New Zealand Official Yearbook 2004

Te Pukapuka Houanga Whaimana o Aotearoa

Statistics New Zealand

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The New Zealand flag

The New Zealand flag is the symbol of the realm, government and people of New Zealand. The flag features, on a royal blue background, a Union Jack in the first quarter and four five-pointed red stars of the Southern Cross on the fly. The stars have white borders. The royal blue background is reminiscent of New Zealand's blue sea and clear sky, while the stars of the Southern Cross emphasise New Zealand's location in the South Pacific Ocean. The Union Jack gives recognition to New Zealand's historical foundations and the fact that the country was once a British colony and dominion.

Te Hakituatahi o Aotearoa - 1835
The first flag of New Zealand

For a detailed history of Te Hakituatahi o Aotearoa, see Chapter 3: Government. The flag features, 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-pointed star.

The New Zealand coat of arms

New Zealand has had its own coat of arms since 1911. Before that the United Kingdom coat of arms (featuring a lion and a unicorn on either side of a shield and crown) was used. This design still adorns the top of the pediment on the Old Government Buildings in Lambton Quay, Wellington, which were built in 1875 to house the colony's public service, but which now house Victoria University's law school. 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 became the ‘Realm of New Zealand’ instead of the ‘Dominion of New Zealand’. Accordingly, the British lion holding aloft the Union Jack was replaced by St Edward's Crown, worn by Queen Elizabeth II at her coronation. At the 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 with ‘New Zealand’.

New Zealand Official Yearbook 2004
ISSN 0078 0170
ISBN 0-478-26925-0

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 publisher. No reproduction may be made, whether by photocopying or by any other means, unless a licence has been obtained from the publisher or their agent.

Copyright © Statistics New Zealand 2004.

Published in 2004 by David Bateman Ltd, 30 Tarndale Grove, Albany, Auckland, New Zealand.

Printed by PrintLink, Wellington, New Zealand.


Table of Contents

List of Figures

List of Tables

Preface

This 104th edition of the New Zealand Official Yearbook continues the tradition of providing a comprehensive picture of New Zealand society based on the most recent and accurate information available.

Any chronicle with a publishing history of more than 100 years needs to evolve to ensure that it continues to meet the needs and expectations of its users. In the case of the 2004 edition of the Yearbook, the result is a more concise, easy-to-read format, in some cases replacing the more technical content of the past.

At the same time, care has been taken to retain and build upon the statistical tables, graphs and historical time series which have been the hallmark of previous Yearbooks. These and sidebar stories and photographs highlight the changes that have occurred in many aspects of New Zealand life since production of the 2002 Yearbook.

Statistics New Zealand is aware that more and more people are turning to the internet for their informational needs, and each chapter of Yearbook 2004 provides a comprehensive list of website links to contributors and organisations mentioned. Further information on much of the statistical information included in the Yearbook can be found on Statistics New Zealand's comprehensive website, www.stats.govt.nz. However, for the more than 60 percent of New Zealand households in private dwellings which the 2001 Census showed did not have internet access, the Yearbook remains an invaluable reference tool.

I would like to offer special thanks to the New Zealand Official Yearbook 2004 team for the high standards they have achieved and to publisher David Bateman Ltd for providing a high-quality finished product.

On behalf of Statistics New Zealand, I would also like to thank the 400 businesses, government departments, non-government organisations, academic institutions and individuals for their time, effort and goodwill in providing and updating contributions to the Yearbook. Their high level of cooperation, not only with the Yearbook but with all our surveys, ensures the continuing high quality of our official statistics.

Brian Pink
Government Statistician

Acknowledgements

The New Zealand Official Yearbook 2004 was produced by the Information and Publishing Services Division of Statistics New Zealand, with the assistance of the many individuals and organisations listed in the ‘Contributors’ section at the end of each chapter, or below the sidebars. The department thanks them and the following:

Statistics New Zealand

Divisional Manager: Kevin Eddy

Publishing Services Manager: David Town

Editor: Paul Cavanagh

Production Editor: Marie Smith

Editorial support: Teresa Schischka

Illustrations research: Margaret Low

Typesetting: Horiana Honotapu

Graphics: Maureen Metcalfe, Sandra Mackenzie

Technical assistance: Kevin Tompson

Other

Cover: Shelley Watson/Sublime Design

Contract photographer: Colin McDiarmid

Indexer: Jill Gallop

How to use the New Zealand Official Yearbook 2004

As a new reader of the New Zealand Official Yearbook, you may be surprised at the range of the information within its pages. The following notes are to help familiarise you with the book.

What is the Yearbook?

