all families.

The average number of people per household was 2.8 people at the time of the 1996 Census, unchanged from the 1991 Census. Over half of the households in New Zealand usually have one or two household members, and the number of couples without any children at home continues to rise. By 1996 more than a third of families (or 37 percent) consisted of a husband and wife only (including de facto couples). At the 1996 Census there were 256,569 one-person households, constituting 20 percent of all households.

Eighty-two percent of people in the 65-plus age group reside in owner-occupied private dwellings. This compares to 68 percent of those aged less than 65 years.

Building activity has increased since 1991 due to a combination of economic and demographic factors. In demographic terms, the population and the rate of household formation is expected to grow, as is the level of migration, while households are decreasing in size. These factors will create an increasing demand for accommodation, most of which is predicted to occur in the Auckland region.

House sales. There has been a significant decrease in the number of house sales. A total of 55,801 freehold open market house sales were notified to Quotable Value New Zealand for the year to December 1998. This is a 2.6 percent decrease on the 75,743 sales recorded the previous year and is the lowest volume since 1992.

Freehold open market sales cover approximately 80 percent of all 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 1998 was $184,100. This was marginally higher than the average sale price recorded for the previous year ($183,986) and 47 percent higher than that recorded in 1993 ($125,609). The sale prices are exclusive of chattels and other considerations.

The Urban House Property Price Index compiled by Quotable Value 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.

GOVERNMENT HOUSING
Ratio of state/private housing starts

REAL COST OF HOUSING
Housing group of CPI compared with CPI-All groups

Table 22.1. RESIDENTIAL PRICES

Average sale priceDecember year
19941995199619971998
Source: Quotable Value New Zealand
 $
Sections55,04962,35069,34177,47880,537
Houses141,506156,578170,675183,986184,100
Owner-occupier flats126,312140,670155,343167,819166,264

Table 22.2 shows that prices have increased by 23 percent from 1995 to 1999, but fell in the year ended June 1999 by 1 percent. The Wellington Area and the Masterton District were the only two areas to record an increase in the June 1999 year of 5 percent and 2 percent respectively.

Table 22.2. HOUSE PRICE INDEX1,2

Locality19951996199719981999

1Base: Half-year ended December 1989 = 1000.

2Half-year ended June.

3Auckland includes North Shore City, Waitakere City, Manukau City, Papakura District and Auckland City.

4Wellington includes Porirua City, Upper Hutt City, Wellington City, Hutt City.

Source: Quotable Value New Zealand

Whangarei District12251328153316701646
Auckland Area313161613175617381712
Hamilton City13291475159916651608
Tauranga District13611438160917461654
Rotorua District12701400155616671566
Gisborne District16201720173016421587
Napier City14931517154915591546
Hastings District15331578157515821557
New Plymouth District14411481144114191408
Wanganui District11861191119311521126
Palmerston North City12131216120611911187
Masterton District11261098107710701087
Wellington Area410181073116113121372
Nelson City14161457148514981468
Christchurch City14041507162016541611
Timaru District13901425144314271393
Dunedin City14471496146013621343
Invercargill District13721375134512151162
            Total New Zealand13101478158816241607

22.2 Housing loans

The year to December 1998 saw a further reduction in the rate of growth of lending in the housing market from 1997's drop off. Growth for the year to December 1998 for outstanding loan values to the housing sector fell to under 8 percent from rates in 1995 and 1996 that averaged almost twice that much. However, there was very strong growth in the last quarter of 1998, reflecting the rapid decrease in new mortgage rates at that time.

Table 22.3 includes both loans drawn down for housing and for ‘other purposes’ from both M3 institutions (the 18 largest deposit-taking financial institutions in New Zealand) and non-M3 institutions (this category comprises nine major lenders to households and larger parcels of securitised house mortgages) surveyed by the Reserve Bank of New Zealand.

It shows clearly the rapid slow down in total household claims in the first three quarters of 1998, as discussed above.

MORTGAGES
Registered and discharged

Table 22.3. HOUSEHOLD CLAIMS

QuarterTotal household claims
HousingOtherTotal
Source: Reserve Bank of New Zealand
 ($million)
1990-
December22,0903,01425,104
1991-
March22,3433,04625,389
June22,8043,04825,852
September23,3133,08026,392
December24,0233,12327,146
1992-
March24,6793,19427,873
June25,2593,16928,428
September25,7863,22629,012
December26,4703,25729,728
1993-
March27,0423,29630,337
June27,6753,33531,010
September28,5283,44331,971
December29,5513,58233,133
1994-
March30,4383,67134,109
June31,6473,73335,380
September32,7893,83236,620
December33,9253,93237,857
1995-
March34,8414,04938,890
June35,9104,15140,061
September37,1484,27141,419
December38,6494,45143,100
1996-
March40,2174,60044,817
June41,8834,74846,630
September43,0234,86447,887
December44,2735,03449,307
1997-
March45,8905,15551,045
June47,2515,13752,388
September48,5405,17253,712
December49,9525,31655,269
1998-
March51,0605,43756,497
June52,0405,44357,482
September52,8345,41758,250
December54,0275,43959,466
1999-
March55,4795,55761,036
June57,1095,67362,782
September58,5115,69764,208
December59,8615,92865,789

Mortgage interest rates. Data in the table Residential mortgages: 1960–99 shows that the average yield on residential mortgages has fallen from 9.4 percent in 1998 to 6.6 percent in 1999.

At the end of 1998 floating rates were at their lowest level since June 1967. These low interest rates encouraged the strong loan growth in the December 1999 quarter noted in table 22.3.

The graph Home mortgage rates shows the rapid descent of banks' floating mortgage rate portfolio yields relative to yields on fixed interest housing loans, reversing the position at the start of the year. Despite the lower floating rates, the proportion of fixed mortgages is still around 60 percent, having grown from negligible levels in 1994.

New Zealanders appear to value the fact that fixed interest rate mortgages can deliver some certainty about future mortgage commitments.

Rentals. The dwelling rentals component of the Consumer Price Index decreased by 1.7 percent in the year to June 1999.

Housing assistance and government housing agencies

Accommodation supplement. The accommodation supplement was introduced on 1 July 1993 and replaced 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 depends on the person's or family's circumstances.

The accommodation supplement is a cash payment administered by the Department of Work and Income. The supplement is capped on a regional basis and takes account of higher living costs in Auckland, Wellington, Christchurch and Hamilton. 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. At 30 June 1998 there were 311,618 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 ongoing 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 a 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 1998 there were 5,858 current tenure protection allowances.

Housing Corporation of New Zealand: Te Kaporeihana Whare. Since 1 July 1992 the corporation has been responsible for home lending functions, and some other functions such as the administration of the Crown's portfolio of surplus land. In recent years, however, the corporation has been moving away from direct lending into the role of a facilitator of private sector finance.

The Housing Corporation is able to provide housing loans for those low-income households which have difficulty obtaining loans in the private sector. It also provides home improvement loans. The Low Deposit Rural Lending programme (LDRL), which started in 1995 in Northland and on the East Coast, combines education about housing matters with practical assistance to improve access to home-ownership. The programme was recently expanded to cover the Wairoa and Opotiki districts.

The Housing Corporation is also involved in the Kapa Hanga Kāinga/Group Self-build Pilot programme in conjunction with Te Puni Kōkiri. This programme gives low-income people the opportunity to build their own home with a group of other owner-builders. By contributing their own labour, the participants in the programme can help reduce the costs of housing and the cash deposit required.

The corporation assists in the sale of Housing New Zealand rental houses to tenants through the ‘Home Buy’ scheme. The corporation provides suspensory loans, which are an important part of the programme, as well as advancing first mortgage finance.

Table 22.4 shows the amount of loan activity undertaken by the Housing Corporation in the last four 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 30 June)1996199719981999
NumberValueNumberValueNumberValueNumberValue
Source: Housing Corporation
  ($m) ($m) ($m) ($m)
Papakāinga161.0860.40331.16180.79
LDRL533.15674.66796.021088.05
Home Buy24016.001408.7933524.681107.68
Suspensory6185.284543.825794.936645.99
General31410.10873.85873.23632.10
Special40.3900.0091.3600.00
Total124536.0075421.52112241.3896324.61

Community Housing Limited. Community Housing Limited became a wholly-owned subsidiary of Housing New Zealand on 1 July 1995. On 30 August 1996 it was sold to 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 1,100 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 Modifications Project facilitates the modification of houses to suit the needs of individuals with disabilities. Community Housing provides a 24-hour 0800 number for customers and an advisory service. It also reports to the Government on housing issues.

Housing New Zealand Limited. Housing New Zealand was established under the Housing Restructuring Act 1992. A Crown-owned company, it owns and manages around 60,000 rental properties nationwide.

Housing New Zealand's principal objectives are to provide rental housing to those on low incomes and those not having their needs adequately met in the private sector, and to provide these services in a manner which meets the Crown's social objectives; enhances shareholder value; provides a strong customer service focus; and attracts private sector investment. Housing New Zealand is the single largest owner of rental housing in New Zealand, accounting for around 19 percent of all national rental accommodation.

Housing New Zealand was established as part of broader government reforms introduced at the time. It competes on an equal basis with other rental housing providers, charging market rents for its properties, for which affordability assistance (an accommodation supplement) is delivered to eligible people through the Department of Work and Income. It is required, however, to rent vacant units primarily to people on low incomes, and to give priority allocation to people whose accommodation is detrimental to their health or well-being, or who are in emergency accommodation. Of all new tenancies in the year to 30 June 1999, 46.6 percent were to single people with children and 19.5 percent to couples with children.

Housing New Zealand has three regions and 43 Neighbourhood Units (local outlets) throughout the country. Tenancy management, day-to-day property maintenance, applications and new lettings are carried out from the units, which each control between 500 to 3,500 properties.

In 1994 Housing New Zealand implemented the Government's right-to-buy (Home Buy) scheme, designed to provide an opportunity for home ownership to low-income New Zealanders who might otherwise not have this opportunity. Through this scheme tenants can elect to purchase the property they rent, or an alternative vacant property better suited to their needs. All properties are sold at a price determined by an independent registered valuer who the tenant is able to select from a list of approved valuers. Tenants who purchase a property through Home Buy may be exempt from some of the costs normally incurred in a property sale transaction, such as valuation and relocation expenses. In addition, a tenant may be eligible for a suspensory loan (administered independently by Housing Corporation). Depending on the property price, this is often enough to cover the deposit required by lending institutions and will cover 10 percent of the purchase price, to a maximum of $15,000. There were 726 Home Buy sales in the year to June 1999.

The Home Lease programme was established in 1995 to assist the Crown in meeting demand for housing. Under this scheme, private owners lease their vacant properties (in areas of high demand) to Housing New Zealand for a predetermined period of time. Property owners are guaranteed a rental income from the property, less a management fee, in return for which Housing New Zealand takes full responsibility for managing the tenants. There were 746 Home Lease properties on 30 June 1999.

Table 22.5. HOUSING NEW ZEALAND ACTIVITY

Year ended 30 June1996199719981999

1Includes Home Lease properties.

2 Income of $500 per week or less.

3 Includes vacant sales and sales to tenants only.

4 Includes the transfer of properties to Community Housing Ltd.

Source: Housing New Zealand

Total rental units167,95565,82163,86660,418
Number of allocations (new tenancies)16,751-14,61914,107
Number of new tenancies for priority customers2,7662,6372,9222,629
Percentage of allocation to low-income households294979999
Property disposals321503,2162,2843,361
Properties acquired or contracted47624841224662

Ministry of Housing. Established on 1 July 1992, the ministry's main functions are the provision of 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.

In the year to 30 June 1999, there were 40,552 applications made to the Tenancy Tribunal. Of these 29,406 were referred to mediation, of which 17,007 were resolved at mediation. There were 11,774 applications that were not resolved or only partially resolved in mediation and which were referred to the Tenancy Tribunal. The number of applications referred to the tribunal for a hearing, either directly or after an attempted mediation, totalled 23,081. A total of 21,548 applications were resolved at the tribunal while the others were either withdrawn, adjourned or referred back to mediation.

State house in Kaitaia being built by government rehabilitation scheme workers, 1950.

HOME MORTGAGE RATES
New registered mortgages

RESIDENTIAL MORTGAGES: 1960–99
YearAverage variable rate of interest on new mortgages*

* Figures are an average of the previous 12 months.

Source: Reserve Bank of New Zealand

 percent
19604.99
19655.99
19706.80
19758.47
198013.87
198517.83
198618.94
198719.85
198816.76
198915.14
199015.07
199112.64
19929.81
19938.71
19948.40
199510.80
199610.89
19979.82
19989.4
19996.6

HOME MORTGAGE RATES
Average yields on floating and fixed rate contracts

HOUSING COSTS
Average building cost per square metre

BUILDING CONSENTS
Residential consents as a percentage of all building consents, by value

22.3 Building and construction industry

Building and construction is an important part of the New Zealand economy. For the year ended 31 March 1999 there was $10.0 billion of gross fixed capital investment on building and other construction. For the previous year the equivalent figure was $10.8 billion. The number of people employed in the industry at the end of February 1999 was 109,540, comprising 6.8 percent of those employed. In addition, tens of thousands are employed indirectly, supporting the industry in manufacturing, material supplies and transport. During the early to mid-1990s the share of New Zealand's gross domestic product (GDP) contributed by the construction industry has risen steadily.

The share (in constant prices) was 3.1 percent in the year ended 30 March 1993, rising to 3.3 percent in the March year 1999. This increasing importance has existed during a period of high GDP growth of the mid-90s, making the industry's proportional increase even more noteworthy.

During this period of high growth, related output has increased as well. Production of ready-mixed cement and sawn timber has shown steady growth through the 1990s, in line with the increased requirements of the construction industry for building materials. The volume of ready-mixed cement has increased by 51.5 percent from 1993 to 1999, while the volume of sawn timber produced has increased by 23 percent over this period.

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.

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.

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 (known as The New Zealand Building Code Handbook and Approved 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 of building controls is the responsibility of the territorial authorities which 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.

As of mid-1999 there were 22 building certifiers approved by the Building Industry Authority, of which some are limited to approving work covered by the Approved Documents for housing, while others are specialised in disciplines such as automatic sprinkler systems and lifts. The presence of building certifiers provides competition for territorial authorities.

The worldwide move to performance-based building codes as a means of overcoming trade barriers sees New Zealand as a leader among countries who implement such reforms. The New Zealand Building Code was used extensively as the model for the revised Building Code of Australia.

All clauses of the building code and accompanying support documents are reviewed every five years to ensure that the code remains current.

Safe and healthy buildings are one of the authority's goals, and work on the dangerous buildings provisions of the Building Act are a high priority, in particular earthquake-prone buildings. Other factors, like fire and insanitary conditions, also make a building dangerous.

Providing adequately for people with disabilities is an important consideration in all new building work. Such provisions have 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 with disabilities.

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. This gave an income of about $3.2 million for the year to 30 June 1999. The authority's approved expenditure for that year was just under $2.7 million, of which approximately 26 percent was spent on education and information activities.

NEW DWELLINGS
Number of new dwelling units authorised

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. Building authorisations are applied for under the building consents system administered by territorial authorities.

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 1999 are described by types of building in table 22.6. Consents cover alterations and additions as well as new buildings.

The high proportion of the total value of building authorisations represented by dwellings built by the private sector (households) highlights the importance of private investment in residential buildings as a key to stability in the building industry. The total for dwellings during 1998–99 includes 20,695 permits or authorisations to a total value of $2,774 million for new dwellings. This includes authorisations for 124 new government dwellings.

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 playcentres; and the broad category of ‘social, cultural and recreational buildings’ includes churches, halls, theatres, cinemas, clubrooms, community centres, and grandstands.

Work put in place. Statistics New Zealand conducts quarterly surveys of building work put in place (see table 22.9). 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.

Construction of Pier One for the $24 million Otira Viaduct, which replaced a zigzag section of State Highway 73 between Christchurch and the West Coast.

CONSTRUCTION SHARE OF GDP
Value of construction as percentage of total GDP

SIZE OF NEW DWELLINGS
Average floor area

Building the Auckland Harbour Bridge, 1958.

Table 22.6. VALUE OF BUILDING CONSENTS ISSUED

Type of buildingYear ended 31 March
19951996199719981999
Source: Statistics New Zealand
 $(million)
Residential -
New dwellings2,864.12,741.92,927.373,252.02,774.0
Alterations/additions and outbuildings576.7619.0635.19686.4680.3
            Total residential buildings3,440.83,360.93,562.563,938.33,454.3
Non-residential (includes additions and alterations)
Hostels, boarding houses11.234.516.2063.2101.2
Hotels, motels, etc207.8194.0126.85149.2153.8
Hospitals and nursing homes64.494.3165.94165.6172.6
Education buildings231.5261.2315.86312.2355.8
Social, cultural, religious and recreational buildings250.3246.0243.58171.0319.8
Shops, restaurants, taverns314.1270.6291.26342.7304.4
Office and administrative253.1295.6381.09477.9407.0
Storage buildings105.5150.6226.26235.9154.7
Factories and industrial316.3334.5422.28332.8264.2
Farm buildings108.1100.798.6185.793.3
Miscellaneous and multi-purpose buildings137.6215.041.6726.72.8
            Total non-residential buildings1,999.92,197.02,329.592,362.92,356.5
            Total all buildings5,440.75,558.05,892.156,301.25,810.8

Table 22.7. LOCATION AND VALUE OF BUILDING AUTHORISATIONS 19981,2

RegionNumberRes.value ($million)Non res val ($million)Tot bld val ($million)
19981999199819991998199919981999

1Year ended 31 March.

2Doesn't include alterations and additions.

Source: Statistics New Zealand

Northland15741365140.2131.827.425.0167.6156.7
Auckland11,0208,9351,341.91,111.4604.4696.61,946.41,808.0
Waikato3,5763,193364.4320.8120.4126.8484.7447.6
Bay of Plenty3,4482,248360.0277.086.549.4446.5326.4
Gisborne16213110.79.311.47.422.216.7
Hawke's Bay67361054.453.644.038.798.492.3
Taranaki40434422.620.130.915.753.535.8
Manawatu-Wanganui81578355.454.652.761.4108.1116.1
Wellington2,4552,366264.7269.3152.9155.5417.6424.8
West Coast23719610.28.28.99.819.018.0
Canterbury4,4673,829427.5362.1155.6151.4583.2513.4
Otago91168970.759.844.158.7114.8118.5
Southland30718.48.519.726.138.134.7 
Tasman49844642.037.311.515.053.552.4
Nelson29919330.019.620.58.450.628.0
Marlborough44034238.830.612.412.851.243.4
Area Outside200.00.00.00.00.00.0
            Total New Zealand31,39425,9773,252.02,774.01,403.41,458.84,655.44,232.8

Table 22.8. BUILDING AUTHORISATIONS

Year ended 31 MarchNew dwellingsResidential buildings1All buildings
UnitsValueFloor area

1Includes outbuildings, additions and alterations.

Source: Statistics New Zealand

 sq m
 no$(million)(000)$(million)
199419,3612,172.13,101.72,679.74,129.7
199523,6812,864.13,937.53,440.85,440.7
199621,2562,741.93,646.93,360.95,558.0
199722,4182,927.43,820.43,562.65,892.1
199825,5653,252.04,077.33,938.36,301.2
199920,6952,774.03,299.33,454.35,810.8

Table 22.9. WORK PUT IN PLACE

Year ended 31 MarchDwellings
New dwellingsAlterations additions and outbuildingsSubtotal
GovernmentOther

1Includes shops, restaurants, taverns, offices, administrative buildings and storage buildings.

2Includes social, cultural, religious, recreational and farm buildings.

3Includes shop/offices, office/warehouses, and shop/office/warehouses.

Source: Statistics New Zealand

  $(million)
19941.42,229.2561.02,791.7
19951.92,892.0614.43,508.3
19966.83,005.0658.93,670.7
199716.43,393.4687.44,097.2
199813.43,590.2641.64,245.2
19999.02,967.8619.63,596.3
Year ended 31 MarchNon-residential buildings (including alterations and additions)SubtotalTotal
Hotels and boarding homesHospitals and nursing homesFactories and industrial buildingsCommercial buildings1Education buildingsMiscellaneous2 and multipurpose3
 $(million)
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
1997244.4183.9473.0753.6378.2837.72,870.86,968.0
1998206.1197.1427.9763.2345.7738.02,678.06,923.2
1999276.3211.2258.3746.3404.9780.62,677.66,273.9

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 nonresidential buildings, four other construction and four land improvement price indexes have been produced since the December 1989 quarter.

For the quarter ended in March 1999 the index recorded decreases of 0.7 percent for residential buildings and 0.5 percent for non-residential buildings, and increases of 0.7 percent for land improvements and of 1.7 percent for other construction.

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 Division E of the Australian and New Zealand Standard Industrial Classification. A summary of results is given in table 22.10.

Further information

Housing

Annual Report of Housing New Zealand Limited.

Annual Review of the Building Research Association of New Zealand.

Report of the Housing Corporation (Parl paper B.13).

Report of the Ministry of Housing (Parl paper B.12).

Report of the Valuation Department (Parl paper G.26).

Residential Sales Summary. Quotable Value New Zealand (quarterly).

Urban Property Sales Statistics. Quotable Value 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 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 and Brooker's).

The first construction site-trained woman qualified as a scaffolder, Amanda Ritchie.

Table 22.10. BUILDING AND CONSTRUCTION: STATISTICAL SUMMARY ANZSIC Division E

Statistical item1996–971997–98Percentage change
Source: Statistics New Zealand
Stocks -$(million)$(million) 
    Closing788733-7.0
    Opening726689-5.1
Income -
    Sales of goods and services12,64513,1494.0
    Interest etc received576512.9
    Government grants and subsidies22-4.6
    All other income3527-22.4
Total sales and other income12,73913,2434.0
    Adjusted for change in stock values12,80113,2883.8
Operating expenditure -
    Salaries and wages paid to employees1,9271,9511.3
    Redundancy and severance6611.3
    Salaries and wages to working proprietors (SW to WPs)596502-15.8
    Fringe benefit tax (FBT)111318.4
    Purchases and other operating expenses8,7039,1725.4
    Interest, bad debts, etc2102110.7
    Indirect taxes (excluding FBT)6552-20.8
    Depreciation3093368.6
    All other operating expenditure3373119.0
Total operating expenditure11,85312,3093.8
Net profit before tax, after deducting extraordinaries and SW to WPs1,5421,526-1.1
Net profit before tax, after deducting SW to WPs1,5441,480-4.1
Fixed tangible assets -
    Purchases of plant, machinery, etc501495-1.2
    Purchases of land, buildings and other construction10617566.1
    Total purchases of fixed tangible assets60667010.5
    Sales of fixed tangible assets1701753.1
Balance Sheet:
    Shareholders funds, etc2,1842,2382.5
    Current liabilities2,9313,1557.6
    Other liabilities1,0691,30622.1
    Total capital and liabilities6,1856,6998.3
Fixed tangible assets2,2142,48312.2
Current assets3,5613,6622.8
Other assets41055435.2
Total assets6,1856,6998.3
  $$
    Total income per FTE127,370132,7364.2
    Net profit per FTE15,41815,293-0.8
Ratios:percentpercent
    Current ratio121.5116.1 
    Quick ratio94.692.8 
    Profit margin on sales12.211.6 
    Return on equity70.668.2 
    Return on total assets24.922.8 
    Liabilities structure35.333.4 

Contributors

  • 22.1 Statistics New Zealand; Quotable Value New Zealand.

  • 22.2 Reserve Bank of New Zealand; Land Information New Zealand; Statistics New Zealand; Department of Work and Income; Housing Corporation; Housing New Zealand; Community Housing Ltd; Ministry of Housing.

  • 22.3 Statistics New Zealand; Building Industry Authority.

Special articles

The Building Research Association of New Zealand; New Zealand Institute of Architects.

Chapter 23. Transport

Tranz Rail's new Cook Strait ferry Aratere is welcomed to Wellington, 1999.

Transport

Transport in New Zealand, and between it and the outside world, underwent dramatic changes during the 20th century. These changes had enormous social, economic and political impacts. When the age of steam and horse power was superseded by motor transport, the lifestyle and industrial consequences were profound. And just as steam transport tied the country together and helped establish national institutions, so the advent of relatively cheap international air travel opened up new links between New Zealand and the rest of the world. At the end of the century aircraft and road motor vehicles were clearly the dominant forms of transport while diesel and electric rail locomotives and motor ships retained importance in transporting freight and city commuters.

The age of steam

In 1900 steam power was the main form of transport for most New Zealanders. The railway steam locomotive and steamship were the major means of moving both passengers and freight around New Zealand, with rail generally displacing steamships when they came into direct competition. Trams drawn by steam locomotives operated in Christchurch, while all the four main centres and several provincial towns soon installed electric steam-powered tramways. In addition, Dunedin had, and Wellington would soon acquire, steam-powered cable cars. Where heavy road haulage was required, for instance shifting brick or stone to building sites, steam traction engines were frequently used – although these mammoths took a severe toll on road surfaces and bridges. Also by 1900, steamships had largely displaced international sailing vessels as New Zealand's main transport link, providing faster and more punctual delivery of passengers and cargo.

In areas beyond the economic reach of steam, other, mainly older forms of propulsion flourished. Horse-drawn vehicles were particularly common in rural New Zealand, and in 1900 horses were still pulling most urban trams. Bullocks continued to be used for some heavy haulage, especially in remoter areas, and packhorses were popular where the going was very difficult. In coastal trading, sailing ships survived most famously in the form of scows, which operated mainly around the north of the North Island and out to the Pacific Islands. There were still 301 sailing ships registered in New Zealand in 1900, compared with 219 steamers. Some sailing ships continued international freightage in trades where the time taken in the voyage was not as important as cheap rates. In fact, fewer steamships than sailing ships of the previous century called into New Zealand ports. This was due to their greater tonnage capacity. In 1875, 926 ships arrived with an average tonnage of 450 tonnes, whereas the 616 arriving vessels in 1900 had an average of 1,387 tonnes.

In terms of personal transport, New Zealanders were far more accustomed to walking long distances than they are now. Horses featured most strongly in rural areas, and bicycles were widely used in both town and country. Most were ‘safety’ bicycles, similar to those seen today, but penny-farthings were not uncommon on better roads. In 1905 New Zealand had 97 establishments classified as cycle-works, and in 1910 almost 3,600 bicycles were assembled in this country. Waka remained a significant form of transport for some rural Māori and row-boats were also important in certain areas.

In a wide sense, steam transport in 1900 was playing a key role in drawing New Zealand's regions together socially, economically and politically. The duration of coastal sailing voyages had been very much at the mercy of the weather, whereas steamships provided more dependable and safer linkages, particularly between the two main islands. Similarly, New Zealand's comparatively small and scattered population, broken topography, many rivers and thick bush had long hampered regional overland communications. Investment in railways, largely by governments, was overcoming that problem. By 1900 the 3,385km of railway included connections between Southland. Otago and Canterbury; Wellington, Hawke's Bay and Taranaki; and Auckland, the Waikato-King Country and the Bay of Plenty. In 1908 the completion of the North Island Main Trunk Line made travel cheaper and quicker between Wellington and Auckland, previously undertaken largely by rail and steamship via New Plymouth.

Throughout the country, local and international tourists, business people, sports players and politicians could now travel much more easily and cheaply between regions, thanks to steam transport. The rapid development of interprovincial sports competitions and national sporting bodies, most famously in rugby, but also in racing, cricket, hockey and soon netball, was enormously facilitated. At the same time, national markets were developing for perishable, heavy and relatively low-value products. For instance, the ability to freight beer to many more customers was underwriting the growth of larger, national breweries. From a total of just over 100 in 1891, the number of breweries in New Zealand fell to 74 in 1901 and 55 in 1916, despite a big increase in total beer production. Politically, the establishment of steamship services and the burgeoning development of a national rail network had done much to bury the earlier system of provincial government and focus regional demands on central government.

SHIPPING
Vessels on the New Zealand register by type

The importance of steam transport in 1900 was reflected in the 7,000 or so employees on the railways, tramways and steamships. Railway construction drew workers and often their families to camps in isolated areas, frequently for a number of years. Line operation and maintenance then brought a smaller but more settled population to places such as Taihape. Furthermore, the rail workshops in the four main centres and Wanganui were among the largest factories in New Zealand, employing over 1,700 workers in 1901, many of them highly skilled. The immense labour required to refuel ships with coal and to shovel that coal into furnaces meant New Zealand ports hosted large numbers of lumpers, stokers, trimmers and firemen. At the same time, other forms of transport – horse-drawn and wind-powered – continued to employ many workers.

A vast capital investment was required in steam transport – in steamships, locomotives, electricity generation and track – and this promoted the growth of large private companies and public ownership. One such private company was the Union Steamship Company, ‘The Southern Octopus’ which dominated coastal and trans-Tasman trade. In 1908 the Government purchased the last of the major private rail lines, that of the Wellington and Manawatu Railway Company. Most of the urban tramways were municipally owned by that time. Whatever the ownership, however, much of the capital which built the steamships, rail and tramways was raised overseas, mostly in Britain.

Indirectly steam transport also promoted the development of other industries. In particular, coal-powered steamships and steam locomotives both increased the demand for coal and made its transport more economical. New Zealand's principal coalfields were comparatively distant from the main centres of population, most famously on the west coast of the South Island. Railways were essential for carrying a heavy product like coal from mine to wharf or city. Similarly, steamships conveyed more than half a million tons of coal from Greymouth and Westport in 1900. Coal mining, a major and distinctive regional industry in New Zealand at the turn of the century, was thus essentially built on steam transport. Likewise timber milling, another substantial regional employer, was largely dependent on steam transport. Over much of the country little steam locomotives and steam-powered cables helped haul logs from the bush along tramways, while railways carried the heavy sawn timber and firewood to the market. Some 19 million metres of timber were carried by rail in 1900–01.

Agriculture was another industry in which steam transport was central to development. This was particularly true of the export meat and dairy industries, which had started with the advent of local refrigeration in 1882. Most livestock, and some cream and milk, were carried to processing factories by rail. Large meatworks which drew stock from an extensive hinterland were constructed at or near ports on rail lines. Initially refrigerated exports were carried on sailing ships, but steamships allowed shorter voyages and did not require an entirely different system to power their freezers. The opportunity to economically transport grain by rail had also encouraged the production of cereals in the drier areas of the country. Some 667,000 tonnes of grain were carried on New Zealand railways in 1900. Similarly, the rapid and comparatively smooth transport of perishable goods by rail fostered the development of apricot production in Central Otago.

Yet there was more to steam travel than business. Tourism – travel for pleasure – flourished. Railways and steamships opened up travel to and across the ‘cold lakes’ of the South Island (such as Wakatipu, Te Anau and Wanaka) and the ‘hot lakes’ of the North Island (Taupo and Rotorua). Steamship excursionists now enjoyed the Marlborough Sounds and Fiordland. And there was now rapid and comfortable access to thermal spas such as Te Aroha and beach resorts such as Timaru. Even those who wished to climb or ski in the mountains could travel much of their journey by rail. International tourists and sports people found the journey to New Zealand easier and more predictable by steamship, and the same applied to New Zealanders heading overseas. A ‘grand tourist route’ developed, by rail from Southland to Lyttelton, steamship to Wellington, rail to Wanganui, steamboat up the Wanganui River, horse coach to Lake Taupo, steamboat to Taupo, horse coach to Rotorua and rail to Auckland.

Even in town planning, rail transport had a great influence and continued to do so for half a century. Railyards and coal-fired gasworks were typically noisy and smelly neighbours near the centre of town. Other industries clustered around the railways which brought coal and raw materials, and carried finished goods to other markets. Hotels clustered around the central railway station. These catered for the recreational visitors and numerous commercial travellers. Urban steam-powered electric tramways had originally been installed largely to carry holiday makers to local beaches, racecourses and hill resorts. By 1900 many city people, mostly the better off, were choosing to live out along the tramlines, at the beach, on the hills or in the countryside just beyond the cities, where suburbs would soon grow. From there they could commute by tram to work, shop or be otherwise entertained in the city centre. Department stores, theatres and the newly arrived cinemas were generally constructed close to the central terminus of a town's tram network. Similarly, professional and commercial offices tended to centralise there. These developments helped shift local political interest from comparatively isolated self-governing suburban townships to metropolitan government.

The importance of rail transport meant that decisions on the location and the construction of lines were major political issues. Individual regions campaigned strongly for more railways, particularly to link them to a wider market, while towns competed desperately to have the line going through them rather than rival settlements. Promises to begin or accelerate the construction of particular railways were a feature of elections. Rail charges and the provision of services were also hot local issues. In the case of rail, steam power lasted well into the middle of the century. In other industries, like shipping, it was not so long lived. Yet even at the turn of the century, when steam power was at its height, another technology had already been developed that would dominate the second half of the 20th century.

RAIL TRANSPORT THROUGH THE 20TH CENTURY1

1Year ended 31 March.

21987 figure.

YearRoute kilometresPassengers carriedFreight carried
 (000)tonnes(000)
19003,3855,4683,304
19053,8208,5144,252
19104,37211,1415,578
19154,73813,5666,566
19204,82112,7616,096
19254,96412,4247,145
19306,1588,4677,914
19355,3427,8096,120
19405,4548,2837,797
19455,63813,6309,097
19505,6737,88110,107
19555,6147,80410,501
19605,3688,24510,712
19655,23625,13712,163
19704,92821,03111,778
19754,79718,89412,883
19804,51616,01111,755
1985......
19904,59415,04828,295
19954,43910,6439,584

The motor overtakes steam

There were virtually no motor vehicles in New Zealand in 1900. By 1914, although horse-powered land transport remained much more common, there were significant numbers of motorcycles, buses, lorries and cars. It was during the inter-war period that private motor transport really burgeoned, when most better-off families acquired a car. Some 106,000 motor vehicles were registered in 1925, the first year of nationwide licensing. By 1940 this had increased to over 291,000 and in 1965 the total passed the million mark. Young adults, particularly men, tended to be particularly keen on acquiring a motor vehicle of some sort, frequently a motorcycle.

Public transport also switched from steam-generated electricity to hydro electricity during the inter-war period, and in the 20 years following World War II, all trams and most of the hybrid trolley buses were phased out in favour of motor buses. The replacement of steamships by motor ships took place relatively early, starting in the 1920s. From 276 in 1924, the number of steamships registered locally fell to 144 in 1940 and 67 in 1960. On the other hand, the number of registered motor ships rose from 123 in 1924 to 305 in 1940 and 424 in 1960.

Change, however, did not proceed at a uniform pace. There were urban and rural differences. During the first half of the century, for example, motor vehicle ownership was far higher in the country than in town, where the bicycle, tram and bus were the main means of transport until the 1960s. There were also issues of competition and changing technology. Coastal shipping in general suffered severely from rail, and later road, competition. The introduction of specially designed road and rail ferries on Cook Strait from 1962 heightened this competition, while containerisation from the mid-1960s transformed both land and sea freighting. Another example of the somewhat erratic nature of development is in the expansion and contraction of the railways, which did not attain its maximum length until 1930, when it reached 6,158km. Thereafter the extent of open railways tended to shrink, though there was a significant resurgence in the 1940s when Marlborough was finally linked with Canterbury and Gisborne connected with Hawke's Bay. By then steam trains had been joined on a few lines (the Lyttelton and Otira tunnels, and increasingly Wellington commuter runs) by electrically powered locomotives. More generally, there was a switch in the postwar period from coal-burning steam locomotives to oil-burners and then diesels. It was only in the 1950s that the widespread closure of uneconomic branch railways began, a process that accelerated in the 1960s and was largely complete by 1980. From 5,673km of line in 1950, the network shrank to just over 3,900km at the end of the century. The only major additions to the rail network during this period were the construction of the Rimutaka Tunnel and lines to serve the exotic timber industry in the South Waikato and Bay of Plenty, most notably through the Kaimai tunnel to Tauranga. A considerable investment was made during the 1980s to electrify most of the North Island Main Trunk Line.

The social impact of the widespread ownership of private motor vehicles was profound. The car and the motorcycle freed people from the mobility restrictions of steel rails and timetables. Motorised holiday makers invaded beaches, rivers, lakes and scenic spots far beyond the tramlines and away from railways. Official and impromptu motor camps proliferated, while the ‘Sunday drive’ regularly made the roads near cities particularly busy. A national survey of traffic on main highways during the mid-1930s showed that Saturdays and Sundays were clearly the busiest days of the week in summer, but not in winter. Golf courses multiplied, especially around the fringes of towns, as many more players could drive out to them as well as on them. Less respectably, there were complaints from outer suburbs that the liberty afforded by the motor car was leading to drunken keg-parties and worse. Meanwhile suburban housing was increasingly freed from the need to be within walking distance of a tram or steam ferry service. ‘Five-acre blocks’ proliferated and the North Shore grew rapidly following the opening of the Auckland Harbour Bridge in 1959.

The employment effects of motor transport were also dramatic. Most visibly, businesses catering for horse-drawn and horse-borne transport, such as farriers, saddlers, cartwrights and livery stable proprietors, declined. Those servicing motor vehicles, including motor mechanics, motor-body builders, panelbeaters and garage proprietors, rose. The term ‘carrier’ tended to displace ‘carter’, taxis replaced hansom cabs, and service cars took over from horse-drawn coaches on back-country journeys. The advent of motor ships meant a comparable decline in the number of stokers and an increase in the proportion of skilled engineers to less skilled crew. By 1961 the local motor vehicle assembling industry was employing almost 6,000 people.

Auckland's Queen Street, 1949.

MOTOR VEHICLES
Numbers licensed

Motor transport had both positive and negative effects in country areas. One regionally significant industry that suffered considerably due to the displacement of horse transport was the growing of oats in the South Island. In 1922 southern ports were shipping over 30,480 tonnes of the grain to both New Zealand and overseas destinations. By 1937 the total was down to 11,176 tonnes. Similarly, the demand for straw shrank considerably, leading cereal farmers to burn more of it. The new-found mobility of rural consumers also brought the rapid demise of businesses in smaller centres. This effect was magnified by the fact that travellers and, increasingly, those moving stock, could proceed so much faster that they did not need to stop over along the way. Consequently many little townships effectively faded away. Some tiny settlements in dairying areas also died when the local factory closed following the introduction of motorised cream or milk collection. These products could now be collected rapidly from a much larger catchment area, permitting fewer but larger factories that could take advantage of economies of scale. Between 1919 and 1939 the number of dairy factories fell by around a third, from 598 to 402. Tanker collection of whole milk further expanded catchment areas and factory size from about 1950. The number of dairy factories was reduced to just over 10 in 1979. Similarly, the commencement of school bus services in the 1920s led to continuing closures of local schools, so often the centres of rural communities.

Changes in transport had a powerful decentralising effect in other ways. From the 1920s motor trucks gradually released manufacturing industries from their ties to railway lines. This was assisted by a move from coal to oil and electric power. A generation later, containerisation similarly decentralised much of the loading and unloading of goods from ports to factories and warehouses.

Another economic effect of widespread motor transport was an increased demand for imported fuel and vehicles. New Zealand was mostly self sufficient in coal and oats, the fuels of steam and horse transport. Horse-drawn vehicles, saddlery, steam rail locomotives and rolling stock were also manufactured in New Zealand. Until the 1980s, petroleum fuels were almost entirely imported, mostly by companies owned overseas. The components of motor vehicles were also mostly imported.

Motor transport posed many problems for politicians, not least between the world wars. Having invested heavily in rail and tram systems, central and local government faced mounting losses as more travellers acquired their own motor vehicles or used privately owned buses, and those consigning goods utilised the flexibility of motor transport. By the 1930s there was considerable, often controversial, legislation designed to reduce the haemorrhage of revenue from publicly owned transport systems. At the same time, the impact of motor transport on roads not designed for it confronted both local councils and the government with an expensive challenge. Taxes on tyres and fuel, and motor registration fees, were introduced to help a central Main Highways Board (later the National Roads Board, then Transit New Zealand) to subsidise heavily used roads. Traffic laws and their enforcement became major concerns both locally and nationally. Special officers were employed by central government and many local councils although local enforcement was gradually phased out in the 1960s and 1970s. The challenges of dealing with competition, road wear and safety were instrumental in the creation of the Department (later Ministry) of Transport in 1930, and led to much legislation. Generally speaking, the main thrust of this legislation until the 1960s was to regulate competition and usage. Thereafter the emphasis tended to be more on safety, such as the introduction of compulsory wearing of seat belts and progressive tightening of the laws against drinking and driving. From the late 1970s regulations to protect the railways from road transport were phased out, leading to a big increase in trucking. Successive governments in the 1980s and 1990s deregulated transport and corporatised and/or privatised the State's ownership of transport services and facilities, such as railways, road transport, air and shipping lines, and airports.

AIR TRAVEL
Passengers carried on scheduled international and domestic flights

Air transport takes off

Aside from a few balloons, the first aircraft appeared in New Zealand shortly before World War I. However, it was only after 1918 that significant numbers arrived, and regular scheduled air services did not begin until the mid-19308, first in southern Westland. In 1928 the Dominion's total dependence on sea transport for international travel was broken when the aircraft Southern Cross, commanded by Charles Kingsford-Smith, flew the Tasman. Twelve years later the first regular international air services started with flying boats operating briefly to the United States, and then to Australia and the Pacific Islands. Land-based aircraft took over services to Australia and on to Asia and Europe after World War II. The most dramatic change in New Zealand's international air transport occurred in the early 1970s, when wide-bodied ‘jumbo’ jets revolutionised air travel. In 1965, 267,000 passengers were carried to and from New Zealand internationally. By 1989 the total was over 3.3 million. Travel by air within the country was also revolutionised by the arrival of jet-prop and jet aircraft in the late 1950s and late 1960s respectively. The number of passengers carried domestically increased from 387,000 in 1955 to 3.26 million in 1985.

The comparatively cheap mass air travel that came with the wide-bodied jets meant greater opportunities for New Zealanders to go overseas, particularly to the United States and Asia. Those areas had generally been off New Zealand's regular sea routes. These had originally been established to carry agricultural produce to Britain via Panama, and return via South Africa and Australia. The ultimate destination of many New Zealanders flying overseas continued to be London, but airborne Kiwis were increasingly drawn by closer attractions such as Surfers Paradise, Disneyland and Bali. Cheap and rapid air travel also underwrote a dramatic increase in the number of international sports tours to and from New Zealand.

In addition, jet travel has facilitated immigration to and from New Zealand. Australasia has increasingly become a single labour market, particularly for New Zealanders in search of employment or better pay. Ease of travel meant that inflows of better-off and skilled immigrants could increase suddenly and then reverse just as quickly, if economic or social conditions in New Zealand were seen to deteriorate. It also meant that immigrants could maintain links with their homelands and families. Less European-oriented immigration policies combined with the wide array of jet services to New Zealand brought a large increase in Asian immigration during the late 1980s and early 1990s.

Trips by New Zealanders overseas had long been a drain on the balance of payments and the opportunities created by cheap air travel increased this. However, much larger numbers of overseas tourists can now afford the time and money to come here, making tourism New Zealand's largest earner of overseas exchange. During the 1990s there was a big rise in the number of luxury cruise ships visiting New Zealand, a development greatly assisted by relatively cheap air travel from North America and Europe, as many passengers joined their cruise ships after flying in.

AERIAL TOPDRESSING
Aerial spreading of fertiliser and lime

The main impact of air transport has been on passenger travel. However, the application of aviation to agriculture, most notably in aerial topdressing from the late 1940s, had a dramatic economic impact, greatly increasing hill-country production. Although dwarfed in tonnage by more conventional shipping, the value of airfreighted goods also grew rapidly. As early as the late 1940s some high-value perishable commodities and valuable livestock were being carried on aircraft between the North and South Islands. It was in the 1960s and 1970s, however, that domestic air-freight really burgeoned. By the 1970s some perishable goods and live animals, notably racehorses, were being exported by air and this trade tended to grow rapidly. Airfreighted cut flowers, chilled meat and fish, and fresh soft fruit were all significant New Zealand exports at the end of the century.

REGISTRATION OF EX-OVERSEAS CARS

The growing ease of air travel was a mixed blessing for successive New Zealand governments. It created headaches for the quarantine service by making the entry of pests and diseases more likely, not least in goods brought by careless passengers. Customs faced new challenges as criminals smuggled drugs on and in human bodies and their accompanying luggage. Illegal immigrants had much greater opportunities to get to New Zealand, and there were numerous reports of visitors from low-wage countries working on farms, in factories and brothels, and even on building sites. More positively, rapid international air travel made the New Zealand Army more able to deploy soldiers rapidly for peacekeeping and ‘ready reaction’ roles in this region and much further afield. The deployments in Bosnia, Bougainville and East Timor in the 1990s served to illustrate this.

Travelling beyond 2000

At the beginning of the new millennium there are few signs that the existing pattern of transport in, and to and from, New Zealand will quickly change.

The continued flow of used Japanese vehicles into the country and the end of the local assembly industry means that cars in particular have become much cheaper in real terms. It seems probable that the increasing difficulties with congestion, parking and pollution, particularly in Auckland, will do little to discourage urban car usage in the near future. It is also doubtful that there is sufficient popular support to decrease motor vehicle usage through legislation, taxation or the heavy subsidisation of public transport. Prospects of an oil shortage and/or a massive increase in fuel prices seem the only forces likely to significantly curb New Zealanders' infatuation with the motor vehicle.

It is unlikely there will be any decline in the importance of shipping for bulky cargoes, nor that the new balance between road and rail freight will dramatically change in the near future. However, a very large increase in oil prices might affect that balance.

Partly because of the further development of cheap, long-distance air travel, the resurgence of the cruise ship appears set to continue, with a vast increase in the number of passengers carried on each vessel and possibly a decline in the real cost of fares. More significantly, a projected new generation of jumbo jets has been designed to carry still more passengers, perhaps in somewhat greater comfort. New Zealand would therefore be well placed to continue the greater integration of its population and culture into the wider world.

Bibliography

Cassells K R 1994. Uncommon Carrier: The History of the Wellington and Manawatu Railway Company, 1882–1908. Wellington: New Zealand Railway and Locomotive Society.

Churchman G B and Hurst T 1990. The Railways of New Zealand: A Journey through History. Auckland: Collins New Zealand.

Ewing R and Macpherson R 1986. The History of New Zealand Aviation. Auckland: Heinemann.

Hawkes G 1990. On the Road: The Car in New Zealand. Wellington: GP Books.

Johnson D 1987. New Zealand's Maritime Heritage. Auckland: Collins in association with David Bateman.

McLean G 1990. The Southern Octopus: The Rise of a Shipping Empire. Wellington: New Zealand Ship and Marine Society and the Wellington Harbour Board Maritime Museum.

McLean V 1992. Commemorating Traffic Safety: 55 Years 1937–92. Wellington: Land Transport Division, Ministry of Transport.

Rennie N 1990. Conquering Isolation: The First Fifty Years of Air New Zealand. Auckland: Heinemann Reed.

Stewart G 1973. The End of the Penny Section. Wellington: A H and A W Reed.

Watson J 1996. Links: A History of Transport and New Zealand. Wellington: GP Publications in association with the Ministry of Transport.

Road under construction, Te Hana

23 Transport

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 low population density. 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 using innovative engineering. Taking into account the population size, 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. 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 and rationalising its operations on commercial lines. 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. Largely deregulated by the end of 1989, the qualitative system of road licensing replaced the quantitative system. Rather than the government regulating the number of operators allowed on the road the industry now has to meet certain quality controls. 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 Transfund 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 recent times. 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. Nineteen foreign airlines, including four cargo airlines, operate to New Zealand and an additional 10 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.

The Annual Enterprise Survey covers the activities of all businesses classified in Division I: Transport and Storage of the Australian and 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 trasnport1 1997–98Water transport2 1997–98Other transport3 1997–98

1ANZSIC Subdivision 161.

2ANZSIC Subdivision 163.

3ANZSIC Subdivision 165–167 excluding class 16501...CData is confidential.

Source: Statistics New Zealand

 $(million)
Closing stocks21.32.612.7
Opening stocks21.81.011.8
Sales of goods and services3,441.1420.02,421.1
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered26.42.550.2
Government grants and subsidies46.5..C4.3
Other income including extraordinaries20.55.930.4
Total income3,534.5429.22,506.1
            Total income adjusted for stocks3,534.0430.72,507.0
Salaries and wages paid to employees754.790.8704.1
Redundancy and severance1.01.29.7
Salaries and wages to working proprietors (SW to WPs)84.60.760.4
Fringe benefit tax3.41.07.6
Purchases and other operating expenses1,890.8269.91,146.7
Interest, donations, grants, royalties and patent fees paid and bad debts written off119.010.288.9
Indirect taxes (excluding fringe benefit tax)209.42.620.4
Depreciation246.319.4174.6
Other expenses including extraordinaries17.85.935.9
            Total expenditure3,326.1400.72,238.6
            Net profit before tax, extraordinaries, SW to WPs289.8..C334.2
            Net profit before tax, SW to WPs292.5..C328.8
Purchases of plant, machinery, vehicles and equipment320.320.0125.1
Purchases of buildings and other construction54.33.3163.3
Total purchases of fixed tangible assets374.623.2288.4
Sales of fixed tangible assets108.715.364.1
Shareholders funds or owners equity916.9134.31,722.3
Current liabilities725.287.21,339.3
Other liabilities844.963.1846.8
Total capital and liabilities2,487.1284.63,908.3
Fixed tangible assets1,622.6174.82,427.6
Current assets608.697.91,110.6
Other assets255.811.8370.1
Total assets2,487.1284.63,908.3
            Total income per FTE110,172190,459132,752
            Net profit per FTE9,032..C17,705
Ratiospercent  
Current ratio83.9112.382.9
Quick ratio81.0109.482.0
Profit margin on sales8.4..C13.8
Return on equity31.6..C19.4
Return on total assets11.7..C8.6
Liabilities structure36.947.244.1

23.1 Shipping

Almost 85 percent of New Zealand exports by value, and over 99 percent by volume, are carried by sea. Imports carried by sea account for around 75 percent by value, and over 99 percent by volume. 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.

In the 1990s New Zealand shipping policy considered that the country's interests were best served by being a ship-using, rather than a ship-operating nation. It sought to ensure for New Zealand exporters and shippers unrestricted access to the carrier of their choice, and to the benefits of fair competition between carriers.

New Zealand Railways advertisement, 1962.

The Maritime Transport Act 1994 introduced measures that allow foreign ships transiting the New Zealand coast in the course of their international voyages to carry coastal cargo. The government also supported the opening of trans-Tasman shipping to international competition and foreign-crewed ships. The trade had historically been reserved for Australian and New Zealand-crewed ships through a maritime union accord.

The Maritime Transport Act 1994 regulates ship safety, maritime liability and marine environmental protection. The Maritime Safety Authority of New Zealand is responsible for maritime safety, marine pollution prevention and response functions under the Act.

The most recent employment statistics available on the transport industry, the Statistics New Zealand Annual Business Directory update of February 1999, recorded 320 full-time equivalent persons engaged in international sea transport, 1,200 in coastal water transport, and 350 in inland water transport.

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 trade over recent years has seen greater participation by independent carriers. An indication of New Zealand's established trade 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. A direct service is provided by Contship Containerline. Transhipment services, principally via Singapore, are provided by a number of lines, including NYK Line, P & O Nedlloyd, Malaysia International Shipping Corporation and Maersk Sealand.

East Asia/South-East Asia. The Australian and New Zealand Eastern Shipping Conference provides a direct container service between New Zealand, Japan and Korea. A range of direct and transhipment services to the region are provided by many lines, including China Ocean Shipping Company, New Zealand Unit Express, Tasman Orient Line, Far Eastern Shipping Company, Malaysia International Shipping Corporation, Pacific International Lines and Maersk Sealand.

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 and Blue Star Line vessels service both the east and west coasts. Other lines, including Maersk Sealand and Contship Containerlines provide transhipment services to either coast.

Trans-Tasman. Participation in the Tasman trade has changed considerably in recent years, with foreign cross traders supplanting most Australasian tonnage in the trade. Carriers on this route now include Australia New Zealand Direct Line, P & O Nedlloyd, Tasman Express Line, Chief Container Service, Columbus Line and Pacific Forum Line.

South Pacific. The regionally-owned Pacific Forum Line operates services linking New Zealand, Australia, Fiji, Papua New Guinea, the Cook Islands, Tonga, and American and Western Samoa. Australia New Zealand Direct Line, Columbus Line, Sofrana Unilines, Cook Islands National Line and Pacific Direct Line also operate ships in New Zealand's South Pacific or provide services in conjunction with North American trades. These operators cumulatively provide New Zealand links with the Cook Islands, Fiji, Kiribati, New Caledonia, Niue, Papua New Guinea, the Solomon Islands, Tahiti, Tonga, Tuvalu, Vanuatu and American and Western Samoa.