The New Zealand Official Yearbook is published as a compendium of facts and figures on New Zealand and describes major changes in New Zealand's administrative, economic and financial framework in the two years since the preceding publication.

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 27 chapters follow a ‘logical’ progression. The first few chapters describe the physical setting of New Zealand, as well as its history, its system of government and its international relations. A description of its people comes next, followed by its social framework and its institutions. Later chapters, beginning with an overview of the New Zealand workforce, describe the activities of the economy's constituent sectors.

If, on the other hand, your question is more specific, for example ‘How many casinos are there in New Zealand, and where are they located?’, then the book is thoroughly indexed. A brief note on the system used can be found at the beginning of the index.

Glossary

There is a glossary of statistical terms 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 New Zealand Official Yearbook 2004. However, Statistics New Zealand gives no warranty that the information or data supplied contains no errors, and will not be liable for any loss or damage caused by the use, directly or indirectly, of material contained in the Yearbook.

Chapter 1. Geography

Just after dawn in Wanaka.

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 267,707 square kilometres is similar in size to Japan or the British Isles. Table 1.01 gives more details of the size of the islands.

The main North and South Islands are separated by Cook Strait, which, at its narrowest point, is 20 kilometres wide.

The North and South Islands 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 small inhabited outlying islands of the Chathams, 850 kilometres east of Christchurch; Raoul Island, in the Kermadec Group, 930 kilometres north-east of the Bay of Islands; and Campbell Island, 590 kilometres south of Stewart Island.

New Zealand also has jurisdiction over the territories of Tokelau and the Ross Dependency.

Table 1.01. Land area of New Zealand1

Land areaSize (sq km)

1Includes all internal waterways (lakes and rivers).

2Includes all offshore islands 20 square kilometres or larger, except those listed separately.

Source: Land Information New Zealand

North Island114,154
South Island150,416
Stewart Island/Rakiura1,681
Chatham Islands963
Raoul Island34
Campbell Island/Motu Ihupuku113
Offshore islands2346

New Zealand is more than 1,600 kilometres long and 450 kilometres wide at its widest part, and has a long coastline (more than 18,000 kilometres) for its area. The coast is very indented in places, providing many natural harbours.

The country is also very mountainous, with about three-quarters of the land 200 metres or more 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, with the Southern Alps, a massive mountain chain, running nearly 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. New Zealand has at least 223 named peaks higher than 2,300 metres. Table 1.02 lists the highest mountains in both the North and South Islands.

Table 1.02. Principal mountains

Mountain or peakElevation (metres)
North Island 

1Taranaki or Egmont is the correct format for the dual name as prescribed in the 1986 Gazette.

2The Institute of Geological and Nuclear Sciences photogrametrically confirmed the height of Aoraki/Mt Cook as 3,754m after the 1991 slip from the peak.

Source: Land Information New Zealand

Ruapehu2,797
Taranaki or Egmont12,518
Ngauruhoe2,287
Tongariro1,967
South Island
Aoraki/Mt Cook23,754
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
Aspiring/Tititea3,033
Glacier Peak3,007

There are 360 glaciers in the Southern Alps. The largest are, on the east, the Tasman (29 kilometres in length), Murchison (13 kilometres), Mueller (13 kilometres), Godley (13 kilometres) and Hooker (11 kilometres), and, on the west, the Fox (15 kilometres) and the Franz Josef (13 kilometres).

New Zealand's rivers (see Table 1.03) 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 1.03. Principal rivers1

RiverLength (kms)

1More than 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

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 - 
Clutha/Matau322
Taieri288
Clarence209
Waitaki209
Waiau169
Waimakariri161
Flowing into Foveaux Strait - 
Mataura240
Waiau217
Oreti203
Flowing into the Tasman Sea - 
Buller177

New Zealand's artificial lakes created by the South Island's hydro-electric schemes are identified in Table 1.04, which describes the country's principal lakes.

Table 1.04. Principal lakes1

LakeMaximum depth (metres)Area (kms2)

1Only lakes greater than 20 square kilometres in area are listed.

Source: National Institute of Water and Atmospheric Research (depths) Land Information New Zealand (areas)

North Island  
Taupo163613
Rotorua4581
Wairarapa377
Waikaremoana24850
Tarawera8741
Rotoiti9434
Waikari234
South Island  
Te Anau417344
Wakatipu380295
Wanaka311201
Ellesmere2197
Pukaki99172
Manapouri444139
Hawea384152
Tekapo12096
Benmore (artificial)12075
Hauroko46271
Ohau12959
Poteriteriuncharted44
Brunner10941
Coleridge20037
Monowai16132
Aviemore (artificial)6228
Dunstan (artificial)7027
Rotoroa15224
McKerrow12123

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.

Landscape

Renewed mountain building in New Zealand between about six million years ago and the present is primarily responsible for the landscape of today.

Mountain chains have been built by folding and displacement of the earth's crust along faults or by flexing of the crustal plates due to sediment loading and unloading. Due to this activity, well-preserved tilted blocks bounded by fault scarps (steep faces hundreds or even thousands of metres high) are visible in the landscape of some regions.

Ongoing movement of the Pacific and Indo-Australian plates is responsible for continued earth strain in New Zealand, and this results in periodic rupture of faults, several of which caused major earthquakes during the past century.

Erosion, enhanced by climate, 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 headlands and built beaches, spits and bars. Glaciers have carved the sea-filled valleys of Fiordland and have occupied most valleys of the South Island, many of which now have lakes held in by terminal moraines. Sea level changes accompanied formation, and later melting, of global glacial ice. These changes affected the erosion and deposition of rivers and were responsible for the formation of many prominent river terraces.

Volcanic activity during the past few million years has played an important part in shaping the landscape of the central North Island. 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, all of which are active, include Ruapehu, Tongariro, Ngauruhoe, White Island, and Taranaki or Egmont. Other major volcanoes are less obvious but have even more dramatic impacts on the landscape. These are the caldera-forming volcanoes that are now occupied by large central North Island lakes. Lakes Taupo, Rotorua, and Tarawera can be thought of as upside down volcanoes.

Small volcanic cones, such as One Tree Hill, Mt Eden and Rangitoto, are an important part of the Auckland landscape. These are dormant, but the volcanic field is still regarded as posing a significant hazard.

The magnitude 6.6 Edgecumbe earthquake in the Bay of Plenty in 1987 severely twisted railway lines, causing this locomotive to disrail.

Earthquakes

Living in New Zealand means living with earthquakes. There is an almost continuous belt of earthquake activity around the edge of the Pacific Ocean that affects the geological stability of many countries on the Pacific Rim, particularly New Zealand, the west coast of the United States, Chile, Peru, Japan and the Philippines. New Zealand's level of activity is similar to that of California, but slightly lower than that of Japan. A magnitude eight earthquake occurs in New Zealand about once a century, a magnitude seven earthquake averages out at once a decade and there is an average rate of one magnitude six earthquake a year.

New Zealand has many earthquakes because it straddles the boundary between two of the earth's great tectonic plates - the Pacific plate in the east and the Indo-Australian plate in the west, illustrated in figure 1.01. These two plates are converging obliquely at about 30 millimetres a year in Fiordland, increasing to about 50 millimetres a year at East Cape. The plates converge in different ways. In the North Island and the northern South Island, the Pacific plate sinks below the Indo-Australian plate.

Figure 1.01. Pacific and Indo-Australian tectonic plates

Earthquakes originating within the subducting Pacific plate are less than 30 kilometres deep along the eastern coast, and become deeper westward.

In Fiordland and the region to the south, the Indo-Australian plate subducts beneath the Pacific plate, so the earthquake sources are shallow in the west and deeper in the east under Fiordland.

Between these two subduction zones, the crust of both plates is too buoyant to subduct, so the convergence is accommodated by uplift, which created the Southern Alps, and horizontal movement along the Alpine Fault. This results in parts of Nelson and western Otago, adjacent five million years ago, now being 450 kilometres apart.

The forces driving this sideways and upward movement create shallow earthquakes.

About two-thirds of New Zealand's earthquakes are deep, while shallow earthquakes originate within the earth's crust, which has an average thickness of 35 kilometres in New Zealand. Crustal earthquakes are responsible for almost all damage to property, and are widely scattered throughout New Zealand. In the Taupo volcanic zone, from White Island to Ruapehu, swarms of small earthquakes of similar magnitude are associated with the area's active volcanism. Although the number of shocks is alarming, they rarely cause damage.

Earthquake risk. The worst disaster that can reasonably be expected within a generation is a 7.5 magnitude earthquake on the segment of the Wellington fault within the city. It has a 12 percent probability of occurring within the next 30 years, and would affect 200,000 residential properties from Palmerston North to Nelson, as well as roads, bridges and dams, and services such as electricity, water and sewerage. The Institute of Geological and Nuclear Sciences (GNS) runs national and regional earthquake and volcano monitoring networks. A major upgrade of monitoring equipment commenced in 2001 with the Earthquake Commission providing core funding of $5 million a year over 10 years.