Inter-island shipping services

Tranz Rail's Interisland Line provides a rail ferry service across Cook Strait between Wellington and Picton, transporting passengers, vehicles and freight. Pacifica Shipping operates four roll-on roll-off vessels on services linking Auckland, Tauranga, Nelson, Lyttelton, Timaru and Dunedin. Strait Shipping operates a livestock carrier and a roll-on roll-off vessel between Wellington, Picton and Nelson. Auckland-based Sea-Tow operates tugs and barges on tramp services around the New Zealand coast.

Since late 1994, Tranz Rail has operated a high-speed car and passenger ferry service between Wellington and Picton over the summer season. In 1999, Fast Cat Ferries introduced a year round high-speed passenger and freight ferry over the same route.

The Cook Islands National Line operates a service between Napier and the Chatham islands as part of its South Pacific service.

Bulk shipping

Overseas trade. In tonnage terms, most of New Zealand's external trade is carried in bulk vessels. New Zealand's bulk-shipping needs are served in the main by a mix of vessels, few of which operate in fixed services. Imported cargoes include crude oil, phosphate rock, bauxite and petroleum coke. Exports include ironsand, coal, forest products and methanol.

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.

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 1999 there were 3,051 ships on the New Zealand Register of Ships, with a total gross tonnage of 253,739 and net tonnage of 133,586. This compared with 3,095 ships with a gross tonnage of 303,180 and net tonnage of 146,338 in December 1998. 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 1999 included the tanker, Kakariki and the deep sea fishing vessels Ocean Breeze, San Enterprise and San Waitaki.

Vessels removed from the New Zealand Register during 1999 included the cargo vessels Union Rotoiti and Union Rotoma, the gas carrier Tarihiko, tanker Toanui and fishing vessel Lord Auckland.

Table 23.2. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE1

 Number of vesselsNet registered tonnage2Number of crew3

1Ships in overseas trade mainly engaged in trans-Tasman and Pacific Islands trading movements.

2The shipping register is not metricated and I net register ton equals 100 cubic feet (or 2.83 cubic metres) of cargo capacity.

3 Crew figures are not necessarily up to date.

Source: Maritime Safety Authority

Domestic
19951220,221269
19961226,048302
19971226,048302
1998816,875200
1999816,875200
Overseas
1995969,354170
1996859,006153
1997754,711115
1998743,763111
1999432,54342

Seafarer qualifications. The Maritime Safety Authority (MSA) is the licensing body for merchant navy personnel. Such seafarers after qualifying for sea service, followed by further training and examination at approved teaching institutions, are issued with certificates of competency as master, mate, engineer, as well as those for deck and engine room ratings. 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 masters, 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.

MARINE ACCIDENTS
Total reported

The Royal New Zealand Coastguard Federation looks after pleasure-boat mariners. The federation holds courses and conducts voluntary examinations for certificates of competency as day skipper, boat master, coastal skipper and ocean yachtmaster.

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 consist of 95 automatic lights, 40 day beacons and 5 navigational buoys. There are no staffed lighthouses in New Zealand.

The MSA 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 8 metres and over in length. The government also contributes, on behalf of the recreational boating sector, a share of these costs.

Wrecks. The Director of Maritime Safety has powers for preserving life and protecting property, where ships are wrecked on the New Zealand coast or in lakes and rivers. 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. The MSA 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 MSA is required to promote a clean marine environment and is responsible for developing and implementing New Zealand's marine oil spill response strategy. It sets out the principles to ensure 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 to meet the goal of responding to an oil spill of any size. While New Zealand's equipment, trained personnel and services are designed to be able to respond to a one in one hundred year spill, arrangements have been put in place to bring in international assistance when needed. 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 MSA stores in key locations around the country.

23.2 Civil aviation

The most recent employment statistics available on the transport industry, the Statistics New Zealand Annual Business Directory update of February 1999, recorded 3,560 full-time equivalent persons in scheduled international air transport, 3,850 persons in scheduled domestic air transport, and 650 others, giving a total of 8,060 engaged in civil aviation.

New Zealand is one of the most aviation-oriented nations in the world. In a population of just 3.9 million there are 9,040 pilots and 3,327 aircraft – one pilot for every 430 people and one aircraft for every 1,170 people.

During the 1998–1999 year the airlines carried more than 4.7 million passengers on domestic services and 2.7 million arrived on international air carriers.

The number of aircraft on the register decreased slightly this year from 3,405 to 3,327 due to efforts to remove disused aircraft from the register. The number of licensed aircraft engineers continues to increase, from 1,498 in 1998 to 1,547 in 1999.

The number of hours flown also continues to increase, by 4.5 percent annually for the total number of hours flown, and by 9 percent annually for hours flown on commercial flights.

Control of Civil Aviation

The Civil Aviation Authority (CAA), which began in August 1992 and operates under the Civil Aviation Act 1990, is the aviation safety regulator with the prime function of promoting civil aviation safety at a reasonable cost.

Specific functions include: establishing safety and security standards relating to entry into and exit from the civil aviation system; monitoring adherence to safety and security standards within the civil aviation system; ensuring the regular review of the civil aviation system to promote the improvement and development of its safety and security; investigating and reviewing civil aviation accidents and incidents; providing civil aviation safety and security policy advice to the Minister of Transport; promoting safety and security in the civil aviation system through information; advice and education programmes; maintaining the New Zealand Register of Aircraft, the Civil Aviation Registry and other records and documents relating to activities within the civil aviation system; and providing search and rescue services.

The CAA also acts on behalf of the Crown in respect of the International Civil Aviation Organisation (ICAO). The CAA is also designated the Aviation Security Authority, Air Traffic Services Authority, Personnel Licensing Authority and the Meteorological Authority, and meets New Zealand's ICAO obligations for aeronautical information. It also undertakes those ICAO responsibilities of a technical or safety regulatory nature associated with the ICAO Air Navigation Bureau and Technical Assistance Bureau.

The CAA is a Crown-owned entity headed by a five-member authority appointed by the Governor-General on the recommendation of the Minister of Transport. The authority reports directly to the minister. The Director of Civil Aviation (chief executive of the CAA) has a wide range of technical responsibilities, conferred on the position both directly under legislation and through delegation from the authority and the minister, and is independently responsible for exercising control over entry and exit from the civil aviation system through the granting (and withdrawal) of aviation documents under civil aviation legislation. There is a staff of about 140.

The CAA received $17.87 million in 1998/99 derived from levies charged on airline tickets, government funding, and charges for services such as certificating new aviation companies, issuing flight crew licences and carrying out audits.

The domestic passenger levy of $1.91 + GST generated $9.07 million and the international levy of 89 cents + GST per departing passenger generated $2.39 million.

In the past year the CAA completed major restructuring of the air operator rules, which apply to every passenger-carrying aviation business. Under the rules these businesses must be certified by deadlines ranging from February 2000 to February 2003.

Airways Corporation of New Zealand Limited. Airways provides air navigation services for the aviation industry within New Zealand's domestic and oceanic airspace. Established in 1987 as a state-owned enterprise, Airways was the first fully-commercialised air navigation services organisation in the world. It is now fully ISO9001 certified.

Airways provides air traffic services, including flight information to civil and military air traffic and is responsible for the planning, provision and maintenance of radar, navigational aids and communications. The air navigation facilities provided in New Zealand 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).

Airways aims to ensure the safe, orderly and expeditious flow of air traffic within the 34 million square kilometres of Pacific airspace assigned to New Zealand by the ICAO.

Aircraft operators and pilots pay Airways for the services they use. These include radar control, landing charges and aeronautical charts and publications. Airways also assists search and rescue and aerodrome emergency organisations. Its technicians perform the installation and maintenance of technical facilities, including runway lighting and navigation aids, for airport companies in New Zealand and overseas.

In its first seven years of existence Airways completed a modernisation of New Zealand's entire air traffic control system, upgrading the nation's network of navigation aids and moving to the next generation of air traffic control technology – satellites.

The first air navigation services organisation in the world to install a satellite-based Oceanic Control System (OCS) in 1995, Airways has received four major international awards for achievement in infrastructure and the implementation of the OCS. The new system, which can track aircraft across the Pacific, increases airline efficiency and air traffic safety. The second phase of OCS was implemented in early 2000.

Airways assists in discharging the operational and technical commitments arising from New Zealand's membership of ICAO. All military air traffic control and radar surveillance is supplied on contract to the Royal New Zealand Air Force.

In 1998 Airways became more customer focused, moving from a geographical to a market focused approach. Four new business units have been established, one for each customer market. This provides customers with a single point of contact, supporting their businesses better, and making Airways more competitive.

Specialised divisions provide a range of related aviation services. Aviation Publishing is responsible for producing aeronautical charts and manuals on behalf of the Civil Aviation Authority; and the Airways Training Centre in Christchurch conducts courses in air traffic services and telecommunications for New Zealand and international students. Airways Consulting has applied New Zealand's expertise in commercialisation and the implementation of communication, navigation and surveillance systems in India, Mauritius and the Pacific region.

The Airways website is www.airways.co.nz

Richard Pearse, whose historic flight was not well known for decades afterwards.

Table 23.3. FOREIGN AIRLINE OPERATIONS – DATE OF COMMENCEMENT AND ROUTES SERVED, AS AT MARCH 2000

DateAirlineRoutes now served

1British Airways, American Airlines and Lan Chile (on Qantas), Ansett International, EVA Air, Japan Airlines and Mexicana (on Air New Zealand), Lufthansa (on Air New Zealand and Thai Airways) and Air Canada (on Air New Zealand and United Airlines) serve New Zealand on a code-share basis only. United Airlines, Singapore Airlines and Royal Tongan Airlines operate their own aircraft to New Zealand and also code-share on Air New Zealand. Polynesian Airlines and Aerolineas Argentinas operate their own aircraft to New Zealand and also code-share on Qantas. Qantas operates own aircraft services to New Zealand and also code shares on Aerolineas Argentinas and Polynesian Airlines.

2 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.

3 Polar Air ceased scheduled services for six months during 1998 but has now resumed services to New Zealand.

Source:Source: Ministry of Transport

1 Apr 1961Qantas1Sydney/Melbourne/Brisbane/Perth/Cairns-Auckland/Christchurch/Wellington Sydney-Auckland-Papeete Melbourne-Auckland-Los Angeles Brisbane-Auckland-Los Angeles Sydney-Auckland-Buenos Aires Melbourne/Sydney-Auckland/Wellington-Apia
4 Apr 1963British Airways1London-Los Angeles-Auckland Auckland/Wellington/Christchurch-Sydney
1 Oct 1974Air PacificSuva/Nadi-Auckland Nadi-Wellington Nadi-Christchurch
1 May 1976Singapore Airlines1Singapore-Auckland/Christchurch Singapore-Sydney-Auckland-Singapore (freight)
25 Feb 1978Polynesian Airlines1Apia-Auckland Apia-Tonga-Auckland-Sydney Apia-Tonga-Wellington-Melbourne
1 Jul 1980Japan Airlines1Tokyo-Auckland Tokyo-Christchurch-Auckland Osaka-Auckland
3 Dec 1985Cathay PacificHong Kong-Auckland
20 Dec 1985Aerolineas Argentinas1Buenos Aires-Auckland-Sydney
11 Feb 1986United Airlines1Los Angeles-Auckland-Melbourne/Sydney/Brisbane/Cairns Auckland-Sydney
8 Nov 1987Air Caledonie InternationalNoumea-Auckland
5 Nov 1987Thai AirwaysBangkok-Sydney-Auckland
4 Nov 1988Garuda IndonesiaDenpasar-Brisbane-Auckland Denpasar-Auckland
1 Nov 1989Air VanuatuPort Vila-Auckland
5 Dec 1989Malaysia AirlinesKuala Lumpur-Auckland Kuala Lumpur-Melbourne-Auckland (freighter)
1 Jul 1991Royal Tongan Airlines1Tonga-Auckland-Sydney
29 Oct 1991Lufthansa1Frankfurt-Los Angeles-Auckland Frankfurt-Bangkok-Auckland Frankfurt-Singapore-Christchurch
3 Nov 1993Korean AirSeoul-Auckland Seoul-Auckland-Christchurch
7 Nov 1993EVA Air1Taipei-Brisbane-Auckland Taipei-Auckland
13 Sep 1994Polar Air3New York-Chicago-Los Angeles-Honolulu-Nadi-Auckland- Melbourne-Hong Kong-Tokyo-Anchorage-Chicago-New York New York-Atlanta-Los Angeles-Honolulu-Nadi-Auckland-Sydney-Hong Kong-Khabarovsk-Anchorage-New York (freight)
1 Jul 1995Evergreen International AirlinesNew York-Atlanta-Los Angeles-Honolulu-Auckland-Melbourne/Sydney (freight capacity taken up by Qantas)
1 Nov 1995American Airlines2Los Angeles-Auckland-Melbourne/Sydney/Brisbane
18 Dec 1995Ansett International1Brisbane/Sydney/Melbourne/Perth/Cairns-Auckland-Los Angeles Brisbane/Sydney/Melbourne-Wellington/Christchurch Sydney-Queenstown
5 Jul 1996Lan Chile1Santiago-Easter Island-Papeete-Auckland
27 Mar 1997Asian ExpressSydney-Auckland (freight)
1 Sep 1998Air Canada1Vancouver/Toronto-Los Angeles-Honolulu-Nadi-Auckland Vancouver/Toronto-Los Angeles-Auckland
18 Sep 1999CargoluxLuxembourg-Beirut-Bangkok-Melbourne-Auckland-Hong Kong-Abu Dhabi-Luxembourg (freight) Luxembourg-Bangkok-Melbourne-Auckland-Los Angeles-Guadalajara-Luxembourg (freight)
16 Dec 1999Mexicana1Mexico City/Guadalajara-Los Angeles-Auckland
27 Mar 2000China AirlinesTaipei-Sydney-Auckland

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, negotiated between governments. New Zealand is signatory to 37 such agreements and has negotiated another five 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 some cases, the capacity that can be used on those routes. New Zealand's International Air Transport Policy, which was restated by the Minister of Transport in February 1998, is to maximise economic benefits to New Zealand, including trade and tourism consistent with foreign policy and strategic considerations. The policy states that the best way to achieve this is to encourage bilateral partners towards mutual liberalisation of air services. The aim is to facilitate access to existing and potential markets of interest to New Zealand.

Air New Zealand operates services to five gateways in Australia (Sydney, Melbourne, Brisbane, Perth 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, Samoa, Fiji, Tonga, Tahiti, Norfolk Island and New Caledonia. Services to Europe are offered on both an own-aircraft (London and Frankfurt) and code-share basis. Air New Zealand operates to Singapore, Japan (Tokyo, Osaka and Nagoya), Hong Kong and Taiwan in Asia and offers code-share services to Bangkok. Own-aircraft services are operated to Honolulu and Los Angeles and code-share services are offered to a variety of other points in the United States as well as to Vancouver and Toronto in Canada.

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 four cargo airlines offer services between Australia and New Zealand. There were 524,083 visitor arrivals from Australia who came to New Zealand in the year to September 1999. In the same period, 618,847 New Zealanders left New Zealand indicating that Australia was the destination in which they expected to spend the greatest time. There were 1,623,720 foreigners who visited New Zealand in the year ended September 1999. The greatest number of visitors to New Zealand are Australians, followed by British, Americans, Japanese, Germans 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. The licence, issued by the Minister of Transport or in the case of foreign airlines the Secretary for Transport, ensures that the services operated are in accordance with the bilateral arrangements.

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 DESTINATIONS1

DestinationDistance (km)

1These are airport-to-airport great circle distances in kilometres.

Source: Ministry of Transport

Adelaide3,247
Apia2,893
Bangkok11,500
Brisbane2,293
Buenos Aires15,884
Hong Kong9,145
Honolulu7,086
Los Angeles10,480
Melbourne2,635
Nadi2,156
Norfolk Island1091
Noumea1859
Pago Pago2902
Papeete4,093
Perth5,400
Port Moresby4,126
Rarotonga3,013
San Francisco10,503
Santiago12,822
Seoul12,869
Singapore8,410
Suva2140
Sydney2,158
Taipei10,654
Tokyo8,837
Tonga2004
Townsville3,359

Airports. Over the past 15 years, there has been significant change in the structure of the airport industry. Since 1986 many airports, formerly partnerships between central and local government, have been restructured as airport companies. This includes the three main international airports at Auckland, Christchurch and Wellington. Generally these companies had a mix of central and local government ownership. But, in recent years, Auckland International Airport Limited and Wellington International Airport Limited have become majority privately owned companies. Auckland International Airport Limited, New Zealand's largest airport company, was floated in July 1998.

AIR ACCIDENTS
Notifiable aircraft accidents

Jean Batten, who made the first solo flight from England to New Zealand in 1936.

A number of provincial airports have also been corporatised, ranging in size from Dunedin Airport Limited to the smallest airport company, Chatham Islands Airport Limited. Central government has also sold its interests in Rotorua Regional Airport Limited and Palmerston North Airport Limited.

Another major change for provincial airports has been the steadily increasing international business. The airports operated by Dunedin Airport Limited, Palmerston North Airport Limited, Queenstown Airport Corporation Limited and Waikato Regional Airport Limited (Hamilton International Airport) all enjoy regular international flights, mostly to and from Australia. This growth has been encouraged by the development of airlines targeting the budget market.

Aerial work

Aerial topdressing is a means of improving hill pastures and checking and preventing soil erosion. During recent years the extent of both aerial topdressing and spraying has varied according to demand by farmers, largely as a result of fluctuating farm incomes.

23.3 Railways

The New Zealand railway network spans 3,912 kilometres from Otira in the north to Bluff in the south, and includes 149 tunnels and 2,178 bridges. More than 500 kilometres of the network is electrified. The track is narrow gauge of 1,067 millimetres.

Since 1962 the network has included inter-island rail ferries connecting the North and South Island sections of the network.

Construction and development of the network began in earnest after 1870, and in 1876 all provincial and colonial railways were brought under the control of the government.

The Railways Department was reorganised in 1982 to become a government-owned corporation with a commercial mandate. The same year, the government began the deregulation of the transport industry, removing statutory protections for rail against competition by road. In 1990 the Railways Corporation became a limited liability company, under government ownership, and in 1993 that company, New Zealand Rail Ltd, was sold to a private consortium comprising Wisconsin Central Transportation Corporation and two investment groups. Three years later the new owners made a public offering of shares in Tranz Rail Holdings, listing the company on the New Zealand Stock Exchange and the NASDAQ National Market in the United States.

The process of deregulation, commercialisation and privatisation has seen a reduction in the number of employees. In 1982 the Railways Department employed 21,000 staff; in 1999 Tranz Rail employed 4,200.

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 and other Crown land held for operational rail purposes so as to achieve the best return to the Crown. Lease income for the year ended June 1999 was $1,197,000.

Tranz Rail today is no longer a line-haul railway, carrying goods from station to station, but is New Zealand's leading multi-modal transport company with integrated links between road, rail and sea networks. Its three core businesses are freight and distribution; rail passenger; and interisland ferries. It also operates trucks, warehouses and services such as refrigeration, international freight forwarding and door-to-door distribution.

Investment in the rail infrastructure has had a major impact on Tranz Rail's ability to increase capacity, service reliability and the efficiency of the network.

During the 1990s the company expanded into new markets including the movement of bulk milk to dairy processing plants and establishing New Zealand's first inland port in south Auckland. The new port, a joint development with the Port of Tauranga, is connected by train services from Tauranga, creating a significant new line of containerised freight business.

Freight transport. Tranz Rail's freight business is carried out under the brand name Tranz Link. In the 1998/99 financial year 12.9 million tonnes of freight was carried, comprising more than 70 percent of Tranz Rail's revenue. The bulk of freight revenue is from agriculture and food products, followed by manufactured products, forestry products and coal.

Tranz Link is divided into three groups:

  • Industrial – responsible for handling freight requiring specialist handling such as forestry and coal.

  • Cargoflow – responsible mainly for agricultural produce and containers.

  • Enterprises – includes refrigerated freight, the commercial vehicle business and international freight forwarding.

Passenger Services. Tranz Rail operates long-distance passenger services and urban commuter rail services in Auckland and Wellington. Passenger services provide about 23 percent of Tranz Rail's revenue:

Tranz Scenic – The flagship of Tranz Rail's eight long-distance rail services is undoubtedly the TranzAlpine between Christchurch and Greymouth, which is renowned as one of the great train journeys of the world, travelling through the 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 the Northerner services between Auckland and Wellington, which travel in the daytime and nighttime respectively; the Kaimai Express between Auckland and Tauranga; the Geyserland between Auckland and Rotorua; and the Bay Express between Wellington and Napier.

Tranz Metro – Tranz Metro operates urban commuter services in the Auckland and Wellington regions, providing more than 10 million passenger trips a year. Wellington has traditionally been a strong rail commuter market with services linking the central city to Johnsonville, Paraparaumu, the Hutt Valley, Palmerston North and Masterton.

In Auckland urban passenger services were boosted by the introduction of diesel multiple units in 1993. Tranz Rail is currently working with the Auckland Regional Council to increase line capacity for the heavy public demand for its services. The services link central Auckland with Waitakere and Papakura.

Inter-island ferries – Tranz Rail's Interisland Line operates three conventional ferries on round-the-clock sailings across the Cook Strait between Wellington and Picton. Arahura and Aratere are multipurpose, roll-on roll-off vessels carrying passengers, rail wagons and commercial vehicles. Onboard facilities include movie theatres, restaurants, food courts, bars, shops, study rooms and children's play areas. Arahanga caters for the rail freight and commercial vehicle markets.

A seasonal fast ferry service, The Lynx, operates over the summer months.

During 1999 two new vessels entered service: Aratere and the fast ferry Condor Vitesse.

Structure. The Tranz Link, Tranz Scenic and Tranz Metro brands are supported by five groups:

  • Marketing – promotes the Tranz Rail brands, including handling the marketing, account management and sales for freight, passenger and interisland services.

  • Service Delivery – controls and coordinates the rail network, trains, ferries and freight terminals.

  • Mechanical Engineering – designs, builds and maintains the locomotives and rolling stock and runs two heavy engineering workshops, at Hillside in Dunedin and Lower Hutt.

  • Infrastructure – maintains the rail network, including track and structures, telecommunications and signalling.

  • Corporate – includes finance, information technology, personnel, planning, communications and safety.

Technology. Tranz Rail has invested heavily in new technology to improve the efficiency of its services. The company is able to keep track of individual items of freight in its network and has an electronic link to customers for the transfer of waybills and invoices and the ordering of wagons.

In a world first Tranz Rail's workshops have developed portable remote control units for use when shunting, which can be fitted to all locomotives including mainline ones. The workshops are also installing microprocessor control systems into locomotives to lift their performance by 10–15 percent.

Environment and safety. Part of a Ministry of Transport pricing study on the impact of the major transport modes on local air quality found pollutants discharged by trains to be generally low, particularly compared with road vehicles. It also found there was a much lower possibility that people would be exposed to rail emissions compared with other sources.

Trains offer an efficient, environmentally friendly alternative to moving people and freight, particularly when compared with congested roads.

Tranz Rail runs the RailSafe programme in primary schools, and community education programmes in urban areas with high trespass levels. The company also supports safety in the community through sponsorship of helicopter rescue services based in Taupo, the Manawatu, the South Island West Coast and Otago; and marine rescue services based in Greymouth and Marlborough.

Table 23.5. NEW ZEALAND RAILWAYS – SUMMARY OF OPERATIONS

CategoryUnitAs at 30 June
199419951996199719981999

1These figures are no longer available.

Source: Tranz Rail

Route -
    North Islandkm2,4232,4232,4232,4162,4162,416
    (electrified)km510510510510510510
    South Islandkm149214921492149214881488
    (electrified)km1414141400
Bridgesno233023302,1782,1782,1782,178
km75.4575.4575.4575.0075.0075.00
Tunnelsno150150149149149149
km888887.387.387.387.3
Locomotives -
    diesel/diesel-electricno258248181196218188
    electricno272527272727
Rolling stock
    freightno7,8936,9496,8286,7286,3826,004
    passenger (incl. motorised)no287294256301328321
Passengers carried –
    long distanceno450,000443,000453,000472,000458,000..1
    suburbanno10,100,00010,200,00010,600,00011,100,00011,293,000..1
Total freight carriedtonnes9,444,0009,584,00010,305,00011,525,00011,705,60012,899,000

Tranz Rail also supports safety in the community by sponsoring air ambulances based in Palmerston North, Taupo, the West Coast and 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.

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 3.1 million motor vehicles. The most recent employment statistics available on the transport industry, the Statistics New Zealand Annual Business Directory update of February 1999, recorded 9,120 full-time equivalent persons engaged in the provision of road passenger transport, and 21,630 persons engaged in providing road freight transport.

Transport licensing

The Transport Services Licensing Act 1989 replaced the sections in the Transport Act 1962 relating to transport licensing as the main legislation governing road transport licensing. The act provides for a system of road transport licensing which operates on a qualitative basis for goods, passenger, rental and vehicle recovery services. Anyone who enters the industry needs to meet certain minimum standards of quality. As of 1 November 1989 the concept of ‘a fit and proper person’ was adopted as the principal criterion for road transport operators. In 1992 the Transport Services Licensing Act was amended to include railway operator licensing requirements. From 1 April 1993 all railway operators were required to develop a safety system to cover standards, practices and procedures.

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 for 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 was established in 1996 under the Transit New Zealand Act 1989. Its establishment effectively separated the funding of the nation's roading network from its management. Transfund is charged with allocating funds from the National Roads Account to provide a safe and efficient integrated road network for New Zealand. The National Roads 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 and regional councils, with respect to roading construction and maintenance, and passenger transport funded from the National Roads Funds.

  • Determining funding policy for the maintenance and construction of roads managed by 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 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 road controlling authorities that manage state highways and motorways in New Zealand. This roading network includes major routes that carry the greatest volume of traffic between residential communities, commercial and industrial areas. There are 15,962 kilometres of urban roads and 65,508 kilometres of rural roads, making a total of 92,075 kilometres of developed roading, which includes over 16,772 bridges.

Table 23.6. FORMED ROADS AND STREETS

Nature of surfaceLocal authority roadingState highways and motorwaysTotal
Urban roadsRural roads
Source: Transfund New Zealand
At 30 June 1997kilometres
Paved or sealed15,12830,84510,36556,338
Metal or gravel44535,06312135,629
            Total maintained roads15,57365,90810,48691,967
At 30 June 1998
Paved or sealed15,23830,76410,50056,502
Metal or gravel44335,1277135,641
    Total maintained roads15,68265,89110,57192,144
At 30 June 1999
Paved or sealed15,52030,96810,54057,028
Metal or gravel44234,5406535,047
            Total maintained roads15,96265,50810,60592,075

Table 23.7. EXPENDITURE ON STATE HIGHWAYS

Class of expenditure19951996199719981999

1Excludes motorway structures.

2Maintenance figures include the cost of flood damage repairs when applicable.

Source: Transfund New Zealand

 $(000)
Construction and improvement114,933136,170166,606194,120240,181
Bridges and other structures11,5729106,62439,40317,539
Maintenance, repairs, etc.2221,199226,051244,861236,255257,964
Total337,704363,131418,091469,778515,684

Table 23.8. PUBLIC ROADING EXPENDITURE

Item19951996199719981999

1Expenditure is based on Transfund contribution and does not include local authority contribution. The rate of assistance to local authority for construction work varies from 43 to 83 percent, while maintenance work is funded at 100 percent.

Source: Transit New Zealand

 $(000)
State highways expenditure337,704363,131418,091469,778515,684
Special purpose roads2,5854,240......
Local authority roading expenditure1260,902256,726269,853287,570297,886
Total601,191624,097687,944757,348813,570

Traffic queues to cross the newly-opened Auckland Harbour Bridge, 1959.

The operation and management of the roading network is affected by laws embodied in the Transit New Zealand Act 1989. These laws enable freedom of use of land while ensuring that the roading network is able to provide for the safe and effective movement of people and goods.

Roading taxation is described in section 28.2: Taxation.

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 3.1 million vehicles are relicensed progressively throughout the year.

Annual relicensing charges are: ordinary motorcars, $207.05; motorcycles (60cc or less), $181.85; motorcycles (61cc and over), $193,10; rental cars, $232.55; taxis, $232.55; trucks, vans and utilities (private passenger) from $207.05 to $208.55, subject to transport licence fee from $231.05 to $232.55; and tractors (non-exempt) $87.15. All figures include goods and services tax (GST).

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
199312,96910,3371930484115053228,863
199413,66811,8602,257707145458831,940
199512,52611,6902,213741171471430,879
199610,96012,84526708921769101231,132
19979,0059,7182,549866156681624,520
19986,3019,4562038781118478020,540

Table 23.10. LICENSED MOTOR VEHICLES

Type of vehicleAt 31 March
1995199619971998
Source: Land Transport Safety Authority
Cars1,647,1341,635,7181,675,3011,746,659
Rental cars13,36414,39415,73714,962
Heavy trucks, light trucks, vans, utes355,833342,246346,489357,882
Taxis4,4585,7336,1426,569
Buses and service coaches9,1099,2489,99710,841
Caravans, trailers361,965341,841303,371316,749
Motorcycles54,39147,19638,28839,130
Mopeds150821028,4258,131
Tractors19,98918,30218,17619,742
Trade plates car5,1055,9536387,421
Trade plates moped61165070014
Trade plates motorcycle   347
Trade plates trailer   442
Miscellaneous7,00714,95814,97414,378
Exempt vehicles7,25311,66513,1336,530
Total all vehicles2,487,7272,450,0062,457,1162,549,797
REGISTRATION OF NEW TRACTORS: 1947–98
YearNumber
Source: Land Transport Safety Authority
19472,526
19484,187
19495,130
19505,384
19516,145
19525,944
19536,112
19545,982
19555,485
19565,918
19576,157
19584,531
19593,236
19603,944
19614,249
19623,302
19633,757
19644,604
19654,210
19664,990
19673,390
19683,181
19693,583
19703,193
19714,366
19725,072
19736,171
19744,894
19753,392
19763,129
19773,035
19782,811
19792,694
19802600
19812,747
19822,449
19832201
19842,218
19851793
1986887
1987741
1988711
1989907
1990863
1991752
1992779
19931075
19941521
19951320
19961697
19971496
19981316

Table 23.11. REGISTRATIONS OF NEW VEHICLES

December yearNew cars and stationwagons – cc ratingCars previously registered overseas1New motor cycles
850 and under851 to 13001301 to 16001601 to 20002001 to 50005001 and overTotal

1Included in total.

Source: Land Transport Safety Authority

199180610,52335,36141,60114,497178102,96647,3514,042
19925927,20930,24136,67917,17420592,11039,1462,469
19934536,67430,94338,70120,73415897,66343,8412601
19944946,67638,93647,74429,691312123,85362,0883,337
19955795,24646,95256,03537,375469146,65680,9763,451
19965863,79956,06667,40247,829496176,178111,7643,812
1997694268045,27558,37948,256315155,59997,0414,078
19986082,68541,66959,86848,932332154,09499,9374,067

Not included in tables 23.9 and 23.11 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 licensed carNumber of persons in population per licensed motor vehicle1

1Excluding trailers and caravans.

Source: Land Transport Safety Authority

19922.211.72
19932.211.72
19942.181.69
19952.151.66
19962.201.64
19972.221.75
19982.141.70

Motor vehicle securities register

A motor vehicle securities register is administered by the Ministry of Economic Development 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.

Travel to work

Table 23.13 shows how people who had a job travelled to work on the day of the 1996 Census of Population and Dwellings. The table excludes the 160,431 people who did not go to work on census day, 6 March 1996 (because they were on holiday, sick, etc).

Just over 11 percent of workers did not have to actually travel to work because they worked at home. A greater proportion of women than men (12.6 percent versus 10 percent) are in this situation. Over two-thirds of men who work at home are either self-employed and without employees, or employers, whereas the proportion of women in these two categories is just over half. Women who work at home are more likely than men to be paid employees or unpaid family workers. Nearly half of those who work at home are in the occupation group which covers agricultural, animal husbandry and forestry workers, fishers and hunters.

There has been an increase, from 8.6 percent to 11.2 percent, in the number of people working at home in the five years since the 1991 Census. This partly reflects the increased flexibility of the labour market which has allowed more non-standard working arrangements, and an increase in self-employment. The 1996 Census also shows a big increase in the number of unpaid workers in a family business, the majority of whom are in the agricultural industry and who work at home.

By far the most popular way of getting to work in 1996 was by car – either driving or as a passenger. Almost 73 percent of men and just over 70 percent of women used this means of transport. The flood of Japanese cars imported into New Zealand, which has made cars more affordable, has no doubt contributed to the popularity of car transport. A greater percentage of men drove company cars, though the proportion doing so has dropped slightly since the 1991 Census, after rising sharply between the 1986 and 1991 Censuses. The proportion of women driving company cars has not changed much in the last 10 years, despite the fact that a higher proportion of women are in managerial and professional positions now than in 1986.

REGISTRATION OF EX-OVERSEAS1 CARS: 1936-98
YearNumberPercentage of total registrations of new cars

1Ex-overseas vehicles are those that have been registered in another country before entry into New Zealand.

Source: Land Transport Safety Authority

19366943.0
19371,6165.4
19381,6335.9
19391,0504.7
19401842.5
1941491.5
1942183.8
194322.5
19441421.2
19453223.7
19461292.5
19472511.6
19483152.2
19495435.4
19509845.7
19511,2784.9
19521,9605.9
19531,2245.3
19541,0312.9
19551,1652.6
19561,1823.1
19571,3123.2
19581,2744.1
19591,3204.9
19601,5584.6
19612,9037.7
19623,8228.9
19633,1295.4
19643,1914.9
19653,6835.5
19664,2436.6
19674,3907.8
19683,1716.5
19693,1145.5
19703,7385.3
19714,2305.7
19724,7585.3
19735,2905.2
19745,4165.4
19754,8636.2
19763,2764.4
19772,7504.4
19782,6814.0
19792,6823.8
19802,7013.4
19811,9072.1
19821,8122.1
19831,7662.3
19842,0192.1
19852,9183.5
19863,9464.9
198712,12913.5
198817,37219.6
198950,96537.8
199085,32453.4
199147,35146.0
199239,14642.5
199343,84144.9
199462,08850.1
199580,97655.2
1996111,76463.4
199797,04162.37
199899,93764.85

Table 23.13. TRAVEL TO WORK, 1996 CENSUS

Means of transport1986 Male1986 Female1991 Male1991 Female1996 Male1996 Female
numberpercentnumberpercentnumberpercentnumberpercentnumberpercentnumberpercent
Source: Statistics New Zealand
Worked at home68,1997.655,7919.256,0617.749,8339.780,37010.077,73012.6
Public bus47,0345.364,35610.618,1652.529,2025.719,1102.428,5274.6
Train13,7251.59,7711.65,7210.85,0731.06,3210.86,0721.0
Drove a private car, truck, van381,93042.8307,05650.4330,4320.7293,81757.1390,06048.8368,50559.8
Drove a company car, truck or van140,46315.715,7802.6140,97319.518,6843.6148,97418.621,8133.5
Passenger in a car, truck, van or company bus56,5716.354,3158.942,2735.849,6329.642,0635.346,3747.5
Motor bike or power cycle44,5145.08,6011.425,7673.64,1850.818,1742.32,9430.5
Bicycle53,4456.025,3774.243,7196.017,2953.438,6254.812,1892.0
Walked or jogged77,3528.765,73310.850,9647.043,7258.546,0535.846,4167.5
Other8,8741.02,7540.59,3511.33,4290.710,3561.35,9041.0
Not specified6,348 3,912 12,357 9,942 27,336 26,469 
Total898,455100613,446100735,783100524,817100827,442100642,942100

Use of public transport for the journey to work is low and it has continued to decline since the last census. About 5 percent of women and 3 percent of men used either a public bus or train in 1996. Only one region in the country stands out as having a high proportion of people using public transport – Wellington, where 13.4 percent used either a public bus or train to get to work. And there is no evidence that people are using their journey to work to heed the call to do more exercise. Just over 10 percent of the working population travelled to work by bicycle or walked or jogged, compared with 12.4 percent in 1991. The weather on census day could affect these figures.

The travel-to-work patterns also vary by occupation. More than three-quarters of legislators, administrators and managers, and more than three-quarters of trades workers (who are more likely to use a car in the course of their work during the day), drive a private or company car to work. At the other end of the scale, two occupation groups have significantly higher proportions who ride a bicycle or walk or jog to work. These are workers in elementary occupations, including labourers and related unskilled workers (18.3 percent), and service and sales workers (16.8 percent).

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 adviser 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).

The road toll for the 1998 calendar year was the lowest on record for 34 years. Police are maintaining an emphasis on the big three road toll issues: speed, alcohol and restraint usage. Police use a mixture of compulsory breath testing at checkpoint sites and mobile breath testing. Compulsory breath testing is a high profile activity designed to deter drinking drivers.

Driver licensing. Major changes to New Zealand's driver licensing system were introduced in May 1999 under the Land Transport Act 1998 and the Driver Licensing Rule 1999. Key changes include: driver licence holders must upgrade their paper driver licence to a photo driver licence within 60 days of their birthday (upgrade period concludes July 2000); regular licence renewal and eyesight checks; mandatory carriage of a licence when driving; graduated licence classes based on vehicle weight; licence endorsements to operate vehicles for specific purpose or to operate specialised vehicles; 28 day roadside licence suspension for serious traffic offenders, and 28 day vehicle impoundment for repeat traffic offenders.

A driver licence is valid for up to 10 years. At age 75, the holder is required to undergo a medical check. At age 80, and every two years thereafter, the holder will be required to undergo a medical check as well as passing an older driver practical test.

A graduated system for obtaining a driver 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 education courses are also built into the system, which applies to all first applicants for licences. The new system has three stages: learner stage, restricted stage, and full licence. A new full licence test must be passed in order to graduate to a full licence.

Inspection of motor vehicles. All vehicles using the roads must be inspected regularly to ensure their mechanical and structural fitness. They are inspected every six months but vehicles first registered since 1 August 1987 and less than six years old may be inspected every 12 months. Most lightweight vehicles are required to have a ‘Warrant of Fitness’ which can be issued at approved garages, or at testing stations operated by local authorities. All heavy vehicles, with minor exceptions, undergo a more exacting examination for a Certificate of Fitness, which, in respect of passenger service buses, has special regard for the safety and comfort of passengers. Taxicabs and rental vehicles also require a Certificate of Fitness.

Seat-belts. Wearing 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 seat-belt 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 8 and 14 use seat-belts 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:

  • Their 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.

  • Their blood-alcohol concentration exceeds 80 milligrams of alcohol per 100 millilitres of blood in the case of a licensed driver, or 30 milligrams of alcohol per 100 millilitres of blood in the case of a person not holding the appropriate licence or under the age of 20.

Speed limits. New Zealand's roading network is essentially a two-way system with one lane going each way. The management of speed is therefore a critical aspect of traffic safety. The maximum speed limits for highways and motorways are: 100km/h for cars, motorcycles, vans and light vehicles; 90km/h for buses, heavy motor and articulated vehicles; and 80km/h for school buses and any vehicles towing trailers.

A general speed limit of 50km/h is fixed in all closely populated areas. Areas with a speed limit of 70km/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 100km/h or 50km/h depending on conditions and circumstances.

Speed cameras. A speed camera programme was introduced by Police in 1993, using mobile cameras in police vehicles and pole-mounted fixed cameras at a range of sites in city streets. See section 10.4: Police Infringement Bureau.

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.

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.

Table 23.14. TRAFFIC OFFENCES AND INFRINGEMENTS

Type of offence or infringementYear ended 30 JunePercent variation
19981999

Includes traffic offences reported to the police but no prosecution initiated.

Source: New Zealand Police

Drink/drive offences31,00331,1170.37
Dangerous/reckless driving offences4,7974,8180.44
Unsafe use of vehicle infringements14,78615,4214.29
Careless/inconsiderate driving or overtaking offences23,39721,913-6.34
Speeding (under 100 kph)66,77574,99012.30
Speeding (over 100 kph)47,50755,46116.74
Speeding – trailer, towing, heavy motor vehicle2,644290910.02
Speeding – speed camera373,094393,6795.52
Failure to stop/give way24,64825,4233.14
Failure to obey officer/fulfil duties9,64711,34917.64
Vehicle licence22,33020,067-10.13
Driving while disqualified offences13,10013,3822.15
Certificate of fitness86,695109,96026.84
Driver licence and vehicle registration154,801182,74318.05
Driver hours/log book4,6503,964-14.75
Seat-belt37,63038,8903.35
Safety helmet718586-18.38
Passenger/recovery/rental service vehicle1065118010.80
Vehicle condition4,4356,86454.77
Vehicle noise/loading3,5063,7607.24
Bicycle2,5752,516-2.29
Cycle helmet7,0566,505-7.81
Pedestrian and other38048527.63
Local body bylaw infringements222487119.37
Other transport offences9484-10.64
            Total937,5551,028,5539.71

TRAFFIC CONVICTIONS
Rate per 10,000 of population

Contributors

  • 23.1 Ministry of Transport; Maritime Safety Authority; Statistics New Zealand.

  • 23.2 Ministry of Transport; Civil Aviation Authority; Airways Corporation of New Zealand.

  • 23.3 Tranz Rail Limited; New Zealand Railways Corporation.

  • 23.4 Ministry of Transport; Transit New Zealand; Transfund New Zealand; Autocheck; New Zealand Police; Land Transport Safety Authority; Statistics New Zealand.

Special articles

‘Transport’, Watson, Dr James, School of History, Philosophy and Politics, Massey University; Transport Accident Investigation Commission; Civil Aviation Authority; Customs New Zealand; Vehicle Testing New Zealand; Automobile Association; Road Safety Trust.

Further information

Transport – general

Annual Enterprise Survey. Statistics New Zealand.

Annual Report of Transit New Zealand.

Census of Transport, Storage and Communication 1984–85. Department of Statistics.

Key Statistics. Statistics New Zealand (monthly).

Report of the Ministry of Transport (Parl paper F.5) (annual).

Maritime

Annual Report of the Maritime Safety Authority.

Maritime Accidents 1996–97. Maritime Safety Authority (annual).

Shipping and Cargo Movements. Department of Statistics (annual).

Civil aviation

Annual Report of the Airways Corporation of New Zealand.

New Zealand Register of Aircraft. Civil Aviation Authority of New Zealand.

Report of Air New Zealand Limited (annual).

Report of the Civil Aviation Authority (annual).

Railways

Miles R 1998. The privatisation experience: New Zealand railways 1992–2000. Timaru: Central Highfield Press.

Tranz Rail Holdings Ltd Annual Report.

Roads

Annual Report of the Road Safety Trust (Parl paper F.15).

Land Transport (Driver Licensing) Amendment. 1999. New Zealand Land Transport Safety Authority. Wellington.

Land Transport Safety Authority Service Charter. 1995. Wellington, The Authority.

Motor Accidents in New Zealand. Land Transport Safety Authority (annual).

Report of the New Zealand Police (Parl paper G.6) (annual).

Chapter 24. Commerce and services

Auckland Christmas shoppers, 1955.

Over recent years a new emphasis in the New Zealand economy towards more competition has been brought about by change in several of the country's major export markets. 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 1984–1990 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 laws which are aimed at protecting the competitive process. The Commerce Act 1986, the Fair Trading Act 1986, and the Electricity Industry Reform Act 1997 are New Zealand's competition law. In general terms, they rest on the premise that 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 protects consumers and competitors alike from the consequences of inaccurate information. False or misleading information leads to consumers being cheated and competitors gaining an unfair advantage.

Under the act, a customer, competitor or the Commerce Commission can take action if the act has been breached and, for example, erroneous material has been distributed about a product or a service. There is further information about this act under ‘Company practices’ further on in this chapter.

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 for businesses to compete with imported products and meet consumer demand.

A Ministry of Consumer Affairs was established in 1986 and administers the Consumer Guarantees Act 1993.

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 Divisions F and G of the Australian and New Zealand Standard Industrial Classification (ANZSIC).

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.

Industry newcomer Challenge's arrival in 1998 started a petrol price war among suppliers.

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.

Table 24.1. DISTRIBUTION: STATISTICAL SUMMARY ANZSIC=F AND G

Item DescriptionWholesale TradeRetail Trade
1996/97 $(m)11997/98 $(m)21996/97 $(m)11997/98 $(m)2

1Date is revised, but subject to changes while further analysis is done on the 1997/98 data.

2Data is provisional. Note:The ANZSIC has a structure comprising categories at four levels: divisions, subdivisions, groups and classes. Divisions F and G are wholesale trade and retail trade.

Source: Annual Enterprise Survey 1997–98, Statistics New Zealand

Closing stocks7,4027,3803,2363,134
Opening stocks7,0667,4153,1453,070
Sales of goods and services54,24156,31032,07031,806
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered461495128129
Government grants and subsidies33714
Non-operating income7381924426
Total income55,44357,00132,24931,975
            Total income adjusted for stocks55,78056,96632,33932,040
Salaries and wages paid to employees3,1703,2402,9532,995
Redundancy and severance2721139
Salaries and wages to working proprietors (SW to WPs)499465674594
Fringe benefit tax77742021
Purchases and other operating expenses48,38049,63926,89226,613
Interest, donations, grants, royalties, patent fees paid and bad debts written off921910355346
Indirect taxes (excluding fringe benefit tax)677910985
Depreciation538532431460
Non-operating expenses1337225447
            Total expenditure53,78655,66131,48931,160
Net profit before tax, non-operating items, SW to WPs1,8872,2991,5351,494
Net profit before tax, SW to WPs2,4931,7701,5241,473
Purchases of plant, machinery, vehicles and equipment642577518523
Purchases of land, buildings and other construction199270172257
Total purchases of fixed tangible assets840848690780
Sales of fixed tangible assets285245160200
Shareholders funds or owners equity9,4549,2804,1003,952
Current liabilities13,23013,3834,4324,406
Other liabilities2,7942,7281,8002,021
            Total capital and liabilities25,47825,39010,33210,380
Fixed tangible assets3,8073,8143,0783,216
Current assets18,10218,0475,8765,538
Other assets3,5693,5291,3771,626
            Total assets25,47825,39010,33210,380
Ratios
Total income per FTE$563,471$586,9780$190,724$183,251
Net profit per FTE$19,179$23,677$9,076$8,563
Current ratio136.8%134.9%132.6%125.7%
Quick ratio80.9%79.7%59.6%54.5%
Profit margin on sales3.5%4.1%4.8%4.7%
Return on equity20.0%24.8%37.4%37.8%
Return on total assets7.4%9.1%14.9%14.4%
Liabilities structure37.1%36.5%39.7%38.1%

Ministry of Consumer Affairs: Manatū Kaihokohoko

The purpose of the ministry is to promote a fair and informed marketplace by working with consumers and businesses to:

  • Provide high quality advice to Government on laws, practices and policies affecting consumers.

  • Enhance consumers’ ability to function effectively and equitably in the market by providing information, education and advice.

  • Ensure market transactions based on weight and measurement are accurate, fair and consistent with international standards.

  • Promote consumers’ rights to safe products and their responsibility for using products safely.

  • Promote improved market practices and encourage compliance with codes, standards and laws.

The Policy Section provides advice to the Government on matters affecting consumers, and promotes and participates in the review of consumer-related legislation, policies and programmes. The ministry monitors laws such as the Fair Trading, Consumer Guarantees, Motor Vehicle Dealers, Hire Purchase, and Credit (Repossession) Acts.

The Consumer Information Service was launched in 1997. It promotes awareness among consumers and the business sector of their rights and obligations in the marketplace through consumer education and information programmes. It has regional offices in Auckland, Wellington and Christchurch. The service emphasises reaching out into communities, providing education and advice, particularly for those people most commonly disadvantaged in the market place, and training key community groups. Citizens Advice Bureaux, Community Law Centres and Budget Advice Services are being supported by the ministry to provide consumer advice.

The Trading Standards Service, with offices in Auckland, Palmerston North, Petone, Wellington and Christchurch, works to:

  • Ensure goods are exchanged on the basis of recognised, informed and accurate weight or measure under the Weights and Measures Act 1987.

  • Uphold consumers’ rights to safe products and services in the marketplace by promoting effective market practices, ensuring compliance with those practices, and investigating reports of unsafe products.

The General Manager of the Ministry of Consumer Affairs is also responsible for managing the Energy Safety Service, established in 1999. This service is responsible for:

  • The safeguarding of people and property from the dangers of electricity and gas.

  • The safety of electrical and gas appliances, electrical installation wiring, gas supply and electrical supply and generating systems.

  • The quality of petrol and diesel.

The ministry was established in 1986. It operates as a division in the Ministry of Economic Development (previously the Ministry of Commerce). The Ministry of Consumer Affairs Internet address is www.consumer-ministry.govt.nz

Consumers’ Institute

The institute is an independent, impartial and comprehensive provider of consumer information and advice. It aims to provide effective and timely consumer advocacy. Most of the institute's activities centre on the publication and distribution of its magazines Consumer (circulation 86,000) and Consumer Home & Garden (circulation 48,000). The institute's work covers a wide range of consumer protection and information activities, including comparative tests and surveys of consumer goods and services; and research into and advice on financial, food, health, safety, welfare and environmental matters. All survey and test results are sent to named parties before publication and draft articles are checked by expert commentators.

The institute makes submissions on behalf of consumers at Parliamentary Committees and public inquiries; its representatives liaise with Government, business, trade and safety organisations; and it maintains an interest in consumer education and complaints advisory work for its members.

The institute is funded by membership subscriptions and the sale of publications. No donation or sponsorship is accepted from any commercial source and no government funding is received. The institute is governed by a board elected by subscribing members.

Consumer Online's Internet address is www.consumer.org.nz. This is principally a free information service that includes a product safety recall register funded by the Emily Carpenter Consumer Charitable Trust.

Shop trading hours

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 dairy/mixed businesses, service stations, takeaways, souvenir and duty free shops, and shops at public passenger transport terminals and genuine exhibitions and shows to open on any day.

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, supermarkets and bottlestores.

Supermarket sales of beer and wine became legal in 1999.

LIQUOR LICENSING: 1894–1989
YearPublicansTaverns1

1Excludes premises of licensing trusts, established in 1944.

2Appendices to the Journal of the House of Representatives figure.

3New class of license ‘hotels'.

4Sale of Liquor Act 1989 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....
194510382..
1950....
19551126..
19601107..
19651102..
19683105727
1970929133
1975796294
1980703379
1985672403
1986669416
1987655412
1988653433
1989653432
19904....
COMPANY STATISTICS: 1930–98
YearOrigin of companies listed on the Stock ExchangeShare price1
OverseasNew Zealand

1Department of Statistics index 1926–66, Reserve Bank Share Price Index 1967–86, New Zealand Stock Exchange Gross Index (end-December) 1987–.

Source: New Zealand Stock Exchange.

 index no
1930....309
1935....341
1940....306
1945....413
1950....506
1955....554
1960....854
1965....1060
1970833001361
1975793051159
1980752751599
1985813164,964
1987178361728.23
199074171514.02
199157139671.67
199252122761.71
1993511381,155.55
1994581491,075.94
1995601451,286.95
1996651361,527.08
1997791461,571.59
1998831461,520.45

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, or members of a club who have reciprocal visiting rights. 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.

The Sale of Liquor Amendment Act was passed in August 1999. The major changes that came into force on 1 December 1999 are:

The minimum drinking age has been lowered to 18 years, with one exception being that a person under 18 years may have access to any licensed premises (other than restricted areas) and be supplied liquor, providing he or she is accompanied by a parent or legal guardian and liquor is supplied to him or her by the parent or legal guardian.

All on and off-licence premises are permitted to sell liquor on Sundays. However, hotels, taverns and off-licences are prohibited from selling and supplying liquor on Good Friday, Easter Sunday, Anzac Day (before 1pm), and Christmas Day. The law does not apply to persons living on the hotel or tavern premises, or other persons present for the purposes of dining.

Supermarkets and groceries will be able to sell beer as well as wine.

There are a number of other changes that have also been made to the act. Most of these are operational changes and came into force on 1 April 2000.

Hours of sale. Under the legislation the hours during which liquor is permitted to be sold or consumed are not spelt out. Each application is dealt with on its merits.