The new equipment is linked to GNS data centres via satellite and cellular and radio networks, permitting more rapid and reliable determinations of the location and magnitude of all significant earthquakes and volcanic activity within the New Zealand region. Such information underpins current and emerging research on geological hazards and is also available to civil defence and emergency management authorities and international earthquake centres worldwide.

New Zealand scientists undertake a large body of research aimed at improving understanding of, and ways to mitigate, seismic and volcanic risk in New Zealand. Mitigation measures include improved engineering design of buildings and infrastructure, better prepared communities and better regional planning.

Volcanic hazards

The New Zealand region is characterised by both a high density of active volcanoes and a high frequency of eruptions. Volcanic activity in New Zealand occurs within the North Island and offshore to the north-east in the Kermadec Islands. In the past 150 years, volcanoes have killed more people than earthquakes (see Table 1.05), yet the scale and style of historically recorded volcanic activity is dwarfed by events known to have occurred in the past 2,000 to 5,000 years.

Volcanism. New Zealand volcanism is confined to five areas in the North Island - the Bay of Islands, Whangarei, Auckland, a zone extending from White Island to Ruapehu, and Taranaki or Egmont. The area from White Island to Ruapehu is known as the Taupo Volcanic Zone and is by far the most frequently active. There are three major types of volcano in New Zealand:

  • Volcanic fields such as Auckland, where each eruption builds a single small volcano (eg Mt Eden), which does not erupt again. The next eruption in the field occurs at a different place, the site of which cannot be predicted until the eruption is imminent.

  • Cone volcanoes such as Taranaki or Egmont and Ruapehu, where a succession of small eruptions occurs from roughly the same point on the earth's surface. The products of successive eruptions accumulate close to the vent to form a large cone, which is the volcano itself. The site of future eruptions can generally be predicted.

  • Caldera volcanoes such as Taupo and Rotorua. Eruptions at these volcanoes are occasionally so large that the ground surface collapses into the ‘hole’ left behind. For example, Lake Taupo infills a caldera formed in two episodes about 1,800 and 26,000 years ago.

The Taupo Volcanic Zone contains three frequently active cone volcanoes (Ruapehu, Tongariro/Ngauruhoe and White Island) and two of the most productive caldera volcanoes (Taupo and Okataina) in the world.

Casualties. Deaths due directly or indirectly to volcanism (and associated hydrothermal explosions) represent the biggest single source of fatalities from natural disasters in New Zealand since 1846. Economic loss due to volcanism, however, has been low compared with that from earthquakes or flooding. The cost of the 1995 and 1996 eruptions of Ruapehu has been estimated at $130 million. However, an assessment of the size and style of volcanic eruptions in the geologically recent past, coupled with consideration of the economic development of New Zealand, especially in the central North Island, shows that the record since 1846 represents only a fraction of the type and size of hazard posed by New Zealand volcanism.

Table 1.05. Deaths in volcanic areas since 1846

YearLocation (eruption)Cause - hazardFatalities
Source: Institute of Geological and Nuclear Sciences
1846Waihi (Lake Taupo)Debris avalanche/mudflow from thermal areac60
1886Tarawera RiftLarge volcanic eruption>108
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
 Total >337

Surveillance. Volcanologists use three primary techniques to establish the ‘health’ of an active volcano:

  • Monitoring of volcanic earthquakes. This is done using closely-spaced networks of seismometers, designed to detect movement of magma (molten rock) below the surface and allow assessment of the possible onset and timing of eruptive activity. There are five volcano-seismic networks in New Zealand (Auckland, Bay of Plenty-Rotorua, Taranaki, Tongariro and Taupo).

  • Monitoring of ground deformation. This is done using precise geodetic surveys. The concept is that if magma is moving upwards before an eruption, it will cause the volcano to swell (ie the ground surface to rise), and this swelling can be detected. A novel version of this technique uses lakes at Taupo and Okataina as giant spirit levels.

  • Monitoring of volcanic gases. Magma at depth in the earth contains gases (carbon dioxide, together with various compounds of sulphur, chlorine and fluorine) dissolved in it. As the magma rises to shallow levels before an eruption, these gases are released and come to the surface via fumaroles. The temperatures and the abundance of the gases and their relative proportions give information on the state of the magma and how close to the surface it is.

In a volcanic crisis, practical steps can be taken to mitigate risk and lessen the threat to life, but this requires accurate perception of the onset of a crisis. This perception in turn depends on a knowledge of the ‘background’ or ‘normal’ levels of seismicity, ground movement and gas flux at the volcano, coupled with ‘real-time’ determination of any significant changes from this background. New Zealand has an active volcano surveillance programme to define these background levels.

1.3 Climate

New Zealand is surrounded by a large expanse of ocean, with Australia the nearest major land mass, about 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 surrounding oceanic environment.

  • Its mountains, especially the main mountain chain, which modify weather systems as they pass eastwards, and which also provide a sheltering effect on the leeward side.

Day-to-day weather is mostly determined by a series of anticyclones and troughs of low pressure in the westerlies. Consequently. New Zealand's weather is changeable, typically with short periods 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 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. This contrast is much greater than north-south climatic differences. Surrounding oceans have a moderating effect on temperatures in most northern and western regions. However, inland and eastern areas can experience large temperature variations. High temperatures usually occur in the east in warm, north-westerly wind conditions. These high temperatures are often followed by sudden falls in temperature, as cold fronts move up the east coast of both islands. Many parts of New Zealand are subject to extremes of wind and rain, occasionally causing 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 enhancement of wind strength and/or rainfall.

Climate change in evidence

International climate change research reached a major milestone in January 2001 when the Intergovernmental Panel on Climate Change (IPCC) concluded there was comprehensive evidence of climate change during the 20th century caused by human activities. Key points raised in the IPCC report:

  • The global average surface temperature increased by about 0.6°C during the 20th century and sea levels in the tropical Pacific rose by about 2mm/year.

  • There was strong evidence that most of the warming was attributable to human activities (emissions of greenhouse gases and aerosols), and that anthropogenic (human-induced) climate change would persist for many centuries.

  • Projected increases in global mean temperatures from 1990 to 2100 for a range of plausible emission scenarios lie between 1.4 and 5.8°C. Global mean sea level changes lie between 9 and 88cm. Changes were expected in some extreme weather and climate events, including higher maximum temperatures and more hot days, more heavy rainfall events, and, in some areas, an increase in peak wind intensities.

What the warming climate will mean in detail for the South Pacific is still the subject of investigation by scientific researchers, with key emerging issues being changes in rainfall patterns and associated shifts in water resources and agricultural growing conditions.

Figure 1.02. Climate norms

Climate norms

Following is a summary of knowledge gained in the past decade about the effect of climate change on New Zealand.

Projected climate changes - Temperatures in New Zealand are likely to increase faster in the North Island than in the South Island, but generally less than global average temperatures. Rainfall is projected to increase in the west of the country and to decrease in many eastern regions. In the long term, rising seas are expected to increase erosion of vulnerable beaches and breach coastal protection structures more often.

Agriculture - The agricultural sector could benefit under climate change, but also faces risks. The key benefit to agriculture is likely to be from increased carbon dioxide concentrations, which could lead to greatly increased growth rates and water-use efficiency. In addition, warmer conditions and lengthened growing seasons could allow the long-term southward shift of climate-limited activities, and new crops and related industries could be introduced. The most significant risks include more droughts and floods in some areas, particularly in the east of New Zealand. Warmer temperatures could also make the growing of some current fruit crops in some northern areas uneconomical.

Native ecosystems - Climate change may add to pressure on ecosystems already under threat. Fragmented native forests of drier lowland environments in Northland, Waikato and Manawatu, and in the east from East Cape to Southland, are probably the most vulnerable to climate change.

Urban environment, transport and energy - The main threat to the urban environment comes from possible increases in heavy rainfall, which would put pressure on drainage and stormwater systems and increase the risk of flooding in some areas. Warmer conditions will substantially reduce home heating costs, leading to reduced electricity demand during the peak winter season, but possibly increased demand for air conditioning during summer.

Health - Higher temperatures are expected to reduce winter illnesses, but could lead to higher death rates during summer. A warmer climate could also allow the spread of mosquitoes capable of transmitting diseases such as Ross River virus and dengue fever. Recent research has also found that climate change could lead to a delay in the recovery of the ozone layer. This would increase the period during which New Zealanders are exposed to high levels of ultraviolet radiation, which is known to lead to skin cancers. However, the possible effects of greenhouse gases on the ozone layer are still highly uncertain.

Table 1.06 lists predicted temperature and rainfall changes.

Table 1.06. Predicted changes in annual mean temperature and precipitation
Between 1970-1999 and 2070-2099

RegionTemperaturePrecipitation
Source: Ministry of Research, Science and Technology
Northland, Auckland+ 1.0° to +2.8°C-10% to 0%
Western North Island from Waikato to Wellington+0.8° to +2.7°C0% to +20%
Eastern North Island from Bay of Plenty to Wairarapa+0.9° to +2.7°C-20% to 0%
Nelson, Marlborough, to coastal Canterbury and Otago+0.8° to +2.5°C-20% to +5%
West Coast and Canterbury foothills+0.6° to +2.5°C+5% to +25%
Southland and inland Otago+0.6° to +2.2°C0% to +30%

Climate extremes. The National Institute of Water and Atmospheric Research's annual climate summaries (available on its website www.niwa.cri.nz) contain detailed descriptions of extreme weather events for the year. These include extremes of temperatures and sunshine hours, and notable occurrences of snowfalls and frosts, droughts, floods and high rainfall, tornadoes, gales and high winds, and severe hailstorms. New Zealand's climate extremes as at 31 December 2003 are shown in Table 1.07 on page 10.