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. From 1 April 2000 the new legislation provides that more operating power has devolved to district licensing authorities. District licensing authorities will continue to receive all applications, gather reports and then will determine all unopposed applications. Opposed applications will be forwarded to the Liquor Licensing Authority. District licensing authorities will continue to grant special licenses and temporary authorities.

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 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.

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 shareholders of the company. Certain important consequences flow from this. The debts of a company are those of the company and not of its shareholders. A company contracts in its own name and is liable on its contracts. The members, therefore, are not usually liable on its contracts. A 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 company can enter into contracts with its shareholders. Lastly, the shareholders of a 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 shareholders having limited liability. A company is always fully liable for claims against it; it is the shareholders’ liability for a company's debts that is limited. A shareholder's liability is limited to the amount, if any, unpaid on their shares.

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 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, Financial Reporting Act 1993 and Takeovers Act 1993.

The Companies Act 1993 requires companies to satisfy a solvency test in certain circumstances (for example, 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.

Table 24.2. COMPANY REGISTRATIONS

Year ended 30 JuneNew companies registeredCompanies dissolved or struck offCompanies on register

1Year ended 31 March.

Source: Ministry of Economic Development

1990111,28912,377159,922
199110,95314,984153,275
199212,33011,144154,526
1993R14,16011,884156,925
199417,2639,711168,391
199516,24911,320170,350
199619,86313,101177,093
199723,1727,936192,224
199824,08314,173202,317
199926,50211,861217,000

NEW COMPANY REGISTRATIONS
Related to size of population

The company law reform package provided a three-year transition period when the Companies Act 1955 and the new Companies Act both existed. New companies were able to be formed only under the new act, but existing ones had three years in which to re-register. This three-year period ended on 30 June 1997 with 59,311 companies re-registered (53,038 in the third year), while 70,513 companies were deemed re-registered automatically. Companies with rules governing shareholder voting rights which failed to re-register must now adopt new constitutions, to ensure shareholders’ rights are maintained. About 6,660 companies remain registered under the Companies Act 1955 because they were in liquidation at 30 June 1997.

The package also separated the law about receiverships from the Companies Act and placed it in the Receiverships Act 1993.

The Takeovers Act established a takeovers panel to formulate and recommend a takeovers code. The act sets out the objectives of a takeovers code: to encourage the efficient allocation of resources and competition for corporate control; assist in ensuring shareholders are treated fairly; promote the international competitiveness of New Zealand's capital markets; recognise that shareholders should 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 deferred a decision on the proposed code while it assessed the effectiveness of the new companies’ legislation and the Stock Exchange's new Listing Rules. After the election of the Labour-led Coalition government in 1999 the takeovers code is undergoing the process of technical updating and is expected to come into force in early 2001.

The Financial Reporting Act established 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 living 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 statements 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 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 partners. Lastly, a partner is ostensibly an agent for the other partners, and can commit the partnership to binding arrangements.

Company practices

In the process of liberalising the economy and reducing government regulation of markets, legislation was 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, Fair Trading and Electricity Industry Reform Acts, so that consumers and producers benefit from healthy competition.

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 dominant company using its position to prevent competition in a market

  • 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 acquisition results in that business obtaining a dominant position in a market, or in its dominant position being strengthened.

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, even if the acquisition results in the acquiring or strengthening of a dominant position in a market, if 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 Economic Development the power to set price controls for goods or services. Price controls 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. As at 15 May 2000 there were 14 Fair Trading Act cases before the courts.

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 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 1999 consumer information standards covered: country of origin labelling of clothing and footwear; care labelling for textile goods (such as drycleaning, washing, ironing instructions); and fibre content labelling of textile goods.

In October 1999 product safety standards covered: cigarette lighters; 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.

Under the Electricity Industry Reform Act, businesses selling more than a specified amount of electricity cannot also own powerlines or generators. Businesses can apply to the commission for exemptions from this act.

In 1998 the Government's electricity reforms added a significant addition to the commission's responsibilities. The reforms have extended the commission's jurisdiction by giving it a third act to enforce, the Electricity Industry Reform Act 1998 (EIR Act). The EIR Act gives the commission additional enforcement and adjudication roles.

The Commerce Commission, with a staff of 67 in October 1999, is funded mainly by a government grant from Vote Commerce ($7.65 million in 1999). The commission members, at present six, are appointed by the Governor-General on the recommendation of the Minister of Economic Development.

Table 24.3. COMMERCE COMMISSION SERVICES

Year ended 30 June199719981999

1Includes written and telephone complaints and enquiries.

Source: Commerce Commission

Commerce Act enforcement
Restrictive trade practices investigations:   
    Total complaints received9763,7572,457
    Investigations commenced527449
    Investigations completed58N/A53
Business acquisitions surveillance:   
    Investigations completed1089875
Fair Trading Act enforcement:
    Complaints received13,22014,71811,007
    Investigations completed494500221
    Total enforcement actions245316157

Securities Commission. Established under the Securities Act 1978, the fundamental purpose of the commission, as a Crown entity, is to facilitate capital investment in New Zealand by: promoting the efficiency of New Zealand's securities markets; enhancing the integrity of these markets; promoting the cost-effective regulation of these markets; and strengthening public and institutional confidence in these markets, both in New Zealand and overseas.

During the year to 30 June 1999 the commission:

  • Published a report on a major inquiry into trading in the shares of a listed public company.

  • Inquired into and declined a request for statutory action relating to possible insider trading by former directors of another listed company.

  • Acted promptly to stop the promotion of dubious investment schemes, particularly those from overseas.

  • Issued warnings about a marked increase in telephone cold calling of New Zealand investors by overseas brokers.

  • Completed an extensive review of investment statements in various industry sectors.

  • Released a discussion paper on an extended exemption policy for overseas collective investment schemes.

  • Began publishing exemption notes giving reasons for granting exemptions.

‘Chalkie’ Florence McDonald minutes before the Christchurch Stock Exchange ended its trading life and electronic share trading began, 1998.

  • Encouraged the promulgation of a reporting standard on summary financial statements.

  • Commenced a project on the electronic offering of investments.

  • Commenced a project on a rulings power for the commission.

  • Assisted the Ministry of Economic Development with a policy on capital-raising by small and medium sized enterprises, and with preparations for a review of the Securities Regulations 1983.

  • Secured appointment to the International Organisation of Securities Commission's (IOSCO) Implementation Committee on Objectives and Principles of Securities Regulation.

  • Hosted visits from overseas institutional investors and overseas regulatory authorities.

The commission is an active member of IOSCO which comprises 163 regulatory and self-regulatory agencies including representatives of all major securities jurisdictions. The commission subscribes to IOSCO's 1986 Rio Declaration, which calls on signatories to give reciprocal assistance in gathering information related to market oversight and protection of investors against fraudulent securities transactions. The commission is party to memorandums of understanding on information sharing and related matters with the Australian Securities and Investments Commission, the United States Commodity Futures Trading Commission, the Hong Kong Securities and Futures Commission, the Chinese Taipei Securities Commission and the Papua New Guinea Securities Commission. The commission has an exchange of letters with the United States Securities and Exchange Commission.

The commission's funding has been increased for the new financial year to 30 June 2000.

Serious Fraud Office: Te Tari Hāra Tawere. The Serious Fraud Office (SFO) is a specialist department established by the Serious Fraud Office Act 1990 to facilitate the detection, investigation and expeditious prosecution of serious and/or complex fraud offenders. The office had a staff of 38 at 30 June 1999, composed of forensic accountants, investigators and prosecutors. 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.

During the 1999 financial year, 120 complaints were received, a total of 26 full investigations were concluded and, of these, 18 resulted in a prosecution, some with multiple offenders. In addition, five investigations were concluded but did not result in a prosecution, and investigations in three other cases have been suspended as the ‘suspects’ have left the country. There were 27 investigations under way as at 30 June 1999.

There were 12 successful prosecutions concluded during the year and one unsuccessful case. This was an overall success rate of 91.6 percent. Government funding for the year to June 2000 was $4,472 million.

Statutory powers – The SFO's legislated powers are the most extensive 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 appear before the director to answer questions and produce such documents for inspection. In the year to 30 June 1999, 1029 notices were issued under these powers (732 in 1997), and 19 search warrants executed (29 in 1997).

Stock exchange

There are three broad categories of stock bought and sold on the New Zealand Stock Exchange -shares in companies; bonds, debentures and other loans; 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 grants listings, supervises listed companies as regards their compliance with the Listing Rules, collects and promulgates all market information and operates and supervises 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 by 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.

SHARE PRICE INDEX
Gross index

There were 146 New Zealand companies and 83 overseas companies listed with the exchange at 31 December 1998.

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. Transfer documents (certificates and transfer forms) were eliminated in 1998, and a new trading system was introduced in 1999. Currently, trades settle on an average of one to two days with a fixed period of three days for trades over NZ$100,000. 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. The new trading system allows the exchange to cater for new markets (such as small to medium businesses, and more open trading of debt securities) and take advantage of new opportunities, such as Internet trading.

New Capital Market. The New Capital Market (NCM) is a new initiative being taken by the New Zealand Stock Exchange to encourage and promote the development of new growth oriented businesses.

Announced in August 1999, the key aims of the NCM are:

  • creating opportunities for investors and people with ideas and initiative

  • encouraging growth and more equity financing of new businesses

  • lowering costs of access to equity capital and the public securities market

  • sharing and spreading the risks and gains from new business development.

The NCM opened on 10 March 2000.

Insolvency

Bankruptcy. The term bankruptcy refers to the financial insolvency of individuals. The law relating to bankruptcy in New Zealand is contained predominantly 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 (an agreement among all creditors of a debtor to accept a selected percentage of the debts as full payment) in satisfaction of the debts due to them.

Upon application 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 adjudicated 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. When an objection to discharge is lodged, the court determines whether a discharge should be granted.

Table 24.4. PERSONAL BANKRUPTCIES

Year ended 30 Junenumber

1Year ended 31 March.

Source: Ministry of Economic Development

19801530
19851849
19901900
19912052
19922,837
19932,532
19942,312
19951963
19962,158
19972,466
19982,974
19993,297

BANKRUPTCIES
Rate per 100,000 population

Money market dealers at Buttle Wilson watch their screens for the reaction to the 1991 Budget.

When a creditor is concerned that a bankrupt may realise the assets and depart, without regard to any financial obligations, an 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. (An assignment is the transfer of rights in a contract to a person who was not originally a party to the contract.)

The general bankruptcy statistics do not cover assignments and compositions, but relate only to cases dealt with by an official assignee.

The Official Assignee's role under the Proceeds of Crime Act 1991 is 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 Part XVI of the Companies Act 1993.

Table 24.5. COMPANY INSOLVENCIES

Year ended 30 JuneCompanies placed under receivershipCompany liquidations
Court orderVoluntary
Source: Ministry of Economic Development
199077710334,406
199169010311356
199257510521182
1993286991943
19942228881367
19952197391593
19961747601691
19972407271611
199827610782038
19992199872099

Companies with heavy debt loads and cash-flow problems often have a receiver appointed over their assets, either by the court, or more commonly 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.

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 Inspections) 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 any non-life business, such as disability products, of life insurance companies.) While 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 $53.6 million in June 1998 ($50.9 million in 1997); and $24.5 million in June 1998 under the Life Insurance Act 1908 ($24.5 million in 1997).

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 Economic Development. 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 and general insurance industries are 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. Other insurance companies are subject in the ordinary way to the provisions of the Companies Act 1993 and must comply with New Zealand company law in the same manner as other business enterprises.

The Mutual Insurance Act 1955 provides for the establishment of mutual insurance associations, which are intended to provide insurance primarily for farm owners and certain rural industries and their employees.

The current regulatory position can be summarised by saying that the size and close-knit nature of the New Zealand insurance market has meant 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 were replaced by the independent disputes mechanism provided by the Insurance and Savings Ombudsman service. This is in addition to the Fair Insurance Code and minimum solvency levels. Following the report of the Government Working Group on Improved Product and Investment Adviser Disclosure, the Investment Savings and Insurance Association (which includes insurance companies providing financial services) has issued standards for point of sale disclosure.

Insurance intermediaries. The Insurance Intermediaries Act 1994 established insurance brokers client accounts, limitations on how premiums received by brokers may be used, and 50-day 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 major commercial accounts and providing access to international insurance services, and a growing network of independent insurance agents selling fire and general insurance.

Wellington State Fire Insurance Office, c1905.

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. The comprehensive ‘no fault’ legislation of this act 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 8.5: Accidents.

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.

National disaster insurance. New Zealand is very susceptible to damage caused by earthquakes and other geophysical events. Insurance against these events has presented a considerable problem.

The Earthquake and War Damage Commission (EQC) was established in 1944. It provided a government-guaranteed fund for damage caused by war and earthquakes. The fund was created with premiums collected from fire insurance policy holders.

The original act was replaced by the Earthquake Commission Act 1993, bringing several changes to the original scheme. These included dropping war damage and non-residential property from the cover.

Under the act the EQC provides cover of $100,000 (excluding GST) for dwellings and $20,000 (excluding GST) for contents.

Perils covered are: earthquake, natural landslip, volcanic eruption, hydrothermal activity and tsunami; residential land in the case of storm or flood; and fire caused by any of these.

The cost of cover is five cents a year for every $100 value of property insured. The maximum premium for one year is $67.50 (including GST).

The commission is a Crown entity controlled by provisions in the Public Finance Act 1989. It is a body corporate with perpetual succession, a common seal and capital of $1.5 billion. It is responsible to the Minister of Finance. The commission's board has between five and nine members, appointed by the Governor-General on the recommendation of the Minister of Finance. Every commissioner is appointed for a term of up to three years, but may be reappointed.

Claims for the year ended 30 June 1999 totalled 667 earthquake and volcanic activity claims ($894,000) and 1,998 landslip claims ($12,221,000).

The EQC premium income (net of reinsurance) for the year to 30 June 1999 was $17 million and the reinsurance premium was $54 million. The EQC Internet address is www.eqc.govt.nz

The insurance industry

The life insurance industry in New Zealand has major importance as an investor and savings vehicle. 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 44 life insurance enterprises as at February 1999.

The non-life insurance market is divided amongst 128 enterprises which have made deposits under the Insurance Companies’ Deposits Act 1953, including life companies doing non-life business; however many of these depositors are not now active in the New Zealand market. Some deposits are made to support placements overseas by brokers, or by international reinsurers, and some are retained to support the runoff of workers’ compensation business by insurers no longer active in New Zealand. Some New Zealand insurance business is directly placed offshore with Lloyds and the company market in London. The ability to spread risk through the international reinsurance markets has allowed New Zealand insurers to absorb large increases in business flowing from the Government's decision to remove the EQC from non-residential disaster insurance.

Statistics New Zealand's Annual Business Directory update recorded 74 health and 81 general insurance enterprises operating in New Zealand as at February 1999 (89 and 74 respectively in 1998).

The Annual Business Directory update recorded 8,110 full-time equivalent persons engaged within the insurance industry as at February 1999.

Considerable change is taking place in the insurance industry in New Zealand and is likely to continue. The number of direct underwriters is reducing, with amalgamations and withdrawals. This process is accompanied by a decrease in the number of reinsurers establishing a place of business in New Zealand.

It is also probable that the number of major international brokers will be reduced but that there will be a growing number of brokers operating on a local or regional level to service small businesses and the domestic market.

In the life insurance and superannuation fields it is generally anticipated that market growth will increase to compensate for the reduced government commitment to the provision of New Zealand superannuation. The appointment of a Retirement Commissioner will give a boost to public education on the need for New Zealanders to save for their own retirement (see section 7.1: The Department of Work and Income).

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 (BRANZ) undertakes some work in assessing 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)

  • Investment Savings and Insurance Association of New Zealand Inc (maintained by life insurers)

  • Corporation of Insurance Brokers of New Zealand (made up of brokers)

  • Independent Insurance Agents Association (representing independent brokers and agents)

  • Chartered Institute of Loss Adjusters and the Institute of Loss Adjusters of New Zealand incorporated (comprising adjusters and assessors)

  • 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 the Government, local authorities, and a number 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. The two largest organisations are state run.

The Government Superannuation Fund's revenues consist of members’ contributions, subsidies from the Crown, state-owned enterprises, and other employers, 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.

The Government Superannuation Fund schemes were closed to new members as at 30 June 1992.

Government Superannuation Fund. The Government Superannuation Fund (GSF) 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.

Government superannuation schemes are specified in the Government Superannuation Fund Act 1956. Since 1 April 1998 the legislation has been administered in the Ministry of Economic Development.

The Warehouse hyperstore Whangarei, 1998.

The schemes are all partially funded defined benefit schemes. The Government as the major employer of members of the schemes does not meet its contribution to the benefits as they accrue, but meets its share of the benefits as they fall due. As a result the GSF has a large unfunded liability of $8,504 million as at 30 June 1999.

The assets of the GSF, of some $3.5 billion, are held and invested by the Ministry of Economic Development. The ministry is also responsible for the role of the superintendent of the GSF, which involves determining issues of interpretation and discretion. Decisions of the superintendent are subject to appeal to the GSF Appeals Board.

The schemes administrator for the GSF is AXA New Zealand.

Table 24.6. GOVERNMENT SUPERANNUATION FUND ALLOWANCES, AT 30 JUNE 1999

Qualification for allowanceNumber
Source: Government Superannuation Fund
Retired for age, length of service or medically unfit32,149
Spouses and dependants13,421
            Total allowances45,570

Table 24.7. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND

Branch of serviceAt 30 June 1999Percentage of total

1Includes state-owned enterprises which were formerly part of the Public Service.

Source: Government Superannuation Fund

Armed services3,71511.03
Judges990.29
Parliamentarians480.13
Police3,42910.18
Prison officers2950.88
Public Service126,10477.49
            Total33,690100.00

Table 24.8. GOVERNMENT SUPERANNUATION FUND: SUMMARY

Year ended 30 JuneNumber of contributorsAnnual contributionsIncome from investmentsSubsidy from government trading departments and othersAnnual value of allowances1Accumulated fund at 30 June

1Tax exempt.

Source: Government Superannuation Fund

 (individuals)$(000)  
199548,741134,537248,408455,370587,3983,169,899
199644,458127,231129,773542,619690,5423,143,609
199739,684112,243486,406520,158644,8663,348,195
199836,437112,894248,804503,724631,9293,402,094
199933,690107,042249,829483,908629,1003,450,706

National Provident Fund. National Provident Fund (NPF) was first established in 1910 to provide state-subsidised pensions to low income earners. Ninety years on NPF now comprises 16 separate schemes and is New Zealand's largest group of superannuation schemes in terms of total funds invested.

Over the years NPF has undergone a number of changes including a restructuring in 1991 which saw the closure of schemes to new members and the scheme administration, funds management and custody functions being outsourced to private providers.

In 1997, legislative amendments enabled the Board of Trustees to begin implementing a series of changes to further streamline administration and reduce costs. A major development was the establishment of a new pension scheme which will eventually hold all NPF pensioners.

As at 31 March 1999 NPF had total funds of $2.80 billion (invested with nine specialist managers), 49,900 contributors, 770 participating employers and it paid pensions to 23,500 annuitants.

Insurance industry statistics

The Annual Enterprise Survey covers the activities of all businesses classified in Division K of the Australian and New Zealand Standard Industrial Classification (ANZSIC), with the exception of Superannuation Funds.

Life insurance. Units mainly engaged in providing life insurance, life re-insurance and other life insurance including mortgage repayment insurance.

Health insurance. Units mainly engaged in providing insurance cover for hospital, medical, dental, pharmaceutical or funeral expenses or costs. This includes units operating employee benefit funds, welfare societies and friendly society funds not elsewhere classified.

General insurance. Units mainly engaged in providing fire insurance coyer for commercial and domestic purposes and motor vehicle, marine, aviation and other accidental insurance.

Table 24.9. INSURANCE: STATISTICAL SUMMARY

Statistical Item1995/96 $(m)11996/97 $(m)21997/98 $(m)3

ANZSIC Subdivision K74 excludes class K7412, Superannuation Funds.

1Data is final.

2Data is revised, but subject to additional change while further analysis is done on the 1997/98 data.

3Data is provisional. ..C Data is confidential.

Source: Annual Enterprise Survey 1997–98, Statistics New Zealand

Sales of goods and services3,669.14,432.94,088.3
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered786.2877.0816.5
Government grants and subsidies..C..C0.2
Other income including extraordinaries879.8949.0756.3
            Total income adjusted for stocks5,335.16,261.35,661.1
Salaries and wages paid to employees319.1359.7352.1
Redundancy and severance3.37.36.9
Salaries and wages to working proprietors (SW to WPs)0.41.10.8
Fringe benefit tax10.611.29.4
Purchases and other operating expenses3,709.64,176.23,792.0
Interest, donations, grants, royalties, patent fees paid and bad debts written off14.260.520.3
Indirect taxes (excluding fringe benefit tax)6.85.64.6
Depreciation53.747.650.3
Other expenses including extraordinaries268.3155.6466.9
            Total expenditure4,600.85,051.54,977.9
Net profit before tax, extraordinaries, SW to WPs..C417.4394.7
Net profit before tax, SW to WPs734.81,210.8..C
Purchases of plant, machinery, vehicles and equipment42.441.665.9
Purchases of buildings and other construction9.55.030.1
            Total purchases of fixed tangible assets51.946.695.9
Sales of fixed tangible assets31.151.756.6
Shareholders funds or owners equity12,824.813,621.313,660.5
Current liabilities2,198.02,628.02,165.1
Other liabilities719.9962.61,132.4
            Total capital and liabilities15,742.717,211.816,958.1
Fixed tangible assets450.2419.7373.1
Current assets2,629.53,053.03,134.0
Other assets12,663.013,739.013,450.9
            Total assets15,742.717,211.816,958.1
Ratios Total income per FTE$573,708$628,487$675,232
Net profit per FTE..C$41,902$47,080
Current ratio119.6%116.2%144.8%
Quick ratio119.6%116.2%144.8%
Profit margin on sales..C9.4%9.7%
Return on equity..C3.1%2.9%
Return on total assets..C2.4%2.3%
Liabilities structure81.5%79.1%80.6%

For more information refer to Business Activity Statistics 1998.

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
Total sales by quarter1

Hardware shop, 1910.

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 Frame, a comprehensive and up-to-date list of all New Zealand's economically significant businesses – those with income greater than $30,000 or with more than two full-time employees. 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 store type definitions. The redesign also included improvements in the coverage of the Business Frame.

Retail sales trends

The major movements in the retail sector in the year ended March 1999 were:

  • Total actual retail sales increased by 1.3 percent to $39,306 million compared with $38,793 million in the year ended March 1998.

  • The most significant increases were recorded by department stores, up 10.7 percent; food retailing outlets, up 4.8 percent; and appliance retailing, up 2.8 percent.

  • Five of the fifteen storetypes recorded decreases in annual sales for the year ended March 1999. They were hardware outlets, down 5.1 percent; motor vehicle retailing outlets, down 3.4 percent; chemists, down 3.4 percent; recreational goods, down 1.1 percent and motor vehicle services, down 0.8 percent.

Table 24.10 shows annual sales for the retail trade storetypes.

Table 24.10. ANNUAL ACTUAL RETAIL SALES

Store type19951996199719981999
Source: Statistics New Zealand
 $(million)
Food retailing7,7587,8788,2538,6729,086
Footwear253246224227229
Clothing and softwoods1,4801,4411,3841,3911,393
Furniture and floor coverings9979571,0011,0441,071
Appliance retailing1,3481,3681,3251,2711,307
Hardware768732810807766
Chemist9971,0731,1031,2541,211
Department1,8351,8391,8701,9522,161
Recreational goods1,3461,4141,5421,6091,592
Accommodation, hotels and liquor3,3203,3723,4873,5243,573
Cafes, restaurants and takeaways1,9402,2472,4142,5292,596
Personal and household services9319641,0201,0651,079
Other2,0982,0922,0122,0382,083
            Subtotal25,07125,62326,44527,38328,148
Motor vehicle retailing6,6637,1966,8726,0405,833
Motor vehicle services4,6545,0155,2275,3695,325
All stores total36,38837,83438,54438,79339,306
Per head of population by total10,061 R10,301 R10,337 R10,286 R10,351

Regional sales

Retail sales in the North Island increased by 0.8 percent compared to the March 1998 year. The South Island recorded an increase of 3.1 percent for the same period. Canterbury recorded the strongest growth in sales, up $226 million (4.5 percent). Auckland recorded the only decrease, down 0.2 percent.

Table 24.11. SALES BY GEOGRAPHICAL REGION1

 North IslandSouth IslandTotal New Zealand
Auckland Regional CouncilWaikato Regional CouncilWellington Regional CouncilRemainder of North IslandTotal North IslandCanterbury Regional CouncilRemainder of South IslandTotal South Island

1Comparisons 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

 $(million)$(million)
199511,7103,4954,2647,90227,3714,8254,1929,01736,388
199612,6043,5974,4868,15428,8404,9144,0818,99437,834
199712,8073,6004,5918,36229,3614,9454,2389,18338,544
199812,7273,5994,8108,47829,6144,9994,1809,17938,793
199912,6963,6504,9058,59229,8425,2254,2409,46539,306

Seasonal adjustment

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 (such as ice-cream sales fall in winter) or calendar effects (retail sales increase at Christmas). These seasonal effects occur every year and can easily mask the often smaller effects of underlying economic trends.

The trend series also has the irregular elements removed. An example of an irregular event would be an increase in the rate of GST. Trend estimates reveal the underlying direction of the movement in retail sales and are likely to indicate turning points more accurately than seasonally adjusted or actual series.

The impact of inflation can also be removed. Price indexes are prepared in such a way as 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.

Table 24.12 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 QUARTER1

 Total retail salesRetail sales per head of population2Total value retail stocks
ActualTrend2Seasonally adjusted3Seasonally adjusted at March 1995 quarter prices3ActualTrend3Seasonally adjusted at March 1995 quarter prices3Actual

1Figures are exclusive of GST.

2Per head of population sales for the latest quarter use the previous quarter's population estimate, as this is the latest available figure.

3All previously published figures are subject to revision when the seasonal adjustment program is run each period.

Source: Statistics New Zealand

 $(million)
1997 Mar9,3079,5729,5229,4232,4822,5532,5133,553
        Jun9,4599,6299,7489,6812,5172,5622,5763,470
        Sep9,3519,6679,6529,6042,4832,5672,5503,474
        Dec10,4719,6779,6659,5942,7732,5632,5413,496
1998 Mar9,5129,6939,7239,6242,513 R2,5612,5423,525
        Jun9,3709,6919,6679,5882,472 R2,5562,5293,403
        Sep9,4349,7409,7439,6252,486 R2,5662,5363,442
        Dec10,7039,8759,8719,7322,815 R2,5982,5603,541
1999 Mar9,8009,98510,0159,8522,574 R2,6232,5883,561
        Jun9,76710,13110,0819,9232,564 R2,6592,6053,558
        Sep10,04810,36210,37810,2052,635 R2,7172,6763,596
        Dec11,43110,49310,53810,2892,992 E2,7462,6933,814

Table 24.13. RETAIL STOCKS BY STORE TYPE1

Store typeRetail stocks at 31 March
19951996199719981999

1Figures are exclusive of GST.

Source: Statistics New Zealand

 $(million)
Food retailing295307294312343
Footwear7370616556
Clothing and softwoods310309297301279
Furniture and floor coverings136134144156164
Appliance retailing195200195181190
Hardware158175160160155
Chemist120124127129131
Department349386354384393
Recreational goods285290313322339
Accommodation, hotels and liquor125131134134155
Cafes, restaurants and takeaways3640424449
Personal and household services3034282628
Other stores317337320335366
            Subtotal2,4282,5372,4682,5522,647
Motor vehicle retailing810912893797733
Motor vehicle services169200192177180
            Total3,4073,6503,5533,5253,561

Credit sales

Hire-purchase. Instalment credit trading in New Zealand has grown steadily since this type of credit was introduced. Consumer credit is provided either by retailers or finance companies. A major activity of the finance companies is the financing of motor vehicles on hire-purchase.

The Hire Purchase Act 1971 is the governing legislation in New Zealand. Regulations to control hire-purchase trade, including limits on minimum deposit and the maximum period of credit, were removed in September 1983.

The Credit Contracts Act 1981 reformed the law relating to the provision of credit under contracts of various kinds. Included in the act are provisions which prevent oppressive contracts, and ensure the disclosure of the cost of credit on a uniform basis.

CREDIT CARD USE
Total advances outstanding

Credit card sales. Credit cards were first introduced in New Zealand in 1981. The use of credit cards for purchases has been steadily increasing. In May 1999 a total of $2,072.9 million in credit card advances was outstanding, up from $1,888.4 million in May 1998.

Table 24.14 gives the annual value of sales by credit cards issued by registered banks, American Express and Diners Club.

Table 24.14. VALUE OF CREDIT CARD SALES1

Calendar yearTotal advances outstanding at 31 DecemberBillings
NZ cardholders spending in New ZealandNZ cardholders spending overseasTotal2

1Figures are monthly averages over the complete year.

2Total includes unallocated spending.

Source: Financial Statistics, Reserve Bank of New Zealand

 $(million)
19982,066.5477.7145.4658.5
19992,403.0629.2162.6808.0

Contributors

  • 24.1 Ministry of Economic Development; Ministry of Consumer Affairs; Consumers’ Institute; Department of Labour; Ministry of Justice; Commerce Commission.

  • 24.2 Ministry of Justice; Ministry of Economic Development; Commerce Commission; Securities Commission; New Zealand Stock Exchange; Statistics New Zealand; Serious Fraud Office.

  • 24.3 Insurance Council of New Zealand; National Provident Fund; Statistics New Zealand; Government Superannuation Fund; Earthquake Commission.

  • 24.4 Statistics New Zealand; Ministry of Consumer Affairs; Reserve Bank of New Zealand.

Special articles

Ministry of Consumer Affairs; Ministry of Economic Development; Commerce Commission; Serious Fraud Office; Insurance and Savings Ombudsman; Environmental Choice NZ; Transparency International.

Further information

Business Activity 1998. Statistics New Zealand.

Reserve Bank of New Zealand's website: www.rbnz.govt.nz

Controls on trading

The Fair Trading Act: A guide for advertisers and traders. 1999. Commerce Commission.

Report of the Department of Labour, Te Tari Mahi: for the year ended 30th June (annual). (Parl paper G.1).

Report of the Liquor Licensing (Parl paper E.8) (annual).

Commercial framework

Current Issues in New Zealand Competition and Consumer Law. 1998. Commerce Commission.

Report of the Commerce Commission (Parl paper G.34) (annual).

Report of the Ministry of Justice (Parl paper E.64) (annual).

Report of the Law Commission (Parl paper E.31F) (annual).

Report of the Serious Fraud Office (Parl paper E.40) (annual).

Insurance and superannuation

1995–96 Census of Finance and Insurance. Statistics New Zealand.

Annual Report of the Board of Trustees of the National Provident Fund.

Annual Report of the Insurance Council of New Zealand Inc.

Insurance and Savings Ombudsman Annual Report.

Report of the Earthquake Commission (Parl paper B.11).

Report of the Government Superannuation Board (Parl paper B.20) (annual).

Report on the New Zealand Fire Service Commission: adequacy of the arrangements to ensure that the fire service levy is properly and fully paid. Wellington Office of the Controller and Auditor-General 1998.

Retail trade and services

Financial Statistics. Reserve Bank of New Zealand (monthly).

Key Statistics. Statistics New Zealand (monthly).

Reserve Bank of New Zealand Bulletin. The 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

APEC 1999 press conference addressed by Lockwood Smith, then International Trade Minister.

25.1 Development and administration of trade

New Zealand Trade Development Board

The New Zealand Trade Development Board (Trade NZ, formerly Tradenz) was established in 1988 to foster the development and expansion of New Zealand's foreign exchange earnings.

Although largely government funded, Trade NZ has a board of directors with a predominantly private sector background. The board's role is to guide the allocation of resources invested by the government for the development of New Zealand's foreign exchange earnings. Funding (from Vote Ministry of Foreign Affairs and Trade) was $53.9 million for the year to 30 June 1999 ($55.2 million in 1998), and there was client income of about $2.7 million ($2.1 million in 1998). Working through an integrated global network, with offices in nine New Zealand cities and representation in more than 50 key locations around the world, Trade NZ:

  • Builds New Zealand's commitment to exporting and encourages more companies to export.

  • Assists companies in market selection decisions, then assists them to enter chosen markets.

  • Assists existing exporters to further their international business including, where appropriate, moving beyond direct exporting into business alliances such as joint ventures.

  • Promotes opportunities for exporters to work in groups which benefit each company.

  • Supports initiatives to improve the capability and competitiveness of New Zealand companies, including improving investment flows from domestic or foreign sources.

Services in New Zealand. Trade NZ's nine New Zealand offices are in Auckland, Hamilton, Tauranga, Napier, Palmerston North, Wellington, Nelson, Christchurch and Dunedin.

Operational staff deliver a broad range of services to export companies, or companies preparing to export. The core service is working with individual companies of all sizes through thorough and comprehensive planning and market research. Other services include: facilitating networking opportunities with other exporters; referrals to sources of finance and potential overseas investors; organising company participation in offshore missions and trade fairs; and educational seminars.

Trade NZ works with companies as groups, as well as with individual exporters. Companies can often achieve better and more cost-effective export results through a collective effort on specific projects. This is particularly so for small- to medium-sized companies. To promote the concept of ‘cooperating to compete’ Trade NZ mainly uses export networks and industry groups.

Export networks – bring together groups of three or more exporters to develop a cohesive approach that targets and maximises specific, clearly identified offshore market opportunities. In November 1999 there were 41 groups of companies who had formed an export network.

Industry groups – are comprised of groups of companies who represent a clearly identified New Zealand industry sector. Members of industry groups share a common commitment to address industry export capability issues and strategic approaches to offshore market development.

Services overseas. With representatives in more than 50 key export locations around the world, Trade NZ staff have in-depth knowledge of local markets. They can: provide market intelligence; recommend appropriate export market entry and development strategies; identify partners and contacts; investigate competitors; monitor markets; liaise with government officials offshore; undertake market research; and determine regulatory requirements including tariffs, taxes, products standards and labelling requirements.

Trade NZ, together with the New Zealand Tourism Board, is responsible for developing and implementing a promotional campaign for Brand New Zealand. Supported by New Zealand's leading exporters and tourism operators, this long-term campaign is designed to help achieve a premium positioning for New Zealand and its products and services overseas.

Internet Home Page. The Trade NZ website is www.tradenz.govt.nz and includes help for new exporters, market intelligence reports, country profiles and statistics, the latest media releases from Trade NZ, calendar of export events and links to export resources.

World Customs Organisation

The New Zealand Customs Service is a full participating member of the World Customs Organisation (WCO) which was established (as the Customs Cooperation Council) in 1950. The WCO is now a major intergovernmental organisation with over 150 members, and headquarters in Brussels.

The WCO's functions include:

  • promoting cooperation amongst members on all Customs matters

  • examining technical aspects of customs systems and procedures with a view to promoting the highest degree of uniformity amongst members

  • promoting the uniform application and interpretation of conventions and other instruments

  • promoting the exchange of information amongst members.

The WCO has developed many conventions, declarations and instruments essential to customs administration world-wide, with many also applicable to international trade. These include:

  • The Harmonised System (HS) Tariff – an international product nomenclature used by some 130 countries throughout the world as the basis of their customs tariffs and for the collection of international trade statistics. The Harmonised System covers more than 90 percent of world trade.

  • The Kyoto Convention – an international instrument for the harmonisation and simplification of customs procedures, aimed at fostering international cooperation and contributing to the facilitation of international trade.

  • The Nairobi Convention – an agreement of mutual assistance for the prevention, investigation and repression of customs offences.

The WCO also provides technical expertise to the World Trade Organisation on certain aspects of international trade impacting on customs, such as the GATT Valuation Agreement, which provides the basis of the customs valuation of goods. Annexes to the Agreement establishing the World Trade Organisation include agreements on pre-shipment inspection and intellectual property rights.

New Zealand's membership in the WCO enables New Zealand Customs to participate in the global development of customs administrations, with a contribution to issues ranging from reducing technical barriers to trade and to developing new enforcement techniques. A recent WCO survey of its members indicated that the majority of customs administrations believe that the following will be future challenges:

  • Further gains in efficiency and effectiveness.

  • Improved customer service.

  • Technology extending to include bar-coding and document imaging, with a view to seamless data flow and integrated data transaction.

  • Demands for new skills and retraining.

  • Trans-national crime.

  • Continued integrating effect of free trade agreements or customs unions, leading to the development of common tariff and origin rules.

New Zealand participates in the global customs arena primarily through the WCO international and regional (especially Asia Pacific) forums, Asia Pacific Economic Cooperation (APEC) and the Oceania Customs Organisation.

New Zealand takes an active role in the APEC Sub-committee on Customs Procedures (SCCP), which is a sub-committee of the APEC Committee on Trade and Investment. Customs administrations of the 21 APEC member economies have a key role in trade facilitation-related initiatives.

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.

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, craft, airports and seaports.

  • 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 free on board (fob). 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 cost, insurance and freight (cif) and value for duty (vfd). 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 import values quoted in this chapter are the cif values.

Table 25.1. OVERSEAS MERCHANDISE TRADE1

Year ended JuneExports (fob)Imports (cif)Balance of merchandise trade

1Some statistics may not add to stated totals due to rounding.

fob = free on board. (The value of goods at New Zealand ports before export includes re-exports.)

cif = cost of goods, including insurance and freight to New Zealand.

Source: Statistics New Zealand

  $(million) 
199015,16415,770-607
199115,76815,325443
199217,84015,4832,357
199318,97117,3331,638
199419,82718,4691,358
199520,79021,261-471
199620,54621,352-807
199721,03321,324-290
199821,99022,589-599
199922,60024,248-1,648

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 merchandise imports value from the merchandise exports value for the same period. An excess of exports over imports is a ‘surplus', which is treated as a positive number. Conversely, an excess of exports over imports is a ‘deficit', which is treated as a negative number.

In the June 1999 year, New Zealand's balance of merchandise trade deficit of $1,648 million compared with a deficit of $599 million for the June 1998 year.

25.2 Exports

Exports are valued at free on board (fob) 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 1999 year totalled $22,600 million, 2.8 percent higher than the June 1998 year total of $21,990 million. Dairy produce, birds’ eggs and honey; and meat and edible offal were New Zealand's two major export commodities, contributing 17.1 percent and 12.5 percent of total exports respectively for the year ended June 1999.

For the year ended June 1999, the largest increases were for fruit and nuts (up $169 million); fish, crustaceans and molluscs (up $145 million); albuminoidal substances and glues (up $140 million, mostly due to casein and caseinates); and dairy produce, birds’ eggs and honey (up $136 million, mostly due to cheese and milk powder). The largest falls were for wool and animal hair (down $166 million); organic chemicals (down $87 million); miscellaneous and confidential articles (down $81 million, mostly due to bunkering fuel); meat and edible offal (down $75 million); and raw hides, skins and leather (down $65 million).

Dairy produce

The export value of dairy produce was $4,625 million in the June 1999 year, up 5.7 percent from June 1998. Dairy produce was the main export commodity in the year ended June 1999 year with a contribution of 20.5 percent of the total merchandise exports value. The main dairy products exported in the June year 1999 were milk powder, butter, cheese, and casein and caseinates with values of $1,769 million, $990 million, $983 million and $763 million, respectively.

New Zealand dairy produce is sold around the world to a wide range of countries. The main export markets are the United States of America, Japan, the United Kingdom and Malaysia. Exports to the United States, Belgium and Japan have grown strongly over the past five years. Exports to the United States of America, Vietnam and Egypt showed the strongest growth in the year ended June 1999 compared to the previous June year. The largest falls were for Russia and the United Kingdom.

OVERSEAS
MERCHANDISE TRADE

MAJOR COMMODITIES
Exports 1999

Lavender harvest from Mosgiel for export to Japan and the United States.

FLOWER EXPORTS
By variety

Table 25.2. COMMODITIES EXPORTED12

HS CodeCommodityValue of exportsPercentage of merchandise exports
Year ended JuneYear ended June
199419981999199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding. HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

 $(million)percent
01Live animals1841401440.90.60.6
02Meat and edible offal2,8742,9032,82814.513.212.5
03Fish, crustaceans and molluscs1,1131,0261,1715.64.75.2
04Dairy produce, birds’ eggs and honey2,8313,7383,87414.317.017.1
05Animal originated products nes2652832741.31.31.2
06Trees, plants, bulbs and cut flowers7073750.40.30.3
07Vegetables3143363901.61.51.7
08Fruit and nuts7628941,0633.84.14.7
09Coffee, tea, maté and spices1210.00.00.0
10Cereals101510.00.10.0
11Products of the milling industry1018150.10.10.1
12Seeds, raw peanuts and soya5477830.30.30.4
13Lac, gums and resins1110.00.00.0
14Vegetable plaiting materials0000.00.00.0
15Animal and vegetable fats and oils1291651660.70.80.7
16Meat and fish preparations1351131280.70.50.6
17Sugars and sugar confectionery4580720.20.40.3
18Cocoa and cocoa preparations3852650.20.20.3
19Preparations of cereals, flour and starch611031120.30.50.5
20Preparations of vegetables, fruit and nuts104120970.50.50.4
21Miscellaneous edible preparations1011231450.50.60.6
22Beverages, spirits and vinegar921601910.50.70.8
23Food residues, wastes and fodder4275770.20.30.3
24Tobacco and substitutes4780.00.00.0
25Salt, earths, stone, lime and cement5438420.30.20.2
26Ores, slag and ash2826340.10.10.2
27Mineral fuels4554944422.32.22.0
28Inorganic chemicals1517150.10.10.1
29Organic chemicals2033612741.01.61.2
30Pharmaceutical products67871120.30.40.5
31Fertilisers137130.10.00.1
32Tanning extracts, dyes, paints and putty2522290.10.10.1
33Essential oils, perfumes and toiletries9952500.50.20.2
34Soap and organic surface-active agents5278900.30.40.4
35Albuminoidal substances and glues6397709103.23.54.0
36Explosives, fireworks and matches3540.00.00.0
37Photographic films, papers and chemicals58110.00.00.0
38Chemical products nes711141490.40.50.7
39Plastics and plastic articles2402913091.21.31.4
40Rubber and rubber articles8090990.40.40.4
41Raw hides, skins and leather6486025373.32.72.4
42Articles of leather and animal gut1717160.10.10.1
43Furskins and artificial fur8055630.40.30.3
44Logs, wood and wood articles1,6761,4351,4968.56.56.6
45Cork and cork articles7870.00.00.0
46Basketware and plaited goods0000.00.00.0
47Wood pulp and waste paper3353583621.71.61.6
48Paper and paperboard and articles4234925422.12.22.4
49Books, newspapers and printed matter3840470.20.20.2
50Silk0000.00.00.0
51Wool and animal hair1,1391,0218555.74.63.8
52Cotton7870.00.00.0
53Vegetable textile fibres0000.00.00.0
54Synthetic filaments3540.00.00.0
55Synthetic staple fibres6680.00.00.0
56Wadding, felt, twine, ropes and cables1010130.00.00.1
57Carpets and other textile floor coverings7282960.40.40.4
58Fabrics – woven, tufted, laced or quilted81180.00.00.0
59Textile fabrics – coated or laminated4440.00.00.0
60Fabrics – knitted or crocheted1720230.10.10.1
61Apparel – knitted or crocheted5269670.30.30.3
62Apparel – not knitted or crocheted83971010.40.40.4
63Textiles – made up articles3930300.20.10.1
64Footwear4143510.20.20.2
65Headgear9880.00.00.0
66Umbrellas, walking-sticks and whips0000.00.00.0
67Feathers and down and articles0010.00.00.0
68Stone, plaster, concrete and asbestos108110.00.00.0
69Ceramic products4440.00.00.0
70Glass and glassware3432170.20.10.1
71Pearls, jewellery, precious metals and coins3352612071.71.20.9
72Iron and steel2892952781.51.31.2
73Iron and steel articles1591641790.80.70.8
74Copper and articles thereof9295970.50.40.4
75Nickel and articles thereof0000.00.00.0
76Aluminium and articles thereof6789609583.44.44.2
78Lead and articles thereof316110.00.10.1
79Zinc and articles thereof2110.00.00.0
80Tin and articles thereof0110.00.00.0
81Metals nes0000.00.00.0
82Metal tools, implements and cutlery5076730.30.30.3
83Miscellaneous metal products3938340.20.20.2
84Mechanical Machinery7771,0401,0373.94.74.6
85Electrical Machinery4466696932.33.03.1
86Railway stock and signalling equipment14120.00.00.1
87Vehicles, parts and accessories1181161720.60.50.8
88Aircraft and parts62561180.30.30.5
89Ships, boats and floating structures131861140.70.40.5
90Optical, medical and measuring equipment1802392850.91.11.3
91Clocks, watches and parts3550.00.00.0
92Musical instruments and parts1210.00.00.0
93Arms, ammunition and parts2220.00.00.0
94Furniture, furnishings and light fittings102931170.50.40.5
95Toys, games and sports requisites3035370.20.20.2
96Miscellaneous manufactured articles1513100.10.10.0
97Miscellaneous and confidential commodities2582962151.31.31.0
 All merchandise exports19, 82721, 99022, 600100.0100.0100.0

Table 25.3. DAIRY PRODUCE EXPORTS12

HS codeCommodityYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding. HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

 $(million)
0401–0402Milk powder, milk, cream1,3971,6821,771
0403Buttermilk products, yoghurt499193
0404Whey and other products122424
0405Butter, dairy spreads8341,029990
0406Cheese and curd528899983
3,501Casein and caseinates559652763
 Total dairy produce exports3,3794,3764,625
 Percentage contribution to merchandise exports17.019.920.5

DAIRY PRODUCE EXPORTS

New markets in Portugal, Chile, Australia and other South Pacific countries were found for spreadable butter after the European Union banned imports of the product.

The United States of America was the main export market for casein and caseinates, accounting for half of the total exported. Japan and Germany were the next largest markets.

Table 25.4. DESTINATION OF DAIRY PRODUCE EXPORTS12

CountryYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
United States of America325496635
Japan254348388
United Kingdom383367281
Malaysia218222245
Belgium21179204
Mexico199194195
Philippines148191192
Australia114149185
Taiwan, Province of China138173175
Russia97217130
People's Republic of China27109128
Thailand75114117
Egypt4055115
Sri Lanka61105113
Saudi Arabia74109113
Venezuela93141104
Germany1219587
Peru878186
Indonesia547784
Vietnam81879
Other countries840934970
            Total dairy produce exports3,3794,3764,625

Meat and edible offal

In the June 1999 year, exports of meat and edible offal fell 2.6 percent to $2,828 million, 12.5 percent of total merchandise exports. This follows a 6.3 percent rise recorded in the June 1998 year.

Table 25.5. MEAT AND EDIBLE OFFAL EXPORTS12

ProductYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Sheep1,2511,4861,504
Beef1,3841,1751,087
Venison124137138
Goat566
Poultry100
Offal1009389
Other954
            Total meat and edible offal exports2,8742,9032,828
Percentage contribution to merchandise exports14.513.212.5

For the year ended June 1999 compared with the previous June year, the value of sheep meat exports rose by 1.2 percent ($17 million). This was insufficient, however, to offset the overall decrease in meat and edible offal exports. The main contributors to this decrease were beef exports which fell by 7.4 percent ($87 million) and offal which fell by 5.1 percent ($5 million).

The United States of America, at $782 million, was the main export market for meat and edible offal exports in the year ended June 1999. This was a decrease of 2.1 percent ($17 million) from the previous June year. Exports to the United Kingdom and Germany, the next main markets, fell 1.5 percent ($7 million) and rose 0.4 percent ($1 million), respectively. Increases were recorded for Taiwan (up $13 million), Canada (up $11 million) and France (up $10 million) while decreases were recorded for the Netherlands (down $16 million), Singapore (down $14 million) and Japan (down $13 million). Japan at $159 million, Taiwan at $87 million and Hong Kong at $50 million were the main markets in Asia.

Table 25.6. DESTINATION OF MEAT AND EDIBLE OFFAL EXPORTS12

CountryYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
United States of America786799782
United Kingdom394446439
Germany189272273
Japan190172159
Belgium91162153
Canada228120131
France121100110
Taiwan, Province of China757487
Saudi Arabia605056
Hong Kong (Special Administrative Region)425650
Singapore315238
Italy384035
Netherlands215135
Malaysia283232
Switzerland333330
Jordan222329
Republic of Korea873228
French Polynesia242528
Greece473225
Spain292023
Other countries337312283
            Total meat and edible offal exports2,8742,9032,828

Forestry products

Forestry product exports in the year ended June 1999 totalled $2,400 million, an increase of 5.0 percent ($115 million) from the previous June year. The main contributors to this increase were rises of 16.5 percent ($79 million) in exports of sawn wood and 10.2 percent ($50 million) in exports of paper and paperboard. The only decrease was for rough wood (including logs) which fell by 9.9 percent ($51 million). The main forestry product exported was sawn wood ($558 million).

Table 25.7. FORESTRY PRODUCT EXPORTS12

ProductYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Wood (sawn)486479558
Paper and paperboard423492542
Wood (rough)783516465
Wood pulp and waste paper335358362
Board (fibre, veneer, plywood)273308331
Other108132142
            Total forestry products exports2,4092,2852,400
Percentage contribution to merchandise exports12.110.410.6

New Zealand's two main destinations for forestry products, Australia ($710 million) and Japan ($561 million), showed an increase of 4.8 percent and a decrease of 6.1 percent respectively, in the year ended June 1999. The Republic of Korea, the third main destination for forestry products, showed a 9.0 percent increase, to $302 million in the June 1999 year. The United States of America, with an increase of 42.7 percent ($73 million), contributed 64 percent of the overall increase in forestry product exports.

Table 25.8. DESTINATION OF FORESTRY PRODUCTS EXPORTS12

CountryYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Australia722678710
Japan659598561
Republic of Korea343277302
United States of America146171244
Taiwan, Province of China11410884
Hong Kong (Special Administrative Region)638983
People's Republic of China984567
Indonesia456254
India172842
Malaysia314339
Other countries172185213
            Total forestry products exports2,4092,2852,400

First shipment of chilled beef to England.

FOREST PRODUCT EXPORTS

Cartoon by Eric Heath which appeared in the Dominion, 1992.

WOOL EXPORTS
By country

Fish, crustaceans and molluscs

Exports of fish, crustaceans and molluscs, including extracts and preparations, were $1,253 million in the year ended June 1999, up 13.2 percent ($146 million) from the previous year.

Excluding extracts and preparations, the export value was $1,171 million, up 14.1 percent ($145 million) from the previous year ended June. The main contributors to this rise were fish fillets and other fish meat, up by $94 million to $490 million; molluscs and other aquatic invertebrates, up by $32 million to $214 million; and frozen fish, up by $24 million to $261 million.

Exports to the United States of America rose by 30.9 percent ($58 million) contributing 40 percent of the export rise. Exports to Germany rose by 246.2 percent ($44 million) and contributed 30 percent of the export rise. Japan was the main export market, taking 20.3 percent of New Zealand's fish, crustacean and mollusc exports in the year ended June 1999 while the United States of America, at 19.6 percent, was a close second.

Table 25.9. FISH, CRUSTACEANS AND MOLLUSC EXPORTS12

HS codeProductYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding. HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

  $(million)
0301Fish, live213
0302Fish, fresh or chilled897375
0303Fish, frozen227237261
0304Fish fillets and other fish meat447396490
0305Fish and edible fish meal, dried, salted or smoked101112
0306Crustaceans129126115
0307Molluscs and other aquatic invertebrates210182214
03HS Chapter 03 Fish, crustaceans and molluscs1,1131,0261,171
1603000111–1603000900Extracts and juices of fish, crustaceans and molluscs000
1604Prepared or preserved fish (including fish eggs)322529
160510–160540Prepared or preserved crustaceans000
160,590Prepared or preserved molluscs615653
03, 1603000111–1605Total fish, crustacean and mollusc exports1,2071,1071,253
 Percentage contribution to merchandise exports6.15.05.5

Table 25.10. DESTINATION OF FISH, CRUSTACEAN AND MOLLUSC EXPORTS12

CountryYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Japan344261254
United States of America291188246
Australia129140157
Hong Kong (Special Administrative Region)98119128
Germany81862
People's Republic of China124844
Spain374542
France252541
Republic of Korea502639
United Kingdom161428
Other countries196222212
            Total fish, crustacean and mollusc exports1,2071,1071,253

Wool, hair and yarn

Exports of wool, hair and yarn decreased 16.2 percent ($166 million) to $855 million in the year ended June 1999 compared with the previous year ended June. Wool, hair and yarn contributed 3.8 percent to New Zealand's total merchandise exports, compared with 4.6 percent in the year ended June 1998 and 5.7 percent in the year ended June 1994. Wool, at $741 million for the year ended June 1999, comprised 87 percent of wool, hair and yarn exports.