Figure 1.02 shows mean annual sunshine, temperature, rain days and rainfall for various parts of New Zealand. The maps are prepared by the National Institute of Water and Atmospheric Research (NIWA), and the mean annual figures are struck over a 30-year period to create what are referred to as ‘climate norms.’ The next ‘normal’ period for calculating mean annual figures will be 1981 to 2010.

The year's weather - 2002 and 2003

2002. This year will be remembered for its high number of severe weather events and climate extremes. New records were set in many areas for rainfall, temperature and other climate extremes.

It was very dry in the Bay of Plenty, Nelson, Marlborough and North Otago, with above average sunshine hours in the eastern North Island, Westland and Southland.

One of the most notable severe weather events was the worst snowfall for many years in mid-Canterbury and inland Otago during June, leaving hundreds of travellers stranded, and thousands of homes without power.

A few days later, the ‘weather bomb’ brought high winds, intense rainfall and flooding in many northern and western areas, being especially severe over the Coromandel Peninsula.

Severe property damage was caused when slips sent an avalanche of water, mud and rocks into the township of Paekakariki, north of Wellington, in October 2003.

There were a dozen high-rainfall/flood-producing events and a high number of gale-force southerly wind episodes. Severe hailstorms hit throughout the country, and five tornadoes were reported. Lower than average pressures occurred south-east of the Chatham Islands with many more lows there than usual, bringing frequent stronger changeable westerly and south-westerly winds over the North Island, and southerlies and south-westerlies over the South Island. Seas around New Zealand were warmer than normal until October.

Analysis of month-by-month records for 2002 show:

  • The year's national average temperature was 12.5°C (the same as the 1961-1990 normal).

  • The highest recorded extreme air temperature for the year was 36.5°C, recorded at Darfield on 31 December, and the lowest -19.1°C (a new record low for June) at Tara Hills on the morning of 20 June.

  • The driest recorded centre was Alexandra, in Central Otago, with 371mm of rain for the year. Dunedin was the driest of the four main centres, with 647mm, and Wellington the wettest, with 1,250mm. Auckland received 1,075mm and Christchurch 785mm.

  • Christchurch was the sunniest of the three largest centres, with 2,166 sunshine hours, followed by Wellington (2,107 hours) and Auckland (2,034 hours). Nelson was the sunniest centre in 2002, with 2,580 hours, followed by Blenheim, with 2,534 hours. Tauranga recorded 2501 hours, well above average.

Table 1.07. Summary of New Zealand climate extremes
At 31 December 2003

Source: National Institute of Water and Atmospheric Research
Rainfall
Period
Amount (mm)LocationDate
Highest   
10 minutes34Tauranga17 April 1948
1 hour109Leigh30 May 2001
12 hours473Colliers Creek (Hokitika Catchment)22 January 1994
24 hours682Colliers Creek (Hokitika Catchment)21-22 January 1994
48 hours1,049Waterfall, Cropp River (Hokitika Catchment)12-13 December 1995
1 calendar month2,927Waterfall, Cropp River (Hokitika Catchment)December 1995
1 calendar year16,617Waterfall, Cropp River (Hokitika Catchment)January-December 1998
365 days18,442Waterfall, Cropp River (Hokitika Catchment)29 October 1997-29 October 1998
Lowest   
3 months9Cape CampbellJanuary-March 2001
6 months52Cape CampbellNov 2000-April 2001
12 months167AlexandraNov 1963-Oct 1964
Longest rainless period   
71 days0Wai-iti, MarlboroughFrom 8 Feb 1939
Temperature extremes
Location
Temperature (°C) Date
Highest air temperature
North Island39.2Ruatoria7 February 1973
South Island42.4Rangiora7 February 1973
Lowest air temperature
North Island-13.6Chateau Tongariro7 July 1937
South Island-21.6Ophir3 July 1995
Lowest grass minimum-21.6Lake Tekapo4 August 1938
Sunshine
Location
Total (hours) Date
Highest in one year
North Island2,588Napier1994
South Island2,711Nelson1931
Highest in one month
North Island335TaupoJanuary 1950
South Island336NelsonDecember 1934
Lowest in one year
North Island1,357Palmerston North1992
South Island1,333Invercargill1983
Lowest in one month
North Island27TaumarunuiJune 2002
South Island35InvercargillJune 1935
Wind gusts
Location
Speed (km/h) Date
North Island248Hawkins Hill, Wellington6 November 1959 and 4 July 1962
South Island250Mt John, Canterbury18 April 1970

2003. This was a year of severe weather events and climate extremes involving very dry autumn conditions in many areas, extensive flooding and late snow storms. Overall, the year featured many new climate records and weather extremes. Analysis showed new records set in many months for rainfall, temperature and sunshine.