The People's Republic of China, New Zealand's largest destination for wool exports, showed a decrease of $67 million for the year ended June 1999 compared with the previous year ended June. Decreases were shown for Hong Kong ($34 million), the United Kingdom ($21 million) and Germany ($12 million). Of the top twelve export destinations for wool, only Singapore (up $10 million), Nepal (up $6 million) and India (up $3 million) showed increases.

Table 25.11. DESTINATION OF WOOL EXPORTS12

CountryYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
People's Republic of China286185118
United Kingdom91124103
Germany547664
India726063
Italy486663
Belgium665755
Australia505144
Japan694039
United States of America414438
Nepal531723
Singapore-616
Hong Kong (Special Administrative Region)564713
Other countries170137102
            Total wool exports1,054911741
Percentage contribution to merchandise exports5.34.13.3

Fruit and nuts

Total fruit and nut exports were valued at $1,063 million in the year ended June 1999, up 18.9 percent ($169 million) from the previous year ended June.

Fresh apples were the main contributor to this increase, rising by 27.9 percent ($107 million) to $489 million. Fresh kiwifruit also contributed strongly, rising by 10.4 percent ($45 million) to $474 million. Of fresh apple varieties exported, Royal Gala, at $177 million, was New Zealand's most popular export apple in the June 1999 year, rising 46.3 percent from the previous year ended June. Braeburn, at $174 million, was the second main export variety, rising 13.0 percent.

For the year ended June 1999 compared with the previous year ended June, the main country destinations for New Zealand's fruit and nuts were the United Kingdom at $151 million, up 112.4 percent ($80 million), the United States of America at $133 million, up 29.6 percent ($30 million), and Japan at $132 million, up 2.8 percent ($4 million). A significant proportion of New Zealand's fruit exports are sold on consignment and classified as either to ‘Destination unknown – EU (European Union)’ or ‘Destination unknown – not EU'. These consignments were up 40 percent ($14 million). During the last five years, Spain and Italy have emerged as important markets.

Table 25.12. FRUIT AND NUT EXPORTS12

ProductYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Apples316382489
Kiwifruit382429474
Berries and currants192530
Avocados71419
Pears91113
Stonefruit101311
Persimmons8610
Citrus fruit248
Melons666
Other443
            Total fruit and nut exports7628941,063
Percentage contribution to merchandise exports3.84.14.7

Table 25.13. DESTINATION OF FRUIT AND NUT EXPORTS12

CountryYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Destination unknown – European Union304347361
United Kingdom7871151
United States of America79103133
Japan133128132
Australia373741
Taiwan, Province of China104440
Spain-829
Hong Kong (Special Administrative Region)173227
Italy3825
Singapore222122
Other countries7994100
            Total fruit and nut exports7628941,063

FRUIT EXPORTS
By variety, year ended June

FRUIT EXPORTS
By country

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 for duty) are also available. This is the value used to assess customs duty and excludes insurance and freight to New Zealand. The vfd level 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 New Zealand Customs Service. The exchange rates used for the conversions are set on a two-weekly basis.

Total imports for the year ended June 1999 were valued at $24,248 million cif, an increase of 7.3 percent ($1,659 million) from the previous year ended June.

MAJOR COMMODITIES
Imports

Table 25.14. COMMODITIES IMPORTED12

HS CodeCommodityValue of imports (cif)Percentage of total imports (cif)
Year ended JuneYear ended June
199419981999199419981999

1Imports are valued cif (cost including insurance and freight to New Zealand). Re-exports are included.

2Some statistics may not add to stated totals due to rounding. HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

  $(million)percent
01Live animals2835490.20.20.2
02Meat and edible offal4742530.30.20.2
03Fish, crustaceans and molluscs2420290.10.10.1
04Dairy produce, birds’ eggs and honey1531250.10.10.1
05Animal originated products nes2732230.10.10.1
06Trees, plants, bulbs and cut flowers6780.00.00.0
07Vegetables3344510.20.20.2
08Fruit and nuts1481741850.80.80.8
09Coffee, tea, maté and spices4781780.30.40.3
10Cereals10879960.60.40.4
11Products of the milling industry2225240.10.10.1
12Seeds, raw peanuts and soya5341520.30.20.2
13Lac, gums and resins1011100.10.00.0
14Vegetable plaiting materials3220.00.00.0
15Animal and vegetable fats and oils881131320.50.50.5
16Meat and fish preparations4765720.30.30.3
17Sugars and sugar confectionery1451481470.80.70.6
18Cocoa and cocoa preparations63831010.30.40.4
19Preparations of cereals, flour and starch771651810.40.70.7
20Preparations of vegetables, fruit and nuts1011111400.50.50.6
21Miscellaneous edible preparations1602122340.90.91.0
22Beverages, spirits and vinegar1682222410.91.01.0
23Food residues, wastes and fodder571091060.30.50.4
24Tobacco and substitutes2937370.20.20.2
25Salt, earths, stone, lime and cement1691641610.90.70.7
26Ores, slag and ash2220.00.00.0
27Mineral fuels1,0681,3681,3785.86.15.7
28Inorganic chemicals3654464272.02.01.8
29Organic chemicals2992873021.61.31.2
30Pharmaceutical products5206226822.82.82.8
31Fertilisers1791942191.00.90.9
32Tanning extracts, dyes, paints and putty1601852310.90.81.0
33Essential oils, perfumes and toiletries1552302610.81.01.1
34Soap and organic surface-active agents921161300.50.50.5
35Albuminoidal substances and glues3552610.20.20.2
36Explosives, fireworks and matches1010140.10.00.1
37Photographic films, papers, and chemicals1241451450.70.60.6
38Chemical products nes2642833541.41.31.5
39Plastics and plastic articles8439689964.64.34.1
40Rubber and rubber articles2562883131.41.31.3
41Raw hides, skins and leather4638450.20.20.2
42Articles of leather and animal gut6175790.30.30.3
43Furskins and artificial fur4680.00.00.0
44Logs, wood and wood articles801131170.40.50.5
45Cork and cork articles813170.00.10.1
46Basketware and plaited goods5550.00.00.0
47Wood pulp and waste paper139190.10.00.1
48Paper and paperboard and articles4866677392.63.03.0
49Books, newspapers and printed matter3263503871.81.61.6
50Silk4430.00.00.0
51Wool and animal hair3632340.20.10.1
52Cotton12292890.70.40.4
53Vegetable textile fibres1813120.10.10.1
54Synthetic filaments9989910.50.40.4
55Synthetic staple fibres1521201170.80.50.5
56Wadding, felt, twine, ropes and cables5349580.30.20.2
57Carpets and other textile floor coverings4855620.30.20.3
58Fabrics – woven, tufted, laced or quilted2425250.10.10.1
59Textile fabrics – coated or laminated7464670.40.30.3
60Fabrics – knitted or crocheted5056450.30.20.2
61Apparel – knitted or crocheted1703023070.91.31.3
62Apparel – not knitted or crocheted1813173301.01.41.4
63Textiles – made up articles931301320.50.60.5
64Footwear1331741930.70.80.8
65Headgear1318180.10.10.1
66Umbrellas, walking-sticks and whips4660.00.00.0
67Feathers and down and articles4550.00.00.0
68Stone, plaster, concrete and asbestos5269790.30.30.3
69Ceramic products821251200.40.60.5
70Glass and glassware1391591550.80.70.6
71Pearls, jewellery, precious metals and coins107931050.60.40.4
72Iron and steel3763683702.01.61.5
73Iron and steel articles2703713521.51.61.5
74Copper and articles thereof1111101000.60.50.4
75Nickel and articles thereof3330.00.00.0
76Aluminium and articles thereof1772202541.01.01.0
78Lead and articles thereof8670.00.00.0
79Zinc and articles thereof4439380.20.20.2
80Tin and articles thereof3550.00.00.0
81Metals nes6650.00.00.0
82Metal tools, implements and cutlery1221421520.70.60.6
83Miscellaneous metal products751001060.40.40.4
84Mechanical machinery2,9583,5483,44516.015.714.2
85Electrical machinery1,7862,3232,5259.710.310.4
86Railway stock and signalling equipment320160.00.10.1
87Vehicles, parts and accessories2,2012,3032,98411.910.212.3
88Aircraft and parts4343848012.41.73.3
89Ships, boats and floating structures746703620.43.01.5
90Optical, medical and measuring equipment6127477623.33.33.1
91Clocks, watches and parts3942510.20.20.2
92Musical instruments and parts2020190.10.10.1
93Arms, ammunition and parts1933220.10.10.1
94Furniture, furnishings and light fittings1342472670.71.11.1
95Toys, games and sports requisites1862732911.01.21.2
96Miscellaneous manufactured articles5866730.30.30.3
97Miscellaneous and confidential commodities1523160.10.10.1
 All merchandise imports18,46922,58924,248100.0100.0100.0

Mechanical and electrical machinery

Machinery imports (mechanical and electrical) totalled $5,970 million in the year ended June 1999. This is an increase of 1.7 percent ($100 million) from the previous year ended June. The main types of machinery imported in the year ended June 1999 were automatic data processing machines and computer equipment ($881 million), line telephone apparatus ($454 million), machinery parts and accessories for typewriters, calculators and automatic data processors ($336 million) and radio, television and video transmission and recording apparatus etc ($270 million).

The United States of America is the main source of imported machinery, supplying 25.7 percent ($1,534 million) of machinery imports in the year ended June 1999. Japan supplied 11.3 percent ($675 million) and Australia 10.9 percent ($651 million). For the year ended June 1999, compared with the previous year ended June, the largest increases were those recorded for Singapore (up $102 million), the People's Republic of China (up $52 million) and Australia (up $49 million). The largest decreases were for the United States of America (down $94 million), the United Kingdom (down $76 million) and Germany (down $75 million).

Boneless beef bound for Los Angeles.

VEHICLE IMPORTS
Quantity

Table 25.15. MAJOR SUPPLIERS OF MECHANICAL AND ELECTRICAL MACHINERY12

CountryYear ended June
199419981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
United States of America1,3061,6271,534
Japan849681675
Australia496602651
Germany275398323
Singapore179220323
Taiwan, Province of China220264252
Malaysia94221251
United Kingdom318323247
People's Republic of China82189240
Italy161179185
Other countries7651,1651,289
            Total machinery imports4,7445,8705,970
Percentage contribution to merchandise imports25.726.024.6

Vehicles

The value of vehicle imports in the year ended June 1999 were $2,224 million, an increase of 43.6 percent ($675 million) from the previous year ended June.

Japan is the main source of imported vehicles to New Zealand, supplying 60.8 percent by value and 78.3 percent by number during the year ended June 1999. The value of vehicles from Japan was 58.9 percent ($501 million) higher than in the previous year ended June, while the number of vehicles was up by 61.3 percent. The value of vehicle imports from Germany and Australia also increased, rising by 83.1 percent ($97 million) and 16.0 percent ($44 million), respectively. Thailand continued to grow in importance as an imports source while the United Kingdom and the United States of America declined slightly.

Table 25.16. PASSENGER MOTOR CAR IMPORTS12

CountryYear ended June
199419981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)Number$(million)Number$(million)Number
Japan92897,72385097,1971,352156,788
Australia27711,62327611,11532112,637
Germany742,2371175,0182158,387
Republic of Korea111234655,932767,096
United Kingdom401828804,044693,061
United States of America304,595575,140504,293
Thailand00181365442,924
France1475114723221194
Other countries221016725,310753,784
Total passenger motor cars1,397121,0071,549135,8442,224200,164
Percentage contribution to merchandise imports7.6 6.9 9.2 

Mineral fuels

Imports of mineral fuels in the year ended June 1999 were valued at $1,378 million, up by 0.7 percent ($10 million) from the previous year ended June. Imports of crude petroleum rose by 5.5 percent ($46 million), while imports of non-crude petroleum fell by 8.4 percent ($37 million). Crude petroleum makes up 64.7 percent, by value, of all mineral fuel imports.

For the year ended June 1999, Australia provided 32.2 percent of New Zealand's mineral fuel imports compared with 39.7 percent for the previous year ended June. Saudi Arabia provided 17.5 percent compared with 26.1 percent for the previous year ended June. Suppliers of mineral fuels can fluctuate in importance from year to year. Argentina, Yemen and Nigeria were reasonably important sources in the year ended June 1999; however, Indonesia and Iran were reasonably important sources five years earlier.

Table 25.17. MINERAL FUEL IMPORTS12

ProductYear ended June
199419981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Crude petroleum773844891
Non-crude petroleum230446409
Coal, coke, briquettes, etc576970
Other888
            Total mineral fuel imports1,0681,3681,378
Percentage contribution to total imports5.86.15.7

Table 25.18. MINERAL FUEL SUPPLIERS12

CountryYear ended June
199419981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Australia257543444
Saudi Arabia364356241
United Arab Emirates202136135
Malaysia138485
Argentina--67
Oman292966
United States of America365359
Yemen--37
Republic of Korea101530
Nigeria--25
Japan41622
Other countries152136167
            Total mineral fuel imports1,0681,3681,378

Plastics and plastic articles

Imports of plastics and plastic articles in the year ended June 1999 were valued at $996 million, up by 2.9 percent ($28 million) from the previous year ended June.

For the year ended June 1999, two countries, Australia and the United States of America, collectively supplied 42.8 percent of New Zealand's plastics and plastic articles imports. Compared with the previous year ended June, an increase of 9.8 percent ($21 million) was recorded for Australia while a decrease of 9.6 percent ($21 million) was recorded for the United States of America.

Table 25.19. PLASTICS AND PLASTIC ARTICLES IMPORTS12

CountryYear ended June
199419981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Australia200212232
United States of America200215194
Japan707063
Germany535457
Republic of Korea334655
United Kingdom515852
People's Republic of China133642
Taiwan, Province of China453536
Netherlands212729
Belgium172429
Other countries140190206
            Total plastics and plastic articles imports843968996
Percentage contribution to total imports4.64.34.1

Container terminal, Wellington Wharves, 1974.

MAJOR TRADING PARTNERS
1999

25.4 Major trading partners

For the year ended June 1999, 79.1 percent of New Zealand's exports went to North-East Asia, Australia, Europe and Northern America, compared with 78.4 percent in the year ended June 1998 and 78.3 percent in the year ended June 1994. For the year ended June 1999, 85.2 percent of New Zealand's merchandise imports came from these same country groups, compared with 86.7 percent in the year ended June 1998 and 87.4 percent in the year ended June 1994. These four country groups are the cornerstones of New Zealand's overseas trade. Diversification of exports to other markets has been offset by declines elsewhere.

North-East Asia is the most important country group for both export and import merchandise trade, followed by Australia, Europe and Northern America. North-East Asia includes Japan, the People's Republic of China, the Republic of Korea, and Taiwan which are all major trading partners for New Zealand.

Table 25.20. TRADE BY GEOGRAPHICAL REGION AND COUNTRY12

Region and countryValue of exports(fob)Value of imports (cif)
Year ended JuneYear ended June
199419981999199419981999

1Only countries which traded with New Zealand are listed.

2Some statistics may not add to stated totals due to rounding.

fob = free on board. (The value of goods at New Zealand ports before export.) Re-exports are included.

eif = cost of goods, including insurance and freight to New Zealand.

Source: Statistics New Zealand

 $(million)$(million)
Oceania and Antarctica
Australia4,1624,5784,8413,9425,5795,367
Christmas Island0----5
Cocos (Keeling) Islands---0--
Norfolk Island61290-0
            Australia and External Territories4,1684,5904,8513,9425,5795,372
New Zealand (re-imports)---89104121
New Caledonia657182111
Papua New Guinea12311899421632
Solomon Islands181617112
Vanuatu141014011
            Melanesia221215213441836
Guam20912000
Kiribati432000
Marshall Islands211000
Federated States of Micronesia0000--
Nauru30039921
Northern Mariana Islands121000
Palau000--0
            Micronesia32151839921
Cook Islands503331312
Fiji216207222465358
French Polynesia9893101102
Niue555000
Samoa875163644
American Samoa332532001
Tokelau10-000
Tonga393635211
Tuvalu1120--
Wallis and Futuna555--0
Pitcairn Island000000
            Polynesia (excludes Hawaii)535455495586167
            Antarctica0-----
            Total Oceania and Antarctica4,9565,2755,5764,1725,7715,617
Percentage of total exports/imports25.024.024.722.625.523.2
North-West Europe      
United Kingdom1,1821,3271,4011,1121,1991,066
Ireland1825245789107
Austria1779448985
Belgium239470485134194197
France212200230319394463
Germany4915796238079951,088
Liechtenstein000000
Luxembourg01091618
Monaco00-000
Netherlands123152150213214262
Switzerland585656208288239
            Western Europe1,1401,4651,5531,7352,1922,352
Denmark37466688103147
Faeroe Islands1001-0
Finland8211184177154
Greenland-5080-
Iceland011312
Norway61527516568
Sweden443948317288294
            Northern Europe96128154553634665
Destination Unknown – European Union304348361---
            Total North-West Europe2,7413,2923,4933,4564,1134,190
Percentage of total exports/imports13.815.015.518.718.217.3
Southern and Eastern Europe      
Andorra0---0-
Gibraltar000-00
Vatican City State---0--
Italy265394396481499518
Malta676021
Portugal253231182640
Spain919612658111231
            Southern Europe388529559558637789
Albania-00000
Bosnia-Herzegovina-00-00
Bulgaria051000
Croatia110111
Cyprus955000
Former Yugoslav Republic of Macedonia (FYROM)-00000
Greece70746481313
Moldova-00-00
Romania013221
Slovenia011367
Federal Republic of Yugoslavia200000
            South-East Europe838975132223
Belarus010000
Czech Republic241969
Estonia000000
Hungary2422710
Latvia010000
Lithuania7400-00
Poland2475885
Russia1342591386810
Slovakia000012
Ukraine311022
            Eastern Europe2182751492331118
            Total Southern and Eastern Europe688892784594691930
Percentage of total exports/imports3.54.13.53.23.13.8
            Total Europe3,4294,1854,2774,0504,8045,120
Percentage of total exports/imports17.319.018.921.921.321.1
North Africa and the Middle East
Algeria1343580---
Egypt5187137758
Libya5410---
Morocco2835242711489
Sudan04-000
Tunisia558058
            North Africa22317025835124105
Bahrain1612123812
Iran735158523216
Iraq---0--
Israel46105157102
Jordan32263625247
Kuwait241026-116
Lebanon133010
Oman161418292966
Qatar3450213
Saudi Arabia216186190376379294
Syria553000
Turkey1227929112626
United Arab Emirates40110107202144146
Yemen1824130-37
            Middle East570530511750703735
            Total North Africa and the Middle East793700770785828840
Percentage of total exports/imports4.03.23.44.23.73.5
South-East Asia
Myanmar047011
Cambodia011001
Laos000000
Thailand192251238148240322
Viet Nam285811334748
            Mainland South-East Asia220314359151288372
Brunei Darussalam146701117
Indonesia210217191145204267
Malaysia393443424222450525
Philippines202303280466357
Singapore270381362296345478
            Maritime South-East Asia1,0891,3501,2647101,0731,344
            Total South-East Asia1,3091,6641,6238621,3601,716
Percentage of total exports/imports6.67.67.24.76.07.1
North-East Asia      
People's Republic of China5296136195701,1071,234
Hong Kong (Special Administrative Region)482633535219147177
Japan2,8873,0302,8782,9282,5393,056
Democratic People's Republic of Korea1--000
Republic of Korea929762883297445504
Macau016231
Mongolia-00000
Taiwan, Province of China507564529518554547
            Total North-East Asia5,3355,6045,4514,5354,7945,520
Percentage of total exports/imports26.925.524.124.621.222.8
Southern and Central Asia      
Bangladesh1217196710
Bhutan000---
India16316717288141147
Maldives181400-
Nepal541723111
Pakistan192326505148
Sri Lanka67116125101816
            Southern Asia317347379155218221
Afghanistan00-000
Armenia0----0
Azerbaijan-10000
Georgia001000
Kazakhstan0-0043
Kyrgyzstan--10--
Tajikistan0----0
Turkmenistan---000
Uzbekistan----0-
            Central Asia112143
            Total Southern and Central Asia318348380156222224
Percentage of total exports/imports1.61.61.70.81.00.9
            Total Asia6,9627,6167,4545,5526,3767,460
Percentage of total exports/imports35.134.633.030.128.230.8
The Americas      
Bermuda5211101
Canada362285294301442364
United States of America2,2292,5963,0053,3213,9744,283
United States Minor Outlying Islands0-----
            North America2,5962,8823,3103,6234,4174,648
Argentina373537241487
Bolivia334011
Brazil209794756860
Chile576751122725
Colombia1334467
Ecuador1283294757
Falkland Islands (Malvinas)000---
French Guiana101---
Guyana466000
Paraguay001000
Peru8889917810
Surinam01--0-
Uruguay497001
Venezuela94143106156
            South America321492404152175254
Belize0000-0
Costa Rica012011
El Salvador13551000
Guatemala322021111
Honduras0-1000
Mexico2802162332070129
Nicaragua111000
Panama1422192112
            Central America3272953274273134
Antigua and Barbuda000-00
Aruba000-0-
Bahamas222110
Barbados121412000
Cayman Islands000000
Cuba113231011
Dominica00000-
Dominican Republic211627011
Grenada222---
Guadeloupe854-0-
Haiti103000
Jamaica173231678
Martinique644---
Montserrat----0-
Netherlands Antilles112001
Puerto Rico216244338
St Kitts and Nevis000---
St Lucia2120--
St Vincent and the Grenadines00000-
Trinidad and Tobago12912000
British Virgin Islands--0---
United States Virgin Islands100-00
            Caribbean99118138315349
            Total The Americas3,3433,7874,1803,8494,7195,085
Percentage of total exports/imports16.917.218.520.820.921.0
Sub-Saharan Africa
Benin0-----
Burkina Faso0-----
Cameroon00-000
Cape Verde0-0---
Central African Republic----0-
Congo00-00-
The Democratic Republic of the Congo-0-0-0
Coted d'Ivoire000000
Gabon000-00
Gambia-00000
Ghana1113111
Guinea000-00
Liberia-0----
Mali--0000
Mauritania0--0--
Niger-00-0-
Nigeria2450025
Sao Tome and Principe0--0--
Senegal1-00--
Sierra Leone0--0-0
Togo0-----
            Central and West Africa46191226
Angola410---
Botswana401--0
Burundi-0--0-
Comoros0--000
Djibouti000---
Eritrea000---
Ethiopia000000
Kenya132333
Lesotho---0--
Madagascar002000
Malawi111333
Mauritius292927111
Mozambique12600-
Namibia010000
Reunion557-00
Rwanda00----
Seychelles012-00
Somalia00--00
South Africa409273487484
Swaziland---000
Tanzania022121
Uganda01000-
Zambia010001
Zimbabwe342365
            Southern and East Africa90144126609099
            Total Sub-Saharan Africa941501456191125
Percentage of total exports/imports0.50.70.60.30.40.5
Bunkering, passengers’ baggage and ships’ stores
Bunkering12612739---
Passengers’ baggage94124130---
Ships’ stores302729---
            Total bunkering, passengers’ baggage and ships’ stores250278198---
Percentage of total exports/imports1.31.30.9---
            Total all merchandise exports/imports19,82721,99022,60018,46922,58924,248

A rainbow trout, frozen into a block of ice, for export to England, 1955.

Moturoa Wharf, New Plymouth, c1930.

Moturoa Wharf, New Plymouth, 1999.

Loading containers of apples for export, Port of Napier, 1998.

TRADING PARTNERS
Proportion of total exports going to different markets

ORIGIN OF IMPORTS
Proportion of total imports coming from different countries

Top ten trading partners

For the year ended June 1999, New Zealand's top ten trading partners received 69.9 percent of our merchandise exports and supplied 75.0 percent of our merchandise imports. The single most important trading partner for merchandise imports is Australia, followed by the United States of America and Japan. In the year ended June 1999 these three countries took 47.5 percent of New Zealand's merchandise exports and provided 52.4 percent of New Zealand's merchandise imports.

Table 25.21. TOP TEN COUNTRIES FOR EXPORTS12

CountryYear ended June
199419981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

Australia4,1624,5784,841
United States of America2,2292,5963,005
Japan2,8873,0302,878
United Kingdom1,1821,3271,401
Republic of Korea929762883
Germany491579623
People's Republic of China529613619
Hong Kong (Special Administrative Region)482633535
Taiwan, Province of China507564529
Belgium239470485
Other countries6,1916,8376,801
All merchandise exports19,82721,99022,600

Table 25.22. TOP TEN COUNTRIES FOR IMPORTS12

CountryYear ended June
199419981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

Some statistics may not add to stated totals due to rounding.

Source: Statistics New Zealand

Australia3,9425,5795,367
United States of America3,3213,9744,283
Japan2,9282,5393,056
People's Republic of China5701,1071,234
Germany8079951,088
United Kingdom1,1121,1991,066
Taiwan, Province of China518554547
Malaysia222450525
Italy481499518
Republic of Korea297445504
Other countries4,2695,2496,061
All merchandise imports18,46922,58924,248

Australia

Australia is New Zealand's main trading partner, receiving 21.4 percent of New Zealand's merchandise exports and supplying 22.1 percent of our merchandise imports in the year ended June 1999. Exports to Australia rose by 5.8 percent ($264 million) from the previous year ended June while imports fell by 3.8 percent ($212 million).

Table 25.23. TRADE WITH AUSTRALIA1

Year ended JuneExports to Australia (fob)Imports from Australia (cif)Balance of merchandise trade with Australia

1Some statistics may not add to stated totals due to rounding.

fob = free on board. (The value of goods at New Zealand ports before export.) Includes re-exports.

cif = cost of goods, including insurance and freight to New Zealand.

Source: Statistics New Zealand

 $(million)
19902,9803,257-277
19912,9373,117-180
19923,3883,427-39
19933,7863,74738
19944,1623,942220
19954,3424,444-101
19964,2054,964-759
19974,2765,080-804
19984,5785,579-1,001
19994,8415,367-526

Exports of pearls, jewellery, precious metals and coins to Australia in the year ended June 1999 fell by 22.3 percent ($55 million) from the previous year ended June. Exports of milk powder, butter and cheese rose by 27.0 percent ($37 million).

Imports of mineral fuels from Australia for the year ended June 1999 fell by 18.3 percent ($99 million) from the previous year ended June. Imports of vehicles, parts and accessories; iron and steel and articles; and mechanical machinery rose by 14.2 percent ($48 million), 19.6 percent ($48 million) and 14.8 percent ($45 million), respectively.

TRADE WITH AUSTRALIA
Exports fob, imports vfd

EXPORTS TO AUSTRALIA

Table 25.24. MAJOR COMMODITIES EXPORTED TO AUSTRALIA12

HS codeCommodityYear ended June
1996199719981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.

3Excludes wool (HS code 5101).HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

 $(million)
84Mechanical machinery437474527533
50–633Textile and textile articles, excluding wool306309342357
48Paper and paperboard and articles346250297322
44Logs, wood and wood articles251253298305
27Mineral fuels219389320299
85Electrical machinery201212259270
39Plastics and plastic articles187186203205
71Pearls, jewellery, precious metals and coins294253246191
0401–0406Milk powder, butter and cheese133127139176
72–73Iron and steel and articles147141170174
 Other commodities1,6841,6821,7782,009
 All commodities exported to Australia4,2054,2764,5784,841

Table 25.25. MAJOR COMMODITIES IMPORTED FROM AUSTRALIA12

HS codeCommodityYear ended June
1996199719981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

2Some statistics may not add to stated totals due to rounding.HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

 $(million)
27Mineral fuels421568543444
87Vehicles, parts and accessories501440337385
84Mechanical machinery375349303348
85Electrical machinery300308299303
48Paper and paperboard and articles166239261295
72–73Iron and steel and articles308268243290
50–63Textiles and textile articles268281275286
28Inorganic chemicals265256304278
39Plastics and plastic articles219220212232
30Pharmaceutical products208209215203
 Other commodities1,9341,9432,5882,302
 All commodities imported from Australia4,9645,0805,5795,367

IMPORTS FROM AUSTRALIA

The United States of America

The United States of America is New Zealand's second largest export destination and import supplier. For the year ended June 1999, merchandise exports increased by 15.8 percent ($410 million) and merchandise imports increased by 7.8 percent ($308 million).

Table 25.26. TRADE WITH THE UNITED STATES OF AMERICA1

Year ended JuneExports to the United States of America (fob)Imports from the United States of America (cif)Balance of merchandise trade with the United States of America

1Some statistics may not add to stated totals due to rounding.

fob = free on board. (The value of goods at New Zealand ports before export.) Includes re-exports.

cif = cost of goods, including insurance and freight to New Zealand.

Source: Statistics New Zealand

 $(million)
19901,9792,798-819
19912,0472,610-562
19922,2932,808-515
19932,2573,199-942
19942,2293,321-1,093
19952,1424,274-2,132
19961,8603,687-1,827
19972,0853,623-1,538
19982,5963,974-1,379
19993,0054,283-1,277

Table 25.27. MAJOR COMMODITIES EXPORTED TO THE UNITED STATES OF AMERICA12

HS codeCommodityYear ended June
1996199719981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

 $(million)
02Meat and edible offal522570799782
3,501Casein and caseinates230263327385
0401–0406Milk powder, butter and cheese80138170251
03Fish, crustaceans and molluscs225202182240
44Logs, wood and wood articles89112149212
84Mechanical machinery8579132154
08Fruit and nuts5979103133
85Electrical machinery53688887
90Optical and medical equipment38306686
76Aluminium and articles thereof472177
 Other commodities476538558598
 All commodities exported to USA1,8602,0852,5963,005

TRADE WITH USA

The main commodities contributing to the latest annual rise in merchandise exports to the United States of America were milk powder, butter and cheese (up $81 million), logs, wood and wood articles (up $63 million), casein and caseinates (up $58 million), fish, crustaceans and molluscs (up $58 million) and aluminium and articles thereof (up $56 million).

The main commodity contributing to the rise in imports was aircraft (up $390 million) while the main decrease was for mechanical machinery (down $43 million).

Table 25.28. MAJOR COMMODITIES IMPORTED FROM THE UNITED STATES OF AMERICA12

HS codeCommodityYear ended June
1996199719981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

2Some statistics may not add to stated totals due to rounding.HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

 $(million)
84Mechanical machinery1,2079841,0861,043
88Aircraft and parts67226348738
85Electrical machinery453472542490
90Optical and medical equipment232235260273
39Plastics and plastic articles210214215194
87Vehicles, parts and accessories147182178154
29Organic chemicals11189104119
38Chemical products nes819883110
50–63Textiles and textile articles9597102100
49Books, newspapers and printed matter70707783
 Other commodities1,016957980979
 All commodities imported from USA3,6873,6233,9744,283

Japan

Japan is New Zealand's third main trading partner for both merchandise exports and merchandise imports (after Australia and the United States of America). Merchandise exports to Japan in the year ended June 1999 were down by 5.0 percent ($152 million) from the previous year ended June while merchandise imports were up by 20.3 percent ($517 million).

Table 25.29. TRADE WITH JAPAN1

Year ended JuneExports to Japan(fob)Imports from Japan(cif)Balance of merchandise trade with Japan

1Some statistics may not add to stated totals due to rounding.

fob = free on board. (The value of goods at New Zealand ports before export.) Includes re-exports.

cif = cost of goods, including insurance and freight to New Zealand.

Source: Statistics New Zealand

 $(million)
19902,4862,652-167
19912,6112,337274
19922,7152,375340
19932,7592,653106
19942,8872,928-41
19953,4173,176241
19963,3022,885417
19973,1382,846292
19983,0302,539490
19992,8783,056-178

The decrease in merchandise exports to Japan was mainly due to organic chemicals (down $62 million), aluminium and articles thereof (down $59 million) and logs, wood and wood products (down $30 million).

Table 25.30. MAJOR COMMODITIES EXPORTED TO JAPAN12

HS codeCommodityYear ended June
1996199719981999

1Exports are valued fob (free on board at New Zealand ports before export). Re-exports are included.

2Some statistics may not add to stated totals due to rounding.HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

 $(million)
76Aluminium and articles thereof466424560501
44Logs, wood and wood products632663508478
0401–0406Milk powder, butter and cheese225245269282
03Fish, crustaceans and molluscs371306254246
07Vegetables142133148162
02Meat and edible offal207163172159
08Fruit and nuts113112128132
29Organic chemicals149205174112
3,501Casein and caseinates11210079107
47Wood pulp and waste paper1251068881
 Other commodities759681648619
 All commodities exported to Japan3,3023,1383,0302,878

The increase in merchandise imports from Japan was almost entirely due to vehicles, parts and accessories (up $503 million). This rise in vehicle imports was associated with the removal of tariffs on imported passenger motor vehicles in May 1998, the closure of the New Zealand car assembly industry and low interest rates.

Table 25.31. MAJOR COMMODITIES IMPORTED FROM JAPAN12

HS codeCommodityYear ended June
1996199719981999

1Imports are valued cif (cost including insurance and freight to New Zealand).

2Some statistics may not add to stated totals due to rounding.HS = New Zealand Harmonised System Classification 1996.

Source: Statistics New Zealand

 $(million)
87Vehicles, parts and accessories1,4331,4011,1421,646
84Mechanical machinery431424421407
85Electrical machinery314276261268
90Optical, medical and measuring equipment134132142121
72–73Iron and steel and articles115122116101
40Rubber and rubber articles69626168
39Plastics and plastic articles64657063
37Photographic films, papers and chemicals39364442
95Toys, games and sports requisites14192940
48Paper and paperboard and articles34282636
 Other commodities238280228263
 All commodities imported from Japan2,8852,8462,5393,056

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 became dominant. In the year ended June 1999 the United Kingdom received $1,401 million of New Zealand's merchandise exports, up 5.5 percent ($74 million) from the previous year ended June. Major commodities exported were meat and edible meat offal ($439 million), milk powder, butter and cheese ($266 million), fruit and nuts ($151 million) and wool ($103 million).

New Zealand's imports from the United Kingdom for the year ended June 1999 totalled $1,066 million, down 11.1 percent ($133 million) from the previous year ended June. Major commodities imported were vehicles, parts and accessories ($140 million), mechanical machinery ($130 million) and electrical machinery ($118 million).

APEC

APEC (Asia Pacific Economic Cooperation) is a grouping of regional economies which began in November 1989 with 12 members including New Zealand. Since then a further nine members have joined. APEC provides countries in the region with a forum to promote economic interaction and policy coordination, leading to regional economic growth. New Zealand hosted the latest regional meeting in September 1999.

APEC countries received 69.2 percent ($15,649 million) of New Zealand's merchandise exports in the year ended June 1999 compared with 68.5 percent in the previous year ended June. APEC countries supplied 71.8 percent ($17,415 million) of New Zealand's merchandise imports in the year ended June 1999, the same percentage as in the previous year ended June.

European Union

The European Union (EU) was formed in 1993 and replaced the earlier European Economic Community (EEC). The EU founding members were Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom. In 1995, Austria, Finland and Sweden became members. Several Eastern European and Mediterranean countries are candidates for membership.

In the year ended June 1999, the EU received 17.8 percent ($4,025 million) of New Zealand's merchandise exports, while supplying 19.3 percent ($4,681 million) of New Zealand's merchandise imports.

Asia

Exports to Asia increased during most of the 1990s but have been affected in the last few years by the Asian economic crisis.

Merchandise exports to Asia were $7,454 million in the year ended June 1999, down 2.1 percent ($161 million) from the previous year ended June. In the year ended June 1999, 33.0 percent of New Zealand's merchandise exports went to Asia.

Merchandise imports from Asia were $7,460 million for the year ended June 1999, up 17.0 percent ($1,085 million) from the previous year ended June. In the year ended June 1999, Asia supplied 30.8 percent of New Zealand's merchandise imports.

TRADE WITH ASIA
Excluding Japan

TRADE WITH EU COUNTRIES

TRADE WITH APEC COUNTRIES
Balance of trade

Table 25.32. EXPORTS TO SELECTED REGIONS AND COUNTRY GROUPINGS1

Year ended JuneAsia2Europe3OECD4APEC5EU6ASEAN7All merchandise exports

1Statistics are compiled according to the New Zealand Standard Classification of Countries 1999.

2Asia includes the former USSR Asian republics.

3Europe includes Russia and the former USSR European states.

4OECD – Organisation for Economic Cooperation and Development. (Established in September 1961.)

5APEC – Asia Pacific Economic Cooperation countries. (Established in November 1989.)

6EU – European Union. (Established in November 1993.)

7ASEAN – Association of South East Asian Nations. (Established in August 1967.)

Source: Statistics New Zealand

 $(million)
19904,6752,90110,2995,595-83015,164
19915,3632,85310,3739,600-1,05415,768
19926,2103,08611,44511,460-1,30917,840
19936,5663,25712,01612,575-1,33818,971
19946,9623,42912,67113,5682,2421,28119,827
19957,9903,49813,52414,7563,2131,44620,790
19968,0433,56812,98514,3603,2791,64420,546
19977,9043,82213,89814,5433,4141,79321,033
19987,6164,18515,09215,0623,8111,66321,990
19997,4544,27715,92215,6494,0251,62322,600
Percentage of all merchandise exports
199030.819.167.936.9-5.5100.0
199134.018.165.860.9-6.7100.0
199234.817.364.264.2-7.3100.0
199334.617.263.366.3-7.1100.0
199435.117.363.968.411.36.5100.0
199538.416.865.071.015.57.0100.0
199639.117.463.269.916.08.0100.0
199737.618.266.169.116.28.5100.0
199834.619.068.668.517.37.6100.0
199933.018.970.569.217.87.2100.0

Table 25.33. IMPORTS FROM SELECTED REGIONS AND COUNTRY GROUPINGS1

Year ended JuneAsia2Europe3OECD4APEC5EU6ASEAN7All merchandise imports

1Statistics are compiled according to the New Zealand Standard Classification of Countries 1999.

2Asia includes the former USSR Asian republics.

3Europe includes Russia and the former USSR European states.

4OECD – Organisation for Economic Cooperation and Development. (Established in September 1961.)

5APEC – Asia Pacific Economic Cooperation countries. (Established in November 1989.)

6EU – European Union. (Established in November 1993.)

7ASEAN – Association of South East Asian Nations. (Established in August 1967.)

Source: Statistics New Zealand

 $(million)
19904,4173,72712,7265,713-56015,770
19914,0803,86712,2069,201-61515,325
19924,4653,22912,10110,396-73615,483
19935,0833,72413,56912,140-77317,333
19945,5524,05014,51613,0022,18485818,469
19956,2744,62716,83015,3084,0881,08121,261
19966,2504,83916,82815,2394,5601,30121,352
19976,3444,60416,81115,3524,2421,27221,324
19986,3754,80417,85816,2124,4081,36022,589
19997,4605,12018,82317,4154,6811,71624,248
Percentage of all merchandise imports
199028.023.680.736.2-3.6100.0
199126.625.279.660.0-4.0100.0
199228.820.978.267.1-4.8100.0
199329.321.578.370.0-4.5100.0
199430.121.978.670.411.84.6100.0
199529.521.879.272.019.25.1100.0
199629.322.778.871.421.46.1100.0
199729.821.678.872.019.96.0100.0
199828.221.379.171.819.56.0100.0
199930.821.177.671.819.37.1100.0

25.5 Overseas cargo

Overseas cargo statistics record all goods (by value and gross weight) loaded or unloaded at New Zealand's seaports or airports.

Overseas cargo statistics, like overseas merchandise trade statistics, are sourced from customs entries. However, there are some conceptual differences between overseas trade statistics and overseas cargo statistics.

Some items are included in overseas cargo statistics, but not in the overseas merchandise trade statistics. These include:

  • Goods on short-term loan or lease.

  • Service transactions, e.g. computer data tapes and drawings.

  • Goods consigned to New Zealand forces or diplomatic representatives.

  • Goods consigned for modification or repair.

  • Returnable containers and samples.

Government inspectors check boxes of apples, c1939.

Table 25.34. OVERSEAS CARGO LOADED AT NEW ZEALAND PORTS12

New Zealand portValue of exports(fob)Gross weight
Year ended JuneYear ended June
199419981999199419981999

1Overseas cargo includes merchandise freight, goods for repair, loaned and leased goods, military and diplomatic goods, and returnable containers and samples.

2Some statistics may not add to stated totals due to rounding.

fob = free on board. (The value of goods at New Zealand ports before export.) Re-exports are included.

Source: Statistics New Zealand

 $(million)tonnes
Whangarei387183189914,422408,690662,830
Auckland4,9766,5616,3941,910,1652,693,6202,251,331
Tauranga2,9812,9393,3844,543,0505,308,2335,719,869
Taharoa251171,232,475558,042350,741
Gisborne686597269,787321,643514,148
New Plymouth9131,0329462,208,3042,905,5053,779,829
Napier1,2511,3501,3991,152,4371,021,8161,046,603
Wanganui0--0--
Wellington1,8811,3671,449633,012649,467563,102
            North Island seaports12,48213,50713,86612,863,65213,867,01614,888,453
Nelson674644754842,769885,416925,968
Picton2871085,58422,22776,295
Tarakohe0--0--
Westport561329,05756,967140,162
Lyttelton1,5862,4402,6111,480,6302,129,6382,047,101
Timaru416348163362,182199,642106,083
Dunedin1,2681,0051,204614,966543,134823,426
Invercargill (Bluff)637856825661,193629,038492,688
            South Island seaports4,6145,3065,5794,076,3814,466,0624,611,723
            New Zealand seaports17,09618,81419,44516,940,03318,333,07819,500,177
Auckland airport2,3842,9022,98873,91778,20568,030
Hamilton airport-0--0-
Whenuapai airport00-70-
Ohakea airport0--2--
Wellington airport1581631364,8915,1124,454
Christchurch airport50068679813,70518,15218,196
Dunedin airport-10-150
            Total airports3,0423,7523,92292,522101,48490,680
Parcel post1110763916
            Total cargo loaded20,14922,57523,37517,032,56118,434,60219,590,872

Table 25.35. OVERSEAS CARGO UNLOADED AT NEW ZEALAND PORTS12

New Zealand portValue of imports(cif)Gross weight
Year ended JuneYear ended June
199419981999199419981999

1Overseas cargo includes merchandise freight, goods for repair, loaned and leased goods, military and diplomatic goods, and returnable containers and samples.

2Some statistics may not add to stated totals due to rounding.

cif = cost of goods, including insurance and freight to New Zealand.

Source: Statistics New Zealand

 $(million)tonnes
Whangarei8669801,0033,979,5964,408,1934,883,705
Auckland8,70510,84711,4842,393,8293,027,6503,070,724
Tauranga3513834401,016,4951,078,2861,022,074
Gisborne172718703,1918,151
New Plymouth8616991279,439185,811253,535
Napier330307334456,713555,500549,609
Wanganui0--86--
Wellington1,1931,2761,412498,297715,888686,268
            North Island seaports11,54813,96414,7718,626,3249,974,51910,474,066
Nelson13313112656,34887,08559,936
Picton00-18224-
Westport0--16--
Lyttelton1,1521,3421,498577,573776,549797,606
Timaru1121035094,905110,926151,032
Dunedin209139186182,500179,136226,845
Invercargill (Bluff)275368354790,470968,576936,250
            South Island seaports1,8812,0832,2141,701,8292,122,4952,171,670
            New Zealand seaports13,42916,04716,98510,328,15312,097,01412,645,736
Auckland Airport4,0284,9395,57565,17876,18977,260
Hamilton Airport-00-10
Ohakea Airport68--32--
Wellington Airport1612212165,4694,7263,971
Christchurch Airport4264675358,1218,5758,728
Dunedin Airport-00-30
Invercargill Airport-0--0-
            Total airports4,6835,6286,32678,80189,49489,959
Parcel post765358782176163
            Total cargo unloaded18,18821,72923,36910,407,73612,186,68412,735,857

1999 OVERSEAS CARGO – LOADED
By weight (thousand tonnes) and value (fob $million)

1999 OVERSEAS CARGO – UNLOADED
By weight (thousand tonnes) and value (cif $million)

First leaf tobacco shipment to England, 1963.

Overseas cargo statistics exclude large self-propelled items, such as aircraft and ships, that arrive in, or depart from, New Zealand using their own power.

Overseas cargo loaded at New Zealand ports in the year ended June 1999 weighed 19.59 million tonnes, up 6.3 percent from the previous year ended June. The value of cargo loaded was $23,375 million, up 3.5 percent.

By cargo weight, the main port was Tauranga seaport (at 29.2 percent of the total loaded), followed by New Plymouth seaport (19.3 percent) and Auckland seaport (11.5 percent). By value the main port was Auckland seaport (27.4 percent), followed by Tauranga seaport (14.5 percent) and Auckland airport (12.8 percent). By weight, air cargo was only 0.5 percent of cargo loaded but by value it was 16.8 percent, reflecting the comparatively high value and perishable nature of much air cargo.

Overseas cargo unloaded at New Zealand ports in the year ended June 1999 weighed 12.73 million tonnes, up 4.5 percent from the previous year ended June. The value of cargo unloaded was $23,369 million, up 7.6 percent.

By cargo weight, the main port was Whangarei seaport (at 38.3 percent of the total unloaded), followed by Auckland seaport (24.1 percent). By value the main port was Auckland seaport (49.1 percent), followed by Auckland airport (23.9 percent). By weight, air cargo was only 0.7 percent of cargo unloaded but by value it was 27.1 percent.

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. Statistics New Zealand produces price indexes for services and merchandise trade that are exported and imported, and volume indexes for merchandise trade. The services indexes, which were first released in September 1999, are a new addition to the overseas trade indexes.

The services indexes were developed with a two-year back series, with the expression base being the quarter ended June 1997. The indexes are based on the concepts applicable in the current International Standards for the System of National Accounts (SNA'93) and Balance of Payments Manual 5 (BPM5). Indexes were developed for the following service components: transportation, travel, government services and other services.

Data used in calculating the weights for the services indexes is derived from the Balance of Payments current account. The prices used in the services indexes are from Statistics New Zealand's Commodity Price Survey and international price indexes.

The merchandise trade 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 merchandise trade 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 merchandise trade 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 merchandise 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 1980–1989 base period. The overseas services terms of trade index is expressed on a base of the quarter ended June 1997.

Table 25.36. INDEXES FOR EXPORT AND IMPORT PRICES AND TERMS OF TRADE

 MerchandiseServices1
Exports price indexImports price index2Terms of trade index3Exports price indexImports price indexTerms of trade index

1Base: Quarter ended June 1997 (=1000).

2Base: Year ended June 1989 (=1000).

3Base: The average of the 10 years ended June 1989 (=1000).

4Annual indexes for merchandise trade are volume weighted averages whereas the services indexes are simple weighted averages.

Source: Statistics New Zealand

June year4
19888889411074---
1989100010001139---
1990106410341172---
1991100410441095---
1992103110861081---
1993111511291125---
1994106710871118---
1995105410761115---
1996103110691098---
199797910261087100010001000
199810041057108210241086943
199910241084107610421154902
Quarterly
1997 Mar97010201083   
        Jun96510211076100010001000
        Sep980104710661009R1044R966
        Dec1003105310851020R1043R978
1998 Mar1017105011031028R1103R932
        Jun1019107810761040R1154R901
        Sep1041108710901050R1197R877
        Dec1029108410801050R1155R909
1999 Mar1006107810621035R1140R908
        Jun1021108510721033R1122R921

Export and import price indexes

Tables 25.37 and 25.38 provide a summary of changes in the export and import price indexes for merchandise trade, and 25.39 for services trade.

Table 25.37. MERCHANDISE EXPORT PRICE INDEXES1

 All pastoral and dairy productsTotal2Fish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNon-food manufactured goodsTotal exports2
Dairy productsMeat, wool and by-products
MeatWoolTotal2AluminiumTotal2

1Year ended June 1989 (=1000).

2Includes commodities not listed.

Source: Statistics New Zealand

June Year
1989100010001000100010001000100010001000100010001000
1990116411899491098109910331121102910278649881064
1991103911936979759951005107710008488569591004
1992110812246399821037121011569958347219461031
199312811309675105411231330125211449557269711115
1994115412356361007105212401157127710056729321067
199510551083779993999126610661226104386510041054
199611941027760945100611771078121910008039481031
199710581074680956964113410321039922703892979
1998112310786719539911142106810679278199201004
19991180118461898410411297115610358837758981024
Quarterly
1997 Mar10231077660956954112510201009917705881970
            Jun1040105364794195311131021997908745880965
            Sep10481059668946955113110241055929785905980
            Dec110910727079669891123105410819608259101003
1998 Mar1150108265995310011145108510749238349391017
            Jun1188109963895110171168110910558948319331019
            Sept12361206640101010621264116810629188109161041
            Dec1211116161597310461267115710158848139141029
1999 Mar1145116360997610231319113810278757438761006
            Jun1121120760498210401354116310418547298811021

Preparing logs for export.

Table 25.38. MERCHANDISE IMPORT PRICE INDEXES1

 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goodsTotal imports3
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steel2Non-electrical machineryElectrical machinery and apparatusTransport equipmentTotal3

1Year ended June 1989 (=1000).

2Excludes manufactured articles of iron and steel.

3Includes commodities not listed.

Source: Statistics New Zealand

June year
198910001000100010001000100010001000100010001000
19901052126910148331025105210421006102710171034
19911038157010328581046999988988106410041044
19921078139210497981100107010561052122610651086
19931098146610278041100102711051107138311111129
199410541171960737102494910701114145010901087
199510381175988788103093410541037147210761076
1996104211699987691010101110301006144010671069
199710421277950690975926971958140910091026
19981103116810117261051979979978147510441057
1999115710861027702109496910711012140110781084
Quarterly
1997 Mar1012138294167895590096392813959961020
            Jun10521263951691969904951927139610001021
            Sep107212279637031006943981975150510331047
            Dec108113099987161038960967978149310331053
1998 Mar11141109102674210861014950969149010411050
            Jun114910831057747108210071022990139810741078
            Sep1183114210807351140101510161016136310721087
            Dec115410831022724111097710861006142010791084
1999 Mar11439421009680105994510981013136910871078
            Jun11461184997667106395010901014141210761085

Table 25.39. PRICE INDEXES OF OVERSEAS TRADE IN SERVICES1

 Services ExportsServices Imports
TransportationTravelOther servicesGovt servicesTotal exportsTransportationTravelOther servicesGovt servicesTotal imports

1Base: Quarter ended June 1997 (=1000).

2Annual indexes are simple weighted averages of the quarters.

Source: Statistics New Zealand

June year2
19971000100010001000100010001000100010001000
19981018100711041015102410241120111711511086
19991039102611141021104210551219119112721154
Quarterly
1997 Jun1000100010001000100010001000100010001000
            Sep1008R998R1051R10051009R1001R1075R1059R10811044R
            Dec1010R1010R1078R1013R1020R991R1066R1075R11011043R
1998 Mar1021R1008R1120R1016R1028R1036R1140R1136R11711103R
            Jun1032R1011R1167R1025R1040R1068R1199R1198R1251R1154R
            Sep1039R1014R1213R1032R1050R1086R1253R1257R13121197R
            Dec1037R10231182R1032R1050R1060R1214R1196R12761155R
1999 Mar1044R1032R1034R1012R1035R1043R1216R1165R12621140R
            Jun1037R10341026R1007R1033R1031R1194R1146R12361122R

EXPORT VOLUME INDEX

Export and import volume indexes

Table 25.40 provides a summary of the export volume indexes, and table 25.41 provides a summary of the import volume indexes. These indexes are expressed on a base of the year ended June 1989 (=1000). In these tables the quarterly index numbers are given as annual equivalents.

Table 25.40. MERCHANDISE EXPORT VOLUME INDEXES1

 All pastoral and dairy productsTotal2Fish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNon-food manufactured goodsTotal exports2
Dairy productsMeat, wool and by-products
MeatWoolTotal2AluminiumTotal2

1Year ended June 1989 (=1000).

2Includes commodities not listed.

Source: Statistics New Zealand

June year
1989100010001000100010001000100010001000100010001000
199095080677279286786791110878449731043942
1991103789976985693896010021276936102411481033
19921147101795296610391151112314751064107712971152
199311129687518759601062107216341010101114161136
1994131096993092010531188117115561049108216101246
19951396101090193410981156124117161085108117381322
19961338108376495211071260128616941054110217691343
19971779106178793312081190140718281076123119021446
1998176911157629391223117714411715999124620021466
199917489946738461165117113961857988130820881462
Quarterly
1997 Mar1786120776510381217980135416171058122717161371
            Jun18761308756109214481255168320131179127820261627
            Sept15739646578121089130313461902969124120991439
            Dec20919019188261144124713681794102912942,1571476
1998 Mar17981390806113513371005149316231068124717691451
            Jun163312136809991337118015711664996120620121546
            Sep1490821683744100513471238173594814042,1561393
            Dec2,1288468667751110124913492048104612972,1391465
1999 Mar192112156339791279104514881788996128519181470
            Jun14531095508886126510411507185796412472,1391522

IMPORT VOLUME INDEX

Bay of Plenty Times
This 52m carbon fibre yacht mast, the tallest built in New Zealand, was transported to Tauranga from Warkworth for shipment to Britain, 1998.

Table 25.41. MERCHANDISE IMPORT VOLUME INDEXES1

 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goodsTotal imports3
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steel2Non-electrical machineryElectrical machinery and apparatusTransport-equipmentTotal3

1Year ended June 1989 (=1000).

2Excludes manufactured articles of iron and steel.

3Includes commodities not listed.

Source: Statistics New Zealand

June year
198910001000100010001000100010001000100010001000
199010911194116012971074123811121164160612411221
1991109012431045121997594611711405119911941175
19921090119811701414101591910751103104611441142
199312261226118416601099116712151142103012381230
199414061391132418911165145914791219105413591361
199515351472133420201189156816731570149616101583
199615901694133219981130142218581684124616111600
19971648172813312,1941092154617991750132916851664
199817181785135122051082138819411805129017321712
19991792194013502,3471044141017221896167418091792
Quarterly
1997 Mar14541704121520101015142216391527115615371522
            Jun1607207312922,1461090146517471798131316481648
            Sep1710162813512,2351157146819451944169919121848
            Dec1949143113112,4361144154420611945127418171773
1998 Mar1586198413962066102713181982162299616051614
            Jun1627209713442082999122117741708119115951614
            Sep1821179713072,2771052129018471729140417911766
            Dec2032185413812,4411101118617012,1452,21419951961
1999 Mar16172059139123081009141916551757145116831685
            Jun1697204913222,3621013174416841953162617661756

Contributors

  • 25.1 New Zealand Trade Development Board (Trade NZ); New Zealand Customs Service; Statistics New Zealand.

  • 25.2-25.3 Statistics New Zealand.

  • 25.4 Statistics New Zealand; Trade NZ.

Special articles

New Zealand Customs Service; Trade NZ; Statistics New Zealand.

Further information

Bircher S and Jian NX 1999. Expecting the best: an introduction to the New Zealand overseas trade in the 1990s. Christchurch: Asia Pacific Institute.

Export News. Trade NZ (fortnightly).

Key Statistics. Statistics New Zealand (monthly).

New Zealand Harmonised System Classification. 1996. Statistics New Zealand (annual updates).

New Zealand Standard Classification by Broad Economic Categories. 1987. Department of Statistics.

New Zealand Standard Classification of Countries. 1995. Statistics New Zealand.

New Zealand Standard Trade Classification. 1998. Department of Statistics.

Nixon C 1999. New Zealand's trade policy experience and the millennium round. Wellington: New Zealand trade consortium in association with the New Zealand Institute of Economic Research.

Report of the New Zealand Customs Service (Parl paper B.24).

Report of New Zealand Trade Development Board (Parl paper G.45).

Tariff of New Zealand. New Zealand Customs Service.

Chapter 26. Prices

Retailers faced tough times in 1998, with consumers reluctant to spend despite tax cuts and low mortgage rates.

Statistics New Zealand collects prices of a large number of goods and services 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 25.6: Overseas 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.

Calculation of the CPI. There are two main components of the CPI: the regimen, a ‘basket’ of goods and services and their weights, which is fixed for the base period of the index; and the prices for those goods and services, which are collected every month or quarter so that the price index can be calculated.

Index regimen. Since 1914, when the CPI was first calculated, spending patterns have changed considerably as new goods and services appear and as lifestyles and consumer tastes alter. The CPI is reviewed regularly to keep up to date with changing expenditure patterns. The reviews change the composition of the basket of commodities which are price surveyed and adjust the relative importance given to each commodity.

Table 26.1. CONSUMERS PRICE INDEX REGIMEN EXPENDITURE WEIGHTS

 FoodHousingHousehold operationApparelTransportationTobacco and alcoholPersonal and health careRecreation and educationCredit services

Year ended June.

Source: Statistics New Zealand

193029.5221.939.9512.613.461.300.542.00-
194439.0025.0013.0014.004.501.501.002.00-
194934.4016.7510.8820.313.586.573.833.68-
195632.2615.4010.7715.438.778.363.705.32-
196530.0911.1311.7013.129.447.544.555.566.86
197417.8226.3914.378.5514.706.354.006.091.70
197719.1222.6017.117.9513.847.814.286.051.24
198019.6215.2716.107.1318.269.114.836.273.40
198318.3516.9716.006.3717.689.314.366.184.77
198818.3517.0415.415.3414.689.724.906.657.87
199317.7619.5014.924.5014.588.466.277.506.50
199918.1723.0414.793.7315.439.256.078.820.69

Price surveys. Retail outlets and organisations are selected for price surveys for the CPI so that the sample of outlets reflects changes in market trends and household buying behaviour. The prices for a wide range of commodities are collected, when possible, monthly for food and quarterly for other commodities at each outlet. These are compared against the previous period's results and price changes are recorded. Prices in retail establishments are surveyed by specially-trained field staff in 15 urban areas throughout New Zealand.

In addition to recording 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.

All the surveys which collect prices for the CPI are reviewed and updated on a regular basis. The review of these surveys covers 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 Statistics New Zealand collects the data.

Uses of the CPI

The CPI is used for a variety of purposes including cost of living adjustments, indexing legal contracts, rental adjustments, monitoring monetary policy and other political, commercial and personal uses.

A common use of the CPI is to determine the amount of money needed in the present that would have the same purchasing power as an amount from the past. The following examples demonstrate how the CPI can be used.

Example One (indexation): What after-tax wage is needed in the March 1999 quarter to have the same buying power as the $200 received in the March 1997 quarter?

This means that, on average, to buy the goods and services obtained for $200 in March 1997, the person would need $202.43 in March 1999. This type of calculation is often used when an amount of money has been specified in a will, a trust deed or some other legal document at some time in the past. Multiplying the amount specified, by the ratio of the current index number to the index number for the period in which the amount was specified, will give the amount needed to have the same purchasing power at the current time. This practice is often referred to as indexation.

Example Two (comparing purchasing power): A different use of the CPI reverses the method described above. For example, using the data from the following chart we find the purchasing power of the dollar in the September 1998 quarter compared with the March 1986 quarter is given as:

This means that, on average, in the September 1998 quarter a dollar would purchase goods that could have been purchased for only 58 cents in the March 1986 quarter. When used in this way the CPI is referred to as a deflater. The ‘real’ value (or purchasing power) of the dollar in the September 1998 quarter has declined in comparison with the March 1986 quarter because, according to the CPI, prices have gone up by 71 percent during the period. When the CPI is used as a deflater, the aim is to alter a series of money values, so that the effect of price changes over the period are eliminated. Deflated values are referred to as ‘constant dollar’ values.

Example Three (comparing prices): As detailed price indexes have been kept in New Zealand since 1914, it is possible to calculate comparisons between the cost of items at different times back to 1914, using the table on this page. For example, compare the cost of sending a letter in 1953 (3d) with the cost in 1999.

  1. Convert to dollar value. The earlier cost is for a year before 1967. Convert from £ to dollars (£1 = $2, 10/- = $1, 6d = $0.05, 1d = $0.01.) 3d converts to 3 cents.

  2. Find the appropriate index figures. The table on this page is for ‘all groups’ by quarters, and the index figure for June 1999 is 1000. The index figure for June 1953 is 53.

  3. Calculate the conversion factor. Divide the 1999 figure by the 1953 figure: 1000/53 = 18.868.

  4. Apply the conversion factor. Multiply the 1953 price by the conversion factor: $0.03 × 18,868 = $0.566 which rounds to 57 cents. This compares with the 1999 cost of 40 cents.

Other tables give the CPI for specific groups. If you want to compare the costs of, say, food, clothing (apparel) or transport, use the index figures in Table 26.2. For different sub-groups of food, use the index figures in Table 26.3.

To make a valid comparison, the product or service must have been present at both times. It is no use calculating the cost of a video player 50 years ago. Also, the quality and nature of products and services change—an example of this is given in the 1990 Yearbook comparison of the cost of a house.

Consumers Price Index review

The CPI was last reviewed in June 1999. As part of the work on the five-yearly review of the CPI, a Revision Advisory Committee was convened by the Minister of Statistics in 1997. Its tasks were to advise on the purposes of the CPI and the methods needed to achieve an index consistent with these purposes.

Updated expenditure basket. The weighting pattern for the goods and services in the CPI is based on the average expenditure 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 expenditure. 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. The base weights represent expenditure allocated from similar commodities as well as the expenditure on each commodity for which prices are surveyed.

Some types of expenditure are 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, e.g. art work.

Significant changes to the CPI. In the latest review a number of significant changes were made reflecting the variety of uses the index is put to. Since the 1991 review, changes in the labour market brought about by the Employment Contracts Act have led to the CPI having a less prominent role in wage negotiations. In addition the Reserve Bank Act 1989 has seen the CPI (excluding interest rates) assume a key role as a target for monetary policy. While the adjustment of some incomes for consumer price change continues to be a significant use of the CPI, there is a stronger case for regarding the inflation measurement as its principal purpose. The committee recommended some fundamental changes in the approach to the CPI as they believed that one single measure of price change can no longer satisfactorily meet all the needs of users. They recommended:

  • an acquisition-based index excluding interest payments which would be regarded as the official CPI

  • an actual outlays series which would include interest payments

  • a consumption-based series.

In the June 1999 quarter the first part of this recommendation was introduced. The CPI is now an acquisition-based index excluding interest payments. The acquisitions method used is consistent with current Australian practice and is also the approach adopted by the European Union in developing a harmonised CPI for member states.

Interest is excluded from the official CPI because these charges are incurred by households that have financed purchases by borrowings. As the total amount of interest charges incurred in any period typically bears no direct relationship to actual quantities of specific goods and services acquired by households in that period, interest charges are not included. The other major change in the 1999 rebased CPI is that home ownership now excludes the expenditure on residential sections. Over time, land is not consumed and so can be considered to represent the investment component of home ownership. As investment expenses are outside the scope of the CPI, sections have been excluded. Home ownership is now represented by the purchase and construction of new dwellings (excluding land), local government rates and charges, house repairs, maintenance expenses and house insurance costs.

CONSUMERS PRICE INDEX
All groups

Inner city supermarket, Willis Street, Wellington, 1956.

FOOD
Percentage of expenditure weight

HOUSING
Percentage of expenditure weight

HOUSEHOLD OPERATION
Percentage of expenditure weight

TRANSPORTATION
Percentage of expenditure weight

Comparing the expenditure weights. The expenditure weights for the June 1999 period, and previous base periods are shown in table 26.1. Comparing baskets at different rebases is complicated by the differences in each basket. This has been heightened in the recent rebase as interest charges, and residential sections which contributed nearly 8 percent of the 1993 regimen were excluded from the 1999 regimen. If interest and sections were taken out of the 1993 regimen the main impact would be to turn small increases in weights in food and transportation into small decreases and to reduce the size of the increase in the weight given to the tobacco and alcohol group.

Ongoing reviews of the CPI. The Revision Advisory Committee recognised that the main types of bias likely to occur in the New Zealand CPI include quality adjustment bias, outlet substitution bias and commodity substitution bias. The magnitude of these can be limited by the use of such methods as: frequent re-selection and re-weighting of the CPI basket of goods and services; frequent reviews of the outlets used to collect prices; probability sampling for outlet selection; and the application of alternative methods of quality adjustment. The review of the CPI will be moved from a five- to a three-year cycle. Reviews of the expenditure weights at the lower level of the index, outlet reselection, improved sampling and price surveys will occur in the intervening years.

Changes to the CPI regimen in 1999

The following paragraphs show the main differences between the 1993 and 1999 regimens.

Food. A wider range of fresh fruit and vegetables and grocery food have been introduced, including avocado, capsicum, alfalfa sprouts, zucchini, taro, prepared pasta sauce and energy drinks.

Housing. Although residential sections have been excluded from the CPI, the weight for the housing group has increased significantly, mainly due to the increase in purchase and construction of new dwellings. The number of approved building consents issued for new residential dwellings increased from 20,363 in the June 1994 year to 22,537 in the June 1999 year. This rebase is the first to include the full impact of the sale of local authority rental properties and Housing New Zealand's move to market rentals. The proportion of renting households with state sector landlords dropped from 36.4 percent in 1991 to 27.9 percent in 1996.

Household operation. A new section, communication equipment and services, was introduced in 1999. It includes telephone and cell phone purchase, rental, connection and call charges as well as Internet charges. Bringing the communication equipment and services together means that items that households substitute for another are now in one area of the regimen. For example, many householders are choosing to use the telephone (national and international telephone calls have recorded a significant drop in price and increase in volume) and Internet services rather than postage (the expenditure weight and price for postage have both fallen since the 1993 base period).

Transportation. Expenditure on air travel has continued to increase. The number of New Zealand residents departing New Zealand for short-term holidays has risen from 368,530 in the 1992–1993 March year to 537,138 in the 1997–1998 March year. There has also been a marked change in expenditure on cars, reflecting the removal of tariffs and a rise in the number of used cars imported into New Zealand. The increase in the number of first time registrations for used cars (43,841 in 1993 and 99,937 in 1998) has contributed to a dramatic increase in expenditure. The number of outlets selling CNG has fallen throughout New Zealand and this decline in usage is reflected by the dropping of CNG as a regimen item.

Tobacco and alcohol. In the HES, consumers traditionally under-report their spending on items in this group. Therefore the CPI expenditure weight is independently estimated from information such as production statistics, international trade data, distribution information and price information. The range of cigarettes priced has been modified to improve the coverage of the lower and upper ends of the market. Pre-mixed spirits have also been introduced into the regimen for the first time.

Personal and health care. The only significant change to the regimen in personal and health care is the dropping of the expenditure weight for hospital services, as public hospital charges were removed in the September 1997 quarter.

Recreation and education. The only new regimen item in this group is fees paid by households for others to stay in rest homes. There have been two significant changes in weights. Firstly, tertiary tuition has increased dramatically. The 1997/98 HES recorded expenditure on university fees as $254 million compared with $108 million in 1992/93. Secondly, the expenditure weight for home computing equipment has seen a change over the last few rebases, rising from 0.09 percent in 1983 to 0.64 percent in 1999. The number of households purchasing a computer has increased. In 1992/93 2.3 per cent of households reported expenditure in the HES; however, this more than doubled to 5.4 percent in the 1997/98 HES.

Credit services. The credit services group has been substantially reorganised to accommodate the removal of interest charges from the CPI. The group now consists of credit and store cards, bank fees, loan application fees (including hire purchase fees) and government bank fees. It is intended that this section will include financial intermediation services indirectly measured (FISIM) when adequate expenditure weights and price indicators can be developed.

TOBACCO AND ALCOHOL
Percentage of expenditure weight

PERSONAL AND HEALTH CARE
Percentage of expenditure weight

Analysis of price movements

The following section discusses the price changes in New Zealand as measured by the CPI. These price changes are expressed in percentages and show movement in the CPI between June quarters of the relevant years. In the late 1970s the CPI recorded large annual increases. These high increases continued through most of the 1980s (except in 1983 and 1984 when the CPI increased by 8.3 percent and 4.7 percent respectively). In 1988 the annual increase in the CPI fell to below 6.3 percent, marking the beginning of a period of single-digit increases. These lower increases have continued through the 1990s and led to a period of deflation in 1999 when the CPI fell 0.4 percent.

Table 26.2. CONSUMERS PRICE INDEX – NEW ZEALAND BY GROUP

June quarterAll groupsFood HousingHousehold operationsApparelTransportationTobacco and alcoholPersonal and health careRecreation educationCredit services

1Percentage changes are calculated from index numbers which are unrounded prior to the June 1999 quarter. Base: June 1999 quarter (=1000)

Source: Statistics New Zealand

1979261286..346346346164......
1980308341..405395427209......
1981354395455441499245......
1982415454..524494579281......
1983449468..540537624321......
1984470493..548559650336......
1985548571..620624790412......
1986605617..702700828429......
1987720723..827834950562......
1988766764..845877957607......
19898008096968649019546706696781236
19908618957559139499807377337471290
199188590477793298110047677977831290
199289489777394499110298179078001101
1993905909795957100310538308898231039
19949159068469649961044843905843971
199595792990596899010528669178681287
199697693395697998210488989459071268
199798795697998897510289279759271225
19981004982101697698010139599909591239
19991000100010001000100010001000100010001000
Percentage change from same quarter of previous year1
197912.418.1..11.910.514.29.2......
198017.919.2..17.314.223.427.5......
198115.116.0..12.311.616.917.4......
198217.014.9..15.212.016.014.5......
19838.33.0..3.08.67.714.4......
19844.75.4..1.54.14.34.8......
198516.615.9..13.211.621.522.5......
198610.48.0..13.112.34.84.2......
198718.917.2..17.819.114.830.8......
19886.35.7..2.25.20.78.1......
19894.45.9..2.22.7-0.410.4......
19907.610.68.65.75.42.810.09.510.24.4
19912.81.02.82.23.32.44.08.84.80.0
19921.0-0.8-0.51.31.12.56.413.82.1-14.7
19931.31.42.91.31.22.31.7-2.02.9-5.6
19941.1-0.46.40.8-0.7-0.81.51.82.4-6.6
19954.62.57.00.4-0.60.82.81.33.032.6
19962.00.55.61.1-0.8-0.43.73.14.5-1.5
19971.12.42.41.0-0.7-1.93.33.12.2-3.3
19981.72.73.8-1.30.5-1.53.41.63.41.1
1999-0.41.9-1.52.52.0-1.24.31.04.3-19.3

RECREATION AND EDUCATION
Percentage of expenditure weight

CREDIT SERVICES
Percentage of expenditure weight

APPAREL
Percentage of expenditure weight

FOOD
Change from previous quarter

HOUSING
Change from previous quarter

HOUSEHOLD OPERATION
Change from previous quarter

Food. The food group increased by 1.9 percent from the June 1998 quarter to the June 1999 quarter. Fruit and vegetables prices increased by 2.0 percent, while prices for meat, fish and poultry increased by 2.5 percent. Grocery foods rose 1.7 percent, and restaurant meals and ready-to-eat foods rose 1.7 percent. 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.

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. The price of housing fell 1.5 percent in the June 1999 quarter compared with the June quarter of 1998. The fall in both section prices and rentals was largely responsible for the deflationary period in New Zealand in the year from June 1998 to June 1999.

Household operation. The household operation group rose 2.5 percent in the year from June 1998 to June 1999. Energy (which includes electricity, gas, coal and firewood) rose 1.9 percent. Household appliances and furnishings rose 2.8 percent while household supplies and services rose 2.6 percent.

Apparel. The price of apparel rose 2.0 percent in the period from the June 1998 quarter to June 1999. This is the largest increase since 1991. In four of the intervening years a sequence of price falls reflected the lifting of import tariffs on clothing.

Transportation. The transportation index fell 1.2 percent from the June 1998 quarter to the June 1999 quarter. This follows a series of annual declines in the transportation group. The price of public transport rose 3.4 percent during this time. However, private transport costs, fell 2.3 percent from the June 1998 quarter to the June 1999 quarter. The price of new and used cars fell due to the removal of import tariffs on new cars and a rise in the number of imported used cars over the year. The price of drivers’ licensing rose due to the introduction of the new regime in the latter half of June 1999.

Table 26.3. CONSUMERS PRICE INDEX – NEW ZEALAND BY SUBGROUP

June quarterFruit and vegetablesMeat, fish and poultryGrocery foods, soft drinks and confectioneryRestaurant meals and ready-to-eat foodRented dwellingsHome ownershipEnergyHousehold appliances and furnishingsHousehold supplies and servicesClothingFootwear

1Percentage changes are calculated from index numbers which are unrounded prior to the June 1999 quarter. Base: June 1999 quarter (=1000)

Source: Statistics New Zealand

1979341340....165..196446340336388
1980414399....183..259511387380461
1981452447....204..293574436424517
1982530507....245..338655509477571
1983549526....262..341678526520615
1984586564470430280..347690530541640
1985681630556496364..426781574605707
1986730617620563432..479863678681789
1987844738705696486..584993814819903
1988907754747751586..620989850860955
1989880826801790646710636996885881983
199094796987786168377865810309689311030
199188996889789170779870110369879661042
1992874953888900710792730103310039781050
1993834100490090772781677310449999891062
199484798289591380985682110469859841047
1995101493690393187391485610389799761048
199690391794194893896190710189919721022
19979519419599659809779489911011968999
199898097698498410171014981973975980976
199910001000100010001000100010001000100010001000
Percentage change from same quarter of previous year1
19799.634.6....6.0..14.613.37.89.813.2
198021.417.....610.3..31.914.413.913.118.8
19819.311.8....11.5..13.112.312.611.512.0
198217.313.5....20.1..15.614.216.712.510.5
19833.63.8....7.2..0.73.63.48.97.7
19846.77.1....6.9..1.71.80.94.14.1
198516.211.818.415.429.9..23.013.28.112.010.5
19867.1-2.111.413.518.7..12.410.518.112.511.6
198715.619.613.823.712.5..21.815.120.120.214.4
19887.52.15.97.920.6..6.2-0.44.55.05.8
1989-2.99.57.25.210.2..2.60.74.12.53.0
19907.617.49.58.95.79.63.43.49.35.74.7
1991-6.1-0.22.33.53.62.56.50.62.03.71.1
1992-1.7-1.5-1.01.00.4-0.74.2-0.31.61.30.8
1993-4.65.31.40.82.33.05.91.1-0.41.21.1
19941.6-2.2-0.50.711.35.06.30.2-1.4-0.5-1.4
199519.7-4.70.92.07.86.74.3-0.8-0.6-0.80.1
1996-10.9-2.14.21.97.55.25.9-1.91.2-0.4-2.5
19975.22.71.91.74.41.74.6-2.72.0-0.4-2.3
19983.13.72.52.03.83.83.4-1.8-3.61.2-2.3
19992.02.51.71.7-1.7-1.41.92.82.62.02.5
June quarterPublic transportPrivate transportCigarettes and tobaccoAlcoholic drinksPersonal goods and servicesHealth careStationery books, magazines and newspapersLeisure and recreationEducation and childcare
1979310..89212..........
1980386..108275..........
1981486..127323..........
1982577..145371..........
1983640..177413..........
1984638..187432..........
1985714..229529..........
1986797..240550..........
1987791..381669..........
1988785..400732..........
1989828970515759793565644822351
1990886991578828869619707864541
19919671000622848906707758895568
19929881032725863914901798910554
19939401081739877942844817925617
19949621063743893958860823930678
199510011065757922962879844955713
19969811064814941986912916960788
19979741041845968992960919960865
199896710249139821002980945982919
1999100010001000100010001000100010001000
Percentage change from same quarter of previous year1
197915.6..5.410.8..........
198024.7..21.929.8..........
198125.9..17.217.5..........
198218.6..14.214.6..........
198310.9..22.511.4..........
1984-0.4..5.64.6..........
198512.1..22.222.5..........
198611.6..4.93.9..........
1987-0.7..58.621.7..........
1988-0.8..5.09.3..........
19895.5..28.83.7..........
19907.02.212.29.29.59.59.85.153.8
19919.20.97.62.34.214.27.23.65.1
19922.23.216.61.80.927.55.21.6-2.4
1993-4.94.71.91.63.1-6.32.41.711.3
19942.4-1.60.51.91.71.80.70.69.8
19954.00.21.93.30.42.32.52.65.2
1996-2.0-0.17.62.02.53.88.60.610.5
1997-0.7-2.23.72.90.75.30.30.09.7
1998-0.8-1.68.11.51.02.02.92.36.3
19993.4-2.39.51.8-0.22.15.81.88.8

Tobacco products and alcoholic drinks. This group rose 4.3 percent from the June 1998 quarter to the June 1999 quarter. The price of tobacco products rose 9.5 percent, while alcoholic drinks rose 1.8 percent from the June 1998 quarter to the June 1999 quarter. Part of this increase reflects the annual adjustment on excise taxes on tobacco and alcohol, which are adjusted in line with the CPI. Tobacco tax is adjusted annually on 1 December while alcohol tax is adjusted on 1 June.

APPAREL
Change from previous quarter

TRANSPORT
Change from previous quarter

TOBACCO & ALCOHOL
Change from previous quarter

Opening day crowds at a Johnsonville supermarket, 1973.

PERSONAL & HEALTH CARE
Change from previous quarter

RECREATION AND EDUCATION
Change from previous quarter

CREDIT SERVICES
Change from previous quarter

Personal and health care. Prices in the personal and health care group rose by 1.0 percent over the 1998–1999 year. Health care increased by 2.1 percent while the price of personal goods and services (this subgroup includes hairdressing, cosmetics, personal accessories and services) fell marginally overall.

Recreation and education. The price of recreation and education services rose by 4.3 percent over the 1998 to 1999 year. Education and childcare costs rose 8.8 percent, mostly due to increased costs for tuition and examinations. The price of stationery, books, magazines and newspapers rose 5.8 percent while the increase in the price of leisure and recreation was less significant at 1.8 percent.

Credit services. The June 1999 quarter was the last quarter where credit services included interest. After the June 1999 quarter the group includes fees on credit cards, store cards, hire purchase and loan application fees, as well as bank charges, introduced for the first time. In the past this group has been dominated by the movements in interest rates. Credit services fell by 19.3 percent in the June 1999 quarter compared with the previous June quarter. However, prices in all groups excluding credit services actually rose by 1.2 percent compared with the CPI all groups which fell 0.4 percent.

Retail prices of selected items. The following table shows weighted average prices of goods and services in each of the June quarters from 1996 to 1999. 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. The quantity and price of any good or service will differ from shop to shop and over time, so these prices are not designed to give a statistically accurate measure of absolute average transaction prices.

Table 26.4. RETAIL PRICES OF SELECTED ITEMS

ItemJune quarter
Unit1996199719981999
Source: Statistics New Zealand
 $
House paint – acrylic, white4164.4164.7063.6467.09
Concrete blocksper 100279.57269.44269.42277.73
Gib-type boardper sheet18.0317.8017.7017.33
Spouting/guttering – plasticper 3 m18.7919.4320.0820.20
Bleach1.512.582.572.442.47
Detergent – dishwashing900 ml3.163.163.163.06
Soap powder1 kg4.264.334.394.33
Cling food wrap – refill roll15 m1.461.601.661.59
Electric light bulb, 100 watteach1.041.031.051.02
Batteries – heavy duty, size Dtwin pack2.962.903.203.40
Veterinary services – speying a cat 69.3570.9473.4974.53
Postage – standardpost, medium sizeeach0.400.400.400.40
Socks – men's, wool/nylonpair8.288.358.218.55
Pantyhose – 15 denier, average sizepair4.024.044.194.45
Wool – hand knitting, double crepe50 g4.194.054.084.10
Warrant of fitness – private car 21.4522.9024.4828.34
Cigarettes – filter tippedpkt of 256.897.167.668.39
Whisky – scotch1125 ml39.5140.3840.7440.08
Tissues – facialbox of 2002.712.732.712.54
Toilet paper4 rolls2.903.123.072.75
Hairdressing – men's, dry cut 14.6615.1515.5115.70
Hairdressing – women's, wet cut 34.4435.6236.6338.25
Soluble aspirinpkt of 242.402.462.653.00
Envelopes – 90mm x 152mmpkt of 201.641.681.641.80
Newspaper – local dailyeach0.680.700.760.80
Audio cassette – current top 10 albumeach21.0721.1821.1421.05
Developing and printing film, 35mm colour film24 prints17.8517.5317.4917.63

Kirkaldie and Stains department store, Wellington, 1920s.

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 (see Table 26.5). 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. For some CPI groups (such as housing and credit services) prices are not collected on a regional basis, and therefore comparisons of price movements at this level between different regions is not possible.

The fall in the CPI from the June 1998 quarter to the June 1999 quarter was reflected in falls in the CPI for the North and South Islands. Prices in all but three centres (Christchurch, New Plymouth and Wanganui) fell over the year.

Table 26.5. CONSUMERS PRICE INDEX – ALL GROUPS, PERCENTAGE CHANGE FROM SAME JUNE QUARTER OF PREVIOUS YEAR

Region19951996199719981999
Source: Statistics New Zealand
Whangarei4.01.91.21.6-0.7
Auckland5.02.21.41.5-0.6
Hamilton4.02.20.81.1-0.5
Tauranga4.52.20.91.9-0.7
Rotorua3.61.81.41.3-0.5
Napier–Hastings4.31.31.11.2-0.2
New Plymouth4.01.91.11.70.1
Wanganui4.11.51.11.80.0
Palmerston North4.51.81.11.3-0.1
Wellington4.62.40.61.4-0.1
Nelson4.51.21.11.3-0.4
Christchurch4.42.01.11.40.2
Timaru4.21.81.02.1-0.2
Dunedin4.71.91.01.7-0.7
Invercargill4.42.10.91.5-0.2
            New Zealand4.62.01.11.7-0.4

Table 26.6. INTERNATIONAL COMPARISONS OF CONSUMERS PRICE INDEXES, EXCLUDING HOUSING AND CREDIT SERVICES

June quarterNew ZealandAustraliaCanadaJapanGermanyUnited KingdomUnited States

1Percentage changes are calculated from unrounded index numbers. For New Zealand, index numbers from the June 1999 quarter onwards are rounded. Base: June 1999 quarter (– 1000)

Source: Statistics New Zealand

1981382409519785687482565
1982440453579804723523597
1983469506610821746546621
1984489522640837765572647
1985567557666854779601669
1986620603694860783617672
1987740662727858788637695
1988772709754858798662720
1989804754788880819698761
1990865804822901836744793
1991890837877933860807832
1992914859887952901846857
1993927880904957929872882
1994931899904962950891903
1995946929933959963913930
1996959961951959973938955
1997970980971985983958974
19989809929821002998982984
19991000100010001000100010001000
Percentage change from same quarter of previous year1
198215.110.711.52.55.28.55.7
19836.611.65.32.13.24.44.2
19844.43.34.92.02.54.84.1
198516.06.64.12.01.85.03.4
19869.38.34.10.70.52.60.5
198719.29.84.8-0.30.63.33.5
19884.47.13.80.01.34.03.6
19894.26.34.52.62.65.45.6
19907.56.74.22.42.16.54.2
19912.94.16.73.62.98.44.9
19922.72.51.12.04.74.93.0
19931.52.51.90.63.13.03.0
19940.42.10.00.52.22.22.3
19951.63.43.2-0.31.42.53.0
19961.43.41.90.01.02.72.7
19971.22.02.12.71.02.22.0
19981.11.21.21.71.62.51.0
19992.00.81.8-0.20.21.81.7

PRODUCERS PRICE INDEX
Outputs and inputs – all industry groups

CONSUMERS PRICE INDEX
International comparison of CPI excluding housing and credit services

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 price changes in the production sector of the economy. The Consumers Price Index (CPI), on the other hand, measures price changes in the household sector of the economy. The PPI has two types of index: the ‘output’ indexes measure changes in the prices received by producers; and the ‘input’ indexes measure price changes in the costs of production (excluding labour and capital costs).

Uses of the PPI. The PPI can be used in the analysis of inflationary trends, in economic forecasting and in estimating economic growth. It can be used to measure changes in production in constant dollar values. The index is also widely used to determine the increases allowable under escalation clauses in commercial contracts.

Coverage. The index is calculated quarterly from price quotes which are collected mainly by a 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 day 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). The output indexes cover: primary products; manufactured goods; revenue from renting and leasing; provision of services; capital work undertaken by own employees; and margins on goods purchased for resale.

Excluded from the output indexes are: interest and dividends; royalties and patent fees; receipts from insurance claims; government cash grants and subsides; and GST and other indirect taxes.

The input indexes, which measure price changes in the cost of production, cover: materials; fuels and electricity; transport and communication; commission and contract services; rent and lease of land, buildings, vehicles and plant; business services; and insurance premiums less claims.

Excluded from the input indexes are: wages and salaries; capital expenditure; ACC levies and other government charges; rates; royalties; patent fees; and bad debts and donations.

Classification and calculation. 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 57 industry groups, including several non-market industries. Output indexes are published for the 54 market-oriented industry groups.

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 index is calculated at several different levels. An example is the business services index. At the lowest level, commodity products such as accounting services or management fees are calculated. The commodity indexes are combined to form sub-industry indexes such as legal and accounting services. The sub-industry indexes are then combined to form published industry indexes such as business services. The business services index also forms part of the all industries index, also re-expressed to a base quarter of December 1997.

PPI redevelopment. A major review of the PPI was completed in 1998. The review used the latest available information to consider: what prices are surveyed; how the prices are surveyed; and the relative importance of the items in the indexes and the organisations in the survey, for the purpose of creating a new series of indexes. To keep the PPI up-to-date, a system of ongoing development began in early 2000.

Table 26.7. PRODUCERS PRICE INDEX – INPUTS1

IndustryGroupsSeries referenceQuarter ended
19981999
JunSepDecMarJunSepDec

1Agriculture input indexes by farm type are based on Farm Expenses Price Index (FEPI) categories, not ANZSIC categories. Output Agriculture indexes by farm type are based on ANZSIC.

2Tobacco product manufacturing has been combined with Beverage & malt manufacturing for confidentiality reasons.

3The Water supply industry index is not of sufficient quality and a separate index for it is not published.

4Rail transport has been combined with other transport, storage services for confidentiality reasons.

Source: Statistics New Zealand

AAgriculture, forestry & fishingPPIQ.SNA9979981002997100110071019
A01Horticulture & fruit growingPPIQ.SNA011001100210031007100710061014
A02Sheep & beef farming1PPIQ.SNA02997100210031000100310101023
A03Dairy cattle farmingPPIQ.SNA031005101310141016103010351048
A04Cropping & other farming1PPIQ.SNA04977966966965964971982
A05Services to ag., hunting & trappingPPIQ.SNA051006101510191022102310331046
A06Forestry & loggingPPIQ.SNA06985974987963965969979
A07FishingPPIQ.SNA071030104410561051105510771084
BMiningPPIQ.SNB1001101310121009101510241033
CManufacturingPPIQ.SNC10121010100699299310071022
C01Meat & meat product mfgPPIQ.SNC019801026101597499110391065
C02Dairy product mfgPPIQ.SNC021041948942941941967972
C03Other food mfgPPIQ.SNC031009104510381012101510251031
C04–5Tobacco, beverage & malt mfg2PPIQ.SNC041010103210291031104910511064
C06Textile & apparel mfgPPIQ.SNC061004974975939946949960
C07Wood product mfgPPIQ.SNC07992986984973973970981
C08Paper & paper product mfgPPIQ.SNC0810191028100599899510131067
C09Printing, publishing & recorded mediaPPIQ.SNC091022102610361035105110471054
C10Petroleum, coal & basic chemical mfgPPIQ.SNC1010091011999977970981995
C11Rubber plastics & other chemical mfgPPIQ.SNC111013102010101002100110051024
C12Non-metallic mineral product mfgPPIQ.SNC121007100810081006100810111017
C13Basic metal mfgPPIQ.SNC13101510029789659629861012
C14Sheet and fabricated metal product mfgPPIQ.SNC141024103510231019100910101020
C15Transport equipment mfgPPIQ.SNC15996100510331038104210511059
C16Machinery & equipment mfgPPIQ.SNC161032103510431035101010171038
C17Other manufacturingPPIQ.SNC17100710101005999100010061015
DElectricity, gas & water3PPIQ.SND991100010001001998972954
D01Electricity generation and supplyPPIQ.SND01989999999999995964942
D02Gas supplyPPIQ.SND021001100210011015101710181018
E01ConstructionPPIQ.SNE01100310051002998100410191030
F01Wholesale tradePPIQ.SNF0198397596895798710341083
G01Retail tradePPIQ.SNG011004101210091005100810241024
H01Accommodation & restaurantsPPIQ.SNH011006102710301019102310351033
ITransport & storagePPIQ.SNI995100010081001100910341075
I01Road transportPPIQ.SNI0199799699799499810101042
I03Water transportPPIQ.SNI03100210011001998100310231058
I04Air transportPPIQ.SNI04990100310211006102610691131
I02/I09Rail, other transport & storage4PPIQ.SNI09998998999100299610051025
I01Communication servicesPPIQ.SNJ01949940925919922919920
KFinance & insurancePPIQ.SNK1007101210091013101610191022
K01FinancePPIQ.SNK011006101310101015101810181020
K02InsurancePPIQ.SNK021010101310091009101610241028
K03Services to finance & insurancePPIQ.SNK031006101010071008101210121019
LProperty & business servicesPPIQ.SNL1009101210121014101810201026
L01Real estatePPIQ.SNL011013101310091010101510181021
L02Ownership of owner-occupied dwellingsPPIQ.SNL0210029989939929929971002
L03Other property servicesPPIQ.SNL031006101010181029104210431050
L04Business servicesPPIQ.SNL041011101710181021102610251033
M01Public administration & defencePPIQ.SNM011002100510031003100910141024
N01EducationPPIQ.SNN011010101410161017102010241028
O01Health and community servicesPPIQ.SNO011009101410141015101810271025
P01Cultural & recreational servicesPPIQ.SNP011006100610031009101310301031
Q01Personal & community servicesPPIQ.SNQ011005101010111012101510301045
8All industries excl admin, health, educationPPIQ.SN810021003100199399910131029
9All industriesPPIQ.SN9100310031001994100010141029

Christchurch's first butcher shop, c1910.

Tobacconist, c1932.

Table 26.8. PRODUCERS PRICE INDEX – OUTPUTS1

IndustryGroupsSeries referenceQuarter ended
19981999
JunSepDecMarJunSepDec

1Tobacco product manufacturing has been combined with Beverage and malt manufacturing for confidentiality reasons.

2The Water supply industry index is not of sufficient quality and a separate index for it is not published.

3Rail transport has been combined with other transport and storage services for confidentiality reasons.

Source: Statistics New Zealand

AAgriculture, forestry & fishingPPIQ.SUA9829829879519709991012
A01Horticulture & fruit growingPPIQ.SUA0197110601097931101410801046
A02Livestock & cropping farmingPPIQ.SUA0296799398994696310021026
A03Dairy cattle farmingPPIQ.SUA031040953946941949986996
A04Other farmingPPIQ.SUA04952973985941939966970
A05Services to ag., hunting & trappingPPIQ.SUA051004100510081007100810091011
A06Forestry & loggingPPIQ.SUA06938908913919913892920
A07FishingPPIQ.SUA071040108211091137118012281256
BMiningPPIQ.SUB1008100596293495210911184
CManufacturingPPIQ.SUC1010101610131006100910191040
C01Meat & meat product mfgPPIQ.SUC01995105410311007103310721089
C02Dairy product mfgPPIQ.SUC0210329991004100110109841042
C03Other food mfgPPIQ.SUC031013103210461045105410771090
C04–5Tobacco, beverage & malt mfg1PPIQ.SUC041013103010331035103210311037
C06Textile & apparel mfgPPIQ.SUC061002989995980984986997
C07Wood product mfgPPIQ.SUC0710061024101699599510221032
C08Paper & paper product mfgPPIQ.SUC081029102999999899710021054
C09Printing, publishing & recorded mediaPPIQ.SUC091035106410731087109711011149
C10Petroleum, coal & basic chemical mfgPPIQ.SUC101005996963929897917938
C11Rubber plastics & other chemical mfgPPIQ.SUC111000100010011002100210051017
C12Non-metallic mineral product mfgPPIQ.SUC121005100010011002994993993
C13Basic metal mfgPPIQ.SUC1310111023993947944962971
C14Sheet & fabricated metal product mfgPPIQ.SUC141006979978976969969973
C15Transport equipment mfgPPIQ.SUC15100099810021005100010241028
C16Machinery & equipment mfgPPIQ.SUC16991100610121017101510361043
C17Other manufacturingPPIQ.SUC17996100310061006100710131017
DElectricity, gas and water2PPIQ.SUD10011004991992994978955
D01Electricity generation and supplyPPIQ.SUD0110001003992993995975948
D02Gas supplyPPIQ.SUD021003100310041016101610191018
E01ConstructionPPIQ.SUE0110031001100099899910011007
F01Wholesale tradePPIQ.SUF0199899499598999810151034
G01Retail tradePPIQ.SUG011004101010141015101710201024
H01Accommodation & restaurantsPPIQ.SUH011000100710131018101710201025
ITransport & storagePPIQ.SUI1012101310141013101710191027
I01Road transportPPIQ.SUI011001994993992989988994
I03Water transportPPIQ.SUI031078108610671050106610671077
I04Air transportPPIQ.SUI041015102010311027104210431041
I02/I09Rail, other transport & storage3PPIQ.SUI091010101510111014101210191041
J01Communication servicesPPIQ.SUJ01947927907903903892890
KFinance and insurancePPIQ.SUK9719779579889949991013
K01FinancePPIQ.SUK019519659359789849871011
K02InsurancePPIQ.SUK021009100910051005100910161017
K03Services to finance and insurancePPIQ.SUK039909679721006101710241021
LProperty & business servicesPPIQ.SUL1014101910161015101810191017
L01Real estatePPIQ.SUL0110161016100999599710031000
L02Ownership of owner-occupied dwellingsPPIQ.SUL021020102610211021102210161010
L03Other property servicesPPIQ.SUL0310019929939959929991021
L04Business servicesPPIQ.SUL041010101810191024102810321032
P01Cultural & recreational servicesPPIQ.SUP011032103710411051106210831062
Q01Personal & community servicesPPIQ.SUQ011012100710091009101510191022
9All industriesPPIQ.SU9100210051002998100210121022

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.

CGPI redevelopment. Currently a programme to redevelop all CGPI indexes is under way. The content of the entire CGPI is being reviewed, using the latest available information to consider: what prices are surveyed; how the prices are surveyed and the relative importance of the items in the indexes in the survey. The work began in September 1998 and the results were incorporated into the December 1999 quarter indexes.

Table 26.9. CAPITAL GOODS PRICE INDEX1

IndexSeries Reference CEPQuarter ended
19981999
SepDecMarJunSepDec

1Base: September 1999 Quarter (=1000) (Indexes relate to price levels ruling at mid-point of each quarter).

2This 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 buildingsS2GA99899699899810001006
Dwellings and out-buildingsS2AA99899699899810001006
Hostels, boarding houses2S2AB999998998100010001000
Non-residential buildings2S2GB99599599599810001001
Shops, offices2S2BA99699799699910001000
Warehouses, factories2S2BB98999199199610001003
Farm buildingsS2BF99799999799810001000
Other non-residential buildings2S2BI99799699699910001002
Other constructionS2GC99199099098810001008
Transport waysS2CA1004100199998810001007
PipelinesS2CB99899599299210001016
Electrical worksS2CC97797798098210001005
Earthmoving and site workS2CD99399699699710001003
Land improvementsS2GD10081006100399210001009
Land clearing and establishmentS2DA99599599910001000999
FencingS2DB101710201015100610001004
Irrigation and land drainageS2DC1004100499495510001027
Reclamation and river controlS2DD101510031004100510001014
Transport equipmentS2GE9961002100199910001013
Cars 1600cc and underS2EA998993987100410001018
Cars over 1600ccS2EB9911004100699810001011
Commercial vehicles 3500kg and underS2EC1022101399799710001018
Commercial vehicles over 3500kgS2ED98710011014100710001016
BusesS2EE984996999100010001002
TrailersS2EF96496698199810001000
Motor cyclesS2EG97397899699910001005
HelicoptersS2EJ103997396793510001027
Plant, machinery and equipmentS2GF99499699599610001004
Glass and glass productsS23719589701000100010001000
FurnitureS238110271029999100010001000
Other manufactured articlesS238993694594394410001005
Structural metal productsS2421100010001000100010001000
Metal tanks reservoirs and containersS2422100810041000100010001009
Steam generatorsS242310071017100510001000970
Other fabricated metal productsS242910019971002100010001003
Engines and turbinesS243198310021002100010001009
Pumping and compressing equipmentS2432974982996100010001003
Ovens and furnace burnersS2434986988990100010001000
Lifting and handling equipmentS2435986992998100010001033
Other general purpose machineryS243999710031003100010001002
Agricultural and forestry equipmentS24419879951000100010001002
Machine-toolsS2442986990998100010001006
Machinery for mining, quarrying and constructionS24449991005997100010001007
Machinery for food, beverage and tobacco processingS244510169981004100510001007
Machinery for textile, apparel and leather productionS2446104210561058101910001030
Domestic appliancesS244810171014999100010001001
Other special purpose machineryS2449102110541011101110001015
Office and accounting machineryS2451983994100110001000996
Computer machineryS24529801017100110011000990
Electric motors, generators and transformersS24619889891002100010001000
Electricity distribution and control apparatusS246210051014100210001000998
Insulated wire and cable; optical fibre cablesS246310171007996100010001012
Accumulators, primary cells and primary batteriesS246410081008100710001000956
Other electrical equipmentS24699739931002100310001009
Television and radio transmitters and apparatusS2472103910381003100010001000
Medical and surgical equipmentS248199110011001100010001001
Measuring, testing and navigating instrumentsS24829959961000100010001006
Optical instruments and photographic equipmentS2483975998993100010001014
Bodies for motor vehicles and trailersS2492982987988100010001000
Other plant machinery and equipmentS299910081006993100010001008
All groupsS2GG99599699699610001006

Electric jugs being packaged at a Christchurch factory, 1950.

Contributor

  • 26.1–26.3 Statistics New Zealand.

Further information

Information paper on the Implementation of the 1999 Review of the Consumers Price Index.

June 1999 quarter Consumers Price Index Redevelopment Release.

Key Statistics. Statistics New Zealand (monthly).

A lay person's guide – CPI.

Papers written for the Consumers Price Index Revision Advisory Committee.

Report of the Consumers Price Index Revision Advisory Committee (Parl paper G.28A, 1997).

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).

Auckland customers at Levene's Superstore after it went into receivership, 1997.

Chapter 27. Money and banking

Doing business at a Christchurch bank, 1911.

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 of these changes on the financial system 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 March 1999 there were 18 registered banks.

Reserve Bank of New Zealand

The Reserve Bank of New Zealand has a board of directors comprising the Governor, two deputy governors, and between four and seven non-executive directors. It is New Zealand's central bank and, as such, acts as banker to the Government and registered banks.

The Reserve Bank has three main functions:

  • operating monetary policy to maintain price stability

  • promoting the maintenance of a sound and efficient financial system

  • meeting the currency needs of the public.

Under the Reserve Bank of New Zealand Act 1989, the Reserve Bank is required to independently manage monetary policy – the supply of money and credit – to maintain overall price stability.

The Reserve Bank is required, under the 1989 act, to prepare a monetary policy statement (MPS) 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 Act requires the Reserve Bank to promote the maintenance of a sound and efficient financial system. The Reserve Bank does this by registering banks, by developing banking supervision policies and checking banks' compliance with those policies, and by monitoring banks' financial well-being.

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 the efficient and effective cooperation of the banking system as a whole 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. If a bank does fail, the Reserve Bank has crisis management powers that 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 that 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 in some other countries, where supervision has more explicit and direct depositor protection objectives.

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 is based on the belief 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 the applicant's:

  • incorporation and ownership structure

  • size (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.

One new bank was registered in the 1998/99 year, with AMP Bank establishing a branch in New Zealand. Two banks voluntarily relinquished their registrations. Credit Agricole Indosuez closed its New Zealand operation and Countrywide Banking Corporation Limited was taken over by the National Bank of New Zealand Limited.

A new approach to the supervision of registered banks was introduced on 1 January 1996. This involves a balance between the Reserve bank's 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’ (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 bank creditors with an improved ability 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 regularly with the senior management of each bank.

  • The Reserve Bank has a wide range of powers 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 resulting 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 cooperation 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.

Table 27.1. Assets of the Reserve Bank

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
Current account advancesMarketable securitiesIMF holdings of SDRsForeign assetsAdvances
Settlement institutions1Crown Settlement account2Advances to Treasury

1Includes securities purchased under agreements to re-sell, and one day interbank advances.

2Government bank accounts.

3Includes sundry debtors, term loans and advances to staff.

Source: Reserve Bank of New Zealand

 $(million)
19941,2542,900--850-1,176
19951,1132,889--773-1,250
19961,2973,0561-682-1,249
19971,1333,340--750-1,236
19981,8604,490211,059-1,204
19992,2833,602--3,064--
As at 30 JuneDenominated in New Zealand dollars
Investment in NZ
Government securitiesOtherFixed assets and inventoriesOther assets3Total assets
 $(million)
19941,247-70117,508
19951,519-6197,614
19961,982-6178,335
19972,041-5888,566
19982,149-58610,829
19992,256156611,268

Table 27.2. Liabilities of the Reserve Bank

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
Current1Long term2Allocations of SDRs3Reserve bank bills4Government5

1Overseas liabilities.

2Domestic liabilities.

3During 1998/99 the Reserve bank's long standing role as holder of SDRs was transferred to the Treasury.

4The Reserve Bank ceased issuing Reserve Bank bills on 5 February 1999, when the overnight cash rate regime was implemented.

5Includes Crown settlement account.

6Includes IMF number 1 account and staff deposits.

7Includes accounts payable.

8The sale of Contact Energy contributed to the large increase in this category in the year to June 1999.

Source: Reserve Bank of New Zealand

 $(million)
19942603,5463471,132264
1995723,5963341,241280
19963813,6703011,249535
19975953,5862921,236608
19981,2664,7143701,203957
19991,4744,405--2,8818
As at 30 JuneDenominated in New Zealand dollarsOther liabilities7Capital reservesTotal liabilities
Settlement institutionsOther6Currency in circulation
 $(million)
19941741,413304417,508
19953581,516294857,614
199618281,59955498,335
19971461,6651433948,566
19982251,73315840110,829
19991551,8851355411,268

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 as a result of this process, and at 30 September 1999 there were 17 registered banks in New Zealand. 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. Around 99 percent of the assets of the New Zealand banking system are 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 September 1999 are: ABN AMRO Bank, AMP Bank, ANZ Banking Group (New Zealand) Ltd, ASB Bank Limited, Bank of New Zealand, Bank of Tokyo-Mitsubishi (Australia) Limited, Banque Nationale de Paris, BNZ Finance Limited, Citibank NA, Deutsche Bank AG, Kookmin Bank, Rabobank Nederland, Rabobank New Zealand Limited, The Hong Kong and Shanghai Banking Corporation Ltd, The National Bank of New Zealand Limited, TSB Bank Limited, Westpac Banking Corporation.

Access to branches and services. At 31 December 1998 there were 976 bank branches.

Electronic banking systems enable 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, although there has been some rationalisation in the last few years. There were 1,521 bank-owned ATMs in New Zealand at 31 December 1998.

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 1998 there were 65,246 Eftpos terminals in New Zealand at supermarkets, service stations, liquor markets and other retail outlets.

Credit cards are an increasingly popular means for people to buy goods and services. There are over 1.9 million cards on issue nationally.

Industry self-regulation. The New Zealand Bankers’ Association is 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 which can be effectively undertaken on an industry basis. In 1992 the New Zealand Bankers’ Association introduced two related self-regulatory measures. From March 1992, a Code of Banking Practice came into force. It established minimum standards of practice to be observed by banks in their dealings with personal customers, and covered the responsibilities of banks and their customers (including the protection of customer information); the use of Eftpos cards; and guidelines for customer complaints procedures. 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 started in July 1992 (see separate article).

Table 27.3. Liabilities and Assets of M3 Financial Institutions

ItemAs at June quarter
1996199719981999

1Includes trade creditors/debtors, accounts payable/receivable, and items in transit, timing and statistical adjustments.

2Any two entities, i.e., companies, organisations or individuals with the same shareholders and/or any company which holds 20 percent or more of the paid up capital of another company (the associated). A subsidiary is an associate.

3The large decline in this category is due to the Reserve Bank no longer issuing Reserve Bank bills since the implementation of the overnight cash rate regime in early 1999.