A very dry period from January through early May hit the southwest of the North Island and eastern regions of both islands, re-appearing in many eastern regions at the end of the year. There was a remarkably mild start to winter with the warmest June on record, followed by a very frosty July, and late frosts in October.

Five snowfall events occurred to low levels, and in October snowfall to the South Island hill country meant farmers lost thousands of newborn lambs to exposure.

There were at least 20 heavy rainfall events, of which nine produced floods, mainly in the North Island. The event producing the Paekakariki landslides in early October caused $2.5 million of damage.

NIWA analyses of month-by-month records for 2003 show:

  • The year's national average temperature was 12.7°C (0.1°C above the 1971-2000 normal).

  • The highest recorded extreme air temperature for the year was 36.0°C recorded at Middlemarch on 31 December. A late-summer heat wave occurred over the lower North Island, with new record maximum temperatures for any time of the year being recorded of 29.6°C at Paraparaumu on 28 February and 31.0°C at Levin on 2 March. June 2003 was the warmest in more than 150 years of measurement for New Zealand overall, with temperatures 2°C above average.

  • The lowest air temperature for the year was -14.8°C recorded at Tekapo on 13 July.

  • The driest rainfall recording locations were Alexandra, with 264.0mm, followed closely by Lauder, in Central Otago, with a record low 264.2mm of rain for the year. Christchurch was the driest of the four main centres, with 459mm, and Auckland the wettest, with 1,345mm. Of the regularly reporting gauges, the Cropp River gauge in Westland, inland in the headwaters of the Hokitika River, recorded the highest rainfall, with an annual total of 9,301mm.

  • Christchurch was the sunniest of the four main centres, with 2,362 sunshine hours, followed by Wellington (2,271 hours) and Auckland (2,047 hours). Dunedin recorded 1,971 hours. Nelson was the sunniest centre in 2003, with 2,707 hours, followed by Blenheim, with 2,663 hours.

  • The highest recorded wind gust for the year was 183 km/h at South West Cape (Stewart Island) on 16 November, with hurricane force northerlies and mean speeds as high as 132 km/h.

1.4 Wildlife and vegetation

The islands of New Zealand separated from their nearest neighbours more than 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.

The pre-human community was notable for the absence of snakes, land mammals (apart from three species of bat) and many of the flowering plant families.

Whole orders and families were found only in New Zealand, including tuatara, moa and kiwi, all of the native lizards, and nearly 200 species of native earthworms.

Many remarkable plants, insects and birds evolved to fill ecological niches normally occupied by mammals. Others diversified to fill 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 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 species of the cricket-like weta, found only in New Zealand.

New Zealand, with 84 species, has the most diverse seabird fauna of any country. Nearly half of all native bird species depend on the ocean for food, the feeding zones of some extending as far south as the Antarctic continent. New Zealand's extensive coastline and many islands offer a huge range 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 in the waters around New Zealand, as well as various species of seals, dolphins and porpoises. Twenty-nine species of whale have been recorded, and three of the largest (sperm, humpback and right) regularly migrate to New Zealand waters in spring and autumn.

The most widespread and complex type of forest in New Zealand is a podocarp (conifer) broadleaf association. It is generally found at lower altitudes and is characterised by a variety of species, a stratified canopy and an abundance of vines and epiphytic plants. Beech and kauri forests, by 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 in New Zealand 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 alpine plants are found only in New Zealand, compared with 80 percent for the rest of the higher plant species. Snow tussock herbfields are one of the most distinctive elements in this cold, windswept environment. Remarkably long-lived, some larger specimens may be several centuries old. Like beech trees, they seed infrequently, but in profusion.

A definitive feature of New Zealand's land-based plants and animals is their degree of specialisation and narrow habitat requirements (eg 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; competitors, such as deer and possums; and loss of habitat.