Source: Reserve Bank of New Zealand

Liabilities -NZ$(million)
NZ dollar funding -
    NZ residents80,03981,97788,63791,151
    Non-residents13,60012,84814,65612,401
            Total, NZ$ funding93,63994,825103,294103,552
Foreign currency funding -
    NZ residents2,6372,9233,5694,093
    Non-residents8,85413,28816,97624,679
    Total11,49116,21120,54528,772
Capital and reserves5,8866,8087,7407,842
Other liabilities14,7125,6078,4005,863
            Total liabilities115,727123,451139,978146,030
Funding from associates212,91911,45614,43021,011
Assets -
    NZ Government bonds and Treasury bills2,4433,2295,2036,192
NZ notes and coin281329305343
Claims on the Reserve Bank1,2451,2871,58713
NZ dollar claims -
    NZ residents (M3)10,0878,1759,5639,670
    NZ residents (non M3)88,16695,717102,954112,679
    Non-residents2,4793,8645,3105,688
            Total, NZ$ claims100,732107,755117,828128,037
Foreign currency claims
    NZ residents2,6213,5563,9713,098
    Non-residents9984856062,137
    Total3,6194,0414,5785,235
Foreign-currency fixed assets and equity investment36313536
Shares (in NZ companies)1,931393184206
Other assets15,4406,38710,2595,980
            Total Assets115,727123,451139,978146,030
Financial claims on associates21,5871,6941,9943,838

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. Regulations prescribed the activities that each of these institutions could engage in. 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 finalise their transactions at the Reserve Bank; non-bank institutions must do so through a registered bank as an 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 registered banks' share of the total banking business 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, financial institutions other than trading banks 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.

Bankcard advertisement, 1981.

Table 27.4. Finance1: Statistical Summary

 1996/97 $(million)1997/98 $(million)Percentage change

1ANZSIC Subdivision K73. ..C = suppressed for reasons of respondent confidentiality

Source: Statistics New Zealand, Annual Enterprise Survey 1998

Sales of goods & services1,4071,4895.80%
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered12,12812,6694.50%
Government grants and subsidies..C..C145.10%
Non-operating income..C..C173.20%
Total income14,08415,65711.20%
              Total income adjusted for stocks14,08415,65711.20%
Salaries and wages paid to employees1,3781,362-1.20%
Redundancy and severance..C..C-35.40%
Salaries and wages to self-employed commission agents1123.70%
Salaries and wages to working proprietors (SW to WPs)54-12.40%
Fringe benefit tax (FBT)2417-27.30%
Purchases and other operating expenses1,5241,6075.40%
Interest, donations, grants, royalties, patent fees paid and bad debts written off9,0489,4184.10%
Indirect taxes (excluding FBT)1210-16.90%
Depreciation..C..C18.70%
Non-operating expenses..C..C304.50%
              Total expenditure12,56213,88610.50%
Net profit before tax, non-operating items, SW to WPs1,2541,39311.10%
Net profit before tax, SW to WPs1,5271,77616.30%
Purchases of plant, machinery, vehicles and equipment450410-9.00%
Purchases of land, buildings and other construction172549.10%
Total purchases of fixed tangible assets467435-6.90%
Sales of fixed tangible assets246211-14.50%
Shareholders funds or owners equity7,7518,59510.90%
Current liabilities81,20684,9474.60%
Other liabilities50,71765,00028.20%
Total capital and liabilities139,673158,54213.50%
Fixed tangible assets1,4141,5217.50%
Current assets45,07456,03024.30%
Other assets93,185100,9928.40%
Total assets139,673158,54213.50%
Ratios
Total income per FTE$531,984$562,8955.80%
Net profit per FTE$47,375$50,0915.70%
Current ratio55.5%66.0% 
Quick ratio55.5%66.0% 
Profit margin on sales89.1%93.6% 
Return on equity16.2%16.2% 
Return on total assets0.9%0.9% 
Liabilities structure5.5%5.4% 

Community Banks' building, Napier, c1931.

Banking and finance industry statistics

The Reserve Bank publishes statistics on financial sector activity on its website, www.rbnz.govt.nz. Economic statistics on the banking and finance industry are collected by Statistics New Zealand via the Annual Enterprise Survey (see section 17.5, Business statistics), and table 27.4 provides a summary.

Coverage: Banking, Finance and Investment includes the operation of the central bank and registered banks which are empowered to issue cheques, accept demand and time deposits and extend loans. It also includes other financial institutions dealing in finance and investing activities. The table excludes holder investing units.

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.

One of the Reserve bank's key statutory obligations is to provide New Zealand's currency. The total face value of bank notes and coins held by the public was $1.96 billion as of 30 June 1999, which was a 7 percent increase over the previous 12 months. This comprised around 70 million bank notes and 893 million coins.

The Reserve Bank receives surplus cash from banks daily at its sites in Wellington, Auckland and Christchurch. The bank notes received are checked for authenticity and damaged bank notes are replaced. Bank notes are then reissued to the banks for distribution to their customers.

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. In 1999, the bank began replacing paper notes with polymer notes, which are more durable and incorporate more security features.

Monetary policy

Monetary policy is implemented by the Reserve Bank under the terms of the Reserve Bank of New Zealand Act 1989. The Government has given the Reserve Bank responsibility for keeping inflation low, between 0 and 3 percent per annum. The specifics of that objective are set out in a written contract between the Reserve Bank and the Minister of Finance, called the Policy Targets Agreement.

In March 1999, the Reserve Bank changed the way it implements monetary policy. The settlement cash target system, used since the mid-1980s, was replaced by an implementation system based on an official cash rate (OCR).

Previously the Reserve Bank relied on adjustments to the quantity of settlement cash in the banking system to ensure monetary conditions were appropriate. These adjustments were rare, however, as generally financial markets adjusted monetary conditions appropriately in response to the bank's quarterly inflation projections.

Early in 1999 the bank concluded that a better approach was to use its financial resources directly to influence a key short-term interest rate, which would then influence other short-term interest rates. This led to the launch of the OCR, first announced in the March 1999 Monetary Policy Statement at 4.5 percent.

Under the OCR system, the Reserve Bank influences short-term interest rates by being prepared to lend an unlimited amount of overnight cash, or borrow an unlimited amount of overnight cash, at interest rates fractionally above or below the stated OCR. This moves other interest rates on short-term money, such as 90-day bill rates, close to the OCR, adjusting demand within the economy and therefore inflationary pressures.

The OCR is reviewed eight times a year – at each of the bank's quarterly Monetary Policy Statements, and approximately halfway between each statement.

Government securities market

The Government currently sells three types of debt instruments to meet is 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 are also part of the Government's baseload funding requirement. (Bills are ‘zero coupon’ instruments, that is 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 and 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 rate on new issues are related to the current market yields on wholesale government bonds of comparable maturities).

Table 27.5. Money Supply and Credit Aggregates

Selected aggregatesAs at 31 March
1996199719981999

1Readily available money supply.

2Broad money supply, including term deposits.

Source: Reserve Bank of New Zealand

 $(million)
Monetary -
    Notes and coin held by public1,3991,5031,5471,682
    Transaction balances (cheque)9,76510,08010,13011,996
    Less, inter-institutional transaction balances (cheque)2837309
    Less, Government transaction deposits17242732
            M1111,11911,52311,62013,638
    Notes and coin held by public1,3991,5031,5471,682
    NZD funding86,62092,55499,116100,664
    Less, NZD inter-institutional claims9,0558,5438,7228,402
    Less, Government deposits58710859571
            M3278,37785,40691,88393,373
Credit -
NZD claims95,775105,512114,370122,411
    Less, NZD inter-institutional claims9,0558,5438,7228,402
Private sector credit86,72096,969105,648114,008
Claims on government -
    (a) M3 institutions3,0212,3053,7776,669
    (b) Reserve Bank2,1612,7672,8161,790
            Total5,1825,0726,5938,459
            Domestic credit91,902102,041112,241122,467

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 April 2000 the value of total government securities registered was $28,436 million. Of this total, $5,935 million comprised Treasury bills and other wholesale government bonds while government retail bonds of $381.8 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.

Table 27.6. Government Securities on Issue

 As at
September 1996March 1997September 1997March 1998September 1998March 1999September 1999
Source: Reserve Bank of New Zealand
 NZ$(million)
Ordinary government stock, by maturity:
    Less than or equal to 1 month302.8------
    More than 1 month, up to 3 months2,339.6----15.1-
    More than 3 months, up to 6 months-2,254.6-2,634.0--3,755.0
    More than 6 months, up to 2 years4,986.62,674.02,689.13,770.13,770.17,421.03,731.1
    More than 2 years, up to 5 years5,979.29,484.010,218.96,463.96,685.94,263.98,534.3
    More than 5 years9,619.16,714.37,564.38,426.310,076.311,028.38,092.8
Treasury bills by maturity:
    Less than or equal to 3 months4,304.03,539.04,684.03,061.04,723.03,659.02,953.0
    More than 3 months, up to 6 months2,383.01,772.01,944.01,582.02,245.01,800.01,625.0
    More than 6 months1,100.01,100.01,100.01,100.01,150.01,150.01,225.0
Index linked stock368.1525.5685.3842.21,006.61,223.71,402.4
Government stock coupons170.7170.7170.7170.7170.7170.7114.1
Kiwi stock-------
Kiwi bonds430.2438.4440.5430.7836.1740.6507.9
              Total internal public debt31,983.328,672.529,496.828,480.930,663.731,472.331,940.6

Foreign exchange

Since 1985 the New Zealand dollar has had a floating exchange rate, that is the value of the New Zealand dollar against other currencies that has been set by the market. However, successive governments have resolved to retain a capacity, via the Reserve Bank, to intervene in the foreign exchange market. This could be done to counteract so-called disorderly market conditions, such as market paralysis, that might arise after a major political or financial crisis, or natural disaster. Intervention would involve buying or selling New Zealand dollars in exchange for other currencies, with the aim of restoring a smoothly functioning private market.

To maintain a capacity to do this, the Reserve Bank holds and manages the Government's foreign exchange reserves of about $4 billion. The bank invests and actively manages these assets to earn a good rate of return, while ensuring that risks of loss are kept to a minimum, and cash is accessible at short notice.

Reaction to the BNZ's massive losses in the 1980s.

Table 27.7. Foreign Exchange Rates1

MonthUSA mid-rate US$/NZ$1UK mid-rate Stg/NZ$1Aust. mid-rate A$/NZ$1Japan mid-rate Yen/NZ$1Euro mid-rate E$/NZ$1TW1 Base June 1979 = 100TWI percent change
Monthly % changeAnnual % change

1All exchange rates are representative market mid-rates at 9am.

Source: Reserve Bank of New Zealand

1999 -
September0.52240.32210.805356.050.049855.7-1.9-1.2
October0.51480.31050.789554.60.480554.3-2.4-2.7
November0.51240.31570.801453.680.495154.60.6-3.4
December0.50850.31530.794352.180.502454.3-0.6-2.3
2000 -
January0.51410.31320.781754.190.506154.80.9-3.7
February0.49140.30660.781253.740.499253.6-2.1-7.8

Bankcard advertisement, 1981.

Contributors

27.1–27.2 Reserve Bank of New Zealand; Statistics New Zealand; New Zealand Bankers’ Association.

Special articles

Reserve Bank of New Zealand, Office of the Banking Ombudsman; New Zealand Bankers’ Association.

Further information

Annual report of the Office of the Banking Ombudsman.

Annual report of the Reserve Bank of New Zealand.

Annual Review. New Zealand Bankers’ Association.

Bank facts. New Zealand Bankers’ Association (annual).

Banking in New Zealand. (3rd edition) 1997. New Zealand Bankers’ Association.

Budget (Parl paper B.6). New Zealand Treasury (serial).

Code of Banking Practice. 1996. New Zealand Bankers’ Association.

Explaining currency. Reserve Bank of New Zealand.

Finance, Insurance and Business Services, 1987. Statistics New Zealand.

Financial Services Industry: Effects of regulatory reform. 1986. New Zealand Institute of Economic Research.

Financial Statistics. Reserve Bank of New Zealand (quarterly).

Getting it right: A guide to banking. (2nd edition) 1997. New Zealand Bankers’ Association.

Key Statistics. Statistics New Zealand (monthly).

Monetary Policy Statement. Reserve Bank of New Zealand (quarterly).

Peare P 1999. An introduction to the New Zealand financial system. Longman.

Report of the Registrar of Friendly Societies and Credit Unions (Parl paper B.18) (annual).

Reserve Bank Bulletin. 1997. Reserve Bank of New Zealand.

Your bank's disclosure statement – what's in it for you? 1998. Reserve Bank of New Zealand.

Reserve Bank Internet address www.rbnz.govt.nz

New coins replace $1 and $2 banknotes, 1991.

Chapter 28. Public sector finance

Christchurch casino, 1994.

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

  • 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. A number of reviews and pilot schemes are underway. They seek to improve in areas such as Crown entity financial performance; provision of better performance information, including non-financial and capability information; and the reduction of compliance costs on departments.

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.

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 goals of government – the critical medium-term objectives for the public sector.

  • Identify key priorities – the major contributions each department will make to the government's goals.

  • Specify the outputs (goods and services) to be delivered and the key management objectives for the overall health of the departments being managed.

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 detailed administrative controls

  • defines the appropriation process in terms of outputs

  • makes chief executives responsible for departmental financial management

  • established departmental and Crown reporting requirements.

These provisions are all designed to clarify the accountabilities of chief executives. Centralised input controls, previously established through Treasury instructions, and the requirement to use centralised monopoly suppliers for things such as accommodation, vehicles, computers, office services, etc are no longer a feature of the New Zealand government management system. The government nevertheless expects departments to collaborate where joint activities are beneficial in, for example, exploring the possibility of shared services centres. Several departments may share provision of some services.

Defining performance in terms of purchase and ownership interests. In the chief executives’ annual performance agreements, performance distinguishes between the government's interest in the performance of a department – as the owner seeking efficient stewardship of its resources on the one hand, and on the other as the purchaser of the services directly to the government or to third parties.

The government looks for a balance in achieving strong, healthy departments and achieving value for money in their operations.

Setting objectives. The New Zealand system focuses mainly on outputs, rather than inputs or outcomes. With this focus the delivery of services is more able to be attributed to chief executives rather than any ultimate consequences (outcomes) of that service delivery.

These outputs are placed firmly in the context of the goals the Government is seeking to meet in its policies.

The Budget process

The Fiscal Responsibility Act 1994 requires clear formulation and reporting by Government on its fiscal policy objectives. Using Generally Accepted Accounting Practice (GAAP) 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

  • 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 four 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

  • capital investments supported by business plans and a sound business case.

The Budget must be introduced to Parliament 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

  • repayment of debt.

This gives Parliament control over the outputs purchased from departments and others, what sized balance sheets it thinks are 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.

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.

Treasurer Bill Birch selects a tie to wear for the presentation of his last Budget, 1999.

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

  • 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.

  • 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
1999 Actual2000 Pre-EFU2001 Pre-EFU2002 Pre-EFU2003 Pre-EFU
Source: Pre-election Economic and Fiscal Update 21 October 1999. The Treasury
 $(million)
Subsidies and transfer payments (see analysis below)12,89213,03513,20613,48913,884
Operating expenses (see analysis below)15,68116,51016,74616,86917,102
Personnel
    Personnel expenses (excluding pension expenses)2,5412,5482,5002,4642,460
    GSF pension expenses703653678688694
    Movement in unfunded pension liability4293(28)(54)(26)
    Other pension expenses5053535353
Depreciation
    Physical assets684750799814826
    State highways8183868888
Rental and leasing costs269254247245245
Loss on sale of assets26........
Finance costs (see analysis below)2,5162,3102,4222,4782,394
Net foreign-exchange (gains)/losses on liabilities(22)357......
Net foreign-exchange (gains) on assets(25)(383)......
Provision for future initiatives..103109201,470
Contingency expense provision..........
                Total expenses35,82536,18337,01938,05439,190
Analysis of subsidies and transfer payments
Social assistance grants
    New Zealand superannuation5,0645,0154,9815,0925,273
    Community wage1,4871,9902,0072,0012,028
    Unemployment benefit369........
    Domestic purposes benefit1,4511,4331,4591,5101,574
    Family support915954959966973
    Student allowances378393426445462
    Other social assistance grants2,9012,8822,9963,0973,196
Subsidies110138139139139
Other transfer payments
    Official development assistance204213223223223
    Other1317161616
                    Total subsidies and transfer payments12,89213,03513,20613,48913,884
Analysis of operating expenses
Education purchases
    Early childhood education294317327334338
    Primary and secondary education3,1463,4433,5113,5603,677
    Tertiary education and training1,3571,4081,4781,4971,521
Health purchases6,1076,3736,5776,6716,754
Science purchases405420440442442
Other operating expenses4,3724,5494,4134,3654,370
                Total operating expenses15,68116,51016,74616,86917,102
Analysis of finance costs
Interest
    New Zealand dollars2,1291,9742,1032,1492,086
    Foreign currencies343313296306285
Other finance costs4423232323
                Total finance costs2,5162,3102,4222,4782,394

REVENUE AND EXPRESS
As a percentage of GDP

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

  • Statement of Contingent Liabilities.

Departmental Financial Statements contain the same key statements as above but also report:

  • Statement of Objectives

  • 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.

Table 28.2. Government Finance: Statement of Cash Flows

 Years ending 30 June
1999 Actual2000 Pre-EFU2001 Pre-EFU2002 Pre-EFU2003 Pre-EFU
Source: Pre-election Economic and Fiscal Update 21 October 1999, The Treasury
 $(million)
Cash flows from operations
Cash provided from
Direct taxation
Individuals15,03415,47216,03316,89617,820
Companies3,8214,1374,5044,7875,032
Withholding taxes1,6541,4531,5701,7241,816
Other direct taxation22222
                Total direct taxation20,51121,06422,10923,40924,670
Indirect taxation
Gross goods and services tax8,4348,7179,1449,5719,973
Excise duties1,8641,9952,0132,0312,051
Other indirect taxation1,5751,5321,5911,6081,660
                Total indirect taxation11,87312,24412,74813,21013,684
                Total taxation receipts32,38433,30834,85736,61938,354
Compulsory fees, fines, penalties and levies251263291300305
Other receipts
Interest, profits and dividends1,034941810911955
Sales of goods and services642631659681696
Other operating receipts372335302300298
                Total other receipts2,0481,9071,7711,8921,949
                Total cash from operations34,68335,47836,91938,81140,608
Cash disbursed to
Departmental outputs4,5364,6784,3324,2674,262
Other outputs14,40215,57015,76215,86316,150
Finance costs2,3982,4472,4752,4932,363
Subsidies134156162161161
Current transfers
  Social assistance grants12,60112,73012,89013,19313,591
  Other transfers220231240240240
Provision for future initiatives..103109201,470
Contingency expenditure provision..........
                Total cash disbursed to operations34,29135,82236,17137,13738,237
                Net cash flows from operations392(344)7481,6742,371
Cash flows from investing activities
Cash provided from
Sale of physical assets2391501317272
                Total cash provided2391501317272
Cash disbursed to
Purchase of physical assets1,1421,5611,005820779
Net increase in advances179189336238364
Net sale of investments(1,554)(3,104)(562)(436)(102)
Contingency capital provision....400400400
                Total cash disbursed(233)(1,354)1,1791,0221,441
                Net cash flows from investing activities4721,504(1,048)(950)(1,369)
                Net cash flows from operating and investing activities8641,160(300)7241,002
Cash flows from financing activities
Cash provided from
Issue of circulating currency15116......
                Total cash provided15116......
Cash disbursed to
Net (issue)/repayment of Government stock(2,874)948(470)467773
Net repayment/(issue) of foreign-currency borrowing1,060549121312(1)
Net repayment/(issue) of other New Zealand-dollar borrowing2,791(101)35(67)146
                Total cash disbursed9771,396(314)712918
                Net cash flows from financing activities(826)(1,380)314(712)(918)
Net movement in cash held38(220)141284
Opening cash balance171230102436
Foreign-exchange gains on opening cash balances21........
                Closing cash balance230102436120

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 cooperative 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.

Table 28.3. Government Finance: Statement of Financial Performance

 Years ending 30 June
1999 Actual2000 Pre-EFU2001 Pre-EFU2002 Pre-EFU2003 Pre-EFU 
Source: Pre-election Economic and Fiscal Update 21 October 1999. The Treasury
 $(million)
Revenue
Levied through the Crown's sovereign power
Direct taxation20,28921,04122,06423,39524,665
Indirect taxation11,86712,31912,79113,25313,727
                Total taxation revenue32,15633,36034,85536,64838,392
Compulsory fees, fines, penalties and levies300287304310315
                Total revenue levied through the Crown's sovereign power32,45633,64735,15936,95838,707
Earned through the Crown's operations
Investment income2,9011,1461,0341,1411,202
Sales of goods and services683670683713728
Other operational revenue401292280277275
Unrealised losses arising from changes in the value of commercial forests(84)........
                Total revenue earned through the Crown's operations3,9012,1081,9972,1312,205
                Total revenue36,35735,75537,15639,08940,912
Expenses
By functional classification
Social security and welfare12,90612,96313,04313,28013,659
GSF pension expenses1,132656650634668
Health6,5736,8167,0417,1277,211
Education5,8996,3736,5246,6346,779
Core government services1,7051,6771,6921,6451,627
Law and order1,4991,4521,4381,4441,439
Defence1,0301,1761,1421,0911,101
Transport and communications1,0291,0751,0961,1481,197
Economic and industrial services858809773771766
Primary services334307306308309
Heritage, culture and recreation316388391389387
Housing and community development4148454038
Other34149146145145
Finance costs2,5162,3102,4222,4782,394
Net foreign-exchange gains(47)(26)......
Provision for future initiatives..103109201,470
Contingency expense provision..........
                Total expenses35,82536,18337,01938,05439,190
                Revenue less expenses532(428)1371,0351,722
Surplus attributable to State-owned enterprises and Crown entities1,7899079779851,030
Dividends and other distributions(544)(465)(318)(361)(411)
Net surplus attributable to State-owned enterprises and Crown entities1,245442659624619
                Operating balance1,777147961,6592,341

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.

The New Zealand tax system

Individuals

New Zealand attempts, as far as practicable, to have taxes deducted at the source, with a graduated pay as you earn scale (PAYE) tax deducted from wages and salaries, and withholding tax deducted from various other specified categories of income.

Recent changes have simplified the tax system by removing the requirement for wage and salary earners to file an IR5 income tax return. In certain circumstances wage and salary earners will receive a statement showing whether they have tax to pay or a refund.

The PAYE system has been amended to require employers to provide Inland Revenue with a monthly schedule detailing each employee's salary and wage income, PAYE deductions and other information such as student loan repayments.

Tax rates

Income tax is levied under the Income Tax Act 1994 and is charged on most income including business profits, employment income, royalties, interest, dividends and pensions.

The rates of income tax for the 2000/01 and subsequent tax years are:

Income up to and including $38,00019.5c for every dollar
Income over $38,00033c for every dollar
Income over $60,00039c for every dollar

The rates used for assessment are always based on annual income (normally 1 April to 31 March).

Resident withholding tax

This tax (RWT) is deducted at the source from interest and dividends that are not fully imputed before the net amount is credited to the recipient. The tax is at a rate of 33 percent for dividends and the taxpayer can choose between a 19.5 percent, 33 percent and 39 percent rate for interest. If the recipient does not provide the interest payer with a taxpayer identification number, a higher ‘no declaration’ rate of 39 percent applies instead.

Certain recipients of interest or dividends (such as charitable/non-profit organisations, sports clubs and others) may claim exemption from RWT.

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 (by the company and the shareholders) on the same income. Withholding payment credits arise when a New Zealand company receives dividends from a country with which New Zealand has a double tax agreement.

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.

Rebates

New Zealand has a minimal number of rebates available to personal taxpayers. Those currently available are:

  • The low income rebate for New Zealand resident taxpayers in receipt of non-investment income.

  • A transitional tax allowance for certain full-time employees.

  • A child rebate for taxpayers who are under 18 years of age and are attending school or a tertiary educational establishment.

  • A housekeeper/childcare rebate for working parents who pay for childcare, or for disabled people who pay for help with childcare or housekeeping (maximum rebate is $310).

  • A rebate for charitable donations which is 33.3 percent of all qualifying charitable donations (minimum qualifying charitable donation is $5 and the maximum rebate is $500).

Company taxation

Company taxation is also levied under the Income Tax Act, although companies in New Zealand are taxed differently from individual taxpayers. The main differences are:

  • a company does not get any of the special exemptions or rebates that individuals are entitled to

  • a flat rate of tax (33 percent) applies to companies.

Company taxation assessed in the year ended 30 June 1999 was $3,693 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.

When companies pay dividends to shareholders they receive a credit for the tax they have paid.

Non-resident companies – A company not resident in New Zealand is liable for tax only 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 tax agreement with the country within which the company is resident. Generally this is the final liability.

Fringe benefit tax

This is a tax at 64 percent of the value of the 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 motor vehicle by an employee.

  • Low-interest loans.

  • Free, subsidised or discounted transport and other goods and services.

  • Employers' contributions to certain employees' superannuation funds and accident, sickness or death benefit funds and insurance policies.

The total fringe benefit tax assessed in the year ended 30 June 1999 was $323 million.

Goods and services tax

Goods and services tax (GST) is a tax charged at 12.5 percent on supplies of goods and services made in New Zealand by a registered person in the course of a taxable activity. GST was introduced at a rate of 10 percent in 1986 and increased to 12.5 percent in 1989.

Anyone with an annual turnover of $30,000 or more must register for GST. People 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 the GST they have collected, less the GST on their purchases, to Inland Revenue.

GST is charged on the supply of goods and services. Some activities, such as salaries and wages, hobby activities and private sales of personal and 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 30 June 1999, there were 501,383 registered persons in New Zealand.

The collection of GST at the border maintains the integrity of the New Zealand tax system and ensures equal treatment of domestically-produced and imported goods. Its collection by the New Zealand Customs Service maximises synergies, cost-effectiveness and maintenance of the Government's capability to operate a commodity management/commodity taxation regime. In the year ending 30 June 1999, the Customs Service collected $3,071 million in GST (out of its total revenue collection of $5,475 million).

The total GST assessed in the year ended 30 June 1999 was $6,074 million.

Social policy measures affecting individuals

Family assistance

Financial assistance is provided for low to middle income families with dependent children. The entitlement is based on the combined family income and the number and age of the children.

Family assistance is made up of Family Support, which is the basic payment, and Family Plus which consists of extra payments to working families who qualify for them.

Family Support is assistance for families who have dependent children aged 18 years of age or younger. The Department of Work and Income is responsible for the payment of Family Support to beneficiaries with children. Inland Revenue is responsible for payment of Family Support to other families. Inland Revenue calculates the amount of assistance based on the family's estimated income for the year and the number and the age of the dependent children.

Family Plus is made up of three components: the child tax credit, the family tax credit and the parental tax credit. The child tax credit and parental tax are payments that can be received when a family's income does not include income-tested benefits from the Department of Work and Income, NZ Superannuation, veteran's pension, accident insurance payments from ACC or private insurers for more than three months or a student allowance.

The child tax credit is a payment of up to $15 per week for each child under the age of 18. The parental tax credit applies to children born on or after 1 October 1999. It provides extra financial support to a maximum of $150 per child a week for the first eight weeks after a child is born. The family tax credit tops up a family's total income (after tax) to a guaranteed level of $290 a week ($ 18,368 a year before tax). At least one parent must work for salary or wages. The combined weekly hours of work in a two-parent family must be at least 30 hours. In a single-parent family, the weekly hours of work must be at least 20 hours.

Child support

Inland Revenue administers Child Support – a voluntary service that operates under the principle that just because parents separate, their financial obligations to their children do not end.

Either parent can apply for child support and it is compulsory for custodians to apply if they are on a benefit. Child Support collects payments from the paying parent and passes them on to the custodian or to the Government if the custodian is on a benefit. If an assessment is more than the benefit, then the excess is paid to the custodian. If the paying parent is on a benefit their child support is deducted from it.

The service uses a formula to work out how much a paying parent is liable to pay. Liability exists until children turn 19, marry or enter into a de facto relationship, or become financially independent.

A parent's taxable income, less a living allowance, multiplied by a percentage equals the amount of support a paying parent is liable for that year.

Parents can appeal a formula assessment by applying for an administrative review. The free and informal process can alter an assessment by taking into account any special circumstances, for example, parents may have the extra expense of caring for a child with disabilities.

There are approximately 200,000 paying parents and 300,000 children involved in the scheme. Since Inland Revenue began administering it in 1992, the overall debt collection rate (excluding penalties) has been 90 percent. Prior to that the collection rate was around 34 percent. For the year ended 30 June 1999, Child Support collected $198 million from paying parents, of this $69.5 million was paid to custodial parents and $128.3 million was paid to the Crown.

Student loans

The student loans scheme started on 1 January 1992. The scheme is administered by the Department of Work and Income and Inland Revenue.

The Ministry of Education is responsible for student loan policy.

The Department of Work and Income makes loans available to borrowers and at the end of each academic year the loans are transferred to Inland Revenue. Inland Revenue assesses and collects loan repayments until the loan is repaid.

The interest rates and repayment threshold are reviewed annually and are effective from 1 April to 31 March.

The 2000/01 rates are: Interest 7 percent; Repayment threshold $14,768.

Borrowers earning over the repayment threshold are required to pay 10 cents in the dollar. Those who are on salary and wages generally have their loan repayments deducted at the source, along with their 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 generally made directly to the Inland Revenue in three annual installments. Borrowers can also make voluntary repayments to Inland Revenue for any amount at any time to reduce their loan balance.

As at 30 June 1999, 247,368 student loan borrowers had student loans worth $2,885 million.

Other taxes and duties

Applications for shares in Auckland International Airport after the Government announced it would sell its 51.6 percent holding, 1998.

ACC

Inland Revenue collects the following on behalf of the Accident Compensation Corporation (ACC).

Residual claims levy. Payable annually by employers, self-employed and private domestic workers to fund the ongoing cost of work-related injuries sustained before 1 July 1999 and non-work injuries sustained before 1 July 1992.

Earners' account levy. Payable annually by the self-employed to fund the ongoing cost of non-work injuries sustained between 1 July 1992 and 1 July 1999.

Earner premium. Payable by all employees, including shareholder-employees and private domestic workers to provide employees with ongoing cover from ACC for non-work injuries (the earner premium includes the earners' account levy and is collected by Inland Revenue as a component part of PAYE deductions).

Gift duty

Gift duty is paid by a donor of property at progressive rates according to the total value of the gifts within a 12-month period. Dutiable gifts with a value up to $27,000 are not taxed. Thereafter, starting at 5 percent, the gift duty rate rises progressively, reaching the top rate of 25 percent on gifts exceeding $72,000 in a 12-month period. A gift duty statement must be provided to Inland Revenue when the value of the gift exceeds $12,000 or when the value of gifts within the previous 12 months exceeds $12,000.

Stamp duty

The Stamp Duty Abolition Act 1999 abolished stamp duty requirements from 21 May 1999. Stamp duty is still payable, however, on the sale and lease of commercial land by transfer or by lease if the transaction was completed before 21 May 1999.

Cheque duty

Bills of exchange are liable to cheque duty (with exceptions), and each quarter banks are required to forward to Inland Revenue statements containing particulars of all bill of exchange forms. Licensed printers who print pre-paid bills of exchange are required to forward statements to Inland Revenue monthly. Cheque duty is set at the rate of 5 cents per bill of exchange or 5 cents per form when the duty is prepaid.

Gaming duty

Gaming duty consists of totalisator duty, lottery duty, gaming machine duty and casino duty.

Totalisator duty – is payable at the rate of 20 percent of the betting profits of a racing club or totalisator agency board. Statements of totalisator duty must be forwarded to Inland Revenue by the 20th of the month following the race or event.

Lottery duty – is payable at the rate of 5.5 percent of the nominal value of all tickets in the drawing of a New Zealand lottery, instant games, lotteries and prize competitions promoted by the New Zealand Lotteries Commission. The organisers of a lottery are required to supply to Inland Revenue a statement of the lottery duty payable and pay it within 14 days of the drawing of a lottery.

Gaming machine duty – at the rate of 20 percent, is payable on the profits from dutiable games played on a gaming machine. Gaming machine operators are required to forward a statement to Inland Revenue each month setting out the gaming machine duty and pay the duty by the due date for furnishing the statement.

Casino duty – is payable by licensed casino operators at the rate of 4 percent on the ‘casino win’ of all authorised games conducted or played in the casino. Casino operators are required to deliver to Inland Revenue a statement of the ‘casino win’ and pay the casino duty on a monthly basis.

International Tax

Non-residents

Non-residents are taxed in New Zealand only on income from 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:

  • They have an enduring relationship with New Zealand i.e. strong financial, personal or other such ties with New Zealand. Each case is considered on its own facts.

  • They have been in New Zealand for more than 183 days in any 12-month period.

  • They are away from New Zealand in the service of the New Zealand Government.

Individuals cease to be a 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 an enduring relationship with New Zealand.

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 tax 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, Taiwan, Thailand, the United Kingdom, and the United States. A visitor from one of these countries who received income in New Zealand should refer to the relevant agreement.

Government statistics

The following tables are from the Government accounts. As well as taxes and duties collected by Inland Revenue, they also include taxes and duties collected by New Zealand Customs. The source of this information is the Government budget.

Table 28.4. Breakdown of Tax Revenue

 1980/811985/861993/941994/951995/961996/971997/981998/99
Source: Government Budget statements
 $(million)
Income tax (wages and salaries)4,0137,46310,90111,76512,53912,26412,77312,295
Income tax (self-employed and FBT)7001,8332,6263,0923,0873,0602,8962,646
Company tax5851,2073,0013,9674,0633,2333,7213,694
Withholding taxes on residents....7087401,0731,1081,208935
Withholding taxes on non-residents....344285491824662717
                Total direct taxes5,29810,50317,58019,84921,25320,48921,26020,287
Goods and services tax....6,7796,8097,2627,7258,0308,404
Sales tax7761,553............
Excise duty2046471,8291,8671,8751,7961,9061,948
Customs duty349742658780843909750528
Other duties4237238599081,0009971,036989
                Total indirect taxes1,7523,66510,12510,36410,98011,42711,72211,869
                Total taxes7,05014,16827,70530,21332,23331,91632,98232,156
                Taxes to GDP (percent)30,5630,9534,6034,8035,5033,3033,6032,30

Table 28.5. Breakdown of Tax Revenue (As Percentage of Total)

 1980/811985/861993/941994/951995/961996/971997/981998/99
Source: Government Budget statements
 percent
Income tax (wages and salaries)5753393939383938
Income tax (self-employed and FBT)101391091098
Company tax89111312101112
Withholding taxes on residents....323343
Withholding taxes on non-residents....111322
                Total direct taxes7574636666646563
Goods and services tax....242323242426
Sales tax1111............
Excise duty35766666
Customs duty55233322
Other duties65333333
                Total indirect taxes2526373434363537
                Total taxes100100100100100100100100

Inland Revenue statistics

Statistics on Inland Revenue are provided in the Annual Report for the year ended 30 June 1999.

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).

  • The deposit, keeping or securing of imported goods, without payment of duty on the goods, pending the export of those goods (ships' provedores).

  • The storage – by or for:

    • (i) The manufacturer; or

    • (ii) 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).

  • 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 -

    • (i) Persons departing to or arriving from a country outside New Zealand.

    • (ii) 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 after the last day of the 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.

The New Zealand Customs Service is well placed to manage the collection and enforcement of excise duties. This takes advantages of synergies with other enforcement activities to enable an assured level of revenue collection at low marginal costs.

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 the source. Fuel 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 fuel excise duty rates are: petrol, 34.3 cents per litre plus 8.0 cents per gram of lead; LPG, 10.4 cents per litre; and CNG, $3.17 per gigajoule. In the case of petrol excise duty, 13.6 cents per litre of the excise duty, and the total excise duty for CNG and LPG, is paid into the National Roads Fund.

The National Roads 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 is at the rate of 20 percent of the betting profits of a racing club or totalisator agency board. Totalisator duty totalled $35,800 million net during the year ended 30 June 1999.

Tax revenue

Table 28.6. Direct Taxation

 Years ending 30 June
1999 Actual2000 Pre-EFU2001 Pre-EFU2002 Pre-EFU2003 Pre-EFU
Source: Pre-election Economic and Fiscal Update 21 October 1999. The Treasury
 $(million)
Income tax
Individuals
Source deductions12,29512,66612,98313,62114,302
Other persons3,0243,1153,3383,6103,867
Refunds(701)(650)(668)(681)(695)
Fringe benefit tax323326332338341
                Total individuals14,94115,45715,98516,88817,815
Companies
Gross companies3,8514,2944,6374,9185,170
Refunds(157)(157)(133)(131)(138)
                Total companies3,6944,1374,5044,7875,032
Withholding taxes
Residents' interest income864683778891964
Non-residents' income717689723756779
Residents' dividend income6314403941
Foreign-source dividends859323232
                Total withholding taxes1,6521,4451,5731,7181,816
                Total income tax20,28721,03922,06223,39324,663
Other direct taxation
Estate and gift duties22222
                Total other direct taxation22222
                Total direct taxation20,28921,04122,06423,39524,665

Table 28.7. Indirect Taxation

 Years ending 30 June
1999 Actual2000 Pre-EFU2001 Pre-EFU2002 Pre-EFU2003 Pre-EFU
Source: Pre-election Economic and Fiscal Update 21 October 1999. The Treasury
 $(million)
Goods and services tax
Gross goods and services tax12,84413,42414,04914,69215,286
Refunds4,440)(4,667)(4,865)(5,081)(5,273)
                Total goods and services tax8,4048,7579,1849,61110,013
Excise duties802854867880894
Petroleum fuels714706709712714
Tobacco products714706709712714
Alcoholic beverages432436438440444
                Total excise duties1,9481,9962,0142,0322,052
Other indirect taxation
Customs duty528562536503507
Road user charges468510540573607
Motor vehicle fees174179183188192
Gaming duties155169178186193
Energy resources levies9690898989
Stamp, cheque and credit card duties9456677174
                Total other indirect taxation1,5151,5661,5931,6101,662
                Total indirect taxation11,86712,31912,79113,25313,727

Table 28.8. Comparison of Public Account Taxation and National Disposable Income

Year ended 31 MarchNational disposable income1Public account taxation
Total2Percentage of national disposable income

1National Disposable Income is calculated on a year ended 31 March.

2From 1992 accounts prepared on an accrual basis.

Source: Statistics New Zealand

 $(million)percent
198639,12514,235.936.4
198747,74517,408.136.5
198853,37421,528.140.3
198957,58022,863.939.7
199060,07926,198.143.6
199161,60425,797.641.9
199261,08623,901.039.1
199364,20025,812.040.2
199469,43827,705.039.9
199573,81430,213.040.9
199677,03932,233.041.8
199778,52931,916.040.6
199881,99332,982.040.2
199981,51732,156.039.4

Comalco aluminium smelter, Bluff, 1971.

Table 28.9. Government Finance: Statement of Financial Position

 As at 30 June
1999 Actual2000 Pre-EFU2001 Pre-EFU2002 Pre-EFU2003 Pre-EFU
Source: Pre-election Economic and Fiscal Update 21 October 1999. The Treasury
 ($million)
Assets
Cash and bank balances230102436120
Marketable securities and deposits11,1538,1367,5717,1587,145
Advances3,6284,0084,4744,8275,350
Receivables5,2505,2315,2415,2935,378
Inventories321323320317317
State-owned enterprises and Crown entities12,91713,70314,29914,77615,270
Other investments270278278278278
Physical assets15,25815,59215,65615,38915,064
Commercial forests422422422422422
State highways8,7708,8478,9269,0069,090
Intangible assets44444
Contingency capital provision....4008001,200
                Total assets58,22356,55457,61558,30659,638
Liabilities
Payables and provisions5,0054,4964,5464,4784,298
Currency issued1,9601,9761,9761,9761,976
Borrowings36,71235,47635,71934,87334,070
Pension liabilities8,5248,5278,4998,4458,419
                Total liabilities52,20150,47550,74049,77248,763
                Total assets less total liabilities6,0226,0796,8758,53410,875
Crown balance
Accumulated operating balance(1,197)(1,183)(387)1,2723,613
Revaluation reserve7,2197,2627,2627,2627,262
                Crown balance6,0226,0796,8758,53410,875

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.

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 market, credit, funding, liquidity, portfolio concentration 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. From 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 the indebtedness of New Zealand is otherwise unsecured.

Debt record

New Zealand has always paid, when due, the full amount of principal, interest and amortisation requirements upon its external and internal debt, including guaranteed debt.

Quantifiable contingent liabilities of the Government, including the Reserve Bank of New Zealand, state-owned enterprises and Crown entities, amounted to approximately $5,435 million as at 30 June 1999 ($5,066 million in 1998).

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.

Table 28.10. Sales of State Assets

BusinessSale priceSettlement date

1Includes a special dividend of $69.66 million.

Note:Sale price includes any subsequent purchase price adjustments. Nominal figures are those totalling less than $1 million.

Source: The Treasury

 $(million) 
New Zealand Steel Limited32722 March 1988
Petrocorp80131 March 1988
Health Computing Service47 November 1988
Development Finance Corporation11118 November 1988
Post Office Bank Limited67828 February – 31 October 1989
Shipping Corporation of New Zealand323 April 1989 – 23 December 1993
Air New Zealand66017 April 1989
Landcorp financial instruments7720 March 1989 – 5 February 1990
Rural Bank68831 October 1989 – 30 September 1992
Communicate New Zealandnominal8 December 1990
Government Printing Office391989/90 – 31 March 1993
National Film Unit323 March – 21 September 1990
State Insurance Office73528 June 1990
Tourist Hotel Corporation7215 June 1990
New Zealand Liquid Fuel investment(203)6 July 1990
Maui Gas2546 July 1990
Synfuels stocks and current assets2066 July 1990 – 1995/96 1993
Telecom Corporation4,25012 September 1990
Forestry cutting rights1,02724 July – 26 October 1990
Export Guarantee Limited2024 June 1993 – 20 December 1996
Housing Corporation mortgages2,35325 November 1991 – 21 September 1998
Government Supply Brokerage330 January 1992
Taranaki Petroleum mining licences1216 April 1992 – 1 March 1993
New Zealand Timberlands Limited36615 May 1992
Bank of New Zealand8509 November 1992
New Zealand Rail Limited32830 September 1993
Wrightson Rights325 November 1993
Fletcher Challenge shares41823 December 1993
GCS Limited4718 November 1994
Waikato Regional Airport Limited229 March 1996
Maori Development Corporation2117 June 1996
The Radio Company Limited8910 July 1996
Forestry Corporation of New Zealand1,60027 September 1996
Works and Development Services1088 November 1996
Oamaru Airportnominal30 June 1996
Te Kuiti Airportnominal30 September 1996
Timaru Airportnominal1 May 1997
Masterton Airportnominal1 May 1998
Tauranga Airport11 May 1998
Hokitika Airportnominal1 July 1998
Auckland International Airport Limited4,60128 July 1998
Wellington International Airport Limited9614 August 1998
Capital Properties NZ Limited6027 November 1998
Rotorua Regional Airport Limited and Palmerston North Airport Limited31 February 1999
Contact Energy Limited – 40 percent cornerstone1,20814 May 1999
Contact Energy Limited – 60 percent float1,12314 May 1999
Vehicle Testing New Zealand (VTNZ)1921 September 1999
                Total at November 199919,122 

Table 28.11. Statement of Borrowings

 Movements during the year ended 30 June 1999
As at 1 July 1998Increases/ additionsDecreases/ disposals/ repaymentsForeign exchange contractsCurrency realignmentUnamortised premiums/ discountsAs at 30 June 1999
Source: Financial Statements of the Government of New Zealand for the year ended 30 June 1999, The Treasury
 $(million)
Outstanding Debt
New Zealand-dollar debt
Government stock19,8594,536(1,882)--18822,701
Treasury bills8,008-(2,204)--775,881
Loans and foreign-exchange contracts28921(11)---299
Reserve Bank bills1,204-(1,204)----
Retail stock4911,038(800)---729
                Total New Zealand-dollar debt29,8515,595(6,101)--26529,610
Foreign-currency debt
United States dollars4,088118(605)(33)(16)133,565
Japanese yen1,85254(441)-24011,706
European and other currencies2,101228(602)435651,831
                Total foreign-currency debt8,041400(1,648)10280197,102
                Total outstanding debt37,8925,995(7,749)1028028436,712
Less
Financial Assets
Marketable securities and deposits
New Zealand dollars1,2192,006(3)379--3,601
United States dollars4,36764,483(64,748)(294)109(60)3,857
Japanese yen2,2386,260(7,143)314182(24)1,827
European and other currencies2,4612,474(2,429)(451)(201)141,868
                Total marketable securities and deposits10,28575,223(74,323)(52)90(70)11,153
                Advances and cash3,5381,605(1,306)-21-3,858
                Total financial assets13,82376,828(75,629)(52)111(70)15,011
                Net crown debt24,069(70,833)67,8806216935421,701
Government Finance: 1880–1999
Year2Population3Receipts1Payments1Public debt
From taxationOtherInternalOverseasTotal

1Consolidated Fund 1876–1964, Consolidated Account thereafter. Frequent changes in accounting practices from 1920s mean statistics are not strictly comparable.

2Year ended 31 March, year ended 30 June from 1990 onwards.

3Year ended 31 December.

Source: Statistics New Zealand

 no£ (million)
1880528,4591,4481,6873,845  23,958
1885619,3231,8162,1404,101  32,195
1890667,4772,0902,1774,257  38,668
1895740,6992,3002,1484,352  40,387
1900808,1322,8912,8085,1404,39343,48147,874
1905925,6053,7543,5936,6369,32350,58959,912
19101,050,4104,1815,0588,99113,04361,84774,890
19151,152,6385,8816,57112,38019,67180,389100,060
19201,257,61116,2529,83023,782102,07799,094201,171
19251,401,23016,17212,47127,399104,044123,771227,815
19301,506,80919,4715,87925,201116,526150,857267,383
19351,569,68920,1765,95024,500117,425136,965254,390
19401,633,64532,81114,10946,600164,165132,551296,716
19451,728,44145,68914,23958,714403,274133,953537,227
19501,927,629103,85321,143120,689565,11278,768643,880
19552,164,734162,50928,708184,376630,80497,789728,593
19602,403,567276,44638,402314,217707,787136,729844,516
19652,663,843391,61360,241447,248904,393165,3991,069,792
  $(million)
19702,857,8601,102.0170.51,275.12,351.3535.82,887.1
19753,148,4002,760.5285.53,034.93,336.9862.84,199.7
19803,176,4005,880.51,655.07,529.16,778.93,567.510,346.4
19853,271,50011,579.54,591.416,162.415,836.812,409.528,246.3
19903,362,50026,198.14,592.429,606.223,760.720,585.844,346.5
19953,580,00030,4383,21030,40031,05113,04544,096
19963,640,00032,4682,49131,74331,7479,75341,500
19973,762,30032,1792,59932,95329,6256,34735,972
19983,792,00033,2402,34134,21129,8518,04137,892
19993,808,70032,4563,90135,82529,6107,10236,712

Table 28.12. Type of Crown Debt

Outstanding at 30 JuneForeign currency debtDomestic currency debtTotal debt
AmountPercentage of total debtAmountPercentage of total debtAmountPercentage increase on previous year

1Pre-election Economic and Fiscal Update (Pre-EFU), 21 October 1999.

Source: The Treasury

 $(million) $(million) $(million) 
199513,04529.631,05170.444,096(5.0)
19969,75323.531,74776.541,500(5.9)
19976,34717.629,62582.435,972(13.3)
19988,04121.229,85178.837,8925.3
19997,10219.329,61080.736,712(3.1)
200016,72319.028,75381.035,476(3.4)
200116,60218.529,11781.535,7190.7
200216,29018.028,58382.034,873(2.4)
200316,29118.527,77981.534,070(2.3)

Table 28.13. Gross Indebtedness of Central Government

As at 31 MarchAmountPer head of population
Source: Statistics New Zealand
 $(million)$
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
199247,10513,795.98
199347,47813,565.14
199446,42913,166.12
199544,09612,062.92
199641,50011,173.64
199735,9729,564.22
199837,8929,992.62
199936,7129,898.89

Table 28.14. Maturity Profile as at 30 June 1999

 1999/00 $m2000/01 $m2001/02 $m2002/03 $m2003/04 $m2004/05–2008/09 $m2009/10 and after $mTotal book value $m

Note:The maturities of marketable securities and deposits in this table are based on the contractual maturity dates.

Source: Financial Statements of the Government of New Zealand for the year ended 30 June 1999, the Treasury

Outstanding debt
New Zealand dollar debt
Government stock3,2853,1842,9091,4263,6423,1545,10122,701
Treasury bills5,881............5,881
Loans and foreign exchange contracts147270505241299
Reserve Bank bills................
Retail stock577694736......729
Total New Zealand-dollar debt9,8903,2553,0261,5123,6473,1785,10229,610
Foreign-currency debt
United States
dollars1,849188..785655583273,565
Japanese yen230..6223011457951,706
European and other currencies973621......22891,831
Total foreign-currency debt3,0528096223795661,2434317,102
Total outstanding debt12,9424,0643,6481,8914,2134,4215,53336,712
Marketable securities and deposits
New Zealand dollars3,601............3,601
United States dollars2,74410015167(26)777443,857
Japanese yen5728734930782420101,827
European and other currencies1,1095059520(2)361051,868
Total marketable securities and deposits8,026692595394541,23315911,153

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 28.15.

Table 28.15. Local Authority Statistics – Non-Trading Activities1

Year ended 30 June199619971998

1Coverage: all activities of local authorities not classified as trading activities, e.g. local government administration, provision of water supply, roading, parks and reserves, town planning and regulation.

Source: Statistics New Zealand

 $(million)
Operating income
Rates (including water values)1,770.61,872.31,944.7
Petroleum tax33.124.925.2
Grants, subsidies and levies322.2331.1370.6
Fees and fines150.7155.1164.9
Sales and other income618.9636.8641.2
Investment income245.8261.5318.7
                Total operating income Operating expenditure3,141.33,281.83,465.3
Employee costs833.4830.5823.0
Interest171.3160.3166.1
Depreciation346.2372.8404.1
Purchases and other expenditure1,724.31,849.41,924.0
                Total operating expenditure3,075.23,222.03,317.3
Surplus/(deficit) before non-operating items66.159.8148.0
Net gains from non-operating items314.016.788.0
Surplus/(deficit) after non-operating items380.176.5236.0
Additions to fixed assets906.2875.31.030.1
Disposals of fixed assets168.0222.4116.7

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.

Display at Money Expo, 1993.

Contributors

28.1The Treasury.
28.2Inland Revenue Department; New Zealand Customs; Ministry of Transport; The Treasury; Statistics New Zealand.
28.3The Treasury; Statistics New Zealand.
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. The Treasury (annual).

Departmental Forecast Report of the Treasury. Serial (Parl paper B.27 FR 96).

Economic and Fiscal Update. Office of the Minister of Finance 1992 (Parl paper B.6).

Estimates of Appropriations for the Government of New Zealand for the year ending 30th June 2000. The Treasury.

Financial Statements of the Government of New Zealand. The Treasury (monthly).

Fiscal Responsibility Act 1994 – an explanation. 1995. The Treasury.

Fiscal Results for the Government of New Zealand. The Treasury (annual).

GST Guide (booklet) 1994. Inland Revenue Department.

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).

New Zealand system of National Accounts 1998. 1999. Statistics New Zealand.

Putting It Together. 1996. The Treasury.

Quarterly Gross Domestic Product – Sources and Methods. 1996. Statistics New Zealand.

Report of the Inland Revenue Department (Parl paper B.23) (annual).

Report of the Local Authorities Loans Board (Parl paper B.17).

Retiring allowances and redundancy payments (booklet). 1996. Inland Revenue Department.

1996 Road User Charges (booklet). 1996. Land Safety Transport Authority.

Superannuitants and Surcharge (booklet). 1995. Inland Revenue Department.

Supplementary Estimates of Appropriations for the Government of New Zealand. House of Representatives. (Parl paper B. 7) (annual).

Stepping into a new dawn at St. Clair Beach, Dunedin. 1 January, 2000.

Glossary of statistical terms

Statistical terms defined here are those frequently used in censuses of population and businesses, and other data and index series referred to in this book.

Accounts payable

Non-marketable liabilities arising from deferred payment for imported goods and services (i.e. trade credit), overdue interest and the acquisition of financial assets.

Activity unit

A separate operating unit engaged in New Zealand in one (or predominantly one) kind of economic activity from a single physical location or base from which work is carried out — includes an ancillary activity unit.

Additions to fixed assets

Purchases of new and second-hand fixed assets and the cost of work done by a firm's own employees in producing, constructing and installing fixed assets for its own use.

Ancillary activity unit

An administrative or general servicing unit such as a head office, storage unit, laboratory, etc, the prime function of which is to provide services for other locations of the enterprise.

Balance of payments conceptual adjustments

Adjustments to the external trade statistics to bring the value of exports and imports in line with the balance of payments concepts. Imports are adjusted from cif to fob value. Exports are adjusted for goods shipped and sold on consignment.

Balance on current account

The balance on merchandise trade plus the balance on invisibles. Commonly it is referred to as the balance of payments deficit/surplus which indicates the extent to which the economy in question is paying its way in the world. A negative figure indicates a deficit which represents the amount that New Zealand has to either borrow from abroad or run down on its foreign assets.

Balance on invisibles

The balance on services, plus the credits, less the debits for international investment income and transfer items.

Balance on merchandise trade

This is calculated by deducting imports (fob) from exports (fob).

Balance on services

This is calculated by deducting the total debit entries from the total credit entries for the transportation, travel, insurance, other services and Government current transactions items.

Bills

Marketable, written promissory agreements, in which one party promises to pay a stated sum on demand or on a specified date to the legal holder of the document. They are usually issued and traded at a discount from the face value. This category includes bills of exchange, commercial paper, including eurocommercial paper, euronotes and certificates of deposit.

Birth rate (crude)

The number of births per 1,000 of total mean population.

Bonds

Written promissory agreements, usually marketable, in which one party promises to pay a stated sum on demand or on a specified date to the legal holder of the document. It also involves a promise to pay stated interest at specified intervals over the term of the bond. This category includes debentures, convertible notes and medium term notes issued by private placement.

Bone-in weight

Dressed carcass weight, including bone.

Capital expenditure less disposals

The amount spent on the purchase of new and second-hand fixed assets, less the proceeds received from the sale of any such assets.

Capital transfers from the rest of the world, net

(national accounts). The excess of the value of capital transfers by non-residents to New Zealand residents over the value of similar transfers by residents to non-residents. Capital transfers are unrequited transfers in cash or in kind which are not considered by the recipient as adding to current income, nor by the donor as reducing current income. Examples are unilateral transfers of capital goods, legacies, investment grants, and transfers of migrants’ funds. In the NZSNA it has not been possible to identify all of these flows separately, and they have been included in current transfers to/from the rest of the world.

Census

A type of survey in which all members of a given population provide information. These units may be people, companies, buildings, local authorities, etc. Statistics New Zealand carries out a range of censuses at regular intervals, such as the Census of Population and Dwellings, at five-yearly intervals, and other regular censuses. (See also Sample survey.)

Cif

(cost including insurance and freight). A basis for valuation of merchandise imports, representing the cost to the importer of buying the goods and bringing them to the wharf side 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 (i.e. the total net current costs incurred in providing the services).

Foreign direct investment in New Zealand.

Changes in foreign direct investors’ claims on and liabilities to their New Zealand-located subsidiaries and branches.

Fob (free on board).

The current market value of goods in the country of origin, including all costs necessary to get them on board the ship or aircraft, but excluding freight, insurance, and other costs involved in transporting goods between countries.

Full-time

Persons working 30 hours or more a week.

Full-time equivalents

The number of full-time equivalent persons engaged. This equals the number of full-time employees and working proprietors plus half the part-time employees and working proprietors. The resultant value is then rounded up to the nearest whole number when the data is output and is taken as at or on the nearest payday to 28 February during the census year.

Government current transactions

The expenditure abroad of New Zealand embassies, consulates, and defence forces. Similarly, the expenditure of foreign embassies and consulates etc in New Zealand is included as a credit item.

Gross domestic product

(GDP national accounts). The total market value of goods and services produced in New Zealand after deducting the cost of goods and services utilised in the process of production, but before deducting allowances for the consumption of fixed capital.

Gross fixed capital formation

(national accounts). The outlays of producers on durable real assets, such as buildings, motor vehicles, plant and machinery, roading, and improvements to land. In measuring the outlays, sales of similar goods are deducted. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm's own employees. The term ‘gross’ indicates that consumption of fixed capital has not been deducted from the value of the outlays.

Gross national expenditure

(national accounts). The total expenditure within a given period on final goods and services by New Zealand residents (i.e. excluding goods and services used up during the process of production).

Gross national product

(national accounts). The income accruing within a given period to New Zealand residents from their services in supplying factors of production in New Zealand and overseas, plus net indirect taxes, and before the deduction of allowances for the consumption of fixed capital.

Gross output at producers ' values

(national accounts):

  1. Market production groups — The total market value including commodity taxes on all goods and services produced during the year, including stocks of work-in-progress. Included is output produced for sale in the market, and capital formation on own account.

  2. Non-market production groups — These producers may sell a proportion of their output in the market, and such receipts are included in total output. However, most of the services produced represent unmarketed output and are valued at cost price. This assumption is necessary because there is no other basis for valuation.

Gross tonne.

The unit of actual weight of cargo, including packaging but not including the weight of a reusable container.

Harmonised System

The classification adopted by New Zealand on 1 January 1988 for processing customs entries and publishing statistics on external trade. It replaces the Customs Cooperation 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, e.g. wages, salary, social welfare payments, interest, dividends, commission, pre-tax business or farming income (less expenses).

Increase in stocks

(national accounts). The change in value of stocks of raw materials, work-in-progress, and finished goods, between the beginning and the end of the year.

  1. Value of the physical increase in stocks — The change in stocks valued at the average prices for the year. This valuation removes capital gains and losses caused by holding stocks purchased at prices higher or lower than those ruling during the year.

  2. Increase in book value of stocks — The change in stocks as valued in accounting records.

Indexes.

Indexes are used to measure the total impact of changes in the attributes of commodities which cannot be compared directly. In New Zealand the most common use of index numbers is to measure changes in prices, 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, e.g. hospital patient.

Main urban areas

The criterion for defining a main urban area is a population of 30,000 or more.

Maturity profile

Time to run to scheduled maturity, i.e. the residual maturity at the survey time point.

Mean population

The average number of people in an area during a given period, usually a year. This measure may be estimated in terms of simple or weighted averages of population, monthly or quarterly during the reference period.

Median

The value which divides a distribution or array so that an equal number of items is on either side of it.

Merchandise exports

Goods of domestic origin, and re-exports, sent from New Zealand to other countries.

Merchandise imports

Goods landed in New Zealand, having been consigned from other countries, for immediate consumption or for storage in bonded warehouses.

Merchandise trade

All goods which add to or subtract from the stock of material resources in a country, as a result of their movement in or out of it.

Minor urban areas

Towns with a population of 1,000 or more, not already classified as a main or secondary urban area.

National disposable income

(national accounts). The total income of New Zealand residents from all sources available for final consumption or savings.

National income at market prices

(national accounts). This item is equivalent to gross national product after the deduction of allowances for consumption of fixed capital. It is a measure of income accruing from the supply of factors of production in New Zealand and overseas, plus net indirect taxes.

Net acquisition of foreign financial assets

(national accounts). The change in actual claims by New Zealanders, or non-residents. It relates to the purchase, less the sale, of financial claims, such as those described for the net incurrence of foreign liabilities. It also includes changes in New Zealand's holdings of special drawing rights in its reserve position at the International Monetary Fund, and in the assets of the New Zealand banking system.

Net apparent capital inflow

The net amount of capital flow into or out of New Zealand over a given period. It is derived by deducting total debit entries from total credit entries for items in the capital accounts. A negative figure indicates a net outflow of capital.

Net incurrence of foreign liabilities

(national accounts). The change in actual indebtedness of New Zealanders to non-residents. It relates to the issue, less the redemption, of financial claims, such as currency and transferable deposits, bonds, corporate equities, loans, and long-term trade credits. Changes in the holdings of paid-up capital of companies, and changes in inter-company indebtedness are also included.

Net profit

The difference between total income and total expenditure, less working proprietors/ partners salaries and wages and before extraordinary items, gains/losses from sales of capital assets, exchange losses and revaluation of assets and tax.

New Zealand direct investment abroad

Changes in New Zealand's direct investors’ claims on and liabilities to their overseas subsidiaries and branches.

Nominal industry

A large proportion of the income of banks and financial institutions consists of an excess of interest and other property income over payments, rather than from direct charges for services. As NZSNA records this income in the income and outlay accounts rather than as an item of gross output in the production account, operating surplus would be negative. To overcome this a service charge is imputed, equal to net interest and other property income. Conceptual problems of how to allocate the charge to the users of services provided by financial institutions (such as whether to allocate on the basis of the number or value of loan transactions) are overcome by creating a nominal industry which pays the total charge. The nominal industry has no gross output and makes a negative contribution to GDP. Its negative operating surplus counteracts the increased operating surplus of all other industries which are not recorded as paying any of the imputed bank service charge. (see section 17.2: National accounts)

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.

Owner occupied dwellings

(in National Accounts). In the national accounts, all housing used for shelter, whether owned or rented, is treated in a consistent manner, namely as though they were all rented. Consequently, all expenditure associated with the purchase, alteration and maintenance of owner-occupied dwellings is excluded from household consumption expenditure. Included are imputed rental payments which the owners as “occupiers'’ are deemed to pay to themselves in their capacity as “landlords”, i.e. they are viewed as renting their houses to themselves. This is the value recorded in the item imputed rent of owner-occupied dwellings. By adopting this treatment, key aggregates such as GDP do not vary with changes in home ownership (a useful attribute for comparisons across time and between countries).

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 asset to/from the rest of the world, net

(national accounts). The value of purchases by residents from non-residents of intangible assets, less sales of such assets by residents to non-residents. Examples of these types of assets are mineral rights, fishing quotas, patents, copyrights, and trademarks. In the NZSNA flows associated with this item are not distinguishable in the source data and consequently are included in exports/imports of goods and services.

Purchases and other operating expenses

Total purchases and operating expenses, less interest, bad debts, donations, royalties and patent fees. Also excludes salaries and wages paid, and depreciation. In the Quarterly Economic Survey of Manufacturing this term excludes exchange losses and extraordinary terms, e.g. losses on sales of fixed assets, sales tax, beer and excise duty and fringe benefit tax.

Re-exports

Goods, materials or articles exported in the same condition as they were imported, and imported goods which have undergone operations such as repair, repacking, or bottling which leave them essentially unchanged before exporting.

Re-imports

Goods, materials or articles, imported in the same condition as they were exported from New Zealand (one third of re-imports are made up of live animals, principally racehorses and dogs).

Rent and leasing

Total expenditure on or income from the rent and leasing of land and buildings and of plant, equipment and vehicles.

Reserves

(balance of payments). Foreign reserves assets of government. The changes in reserves due to transactions equates to the balance on current account plus the net apparent capital inflows. The ‘counterpart’ to valuation change shows the change in the value of total foreign reserve assets arising from exchange rate changes.

Revised

(statistics). In this volume, any data which is different from that printed in the last edition.

Rural areas

Those areas not specifically designated as ‘urban’. They include towns of fewer than 1,000 population plus administrative district territory where this is not included in an urban area. Rural areas include offshore islands.

Salaries and wages

Gross earnings during the accounting year of all paid employees (full-time, part-time and casual) in any enterprise included in a census. Included are such items as overtime, sick and holiday pay, bonuses, payments under penal-rate schemes, severance pay, value of free supplies and sales commission paid to own employees, and excluded are drawings of working proprietors or partners.

Sales of goods and services

Goods and materials manufactured from purchased materials; includes repairs and other services provided and sales of goods purchased for resale.

Sample survey

A type of survey in which only a representative proportion of the given population provides detailed information. The sample statistics are summarised and are used to estimate statistics for the full population.

Savings

(national accounts). The residual item in the National Income and Outlay Account after all current receipts and disbursements have been accounted for.

Seasonal adjustments

Adjustments made to statistical time series (usually monthly or quarterly) to provide a refined series in which the fluctuations due to seasonal variations have been removed.

Secondary urban areas

Areas with populations which range between 10,000 and 29,999.

Sector of employment

Refers to the institutional sector in which an employing organisation is engaged. This was introduced at the 1981 Census and now includes: producer enterprises; financial intermediaries; general government; private non-profit organisations serving households; households and rest of world.

Statistical areas

Broad geographic regions not conforming to any legal or administrative boundaries with no pre-determined population size. There are 13 statistical areas.

Statistical discrepancy

(national accounts). In these accounts the items making up gross domestic product and expenditure on gross domestic product are estimated independently. Including the statistical discrepancy on the expenditure side of the first consolidated account, gross domestic product and expenditure, is simply a convention. It does not imply that one side of this account is more accurate than the other. The case is the same with the Capital Finance Account and the External Transactions Account.

Statistical divisions

Statistically defined areas introduced at the 1971 Census to cover the seven main population centres of the country. The basic requirement is a minimum population of 75,000 within a relatively compact area, including rural residents.

Stocks

This includes materials, such as components, stores, fuels containers, and other packaging materials as well as finished goods and work in progress, such as goods purchased for resale without further processing.

Subsidies

Direct government cash grants and subsidies, other than for capital purposes.

Surplus of the nation on current transactions

(national accounts). The excess in the External Transactions Account of current receipts over current disbursements.

Total expenditure

Purchases and operating expenses, excluding losses in extraordinary items, less working proprietors/partners salaries and wages.

Total income

Sales and other income, excluding gains in extraordinary items, adjusted for difference between opening and closing stocks.

Transfers

(balance of payments). Special counter entries for one-sided transactions such as gifts of goods, services, and financial assets.

Transportation

(balance of payments). Exports and imports of services associated with the international carriage of goods and passengers. Includes freight, air fares, merchandise insurance, port services, and stevedoring.

Travel

The expenditure of foreign travellers in New Zealand and vice versa.

Turnover

Total sales and other income, less: interest; dividends; donations; grants; royalties; insurance claims received. Capital work done by employees is included.

Urban areas

Comprises a three-part classification consisting of main, secondary and minor urban areas which constitute the ‘urban’ population of New Zealand. Main and secondary urban areas are centred on a major city or borough and include neighbouring boroughs, town districts and parts of counties which are regarded as suburban and belonging to that centre of population.

Vfd

(value for duty). This is the assessed value of merchandise imports on which duty is based. It is roughly equivalent to the current domestic value of goods in the exporting country.

Value added

The amount added to goods and services by the contributions of capital and labour (i.e. the costs of bought-in materials and services has been deducted from the total value of output).

Vital statistics

Statistics of events such as births, deaths, and marriages which influence the numbers of a population.

Index

Names of people who feature in short articles are indexed. Names of places and geographic features are generally not indexed separately, but can be found on pages listed under the relevant headings, e.g. cities; mountains; population. Exceptions are names of countries and inhabited islands.

Acts of Parliament and statutory bodies are indexed separately only where there is a major reference.

A large number of organisations and bodies indexed by name have the prefixes ‘National’ or ‘New Zealand’. If there is no reference under a more generally known name, they may be found under these prefixes (e.g. National Archives; New Zealand Dairy Board). In most cases New Zealand has been abbreviated to NZ to save space.

Individual commodities or products are indexed separately only when they are unusually significant, e.g. wool. When there is no individual entry, look on pages listed under the appropriate general index entry:

  1. General commodity or product headings, e.g. dairy products, minerals, meat; or

  2. General economic and business activity headings, e.g. retail trade, manufacturing, prices, exports.

A

Abortion, 190–91
Abuse of children, 164–65
Accident Compensation Corporation (ACC), 196–99
claims registered, 1998/99, 197
financial performance, 1998/99, 198
premiums, 575
Accidents (see also ACC)
air, 483, 485
at home, 194
insurance, 196
major causes of death, 188
marine, 482
prevention, see Safety road, 199–201
statistics, 202
traffic, 199–201
water, 201
Accommodation
supplement, 466
tourist, 307
Accrual accounting, government, 568–69
ACRI (Association of Crown Research Institutes), 348–50
Acts of Parliament, online, 34, 238–39
Adoption, 167
Adult education, see Continuing education Advertising, 272–73
Aerial top dressing, 404, 405
African countries, relations with, 68–69
Age
at death, 101
by traffic accidents, 199
from external causes, 202
at marriage, 85–86, 98, 99
by ethnic group, 89
by median incomes, 335
by sex/gender, 105–06
distribution of population, 105–06
Maori, 107
of child bearing, 85–86, 99
of discharged patients, 192
of prison inmates, 253
of unemployed persons, 326
Pacific Islands people, 90
Ageing of population, 88
Agenda 21 (UNCED), 370, 456
AgResearch, 348–49
Agricultural Production Account, 405
Agricultural
expenses, 406
land use, 403, 404
marketing of products, 412–13, 414, 416, 423
organisations, 407–08
production, 405–06
Agricultural and Pastoral shows, 411
Agriculture
employees, 405
exports, 407, 411–24, 416–17, 422–24, 424
farmland, 403, 404
international policies, 404
livestock, 422
Ministry of (MAF), 45–46, 407–08
production, 405–06
Production Account, 405
Production Survey, 1999, 414
quarantine, 407
research and science, 348–49, 422
top dressing, 404, 405
Agriquality NZ Ltd, 407–08
Aid to developing countries, 69–70
AIDS (Acquired Immune Deficiency Syndrome), 187
Air
accidents, 483, 485
navigation systems, 483
pollution, 360, 361
transport, see Aviation travellers, 486
Air Force, 82
No. 75 squadron, 81
Airline services, 485
passengers carried, 476
Airlines, 476–77, 484–85
Airports, 482–86, 485–86, 537
Airways Corporation of NZ, 483
Alcohol (see also Wine)
consumption, 184
excise, 577
impairment, 493
laws, 200, 497–98
Alcohol Advisory Council (ALAC), 185
Alexander Turnbull Library, 291
Alley, Rewi, 80
Allowances, 158–59
Amenities, household, 119
Americas, relations with, 67
America's Cup, 301
Animals and plants, 15–16, 358
Animals, farm, see Livestock Annual Business Frame Update Survey, 399
Annual Enterprise Survey, 398–99
Antarctica
Defence Force in, 78
environment, 372
Ross Dependency, 75
scientific research, 348
Anthems, national, 63
Antiquities, protection of, 284
ANZAC (Australian and New Zealand Army Corps), 83
ANZCERTA (Australia New Zealand Closer Economic Relations Trade Agreement), (see also CER), 66
ANZSIC (Australian and New Zealand Standard Industrial Classification), 457–59, 495–96
ANZUS (Australia, New Zealand and United States) Treaty, 66, 76
APEC (Asia Pacific Economic Cooperation), 66, 535, 535–36
Apiaries, 419
Apparel, 456–57
Apple and Pear Marketing Board, NZ, 423
Apples and pears, 422, 423
Appliances, household, see Amenities Aquaculture, 435
Arbitration Court, 312
Archaeological sites, protection of, 284
Architecture Awards, NZ, 464–65
Archives, film, 284–85
Archives, National, 285–86
Area of NZ, 5, 363
Armed forces, see Defence Force, NZ
Armed offenders squads, police, 256
Army, NZ, 78
Art galleries, 283
Arts and culture, 66, 279–81
ASEAN (Association of South-East Asian Nations), 66, 67, 76
Ashton-Warner, Sylvia, 210
Asia
relations with, 66
trade with, 534, 535
Asia 2000 Foundation, 66
Asia Pacific Economic Cooperation (APEC), see APEC Asian Development Bank, 73
Assets and liabilities, international, 398
Assignee, Official, 503–04
Assistance to developing countries, 67
Association of Crown Research Institutes (ACRI), 348–50
Astronomy, 351
Asure NZ Ltd, 407
ATM (automated teller machines), 561
Audit NZ, see Controller and Auditor-General Auditor-General, 53
Australia
as defence partner, 66, 76
benefit reciprocity, 160
CER, 66, 531
double taxation agreement, 576
exports and imports, 531–33
migration of Australians, 66
New Zealanders in, 104
pharmacists reciprocity, 172
relations with, 66
social security agreements, 160
teacher registration links, 211
trade with, 531–33
Australia New Zealand Closer Economic Relations Trade Agreement (CER), 66, 531
Australia, New Zealand and United States Treaty (ANZUS), 66, 76
Australian and New Zealand Standard Industrial Classification (ANZSIC), 457–59, 495–96
Autocheck, 491
Aviation, civil
accidents, 485
aerial work, 486
airlines, 484
airports, 485–86
control and licensing, 482–83
deaths, 485
domestic, 476, 485
international, 485
passengers carried, 476

B

Balance of payments (international), 394–95
Ballantynes fire, 203–04
Ballet, Royal NZ, 286–87
Baltics, relations with, 67
Bank of NZ, Reserve, see Reserve Bank of NZ Banking Ombudsman, 563
Bankruptcy, 503–04
Banks and banking
access to, 561
Asian Development Bank, 73
assets and liabilities, 562
ATM and EFTPOS, 561
other financial institutions, 562
ownership, 561
registration and supervision, 559–60
self-regulation, 561–62
statistics, 563
Barratt-Boyes, Brian, 198
Basham, Maud, 269
Battle of Britain, 79
Baxter, James K, 292
BDM, see Births, Deaths and Marriages Registry Beeby, Clarence, 217–18
Beef, 411
Bees and beekeeping, 419–20
Beijing, Platform for Action, 316
Benefits and pensions (see also Superannuation), 156–62
accident compensation, 196–99
child support, 157–58
domestic purposes, 157
expenditure, 158
family assistance, 157–58
in force, 160
income support, 160
income-tested, 156–57
maternity, 174–75
pharmaceutical, 173
reciprocity agreements, 160–62
special needs grants, 158
superannuation, 159
veterans, 159–60
war pensions, 159–60
weekly rates, 156
Bestsellers, 1999, 290
Betting and gaming, 302–04
Bilateral assistance to developing countries, 69–71
Bilateral relationships, 66–69
Bill of Rights Act 1990, NZ, 34
Bills, Parliamentary, 33
Biodiversity, 72, 358, 361
Biosecurity, 407
Birth, country of, 110–11, 130
Birth and death rates, 102
Maori, 143
median age of child bearing, 99
outside marriage, 99
trends and patterns, 98–100
Births, Deaths and Marriages Registry (BDM), 100
Black robin, 377
Bogor Declaration, 456
Books (see also Libraries)
bestsellers, 290
legal deposit, 293
publishing of, 289
Society of Authors (PEN), 290
Border operations (Customs Service), 514
BRANZ (Building Research Association of NZ), 468
Breast feeding, 181–82
Broadcasting
archives, 269
Commission (NZ On Air), 264–65
Maori broadcasting, 265–66
policy, 264
radio, 268–7
Standards Authority, 265
television, 266–68
Budget process and dates, 568–7
Building
Industry Authority, 468
Research Association of NZ (BRANZ), 468
Building and construction (see also Housing)
authorisations, 469, 471
law, 468–69
price indexes, 471
statistics, 470–72
values, 470–71
Buildings, historic, 283–84
Bursaries for tertiary studies, 219
Business
activity in national accounts, 389
development, 462
inter-industry studies, 399
tax information, 574
Business statistics, 398–99
Butter, 416–17

C

CAB (Citizens Advice Bureaux), 168
Cabinet, 39–40
Department of the Prime Minister and, 50
Cable television, 267
Campbell Island, 5
Camps, health, 185
Canada, relations with, 67
Cancer
deaths, 188
screening, 180–81
Capital finance, 386, 387
Capital Goods Price Index, 557
Capital punishment, 240
Carbon dioxide emissions, 361–62
Care and protection notifications, 164
Career Services, 210
rapuara, 330–31
Cargo, 536–4
Caribbean, relations with, 67
Carpet industry, 456
Cars, 118, 490–91
Carter Observatory, 351
Cartoons, 125, 292
Casein, 416, 515, 517–18
Casino Control Authority, 304
Cattle, 409
Causes of death, external, 202–03
Caves, 6
Cawthron Institute, 352
CCMAU (Crown Company Monitoring Advisory Unit), 169
Censorship, 282–83
Census of Population and Dwellings, 1996
ethnicity, 106, 129–30
households and dwellings, 115–18
labour force, 316
Maori population, 106–07
on the Web, 93
Pacific Islands peoples, 116–17
religious affiliations, 128, 129
results on Internet, 93
total population, 93
travel to work, 491–92
Census of Population and Dwellings, 1858–1996, 91, 93
Census of Population and Dwellings, 1881–1996, 94
Census of Population and Dwellings, 1886–1996, 95
Censuses, a century of, 94, 96, 97, 98, 99
Central Europe, relations with, 67
Central government finance
accrual accounting, 568–69
budget process, 568–7
external reporting, 570–72
financial management, 568
fiscal policy, 383
public debt, 396, 581–82
revenue, see Taxation
roles and responsibilities, 567–68
securities on issue, 565
statement of financial position, 579
CER (Australia NZ Closer Economic Trade Agreement), 66
Cervical screening, 181
Chamber Music NZ, 287–88
Chatham Islands, 16, 141
Cheese, 416–17
Cheque duty, 575
Chickens, production and consumption, 418
Child
abuse, 164–65
support, 156, 157, 159, 574–75
Youth and Family Services, Department of, 46, 163
Child, UN Convention on the Rights of the, 125
Childbirth
births and birth rate, 98
infant mortality, 189–90
maternity services, 174–75
median age of, 99
parental leave, 341–42
Childcare and pre-school, 334
education and playgroups, 215–16
Children
abuse of, 164–65
adoption, 167
care and protection services, 164
daycare centres, 215
educated by Correspondence School, 217
education of, see Education family/whanau agreements, 165
health, 182–83
pre-school, deaths, 203
vaccinations and immunisations, 183
youth justice services, 165–66
Children, Office of the Commissioner for, 128
Children's Health Camps, 185
Chiropractors, 172
Choirs, 288–89
Choral Federation, NZ, 288–89
Chronology
NZ economic reforms, 1884–1999, 384
NZ history, c1300–1999, 23–28
Churches, see Religious affiliation of population Cinema
admissions, 287
attendance, 305
Cities and district councils (see also Urban areas), 57–62
population, 96
Citizens
Advice Bureaux, 168
Initiated Referenda, 42
Citizenship, 131
applications granted, 132
Civil
defence, 205
jurisdiction of courts, 240–41
Civil aviation
accidents, 485
aerial works, 486
airlines, 484
airports, 485–86
deaths, 485
domestic, 485
international, 485
licensing and control, 482–83
Civil Aviation Authority (CAA), 482–83
Claims process
Maori land, 144
Treaty, 143–44
Clark, Helen, 40–41
Classification, film and literature, 282–83
Clays, 451
Clear Communications, Ltd, 274
Climate, 10, 11, 361
change, 361–62
maps, 12
Closer Defence Relations (CDR) with Australia, 76
Closer Economic Relations (CER), 66, 455
Coal, 446–48
Coalfields (map), 447
Coastal shipping, 480, 481
Coat of arms, NZ, 63
Cockayne, Leonard, 349
Commerce Commission, 500–02
Commerce, distribution, summary, 496
Commerce, Ministry of, see Ministry of Economic Development Commission on Sustainable Development (CSD), UN, 371
Commissioned Youth Action Training (CYAT), 330
Commissioner
for Children, 128
for the Environment, Parliamentary, 56–57
Privacy, 55–56
State Services, 44–45
Commissions
of inquiry, 36
Royal, 36
Commodities imported, 522–23
Commonwealth, 73
Commonwealth of Independent States, relations with, 67–68
Communicable disease, 177
Communications
convergence, 263
future directions, 277–78
Internet, 277–78
Community
boards, 59
Defence Force assistance to, 78
health administration, 179–80
law centres, 240, 241
playcentres, 215
playgroups, 216
service (sentence), 251
services, Maori, 145–46
welfare budget, 168
Community Employment, 331–32
Community Housing Ltd, 466
Community Probation Service, 251
Community Services Card, 173, 180
Companies
insolvencies, 504
liquidation, 504–05
practices, 500
receivership, 505
registrations, 498
takeovers, 499–5
taxation, 573
Companies Act 1993, 498–99
Comparisons, international, see International comparisons Compensation, accident, 196–99
Complaints Review Tribunal, 238
Compulsory schooling, 216, 220
Computers, 277–78
Condom subsidies, 174
Congress, Maori, 146
Conservation Authority, 377
Conservation, Department of, 46, 374–78
Consolidated Accounts of the Nation, 386–88
Constitution, recent reform, 30
Construction, see Building and construction Consumer affairs, 496–98
Consumer Affairs, Ministry of, 46, 496–97
Consumer Guarantees Act 1993, 496
Consumers’ Institute, 497
Consumers Price Index (CPI), 545
all groups, 546
analysis of movements, 549–53
by subgroup, 550
calculation of, 545
expenditure weighting, 547–49
geographic coverage, 553
groups, 549
international comparisons, 553, 554
price comparisons, 546
price movements, 549–53
retail prices, 552
review, 547–48
uses, 546
Contaminated sites, 372
Continuing education, 232–33
Controller and Auditor-General, 53
Convergence of communications, 263
Convictions, 243–48
drug offences, 245
non-traffic, 243
traffic offences, 24748
Cook Islands, relationship with, 63–65
Cook Strait inter-island services, 480, 487
Cooper, Whina, 147
Copyright, 281–82, 354
Corrections
census of prison inmates, 253–55
Community Probation Service, 249, 251
Department of, 46, 249
detention, 251, 252–53
early prison reform, 255
Psychological Service, 254
Public Prison Service, 251–55
Correspondence School, The, 217, 218
Corruption Index, 501
Cost of living, see Consumers Price Index Council for Educational Research, NZ, 225–26
Council, NZ, Maori, 146
Country of birth, 130
Court of Appeal, 236
Courts (see also Tribunals)
civil jurisdiction, 240–41
criminal proceedings, 24344
custodial services, 249
Department for, 46–47
District, 236–37
Employment, 237
Environment, 238
Family, 237
hierarchy, 235
High, 236
legal aid, 240
Maori, 237
Privy Council, 235, 239
Youth, 237
CPI, see Consumers Price Index Creative NZ (Arts Council of NZ Toi Aotearoa), 280–81
Credit
cards, 511–12, 561–62
sales, 511
services, 549, 552
Crime
convictions, 243–48
prevention, 250
proceeds, 252
rates, 20th century, 247
recorded, 242–43
victim support, 248
Crime Prevention Unit, 250
Crime, 1900 and 1998, 235
Criminal proceedings, 243–44
CRIs (Crown Research Institutes), 348–5
Crop & Food Research Ltd, Institute for, 349
Crops
flowers, 420
fruit, 422–24
grain, vegetables and seeds, 420–21
Crown and Governor-General, 29
Crown Company Monitoring Advisory Unit (CCMAU), 52–53, 346
Crown debt (see also Central government finance) maturity, 582
Crown Law Office, 47, 241–42
Crown Research Institutes, 348–50
Crown-owned
entities, 52–53
lands, 366
CSD (Commission on Sustainable Development), UN, 371
Cultural sites, protection of, 284
Culture and Heritage, Ministry for, 47, 279–80
Currency
decimal, 561
NZ (history), 559–60, 563–64
Curriculum Framework NZ, 217–18
Customary fishing regulations, 433–34
Customs, 455–57, 514, 577
Customs Service, 47
Cycling, 301
Cyclones, 14
CYPFS, see Department of Child, Youth and Family Services

D

Dairy Board, NZ, 416
Dairy farming and products
exports, 517–18
organisations, 416
overseas marketing, 416–17
prices, 417
produce payments systems, 417
products, 415–17
Dance, 287
Davies, Sonja, 330–31
Daycare, 215
Daylight savings, 16
De facto relationships, 99–100, 122
Death rate, 86
Deaths
air transport, 485
cancer, 189
drownings, 201
external causes, 202
infant, 190
major causes, 188
road motor accidents, 199–200
volcanoes, 8
Deaths and death rates
accidental, 199–200
children, 203
infants, 189, 190
summary, 1901–1998, 101–03
Debt, overseas, 395–97
Deer farming, 414
Defence
community assistance, 78
exercises, 78
expenditure, 79
international relationships, 76
policy, 75
Defence Force, 47, 75–82
community assistance, 78
locations in NZ (map), 80
NZ Army, 81
overseas activities, 76–77
peacekeeping commitments (map), 77
personnel, numbers, 79
Royal NZ Air Force, 82
Royal NZ Navy, 80–81
Defence, Ministry of, 47, 75
Degrees awarded, 228–29, 231
Dental
health, 186
services, 175, 186
technicians, 172
Dentists, 171
Department of Conservation, 46, 366, 374–78
Department of Corrections, 46, 249–55
Department for Courts (see also Courts), 46–47
Department of Internal Affairs, 49
BDM Registry, 100
Dictionary of NZ Biography, 49
Department of Labour, 49, 316
Department of Prime Minister and Cabinet, 50
Department of Statistics (Statistics New Zealand), 51
Department of Work and Income, 52
Departments, government (see also State sector)
Chief Executives, 45
functions, 45–52
Departures, from country, 104
Deportation, 135
Depression of the 1930s, 18, 312, 381, 413
Designs, industrial, 354
Developing countries, relations with, 69–71
Development Assistance Programme, 70
Devoy, Susan, 298
Dictionary of NZ Biography, 49
Dietitians, 171
Diplomatic representation overseas (map), 68
Directory of Official Information, 54
Disability
allowance, 158
support, 179–80
Disability Survey, Household, 180–81
Disabled persons, 158, 179–81
sports participation, 297
Disaster relief, 78
Diseases
AIDS, 187
communicable control of, 177
influenza, 175, 176
occupational, 207
polio, 177–78
treated in hospitals, 175–78
Disputes tribunals, 238
Dissolution of marriage, 123–24
Distance education, 217, 218, 233
District Courts, 236–37, 241
District planning, 368–69
Divorce, 123–24
Doctors, 170–71
Dogs, police, 257
Dominion status of NZ, 55
Drama, 287
Drinking water standards, 176
Drinking, legal aspects, 493, 498
Driver licences, 492
Driving offences, 247–48, 493–94
Drownings, 201
Drugs and medicines
control of, 176–77
convictions for offences, 245
drug seizures, 257
legal control, 176–77
misuse, 177
National Drug Intelligence Bureau, 257
Dwellings
landlords, 116
leased or rented, 116, 118
Maori occupants, 117
occupied, 116, 463
Pacific Islands occupants, 117
size, 469
tenure, 116–17
type, 115
Dwellings 1901 & 1996, 463

E

Early Childhood Development (ECD), 209, 215
Earthquakes, 7–10
Napier 1931, 10
Eastern Europe, relations with, 67
Economic Development, Ministry of, 47, 264, 278
Economic planning, 380–82
Economic Research, NZ Institute of, 353
Economy 1930s Depression, 381, 413
19th century, 379
chronology of major reforms, 1984–99, 384
consolidated accounts, 386–88
diversification, 380
government and development, 380–82
historical article, 379–84
household sector, 391
insulationism, 379–80
overseas debt, 396
principal aggregates, 386
restructuring, 21, 382–84
seasonal adjustments, 510–11
steam transport, 473–74
summary, 2–3
Economy Wide Census, 398–99
Education (see also Examinations; Schools; Students; Universities)
additional teaching resources, 225
administration, 209
advisory services, 225
allowances, 229
Asia 2000 Foundation, 66
assessment of students, 218
bachelors degrees, 231
boards of trustees, 211
bulk funding, 230
Career Services, 210
Career Services rapuara, 330–31
choice, 216–17
compulsory, 216, 220
continuing, 231
curriculum, 217–18
distance, 233
early childhood, 209, 214–16, 222
enrolments, 209, 222–23, 227
expenditure, 212–14
for white collar work, 313
foreign students, 70
forestry, 428
funding and administration, 213–14
historical summary, 112
home-based, 217
information studies and teacher librarianship, 225
information technology, 277–78
institutions, 209
international students, 225
IQ tests, 223
kindergartens, 215
literacy and numeracy, 218–19
Maori, 147, 212, 214, 216, 233
National Certificate of Educational Achievement, 220
national qualifications, 219
National Qualifications Framework, 219–20
number of institutions, 222
online, 277–78
Pacific Islands people, 215
polytechnics, 229–30
pre-school, 209
primary, 216–17
private training establishments (PTEs), 217
public expenditure on, 212
REAPs, 225
rural, 225
secondary, 219–20
Skill New Zealand, 327–30
special, 210, 224–25
student support, 226–27
teacher position numbers, 223
teacher training, 230–31
teaching staff, 228
technical and vocational, 230
tertiary, 226–27, 229–32
funding 214
Tomorrow's Schools, 230
universities, 219, 226–29
wananga, 232
Education and Training Support Agency (ETSA), 210, 327–30
Education, Ministry of, 209
Education Review Office, 47, 210–11
Educational Research, NZ Council for (NZCER), 225–26
EEZ (Exclusive Economic Zone), 431–32
EFTS funding, 214
eggs, 418–19
El Niño and southern oscillation, 14–15
Elections
local government, 62
Maori participation, 139
MMP voting, 43
parliamentary, 41–44
political parties, 41
reform, 21–22
results 1999, 42–13
right to vote, 17
votes for parties, 41
voting, 41
Electoral
boundaries, 41–42
referenda, 42, 44
reform, 30
Electorates, parliamentary
listed, 46th Parliament, 35–37
Maori, 42, 139
maps, 42
new, 43
represented by women, 37–38
Electricity
consumption, 444
generation, 443
history, 443
prices, international comparison, 442
retail and wholesale, 443
supply, 360
Electricity Corporation of NZ (ECNZ), 439, 442–43
Electronic, commerce, 277
Embassies, overseas, 68
Emergency and disaster relief, 70
Emigration, 104–05
to Australia, 104
Employers’ Federation, NZ, 335, 342
Employment (see also Labour force, Labour relations, Occupations, Unemployment)
1896–1996, 318
1901 and 1996, 316
assistance measures, 331–32
by ANZSIC, 401
by industry, 322
by region, 401
changes in structure, 313–14
demographics, 324–27
during 1930s, 312
during economic reforms, 313–14
effects of motor vehicles, 475
ethnic, 321
farm, 405
fishing industry, 437
forestry, 428
full-time and part-time, 314, 317, 319
historical essay, 311–15
hours of work, 320
labour market organisations, 339
legislation, 338–42
manufacturing, 455
Maori, 137–38, 311, 313, 314
minimum entitlements, 340
occupation types, 323
occupational groups, 314
OECD comparisons, 324, 339
older people, 314
Pacific Islands people, 321
post World War II, 312–13
seafood industry, 437
service sector, 313
statistics, OECD, 324
status in, 321
summary, 2
temporary workers, visas for, 133–34
training for Maori, 331
training opportunities, 328–32
travel to work, 491
urbanisation of, 119
women, 317, 323
Employment Contracts Act 1991, 338–43
Employment Court, 237, 338–40
Employment Tribunal, 238, 338–40
Employment-related training, education and, 327–32
Endangered species, 358
Energy
coal, 446–48
consumer trends, 441
efficiency, 440
efficiency, government expenditure, 450
environmental impacts of, 440
focus, 442–49
fossil, 444–48
future projections, 441–42
mineral production, 439
monopolies, 440
oil and gas, 444–46
primary, 439
research, 440–41
supply and demand, 440–41
total supply, 361
use, 360–61
Energy Efficiency and Conservation Authority (EECA), 449
English, language training, 330
Environment (see also Conservation of natural resources; Planning)
air pollution, 370
and MFAT, 370
and mineral exploration, 370, 450
and tourism, 307–08
Antarctic, 348
biodiversity, 361
climate change, 361
global issues, 372–73
Kyoto Protocol, 373
misuse, 20
Montreal Protocol, 373
organic products, 526
ozone depletion, 361–62
regional policies, 368
Resource Management Act 1991, 367–72
sustainable management, 361
water and soil management, 370–71
Environment Court, 238
Environment, Parliamentary Commission for the, 56–57
Environmental
health, 176
issues, global, 372–73
planning, 367–70
government involvement, 56, 368
public involvement, 369
Environmental Choice NZ, 511
Environmental Risk Management Authority (ERMA), 369
Environmental Science and Research (ESR), 350
Equal Employment Groups, 48
Equal Employment Opportunities Trust (EEO), 126, 342
ERMA (Environmental Risk Management Authority), 369
ERO (Education Review Office), 47, 210–11
Erosion, control of, 371
ESR (Institute of Environmental Science and Research Ltd), 350
Ethnic
councils, 130
employment, 321, 326
groups in NZ
ages, 130, 151
distribution, 116–17, 151–54
median income, 335
minorities, race relations, 126
unemployment, 326
Ethnic Councils, NZ Federation of, 130
Ethnicity, 116–18, 129–31
ETSA (Education and Training Support Agency), 210, 327–30
EU (European Union), 67
European countries
benefit reciprocity with some, 160–62
relations with, 67–68
European Union (EU), relations with, 67
Events, chronology of in NZ history, 23–28
Examinations, 219–21
Exclusive Economic Zone (EEZ), 431–32, 435
Executive council, 39–40
Ex-overseas cars, registration, 477, 491
Expenditure
benefits and pensions, 158
education, 212
gross domestic product, 393–94
health, 170
household, 118–19
Exports
1950s and 1960s, 19–20
agricultural (various), 411–24
awards, 518
coal, 446–47
commodities, 516–17
composition of, 383
dairy, 416–17, 516–18
fish, crustaceans and molluscs, 520
flowers, 420, 516
forestry products, 428, 519
fruit and nuts, 521
horticultural, 424
major commodities, 515
meat, 411, 518–19
organic produce, 526
seafood, 425, 435, 520
wine, 456
wool, 415, 520–21
World War I, 18
World War II, 19
External
migration, 87, 103–05
transactions, 386, 388
External Assessments Bureau (EAB), 84

F

Fair Trading Act 1986, 495–96, 500–01
Fair trading legislation, 500–01
Families (see also Household), 100
Family
assistance (see also Benefits), 157–58
child daycare, 215
courts, 237
expenditure, 119
group conference, 166
health, 180
historical summary, 109–10, 119–21
legislation, 113, 124–25
patterns, 85
planning, 186
size, 100
structures, 119
support (see also Benefits), 157
violence prevention, 165, 119
Family Planning Association, 180, 186
FAO (UN Food and Agriculture Organisation), 409
MAF involvement in, 404
Farm Expenses Price Index, 406–07
Farming (see also Agriculture; Livestock)
chicken and egg, 418–19
employment, 405
international comparisons, 406–07
livestock, 408–10, 409
production, 406
statistics, 1861–1996, 408
venison, 408–09
Farmland
sales, 364
use, 403, 404
Feature films, NZ, 288
Federation of Ethnic Councils, NZ, 130
Feed, stock, 420
Ferries, inter-island, 480, 487
Fertiliser, 358, 405
Fertility, 85, 98–100, 107
Figures and surveys, fisheries, 438
Film
censorship, 282
feature films, NZ, 288
Film Archive, NZ, 284–85
Film Commission, NZ, 289
Fingerprints, 257
Fire
Ballantynes, 203–04
control, 375
incidents, 205
insurance, 506
prevention, 507
protection, 204
safety, 205
Fire Service, NZ, 204–05
First Flag of New Zealand, 62
Fiscal economic policy, 382–83
Fish
export, 436, 520
NZ Seafood Council, 436–38
quota, 434
stocks, assessment of, 438
Fish and Game Council, NZ, 377
Fisheries
aquaculture, 435
commercial catch, 433
Commission, Treaty of Waitangi (Te Ohu Kai Moana), 434–35
control of resources, 435
history of management, 432
Ministry of, 48
protection, 78
regulation, 433–34
research, 350, 438
stock assessment, 438
TACC (Total Allowable Commercial Catch), 433
Te Ohu Kai Moana (Treaty of Waitangi Fisheries Commission), 434–35
Fishing
fish and game councils, 377
management, Maori, 432
recreational, 300
research, 350, 438
vessels, registered, 435
Fishing Industry Board, NZ Seafood, 436
Fitness and leisure, 295–301
funding, 295–98
Five Power Defence Arrangements, 76
Flag
first NZ, 62
NZ, 63
Floods, 13–14
Rowers, 420, 516
Fluoridation, 186
Food
Australia and NZ food standards, 456
banks, 156
expenditure on, 119
exports, 515–19
safety and quality, 177–78
sector manufacturing, 456
Food and Agriculture Organisation (FAO), 404, 409
Footwear industry, 457
Foreign
aid, 69–71
destinations, distance, 485
policy, 65–69
Foreign Affairs and Trade, Ministry of, 48, 67, 72, 370
Foresight Project, 347
Forest
parks, 375
products (see also Timber), 428–31, 519
Forest and Bird Protection Society, Royal, 373
Forest Research Institute, 348
Forestry, 425–28
employment in, 428
exports, 425, 430–31
private, 428
products, 428–31
research, 348
resources, 425–26
training, 428
Forests, 425–28
conservation and protection, 375
foreign ownership, 426–27
funds, 376–77
indigenous, 425
Maori claims on, 427
natural production, 426
ownership, 426–28
parks, 375
planted production, 425–26
sale of state assets, 426–27
Foundation for Research, Science and Technology, 348
Frame, Janet, 280–81
France, Australia, New Zealand Agreement (FRANZ), 66
FRANZ (France, Australia, New Zealand Agreement), 66
Fraser, Peter, 20
Fraud Office, Serious, 51, 502
Fraud, international, 502
Freyberg, Bernard, 70
FRSNZ (Fellows of the Royal Society of NZ), 351
FRST (Foundation for Research, Science and Technology), 348
Fruit
exports, 521
production, 422–24
Fuels, 444–48
Full-time labour force and work, 317–19

G

GAAP (Generally Accepted Accounting Practice), 568
Gallantry and bravery awards, 35
Galleries, art, 283
Gallipoli, 83
Gambling, see Gaming
Gaming
betting, 302
Casino Control Authority, 304
duty, 575–76
major activities, 302–04
NZ Lotteries Commission, 302–03
NZ Lottery Grants Board, 303
statistics, 304
Gas, 445–46
Gases, greenhouse, 361, 373, 449
GATT (General Agreement on Tariffs and Trade), 72, 373, 403, 514
GDP, see Gross Domestic Product Gender, see Sex/gender General Agreement on Tariffs and Trade (GATT), 72, 373, 403, 514
General Assembly, see Parliament General elections, 41–43
Generally Accepted Accounting Practice (GAAP), 568
Geographical features, 5–6
extremes, 6
glaciers, 5
lakes, 6
mountains, 5
rivers, 6
Geological & Nuclear Sciences, Institute of (GNS), 350
Geology (see also Minerals and mineral products), 6–10
Geothermal energy, 449
Gift duty, 575
Global environmental issues,
NZ involvement in, 372–73
Glossary of statistical terms, Glossary
GNI, see Gross National Income
GNS (Institute of Geological & Nuclear Sciences), 350
Goat farming, 409
Gold, 450–51
Goods and Services Tax (GST), 574
Government
as of December 1999, 40
Cabinet, December 1999, 40
departments (see also State sector)
audits, 53
chief executives, 45
complaints about, 54–55
expenditures, 570
functions, 45–52
heads of, 45
Official Information Act, 54
economic development, 380–82
Executive, 39–40
finance, see Central government finance
fiscal responsibility, 567–68
local organisation, 58
populism, 17
regional councils, 58
securities market, 564
website, 264
Governor-General, 29, 31, 36, 39, 40
Governors, see Vice-Regal representatives Graduates, tertiary, 229
Graham, Stanley, 248
Grain, 420–21
threshing, 408, 412
Grape growing and wine production, 424
Greenhouse gases, 361, 373, 449
Greenstone, 451
Gross domestic product (GDP), 387–89
at constant prices, 388–89
expenditure on, 393–94
Gross fixed capital formation, 389–90
national income, 386–87
GST (Goods and Services Tax), 574

H

Hadlee, Richard, 302
Hailstorms, 14–15
Hazardous substances, 369–7
Hazards, volcanic, 8
He Oranga Poutama, 296
Health (see also Hospitals)
AIDS, 187
alcohol consumption, 184–85
and causes of death, 188
boards and councils, 170–72
children's, 182–83, 185
dental, 171, 186
disability, 179–80, 192
drinking water, 176
drug control and misuse, 176–77
environmental, 176
expenditure, 170
family, 180, 183–84
food safety, 177–78
historical article, 111–12
immunisation, 183
insurance, 508
legislative review, 175–76
Malaghan Institute, 170
mental, 178–79, 194–95
Mental Health Foundation, 195
occupational, 206–07
older people, 178
pharmaceutical benefits, 173–74
physical activity, 185
polio vaccine, 177
practitioner subsidies, 173
professionals, 170–72
promotion, 183
radiation protection, 176
regulation of health professionals, 170–72
research, 169–70, 172–73
services for older people, 178
smoking, 184, 188
subsidies, 173–75
voluntary organisations, 178
women's, 180–81
workforce information, 187
Health and Disability Commissioner, 194
Health and Disability, National Advisory Committee on, 169
Health Benefits Limited (HBL), 173
Health Funding Authority, 169, 179
Health Index, National, 187
Health Information Service, NZ, 186–87
Health, Ministry of, 48–49, 169, 175–83
Health Research Council, 169–70, 347
Health Sponsorship Council, 184
Herald of Arms Extraordinary, NZ, 31
Herangi, Te Puea, 146
Heritage, historical, 283–84
Heritage, Ministry for Culture and, 47, 279–80
HES (Household Economic Survey), 115–20
highlights, 115
HFA (Health Funding Authority), 169, 179
Hierarchy of courts, 235–38
High Court, 236
Higher Salaries Commission, 34, 235
Higher School Certificate, 219
Highways, expenditure, 489
Hillary Commission for Sport, Fitness and Leisure, 295–97
Hillary, Edmund, 301
Hire-purchase, 511
Historic Places Trust, NZ, 283–84, 377
History, NZ, 1–3, 17–28
HIV (human immunodeficiency virus), 187
Hocken Library, 293
Hodgkins, Frances, 285
Holidays, public, 341–42
Hollows, Fred, 192–93
Holyoake, Keith, 21
Home
daycare, 215
nursing and help, 175
ownership, 116–18, 463–64
Home Buy scheme, 466–67
Honey production, 419
Honours and appointments, 30–31
Horse racing, 302, 305
Horticulture (see also Crops), 420–24, 516
HortResearch, 349
Hospital and Health Services (HHS), 191
Hospitals
administration, 191
diseases and conditions treated, 192–93
geriatric, 178
injuries and accidents treated, 193–94
inpatients, 192–94
length of stay, 192–93
mental health, 194–95
patients treated, 192
regions served, 169–70
Hotels and other accommodation, 307
Hours of work, 319–20
House Price Index, 464
Household Labour Force Survey, 316–23, 495
Household sector, national accounts, 391–92
Households
amenities, 119
composition and size, 115
income and expenditure, 118–20
Maori, 116–17
Pacific Islands people, 116–17
spending, 391
transport, 118
Housing (see also Dwellings; Buildings)
assistance, 465
building consents, 468
costs, 463–64, 468
government agencies, 465–67
home ownership, 116–18, 463–64
House Price Index, 464
loan approvals and sales, 466
mortgage rates, 467
occupation of dwellings, 1901 and 1996, 463
prices, 463–64
sales, 463
size of new dwellings, 469
state advances, 470
Housing Community, Ltd, 466
Housing Corporation of NZ, 466
Housing, Ministry of, 49, 467
Housing New Zealand Ltd, 466
Howard, Mabel, 51
Human Development Index, 119
Human rights, 125–29
and EEO promotion, 126–27, 342
and UN, 71
Human Rights Act 1993, 125, 31
Human Rights Commission, 125–26
Human settlement, effects, 359–60
Hunting and shooting, 300
Hydro-electric power, 443
Hydrographic survey, 78
Hydrography, 363–64

I

ILO (International Labour Organisation), 339, 482
Immigration, 103–05
country of birth, 130–31
from Asia, 105
from Pacific Islands nations, 105, 153
policy, 132–35
Immunisation, 183
IMO (International Maritime Organisation), 482
Import
Price Index, 541–42
Volume Index, 543–44
Imported cars, 524
registration, 490–91
Imports, 382
machinery, 523–24
major commodities, 522–23
mineral fuels, 524–25
plastic and plastic articles, 525
Terms of Trade Index, 540–41
vehicles, 524
Imprisonment, see Prisons and prison inmates Imputation credits, 573
Income
earnings 1900–1999, 311
Maori and non-Maori compared, 137
Income Survey, NZ, 333
Income tax
companies, 573
personal, 572–73
revenue from, 578
Incomes
distribution, 333
earnings, 332–36
gender differences, 335–36
household, 118
minimum, 341
national accounts, 386
salary and wage rates, 337–38
since 1900s, 333
Incorporated societies, 499
Incorporated Societies Act 1908, 279, 499
Independence, political, 19, 22
Indexes
building and construction price, 471
Corruption, 501
Human Development, 119
Maori demographic, 143
National Health, 187
Overseas Trade, 540–44
trade weighted, 566
Indexes, listed
Capital Goods Price Index, 556–57
Export Price Index, 541
Export Volume Index, 542–43
Farm Expenses Price Index, 406–07
House Price Index, 463–64
Import Price Index, 542
Import Volume Index, 543–44
Labour Cost Index, 336–37
Producers Price Index, 554, 555
Share Price Index, 503
Terms of Trade, 540–41
Indigenous biodiversity, 358, 361, 377
Industrial
accidents, fatal, 207
designs, 354
relations, see Labour relations
safety, see Occupational safety
structure of the labour force, 321
Industrial Research Ltd, 350
Industry, see Manufacturing Industry Training Organisations (ITOs), 329–30
Infant mortality, 189–90
Inflation, see Consumers Price Index Information
matching, 55
privacy, 54
Information technology
education, 277–78
industry, 277
policy, 278
Infrastructure Auckland, 59, 60, 62
Injuries
patients treated in hospital, 193
road accidents, 200
Inland Revenue Department, 49, 572–74
Insolvency, 503–04
Instant Kiwi, Daily Keno, Lotto, 302–03
Institute for Crop & Food Research, 349
Institute of Economic Research, 353
Institute of Environmental Science and Research Ltd (ESR), 350
Institute of Geological & Nuclear Sciences Ltd (GNS), 350
Insurance (see also Superannuation), 505–09
ACC, 196–99, 507
earthquake damage, fire, 506
government's role, 506
health, 508
intermediaries, 505–06
life, 506–07
National Provident Fund, 508
natural disaster, 506
Ombudsman, 505
organisations, 507
regulation, 505
statistics, 508–09
Intellectual Property Office of NZ, 353–54
Intelligence and Security, Inspector General of, 83
Interest rates, see Monetary policy, Mortgages Inter-industry studies, 399
Inter-island ferry, 480, 487
Internal Affairs, Department of, 49, 129
Internal migration, 87–88, 94
International
agricultural policies, 404
airline services, 484–85
assets and liabilities, 398
comparisons
abortion rates, 191
consumer prices and CPI, 553
electricity prices, 442
farming, 406–07
Human Development Index, 120
infant mortality, 190
life expectancy, 102
motor accident death rates, 201
newspaper sales, 272
OECD, 324, 406–07
overseas aid, 71
press freedom, 271
standards of living, 120
unemployment, 324
currency credit rating, 580
defence relationships, 76
education, 225
fanning, 406–07
fraud, action against, 502
investment in NZ, 397–98
organisations, participation, 71–74
relations, 65–71
taxation, 576
trade, 526–36
International Accreditation NZ, 354–55
International Bank for Reconstruction and Development (IBRD), 73
International Civil Aviation Organisation (ICAO), 483
International Finance Corporation (IFC), 73
International Labour Organisation, 324
International Marine Organisation, 482
International Organisation of Securities Commissions (IOSCO), 502
International Whaling Commission (IWC), 376
Internet, 261–62, 277–78
census results, 93
government department addresses, 52–53
NZ statutes online, 34
Introduced plants and animals, 16
IOSCO (International Organisation of Securities Commissions), 502
IQ tests, 223
Iron, 451, 462
Islands, outlying, 5
ITOs (Industry Training Organisations)
forestry, 329–30, 428–29
IWC (International Whaling Commission), 376
Iwi
locations (map), 150
Maori Congress, 146
statistics, 142
Treaty settlements, 144

J

Japan, trade with, 534
Job Search, Student, 328 Journal, The School, 212
Judges and judiciary, 36, 235–36, 239
Jury service, 241
Justice
convictions, 243–48
Legal Services Board, 240
sentencing, 246–48
sources of law, 238–39
system, see Courts, Law Justice services, youth, 165–66
Justice, Ministry of, 49
Justices of the Peace, 236

K

Kai o te moana kaupapa tiakina, Nga (fisheries management), 432–33
Kaitauraki Kohungahunga, Nga (Early Childhood Development), 209
Kaitiaki Maori, Te (The Maori Trustee), 365
Kakapo, recovery plan, 376
Kaupapa Matauranga mo te Iwi Maori, Te (Maori Education Trust), 212
Kermadec Islands, 5
Kindergartens, 215
King, Truby, 171
Kirk, Norman, 26
KiwiCareers, 330
Kiwifruit, 423–24
Kiwiwalks, 295
Kohangareo, 147, 214, 215
Kokiri, Te Puni, 144–45
Kooti Whenua Maori, Te (Maori Land Court), 365
Kura kaupapa Maori, 216
Kyoto Convention, 514

L

La Niña, 14–16
Laboratory technologists (medical), 172
Labour Cost Index, 336–37
Labour Day, 339
Labour force (see also Employment)
definition, 311, 316
employment status, 321
full time, 317–19
hours of work, 319–20
industry structure, 321
international organisations, 339
occupation structure, 321–23
OECD comparisons, 324
participation rate, 323
part-time, 317–19
self-employed, 313
sex/gender, 314, 321–23
women, 311, 313, 317, 311–15
Labour market organisations, 339
Labour relations
disputes, 237–38
holidays, 339, 341
hours of work, 320, 341
minimum entitlements, 340
minimum wages, 341
parental leave, 342
rights and obligations, 340
specialist courts and tribunals, 340
strikes and lockouts, 340, 342–44
unions, 338, 339
Labour, Department of, 49, 206, 316–17
Lakes, 6
Lamb, see Sheep Land
acquisition by overseas parties, 364–65
area, 367
contaminated, 372
controls on acquisition, 364–65
Crown-owned, 366
effects of development, 358
history of use, 357–58
local authority rating, 366–67, 572
Maori, 365–66
Queen's chain, 366
recreational, 374–76
registration of ownership, 364
rural, 364
surveying, 363
transfers, 364
transport, 488–89
use, 367
valuation, 366–67
Land Corporation Ltd (Landcorp), 366
Land Information NZ (LINZ), 363, 366
Land Transport Safety Authority (LTSA), 199, 494
Landcare Research NZ, 349–50
Landfills, 371–72
Landlords, 116, 118
Landscape, 7
Lange, David, 54
Language
Maori, see Reo Maori, Te Pacific Islands groups, 215
Latin America, relations with, 67
Latitude and longitude, 5
Law
centres, community, 241
offices, neighbourhood, 241
reform, 239
Law Commission, 239
Laws, 34, 238–39
Layout designs, 354
Learning Media Ltd, 211
Leave and holidays, 341–42
Legal
aid, 240
deposit of books, 293
tender (money), 563
Legal Deposit Office, 293
Legal Services Board, 240
Legislative proposals, 40
Libraries
education for, 290
history, 291
information online, 293–94
teacher librarians, 225
Licensing
liquor, 497–98
motor vehicles, 488–90
Life expectancy, 86, 102, 111
Maori, 143
Life insurance, 508
Limited Service Volunteer Scheme, 78
Limits, fish catch, 433–35
LINZ (Land Information NZ), 363, 366
Liquidation of companies, 504–05
Liquor, see Alcohol Literacy and Numeracy Strategy, 218–19
Livestock, 408–10
quarantine, 407
Living standards, 120
Local authorities (see also Local government)
Infrastructure Auckland, 59, 60, 62
population, 96
rating and valuation, 366–67, 572
roading, 489
special purpose, 59, 62
Local government
community boards, 59
elections and membership, 62
finance, 583
legislation, 54
Local Government Commission, 62
organisation, 58
rating, 366–67, 572
regional councils, 58
remuneration of members, 62
special purpose local authorities, 59, 62
sports and leisure, 298
territorial authorities, 58, 59
tourism, 307–08
unitary authorities, 59
Local government boundaries (map), 60, 61
Lockouts, 340, 342–44
Lotteries, 302–03
Lotteries Commission, NZ, 302–03
Lottery Grants Board, NZ, 303

M

M3 financial institutions, 562
MAF (Ministry of Agriculture and Forestry), 407–08
Magazines, 270–71
Mail services, 274–76
Malaghan Institute of Medical Research, 170
Management of fisheries, 432–33
Manatu Haoura, 48–49, 169
Manatu Kaihokohoko, 46, 496–97
Mangai Paho, Te, Maori Broadcasting Funding Agency, 265–66
Mansfield, Katherine, 291
Manufacturing, 312, 455–62
business development, 462
groups, 456–57
growth issues, 455–56
North Island employment in (map), 460
quarterly survey, 459
sectors, 456
South Island employment in (map), 461
statistics, 459
Maori, 136–40
arts, Te Waka Toi, 281
broadcasting, 265–66
claims on forests, 427
community relations, 139–40
community services, 145–46
cultural renaissance, 20–21
deaths, causes of, 136
descent, 107, 136
discrimination against, 138
dwellings, 117
economic participation of, 379
electoral districts, 41, 42
electorates, 17
employment, 137–38, 314
employment and training for, 331
employment history, 311
fisheries and fishing, 432–35
grievances, 139–40
income, 138
iwi locations (map), 150
iwi statistics, 142
land, 136–37, 365–66
language, see Reo Maori, Te language publications, 211
politics, 139
reo, 138–39, 148, 150
social conditions, 17, 21
Taranaki negotiations, 143
tenure of dwellings, 117
time use, 118
tourism, 308
Treaty settlements, 139–40
tribal structures, 145
urbanisation, 107, 137
Waitangi Tribunal, 238
wardens, 146–47
war effort, 1940s, 19
Maori Appellate Court, 237
Maori Broadcasting Funding Agency (Te Mangai Paho), 265–66
Maori Congress (Te Whakakotahitanga o nga iwi o Aotearoa), 146
Maori Council, NZ, 139, 146, 182
Maori Development, Ministry of, 49–5, 144
Maori education, 112
early childhood, 215
kohanga reo, 215, 222
language, 150, 233
wananga, 232, 138
Maori Education Strategy, 233
Maori Education Trust, 212
Maori health, 112, 136, 180, 182–83
history, 182–83
hospital admissions, 136
infant mortality, 189
life expectancy, 136, 143
mental health, 136
mortality, 180
Maori Land Court, 365–66
Maori Language Commission, 147, 148, 150
Maori Language Education Plan, 233
Maori population
age distribution, 106–07, 136, 141
change dynamics, 143
demographic indexes, 143
fertility, 100
geographical distribution, 142
households and dwellings, 116–17
life expectancy, 136, 143
sex/gender, 142
Maori Trustee, 365
Maori Women's Welfare League (Te Roopu Wahine Maori Toko i Te Ora), 139, 147, 182
Mapping, 363
Marine
accidents, 482
environment, 359
pollution, 482
reserves, 376
safety, 482
Marital status, 121
de facto relationships, 122
Maritime Safety Authority, 481–82
Marketing authorities, agricultural
dairy products, 416
kiwifruit, 423–24
meat, 412–13
Marriage
age at, 99, 122–23
dissolution, 121, 123, 124
inter-ethnic, 87
legislation, 124–25
rates of, 120–21
same sex, 123
Marriage and divorce rates, 123
Marsden Fund, 346
Massey, William, 25
Maternity
leave, 341–42
services, 174–75
McCahon, Colin, 284–85
Meads, Colin, 297
Meat
exports, 410–13
Meat NZ, 412
prices, 411
production and slaughter, 411
types, 410–11
MED, see Ministry for Economic Development Media, mass, 264–73
Medical
boards and councils, professional, 170–72
industry professionals, 170–72
laboratory technologists, 172
radiation technologists, 172
Medicines and drugs, control of, 176–77
MEM, see Ministry for Emergency Management Members of Parliament
listed, 35–37
salaries and allowances, 35
women, 37–38
Mental health, 178–79, 194–95
Mental Health Commission, 178–79
Mental Health Foundation, 195
Merchandise trade, balance of, 515
Merchant navy qualifications, 481
Metals, 450–51
Meteorology, see Climate Metric system, introduction to NZ, 510
MFAT, see Ministry of Foreign Affairs and Trade Middle East
relations with, 68
Midwives, 171
Migration
external, 87, 103–05
internal, 87–88
Maori, 107
Pacific Islands people, 153
projections, 89
refugees, 108
Military
forces, 75–82
museums, 84
pensions, 159–60
Milk and milk products, 415–16
Mineral springs, Rotorua, 5
Minerals
exploitation, 361, 370
metallic, 450–51
non-metallic, 451–52
production, 450–52
resources, 450–52
Minimum wage, 341
Mining, 361, 370, 450–53
ANZSIC industry B, 453
coal, 446–47
Ministers of the Crown, 39, 40
Ministry for Culture and Heritage, 47, 279–80
Ministry for Emergency Management (MEM), 47–48, 203–05
Ministry for the Environment, 48, 370–72
Ministry of Agriculture and Forestry, 45–46, 371, 407, 409
Ministry of Civil Defence, see Ministry for Emergency Management Ministry of Commerce, see Ministry of Economic Development Ministry of Consumer Affairs, 46, 496–98
Ministry of Defence, 47, 75
Ministry of Economic Development, 47, 264, 278, 462, 491
Ministry of Education, 47, 209, 327
Ministry of Fisheries, 48, 434–35
Ministry of Foreign Affairs and Trade, 48, 65, 72, 370
Ministry of Health, 48–49, 169, 175–83
Ministry of Housing, 49, 467
Ministry of Justice, 49
Ministry of Maori Development (Te Puni Kokiri), 49–50, 144–45
Ministry of Pacific Island Affairs, 50, 152–53
Ministry of Research, Science and Technology (MoRST), 50, 345, 347
Ministry of Social Policy, 51, 155, 163
Ministry of Transport, 51
Ministry of Women's Affairs, 51, 127
Ministry of Youth Affairs, 52, 127–28
Misuse of drugs, 177
MMP (Mixed Member Proportional), 21–22, 30, 32, 43
Monetary policy, 564
Money
exchange rates, 565
supply, 565
Monopolies, 440
Mortgages and home loans, 464–67
Housing Corporation of NZ, 466
interest rates, 465
Motor Vehicle Security Register, 491
Motor vehicles
cost of running cars, 490
historical essay, 474–76
imported, 491, 524
inspection, 490
registration and licensing, 360, 490–91
Mount Erebus crash, 483
Mountaineering and tramping, 300–01
Mountains, 5
Movable public holidays, 342
Movies and film (see also Censorship), 287, 288–89, 305
MPs, see Members of Parliament Muldoon, Robert, 22
Multilateral assistance, MFAT, 71
Music, 286–89

N

NACEW (National Advisory Council on the Employment of Women), 317
Napier earthquake, 10
Narcotics, see Drugs and medicines
National
accounts, estimates of, 390
anthems, 63
disposable income, 386
economy (historical article), 379–84
income and outlay, 387
parks, 374–75
National Accounts, NZ system of (NZSNA), 385
National Advisory Committee on Health and Disability, 169
National Advisory Council on the Employment of Women (NACEW), 317
National Archives, 285–86
National Biography, NZ, (NZNB), 293–94
National Certificate of Educational Achievement, 220
National Cervical Screening Programme (NCSP), 181
National Collective of Independent Women's Refuges, 164
National Council of Women, 127
National Drug Intelligence Bureau, 257
National Health Committee, 169
National Health Index, 187
National Institute of Water and Atmospheric Research Ltd (NIWA), 350
National Library of NZ, 50, 290–92
National Minimum Dataset, (health), 187
National Provident Fund, 50, 508
National Radiation Laboratory, 176
Native plants and animals, 15–16
Natural disaster insurance, 204
Natural gas, 445–46
Nature reserves, 375–76
Navigation aids, 482, 483
Navy Museum, 84
Navy, Royal NZ, 80–81
Neighbourhood law offices, 241
Nepia, George, 296
New Capital Market, 503
New organisms, 369–70
Newspapers and magazines, 270–71
currently published, 270–71
daily, 270–71
worldwide sales, 272
Nga Pou Taunaha o Aotearoa, (NZ Geographic Board), 367
Ngarimu, Te Moananui-a-Kiwi, 72
Ngata, Apirana, 149
Niue, 65, 153
NIWA (National Institute of Water and Atmospheric Research Ltd), 350
No. 75 Squadron, 81
Non-government organisations, 71
Non-profit organisations, 499
Non-resident withholding tax (NRWT), 576
North Island population, 93
Nurses, 171
Nursing Council of NZ, 171
NZ Aids Foundation, 187
NZ and United Nations, 71
NZ Antarctic Institute, 348
NZ Apple and Pear Marketing Board, 423
NZ Army, 81
NZ Bill of Rights Act 1990, 34
NZ Cadet Forces, 78
NZ Cartoon Archive, 292
NZ Choral Federation, 288–89
NZ coat of arms, 63
NZ Conservation Authority, 377
NZ Council for Educational Research, 212
NZ Council of Social Services (NZCOSS), 166
NZ Council of Trade Unions, 342
NZ Council of Victim Support Groups, 248
NZ Customs Service, 514
NZ Dairy Board, 416
NZ Debt Management Office (NZDMO), 579–8
NZ Defence Force, 47, 75–82
NZ Drama School, 287
NZ Electricity Market (NZEM), 443
NZ Employers’ Federation, 335, 342
NZ Federation of Ethnic Councils, 130
NZ Film Archive, 284–85
NZ Film Commission, 289
NZ Fire Service, 204–05
NZ Fire Service Commission, 204
NZ Fish and Game Council, 377
NZ flag, 63
NZ gallantry and bravery awards, 35
NZ Geographic Board (Nga Pou Taumaha o Aotearoa), 367
NZ Government Online, 264
NZ Government, December 1999, 40
NZ Health Information Service, 186–87
NZ Herald of Arms Extraordinary, 31
NZ Historic Places Trust (Pouhere Taonga), 283–84
NZ Household Economic Survey, 115
NZ Income Survey (NZIS), 333
NZ Institute of Architects, 464–65
NZ Institute of Economic Research, 353
NZ Kiwifruit Marketing Board, see ZESPRI International NZ Lotteries Commission, 302–03
NZ Lottery Grants Board, 303
NZ Maori Council (Te Kaunihera Maori), 139, 146
NZ Meat Board, 412
NZ Official Development Assistance (NZODA), 67, 69–71
NZ Olympic Committee, 299
NZ On Air, 264–65
NZ Order of Merit, 28
NZ Patent Office, see Intellectual Property Office of NZ NZ Police, 50, 256–57, 492–93
NZ Pork Industry Board, 417–18
NZ Post Ltd, 275–76
NZ Press Council, 271–72
NZ Qualifications Authority (NZQA), 210, 219–20
NZ Railways, see Tranz Rail NZ Railways Corporation, 486
NZ School of Dance, 287
NZ Seafood Industry Council, 436–38
NZ Security Intelligence Service (SIS), 83
NZ Society of Authors (PEN NZ), 290
NZ Standard Time, 16
NZ Standards Institute, 355
NZ Stock Exchange, 502–03
NZ Symphony Orchestra (NZSO), 286
NZ System of National Accounts (NZSNA), 385
NZ territories, 74, 75
NZ Tourism Board, 305
NZ Tourism Industry Association, 310
NZ Trade Development Board (Trade NZ), 513
NZ Wool Board, 414
NZ, Australia Closer Economic Relations Trade Agreement (CER), 66, 455
NZCER (NZ Council for Educational Research), 212
NZODA, see NZ Official Development Assistance NZQA (NZ Qualifications Authority), 210, 219–22
NZSO (NZ Symphony Orchestra), 286

O

Observatory, Carter, 351
Occupational
disease notifications, 207
structure of labour force, 321–23
therapists, 171
Occupational Safety and Health Service (OSH), 206
Occupations
1901 and 1996, 316
ANZIC, 399–401
Oceanic Control Systems (for aircraft), 483
OECD, see Organisation for Economic Cooperation and Development Offences
criminal, 243–46
traffic, 247–48
Office of Film and Literature Classification, 282
Office of the Commissioner for Children, 128
Office of the Parliamentary Commissioner for the Environment, 56–57, 433
Office of the Race Relations Conciliator, 126
Office of Tourism and Sport (OTSP), 308
Office of Treaty Settlements, 50, 144
Official Cash Rate (OCR), 564
Official Development Assistance, NZ (NZODA), 69–71
Official Information, 54
Official Information Act 1982, 54
Oil, 444–45
Oil and gas reserves, 445
Older people, health services for, 178
Olympic
Committee, NZ, 299
gold medalists, 299
Ombudsmen, 54–55
banking, 563
insurance and savings, 505
ONZ (Order of NZ), 30, 31
Open Polytechnic of NZ, 229–30
Open space protection, 377
Operating balance (government), 571
Opticians and optometrists, 171
Oral History Centre, 291–92
Oranga Poutama, He (sport development), 296
Order of
Merit, NZ, 30
NZ, 30, 31
Organic produce, 526
Organisation for Economic Cooperation and Development (OECD), 73
agricultural policy, 409
employment comparisons, 324
labour and employment information, 339
Organochlorines, 371
Orphan benefits, 157
OSH (Occupational Safety and Health Service), 206
Outdoor leisure, 300–01
Outlying islands, 5
Overseas
airline operators, 484
applications for intellectual property rights, 353–54
assistance, 69–71
balance of payments, 394–95
cargo, loaded and unloaded, 537
country of birth, 130
dairy marketing, 415–16
debt, 395–98, 581–82
destinations (distances), 485
diplomatic representation, 68
emergency and disaster relief, 70
mail services, 276
ownership of companies, 22
reciprocal social agreements, 160–62
shipping operators, 480–81
shipping services, 481
students, 225
Overseas ownership of
banks, 561
land, 364–65
radio and television, 266, 271
railways, 486
telecommunications, 274
Overseas trade
1900 and 1999, 513
balance of merchandise, 515
cargo, 536–40
exports and imports, 392–93, 513
indexes, 540–44
Ozone depletion, 361–62, 372–73

P

Pacific countries, relations with, 65–66
Pacific Forum Line (PFL), 66
Pacific Island Affairs, Ministry of, 50, 152–53
Pacific Islands Investment and Development Scheme (PUDS), 70
Pacific Islands people
age distribution, 151
Anau Ako Pasifika (Early Childhood Development), 215
employment, 314
households and dwellings, 116–17
immigration, 153
population, 108, 151
secondary school leavers, 221
PAFT (Parents as First Teachers), 216
Painters, 284, 285
Paper production, 430
Parental leave, 341–42
Parents as First Teachers (PAFT), 216
Parks and reserves
forest, 375–76
marine, 376
national, 374–75
Parliament (see also Elections)
Acts and regulations, 34
buildings, 471
elections to, 41–43
executive government, 39
financial security, 569–70
House of Representatives, 31–38
legislative procedures, 33
members of, 35–37
MMP in, 32, 43
political parties in, 32
Premiers and Prime Ministers, 39
proceedings, 34
role of parties, 32
salaries and allowances of MPs, 34–35
scrutiny of public finances, 569–70
select committees, 33
sessions, 33, 34
Speakers, 32
Standing Orders, 32
Youth Parliament, 128,
Parliamentary
system, 29
tradition, 29–30
Parliamentary Commission for the Environment, 56–57
Parliamentary Commissioner for the Environment, 433
Parliamentary Library, 294
Parliamentary Service, 33–34
Parole, 251
Parties, political, 32
Partnerships, commercial, 500
Part-time labour force and work, 317–19
Passports and visas for entry, 133–34
Patents, trademarks and designs, 353–54
Patients, hospital, 192–94
PAYE (pay as you earn) income tax, 572–73
Peacekeeping commitment overseas (map), 77
Pears, see Pipfruit PEN NZ Inc, 290
Penal institutions, 252
Pensions (see also Benefits, Superannuation), 156–62
Performing arts, 286–89
Perinatal deaths, 190
Periodic detention, 251
Petrol and petroleum, 444–45, 524–25
PFL (Pacific Forum Line), 66
PGSF (Public Good Science Fund), 346
Pharlap, 305
PHARMAC, 173–74
condoms, 174
Pharmaceutical benefits, 173–74
Pharmacists, 172
Physical activity, 185, 295
Physiotherapists, 171
Pigs, 417–18
Pinus radiata, 425
Pipfruit, 422–423
Planning
district and regional, 368–69
environmental, 367–68
national, 367–68
resource consents, 369
Plant variety and biodiversity, 377
Planted production forests, 425–26
Plants
introduced, 16
native, 15
Plastic imports, 525
Platform for Action, Beijing Women's Conference, 316
Playcentres, 215
Playgroups, 216
Plunket Society, 171
Plywood, see Timber
Podiatrists, 172
Police
numbers, 256
operations, 256–57
Police Complaints Authority, 256
Police, NZ, 50, 256–57
Polio, 177
Political parties in Parliament, 32–33
Pollution, 371–72
air, 360
water, 482
Polynesians, see Pacific Islands people Polytechnics, 212, 229–3
Population (see also Census of Population and Dwellings)
ageing of, 88
age-sex structure, 86, 105–06, 107–08
Asians, 108
censuses, 87, 104
citizenship, 132
components of change, 97, 98
country of birth, 130
demographic prospects, 88–90
distribution of Pacific Islands people, 152
enumeration, 92–93
estimated 1885–1998 (table), 92
ethnic composition, 87, 89–90, 106, 108, 110–11, 129–30
external migration, 87, 108
fertility, 85–86, 97
geographical distribution, 87–88
growth, 85, 89–90, 92, 359
internal migration, 93–94
large urban areas, 95
local government areas, 96
longevity, 101
Maori, 106–07
marital status of, 121
median age, 105
mortality, 86
natural increase, 85
North and South Island regions, 97
Pacific Islands people, 108, 151–52
projections, 90, 113, 140
refugees, 108
regional changes, 90
settlement, 359–60
summary, 1
urban and rural, 94, 95
urbanisation, 87, 94, 111
Pork, 417–18
Ports (maps), 538–39
Post Enumeration Survey, 92
Postal services, 259
Postage stamps
1999 issues, 276
health stamps, 185
Poultry and eggs, 418–19
Premiers and Prime Ministers, 39
Pre-school education, 215–16, 230–31
Prescription subsidies, 173–74
Press Council, 271–72
Press freedom, 271
Preventive detention, 253
Price control policies (history), 554
Price indexes
Capital Goods Price Index, 556–57
Consumers Price Index, 545–54
Exports Price Indexes, 541–43
Farm Expenses Price Index, 406–07
House Price Index, 463–64
Import Prices Indexes, 542–44
Labour Cost Index, 336–37
Producers Price Index, 555–56
Terms of Trade Index, 540–41
Prices
dairy produce, 417
exports and imports, 541–42
housing, 463–64
retail, 552
transport, 551
Primary schools, 216
Prime Minister, 40
Prime Minister and the Cabinet, Department of the, 50
Prime Ministers and Premiers, 39
Prime Minister's Youth Advisory Forum, 128
Prime Television, 267
Prison reform, 255
Prisons and prison inmates
age of, 253
census of, 253–55
institutions, 252
major offences, 254
offending history, 254–55, 251–55
Privacy Act 1993, 55
Privacy Commissioner, 55–56
Private schools, 216–17
Privy Council, Judicial Committee, 235
Probation Service, Community, 249
Proceeds of crime, 252
Producers Price Index, 554–56
Property rates, 572
Protected Natural Areas Programme, 376
Protectionism, economic, 379
Provident Fund, National, 50
Provinces, 58
Psychological Service (Department of Corrections), 254
Psychologists, 171
Public
accounts, 570–72
bodies, non-departmental, 52–53
holidays, 341, 342
radio, 268
Public debt (see also Central government finance), 383
asset sales, 580
borrowings, 581
management, 580
record, 580
securities issued, 565
war, effects on, 581–82
Public Good Science Fund (PGSF), 346
Public lands (see also Forest parks; Reserves and parks)
Crown land, 366–67
national parks, 374–75
Queen Elizabeth II National Trust, 377
walkways, 301
Public Prisons Service, 251–55
Public service (see also Government departments, State sector), 47
senior staff, 45, 46–47
superannuation, 508
Public Trust Office, 50, 57
Publishing, 270–72, 289
Pulp and paper
production, 430
research, 429–30
trade in, 430–31
Puni Kokiri, Te, 49–50, 144, 365

Q

Qualifications, secondary schools, 219
Qualifications Authority, NZ, 210
Quarantine, 407
Quarrying, 453
Queen Elizabeth II National Trust, 377
Queen's Chain, 366
Queen's Service Order, 28
Quota Management System, 433–35
Quotable Value NZ, 51

R

Race Relations Conciliator, 126
Racing and betting
horse and greyhound, 302
Pharlap, 305
taxation, 578
Radiata pine, 425
Radiation
protection, 176
technologists, medical, 172
Radio
history, 268
private broadcasters, 270
public, 268
spectrum allocation, 268
Radio Network of NZ Ltd, 270
Radio New Zealand, 268–69
Railways
construction and development, 488
environment and safety, 487–88
freight, 474, 486–87
history, 473–75
ownership, 486
passenger services, 473–74, 487
steam transport, 473–74
technology, 487
Tranz Rail, 486–88
Rainbow Warrior, 253
Rainfall, 11, 12, 13
Raoul Island, 5
Ratana, Tahupotiki Wiremu, 149
Receivership of companies, 499, 505
Recording Industry Association of NZ (RIANZ), 286
Recreation and sport, 295–302
Hillary Commission for Sport, Fitness and Leisure, 295
parks and reserves, 374–76
Referenda, 42
Reform
constitutional, 30
economic 1984–1999, 384
electoral, 30
Refugees (see also Immigration), 108, 134
Regional planning, 368
Regional television, 267
Registration
banks, 559–60
motor vehicles, 490–91
Rekohu, 141
Religious affiliation of population, 128–29
Renewable energy, 448–49
Reo Maori, te
Maori Language Commission, 147, 148, 150
publications in, 211
speakers of, 138–39, 148
Research
agricultural, 348–49, 422
Antarctic, 75
arts, 281
associations, 352–53
astronomy, 351
atmospheric, 350
awards, 351
Crown institutes, 348–5
dental, 186
DSIR, 352
economic, 353
education, 225–26
energy, 440
environmental, 350
food, 349
funding and investment, 346–47
geological, 350
health, 169–70
horticulture, 349–50
industrial, 350
land resources, 349–50
marine, 350, 352
medical, 170
nuclear, 350
te reo Maori, 150
universities and polytechnics, 352
water, 350
Research, Science and Technology, Foundation for (FRST), 348
Research, Science and Technology, Ministry of (MoRST), 50, 345
Reserve Bank of NZ, 553, 559–61, 563–64
assets and liabilities, 560–61
Reserves and parks
land, 374–76
marine, 376
Residential Tenancies Tribunal, 238
Resource management, 349, 361, 367–69, 440, 450
Retail prices, CPI, 552
Retail trade and services (see also Sales)
credit sales, 511
regional sales, 510
sales, 510–12
shop trading hours, 497, 512
stocks, 511
survey, 509–10
Retirement Commissioner, 162
Retirement, NZ superannuation, 159
Rights of the Child, UN Convention on the, 125
Rio Declaration, UNCED, 370, 372
Rivers, 6, 371
RMS (Refugee and Migrant Service), 134
Road Safety Trust, 494
Roads, 489–90
accidents and deaths, 199–201
expenditure, 489
safety, 199, 492–94
speed limits, 493
taxation for, 578
Transfund NZ, 488–89
Transit NZ, 489
Rock types, 6
Roopu Wahine Maori Toko i Te Ora, Te (Maori Women's Welfare League), 147
Ross Dependency, 75
Rout, Ettie, 179
Royal
commissions, 36
honours, 30–31
Royal Forest and Bird Protection Society, 373
Royal NZ Air Force (RNZAF), 82
Royal NZ Ballet, 286–87
Royal NZ Navy (RNZN), 80–100
Royal Society of NZ, 351
Rugby, 296–98
Rural Education Activities Programme (REAPs), 225
Russia, relations with, 67–68
Rutherford, Ernest, 354–55

S

Safety
fire, 205
food, 177–78
marine, 482
occupational, 206
road, 199, 492–94
water, 201
Sailing, 301
Salaries, see Income Sale of Liquor Act 1989, 497–98
Sales
credit, 511
retail trends, 510
Same sex marriage, 123
Sand
ilmenite and mineral, 451
Savage, Michael Joseph, 19
Scenic reserves, 375
School Certificate, 219, 220
School Dental Services, 186 School Journal, The, 212
Schools (see also Education; Students; Teachers and teaching)
attendance 1901, 1999, 209
boards of trustees, 211
compulsory schooling, 216, 220
curriculum, 217–18
early childhood, 212, 214–16, 230–31
funding, 213
home-based schooling, 217
in health camps, 185
independent, 217
integrated, 216
Internet access, 277
kura kaupapa, 216
leaver demographics, 221
leaver qualifications, 219
library service, 293
national qualifications, 219
primary and secondary, 216–17
private, 217
property management, 213
schooldays, circa 1910, 213
state, 216
student numbers, 222–24
teacher-pupil ratios, 224
teaching staff, 223
terms, 215
The Correspondence School, 217, 218
transport, 213,
Science and scientific services (see also Research)
Antarctica, 348
awards, 351
Carter Observatory, 351–52
funding, 345, 346–47
government agencies, 348–50
history, NZ, 355
policy, 345–46
promotion, 347–48
scientific reserves, 375
universities and polytechnics, 352,
Scrimgeour, Colin, 270
Seafarers, 481
Seafood (see also Fishing; Fisheries)
exports and imports, 435–36, 520
industry, 435–38
Seafood Industry Council, 436
Seaports, 537
Search and rescue, 78, 256
Seasonal adjustment of retail sales, 510–11
Seatbelts in vehicles, 493
Secondary schools, 219
Secondary Tertiary Alignment Resource (STAR), 330
Securities, government, 565
Securities Commission, 501–02
Security Intelligence Service (NZSIS), 83
Seddon, Richard, 24
Seismic activity, 7, 9
Select committees, 46th Parliament, 33
Senior citizens, see Older people Sentencing
community-based, 251
detention, 244, 246–48
non-traffic offences, 246–47
probation, 251
sentence length, 254
traffic offences, 247–48
Serious Fraud Office (Te Tari Hara Tawere), 51, 502
Sex/gender
census, 86, 105–06
deaths, 101, 202
early childhood education, 231
equal pay, 317
income differences, 335–36
prison inmates, 253–55
tertiary enrolments and graduates, 227–29
university staff, 228
weekly income, 332
Sharemarket, see Stock Exchange Sheep and sheep farming, 408, 413–15
Sheepmeat, 413
Shipley, Jenny, 59
Shipping, 473–74
bulk, 480
ferries, 480, 487
fishing vessels, 435
inter-island, 480, 487
lines, 480
marine safety, 482
overseas, 480, 481
registered ships, 481
services to, 481–82
Shipwrecks, 482
Shooting and hunting, 300
Shop, trading hours, 497, 512
Sickness benefit, see Benefits and pensions Silver, 451
SIS (NZ Security Intelligence Service), 83
Sixth Form Certificate, 219
Skiing, 300
Skill Enhancement, 329
Skill New Zealand, 232, 327–30
SKY Television, 267
Smokefree campaigns, 184
Smoking, tobacco, 184
Snell, Peter, 299
Snowboarding, 300
Snowfalls, 1999, 14
Soap making, 116
Social change, 20, 22
Social diversity, 113
Social framework, summary, 1
Social Policy, Ministry of, 51, 155, 163
Social security
funding, 568
overseas reciprocal agreements, 160–62
Social services, 166
Citizens Advice Bureaux (CAB), 168
Social welfare, historical summary, 113
Society of Authors, NZ (PEN), 290
SOI, see Southern Oscillation Index Soil
classification, 6, 7
conservation, 371
management, 371
Solicitor-General, see Crown Law Office SOPAC (South Pacific Applied Geoscience Commission), 66
Sound Archives (Nga Taonga Korero), 269
South African War 1899–1902, 82
South Island population, 93
South Pacific
countries, 65, 373
development assistance, 70
disaster relief, 70
South Pacific Applied Geoscience Commission (SOPAC), 66
South Pacific Forum, 65
South Pacific Forum Fisheries Agency (FFA), 66
South Pacific Regional Environment Programme, 66, 373
South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA), 65
Southern Ocean Whale Sanctuary, 373
Southern Oscillation Index (SOI), 14
Sovereigns of NZ, 29
Speaker of the House of Representatives, 32
Special
education, 213
needs grant, 158
purpose local authorities, 59
Special Education 2000, 213
Specialist Courts, 237
Specialist Education Services (SES), 210
Species, native and introduced, 15
Speed
cameras, 250, 257
limits, 493
Split Enz, 289
Sport, see also Leisure
and local government, 298
betting, 304
disabled persons, 297
funding, 295–98
junior, 295–96
Olympic Games, 299
people with disabilities, 297
rugby 1924–1999, 297
squash, 298
Sport, Fitness and Leisure, Hillary Commission for, 295, 296
SPREP (South Pacific Regional Environment Programme), 66
Springbok Tour, 1981, 237
Stamp duty, 575
Stamps, postage, 275–76
Standard of living indicators, 120
Standards Institute, NZ, 355
Standards NZ, 355–56
Standing Orders, House of Representatives, 32
STAR (Secondary Tertiary Alignment Resource), 330
State
forests and parks, 374–76, 426
role of, 17
sales of assets, 580
State housing, 470
State sector (see also Government departments, State-owned enterprises, Central government finance)
Crown Company Monitoring Advisory Unit (CCMAU), 52–53, 346
staff remuneration, 46,
State Services Commission, 44
State-owned enterprises, 52
Statistics New Zealand, 51
website address, 108
Statutes, 34, 238–39
Steam transport, 473–74
Steel production, history, 462
Stewart Island, 5
Stock Exchange, 502–03
Stock feed, 420
Stock market crash, 1987, 503
Storms, cyclones, 13–14
Strikes, 340, 342–44
Student Job Search, 328
Student loans, 575
Student Representative Scheme, 128
Students
allowances, 229
international, 225
Maori, 212, 216, 233
number enrolled, 222–23
primary and secondary, 216–17
sex/gender, 221
tertiary, 221, 227, 228–29
Subsidies, health, 173–75
Suicide
prevention, 128
youth, 128
Sunshine, 13
Superannuation, 156, 159, 161
government, 507–08
National Provident Fund, 508
public service, 508
Supervision, probationary, 251
Survey Board of NZ, 364
Surveying, (see also Land Information NZ)
aerial, 363
hydrographic, 78, 363–34
infrastructure, 363
topographic, 363–64
Sustainable development and management, 72, 361, 368–70
Symphony Orchestra, NZ (NZSO), 286

T

TAB (Totalisator Agency Board), 304
Takahe, 378
Tangiwai train disaster, 489
Taranaki claims, 143
Targeted Funding for Educational Achievement (TFEA), 213
Tariffs, 455–57, 514
Taupo volcanic zone (map), 8
Taxation Review Authorities, 579
Taxes and taxation (see also Customs)
ACC, 575
child support, 574–75
companies, 573
customs and excise, 577
disposable income (table), 579
double, agreements, 576
duties, 575–76
excise duties, 577
family assistance, 574
Fringe Benefit Tax, 574
goods and services tax (GST), 383, 574
imputation, 573
international, 576–77
NZ system, 572–74
pensions, 576
per capita, 573
personal income, 572–73
policy, 383
racing, 578
rates, 573
rebates, 573
resident withholding tax (RWT), 573
revenue from, 576–77
review authorities, 579
roads, 578
social policy, 574–75
student loans, 575
Te Hakituatahi o Aotearoa, 1835, 62–63
Te Heuheu, Hepi Tukino VII, 149
Te Hiranga Tangata, 52, 155–62
Te Kaitiaki Maori, 365
Te Kanawa, Kiri, 287
Te Kaporeihana Whare, 466
Te Kooti Whenua Maori, 237, 365
Te Manatu Ahuwhenua, Ngaherehere, 45–46, 404, 409
Te Manatu mo te Taiao, 48, 370–72
Te Ohu Kai Moana: Treaty of Waitangi Fisheries Commission, 434–35
Te Papa Tongarewa (Museum of NZ), 283
Te Puni Kokiri (Ministry of Maori Development), 49, 144
Te Rakau Whakamarumaru, 47, 203–05
Te Ratonga Oranga, 206–07
Te reo Maori, see Reo Maori, te, Te Tahuhu o te Matauranga, 47, 209
Te Tari Arotake, 210–11
Te Tari Arotake Matauranga, 47
Te Tari Hara Tawere, 502
Te Tari Mahi, 49, 316
Te Tari Taake, 49
Te Taura Whiri i te Reo Maori, 147
Te Tiriti o Waitangi see Tiriti o Waitangi, Te (The Treaty of Waitangi) Te Whare Ahuru, 49, 466
Teacher Registration Board, 211
Teachers and teaching
education providers, 230–31
Maori, 223
resources for, 209–11, 225
specialisations, 230–31
TEC (Trade and Economic Cooperation Agreement, Canada), 67
Technical education, 228–29, 231
Technology, see Science and scientific services Technology NZ, 347
Telarc Ltd, 354
Telecom Corporation of NZ Ltd, 274
Telecommunications, 259–60
deregulation, 260
regulation, 273
Telecommunications Users Association of New Zealand (TUANZ), 278
Telegrams, 274
Television, 266–68
cable, 267
history, 266–67
local, 267
Prime, 267
regional, 267
SKY, 267
TV3, 266
viewing, 267
Television New Zealand Ltd, 266
Temperatures, 1999 (see also Weather), 11
Terralink NZ Ltd, 363
Territorial authorities, 58
Territories, NZ
Ross Dependency, 75
Tokelau, 65, 74
Textiles, 456–57
The Correspondence School, 217
Think Big projects, 578
Timber
quarantine, 429
radiata pine, 425
roundwood, 428
Timber and forest products, 428–31
exports and imports of, 430–31, 519
pulp and paper, 429
timber preservation, 429
Time Use Survey, 118, 127
Tiriti o Waitangi, Te (The Treaty of Waitangi), 49–50, 139–40, 143, 365
Fisheries Commission, Treaty of Waitangi, 434–35
Office of Treaty Settlements, 50, 144
Tizard, Catherine, 56–57
Tobacco, 184, 551
CPI changes, 551
Tokelau, 65, 74–75
TOKM (Te Ohu Kai Moana, Treaty of Waitangi Fisheries Commission), 434–35
Tomorrow's Schools, 230
Top dressing, 404, 405, 486
Topography, 363–64
Tornadoes, 15
Totalisator Agency Board (TAB), 304
Tourism, 476–77
1903–1999, 309
accommodation, 307
agencies, 309
attractions and events, 305–06
conservation and environment, 308
effects of, 307–08
events, 305–06
international, 306–10
inward visitor numbers, 306
Maori, 308
organisations, 308–10
transport, 307
visitor accommodation, 307
visitor expenditure, 306
Tourism and Sport, Office of, 308
Tourism Board, NZ, 305
Tourism Industry Association, 310
Tourism New Zealand, see New Zealand Tourism Board Toxic chemicals, 369, 372
Trackside TV, 267
Tractor registrations, 490
Trade (see also Exports, Imports)
APEC, 535–36
Australia, 531–33
by geographical region and country (table), 526–30
cargo, see Cargo
domestic, see Retail
environment, 456
European union, 535
external, see Overseas trade global overview, 531
indexes, 540–44
major trading partners, 526–36
protectionism, 379
services overseas, 513
ten major partners, 531
with South Pacific, 65
with United Kingdom, 540–44
with United States of America, 533–34
Trade and Economic Cooperation Agreement (Canada), 67
Trade NZ, 513
Trade weighted index (TWI), 566
Trademarks, 354
Traditional sites
protection of, 284
Traffic
accidents, 199, 200
offences, 493–94
speed cameras, 250, 257
Training Opportunities Programme, 328
Tramping, 300–01
Trams, 487
Transfund NZ, 488–89
Transit NZ, 489
Transport
steam-powered, 473–74
Transport (see also Shipping), 360
air, 476–77, 482–86
CPI, 550–51
historical essay, 473–77
household, 118
rail, 473–75, 486–88
road, 488–94
school, 213
sea, 473–74, 479–82
steam, 473–74
summary, 3
tourism, 476–77
travel to work, 491–92
Transport Accident Investigation Commission, 492–93
Transport safety (see also Land Transport Safety Authority), Transport, Ministry of, 51
Tranz Rail, 480, 486–88
Treasury, The, 51
Treaty of Waitangi, 49–50, 139–40, 143, 365
Treaty of Waitangi Fisheries Commission, 434–35
Treaty Settlements, Office of, 50, 144
Tribunals
Waitangi, 139–40, 238
TUANZ (Telecommunications Users Association of NZ), 278
Turnbull Library, 291
TV3, 266–67
TWI (trade weighted index), 566

U

Ultra-violet radiation, 362
UN (United Nations), 71–72
human rights, 71
NZ contributions to, 71
peacekeeping commitments (map), 77
peacekeeping operations, 76–77
specialised agencies, 72
UN Commission on Sustainable Development, 371
UN Conference on Women, 316
UN Convention on the Elimination of Discrimination Against Women (CEDAW), 71
UN Framework Convention on Climate Change (UNFCCC), 370, 373
UNCED (United Nations Conference on Environment and Development), 370, 371, 372–73, 456
Unemployed (see also Labour force)
benefits, see Benefits and pensions characteristics, 325–27
duration, 327
historical overview, 313–14
rate, 325, 326
registered people, 325
Unemployment, 313
Unions
CTU, 342
history, 337
membership, 338
Unitary authorities, 59
United Kingdom, trade with, 535
United Nations, see UN United States, trade with, 533–34
Universal Postal Union (UPU), 275
Universities, 212, 226–29
continuing education, 233
degrees awarded, 228–29, 231
entrance examinations, 219
research, 352
staff employed, 228
student support, 226–27
Unpaid work, 110
Upham, Charles, 69
Urban areas, 94–95
Urban drift, 95
Urbanisation, worldwide, 95

V

Vaccinations, 177–78, 183
Valuation NZ, 51
Valuation of land, 366–67
Valuer-General, see Land Information NZ Valuers Registration Board, 367
VASS (Voluntary Agencies Support Scheme), 71
Vegetables, 420–21
Vegetation
introduced, 16
Vehicle Testing NZ, Ltd, 490
Venison, 408–09
Veterans pension, 159–60
Vice-regal representatives, 30
Victim Support, 248
Video recordings classification and censorship, 282–83
Vietnam, 82
Vietnam, NZ troops, 82
Violent offences
convictions for, 244–45
Visas for entry to NZ, 132, 133–34
Vital statistics (see also Births, Deaths and Marriages Registry), 101
Vocational qualifications, 230
Volcanoes, 8–9
Volume indexes of overseas trade, 543–44
Voluntary Agencies Support Scheme (VASS), 71
Voluntary Service Abroad (VSA), 71
Voluntary welfare organisations, 178
Volunteers
health organisations, 178
Voting, see Elections VSA (Volunteer Service Abroad), 71

W

Wages, see Benefits and pensions; Income Wahine storm, 479
Waihi miners strike, 343
Waitangi National Trust Board, 377–78
Waitangi, Treaty of, 139–4, 143
Waitangi Tribunal (Te Ropu Whakamana i Te Tiriti o Waitangi), 139–40, 143–44, 238
claims process, 144
Taranaki claims, 143–44
Walking, leisure, 301
Walsh, Fintan Patrick, 326–27
Wananga, 232
War
dead, NZ, 75
pensions, 159–61
Ward, Joseph, 18
Wardens
Maori, 146–47
Wars
NZ participation, 18, 19
Waste and landfills, 371–72
Water
accidents, 201
drownings, 201
fluoridation, 186
management, 370–71
pollution, 370–71
quality, 358, 370–71
Queen's Chain, 366
research, 350, 352
resources, 370
Waterfront strike, 1951, 329
Watties, history, 332
Weather maps, 12
Weather 1999, 11, 13, 15
Website addresses
Crown entities, 52–53
SOEs, 52–53
Weights and measures, 504
Welfare
social, 113
Welfare organisations
health organisations, 191
Western Europe, relations with, 67
Whale sanctuaries (map), 376
Wheat, 420
Widows benefits, 157
Wilding, Anthony, 300
Wildlife, 15–16
Wind, 15
for energy, 449
Wine
consumption, 424
WINZ, see Department of Work and Income Women
APEC Network, 127
cancer screening, 180–81
education, 110
employment, 110
health of, 180–81
in politics, 110
MPs, 37–38
ratio of population, 105–06
rights issues, 127
social status, 110
suffrage, 37
time use, 110
work, 110
writers, 280–81, 291
Women, Convention on the Elimination of Discrimination Against, 71
Women, National Council of, 127
Women, UN Conference on (Beijing), 316
Women's Affairs, Ministry of, 51, 127
Women's Health League, 182
Women's Refuge, 164
Women's Welfare League, Maori, 139, 147
Wood, see Forest products and timber Wool
auctioned, 414
exports, 414–15, 520–21
markets, 414–15
production, 406
Wool Board, NZ, 414
Work (see also Employment)
full-time and part-time, 317–19
permits for NZ, 133–34
stoppages, 342–44, 342
Workers’ compensation, 197
Working conditions, 206–07, 338–42
World Bank, 73
World Customs Organisation, 514
World Health Organisation, 72
World heritage areas, 375
World Trade Organisation, 72, 409
World War I, 18, 76
Writers, 280
women, 280–81, 291

Y

Youth
and family services, 163
care services, 166
courts, 237
justice services, 165–66
rights issues, 127
suicide, 128, 179
training, 329
Youth Advisory Forum, Prime Minister's, 128
Youth Affairs, Ministry of, 52, 127
Youth Aid (Police), 252
Youth Education Service (Police), 256
Youth Parliament, 128

Z

ZESPRI International, 423–24

Appendix A. Weights and measures

All the statistics in this volume are in metric (SI) units, except for ship tonnages (not cargo).

Metric To Imperial Metric Multiples 
Length
    1 millimetre (mm)= 0.04 inches (in.)1 centimetre (cm)= 10 millimetres (mm)
    1 centimetre (cm)= 0.39 inches (in.)1 metre (m)= 100 centimetres (cm)
    1 metre (m)=39.37 inches (in.)1 metre (m)= 1,000 metres (m)
 = 1.09 yards (yds)  
    1 kilometre (km)= 0.62 miles  
Area
    1 square metre (m2)= 10.76 square feet (sq. ft.)1 hectare (ha)= 10,000 square metres (m2)
 = 1.20 square yards (sq. yd)1 square kilometre (km2)= 100 hectares (ha)
    1 hectare (ha)2.47 acres  
    1 square kilometre (km2)= 247 acres  
 = 0.39 square miles  
Volume and capacity
    1 cubic centimetre (cm3= 0.06 cubic inches (cu.in.)1 cubic metre (m3)= 10,000,000 cubic centimetres (cc)
    1. cubic metre (m3)= 35.31 cubic feet (cu. ft.)1 litre (l)= 1 cubic centimetre (cc)
    1. litre (l)= 1.76 pints1 cubic metre (m3)= 1,000 litres (l)
 0.22 gallons  
Mass (weight)
    1 gram (g)0.04 ounces (oz)  
    1 kilogram (kg)= 2.20 pounds (lb)1 kilogram (kg)= 1,000 gram (g)
    1 tonne (t)= 2 204.62 pounds (lb)1 tonne (t)= 1,000 kilograms (kg)
 = 0.98 tons  
Velocity
    1 kilometre per hour (km/h)= 0.62 miles per hour (mph)  
Pressure
    1 kilo pascal (kPa)= 0.15 pounds per square inch (psi)1 megapascal (MPa)= 1,000 kilopascals (kPa)
    1 megapascal (MPa)= 0.06 tons per square inch (tons psi)  
Temperature
Energy
    1 kilojoule (kJ)= 0.95 British thermal units (Btu)1 megajoule (MJ)1,000 kilojoules (kJ)
 0.24 calories (cal)1 kilowatt hou(kWh)= 3.6 megajoules (MJ)
  1 gigajoule (GJ)= 1,000 megajoules (MJ)
  1 terajoule (TJ)= 1,000 gigajoules (GJ)
  1 petajoule (PJ)= 1 million gigajoules (GJ)
Power
    1 kilowatt (kW)= 1.34 UK horsepower1 kilowatt (kW)= 1,000 watts
  1 megawatt (MW)= 1,000 kilowatts (kW)
  1 gigawatt (GW)= 1,000 megawatts (MW)