Introduced vegetation and wildlife

The arrival of people in New Zealand heralded times of rapid change. Introduction (intentionally or accidentally) of exotic plants and animals, and the modification of habitat, radically affected native species populations. In the pre-1800 period, following the arrival and expansion of Māori, forest cover was reduced and 34 species became extinct, including moa, the adzebill and the flightless goose. In the much shorter post-1800 period of European settlement, the forest area was further reduced to around 25 percent of the land, nine more bird species became extinct and many more were threatened. Since 1840, more than 80 new species of mammals, birds and fish, and more than 1,800 plant species have been introduced, in many places totally changing the landscape and ecology.

1.5 Time zone

One uniform time is kept throughout mainland New Zealand. This time is 12 hours ahead of Coordinated Universal Time (UTC) and is called New Zealand Standard Time (NZST). It is an atomic standard maintained by the Measurement Standards Laboratory, part of Industrial Research Ltd, Lower Hutt. One hour of daylight saving, called 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 (LINZ); Department of Geology, University of Canterbury; New Zealand Speleogical Soceity.

  • 1.2 Institute of Geological and Nuclear Sciences Ltd; Department of Conservation.

  • 1.3 National Institute of Water and Atmospheric Research Ltd (NIWA); Ministry of Research, Science and Technology.

  • 1.4 Department of Conservation.

  • 1.5 Industrial Research Ltd.

Websites

www.doc.govt.nz - Department of Conservation

www.gns.cri.nz - Institute of Geological and Nuclear Sciences Ltd

www.linz.govt.nz - Land Information New Zealand

www.weather.co.nz - Metservice

www.niwa.cri.nz - National Institute of Water and Atmospheric Research Ltd

www.terralinkinternational.com - Terralink International Ltd

Chapter 2. History

The Earl of Ranfurly (on grey horse), Governor of New Zealand from 1897 to 1904, rests with his party at a kainga on the Huia-rau Trail from Waikaremoana to Ruatoki in 1904.

2.1 A brief history of New Zealand

The Māori world

The Polynesian ancestors of the Māori (meaning ‘ordinary’) people settled the main New Zealand islands (Aotearoa) about 800 years ago. They arrived - whether initially by accident or design is unclear - in waka (canoes) blown across the subtropics by prevailing north-east winds.

The settlers soon lost contact with their home islands and were forced to adapt to Aotearoa's more challenging physical environment. Annual cultivation of kumara (sweet potatoes) - a perennial crop in the tropics - was possible in the north through the underground winter storage of tubers. Birds, fish and small animals were caught and the resources of forests and oceans gathered. Large moa (flightless birds similar to emu), numerous in Te Wai Pounamu (the South Island), were eventually hunted to extinction. Fires lit to flush them out removed much of the forest east of the Southern Alps, and climatic changes made horticulture more difficult. Southern Māori increasingly lived in small hunter/gatherer groups and migrated seasonally to harvest resources.

Māori lived in groups of varying size that traced their descent from a common ancestor. Whānau (extended families of 10 to 30 people) were linked in hapū (subtribes), several of which made up an iwi. These distinctions were fluid: large whānau became hapū, and large hapū came to be seen as iwi, while other groups declined in status. iwi said to have arrived on the same migratory canoe were linked in loose confederations.

All aspects of Māori life were interrelated, with economic and social activities carried out on behalf of the whole community. While land belonged to large groups, smaller groups had rights to use specific areas and resources. Families were headed by kaumātua (elders) and communities by rangatira (chiefs), whose persons and possessions were tapu (spiritually protected). Tapu also safeguarded cultivations and urupā (burial grounds) and helped maintain social order. Tapu was regulated by tohunga (experts), who mediated spiritual forces, retained tribal history and knowledge, and had expertise in carving, tattooing and canoe building.

Tribal groups interacted through both trade and warfare. Regional products such as pounamu (jade or greenstone) and tītī (shearwaters or petrels, known as ‘muttonbirds’) were often transported long distances for bartering. Information was also exchanged among tribes. Travel was by waka, or on foot along beaches, riverbeds and ridges. There were footpaths in more densely populated areas, and tracks through forests.

One consequence of the slowness of travel was that even large iwi were unable to permanently conquer extensive areas. Instead, low-level warfare became endemic. Competition for mana (status) was complemented by competition for increasingly scarce land and resources. The concept of utu (reciprocity) generally ensured that at least one party to a dispute felt justified in maintaining it. Fighting usually occurred seasonally to fit in with cycles of subsistence. Most taua (raiding parties) made small-scale attacks, which caused few casualties. Sometimes, however, iwi were displaced into less desirable areas by military defeat or economic pressures. But many regions were occupied by the same descent group for long periods.

By the late 18th century, the Māori population may have been about 100,000. Most lived in the north of Te Ika a Māui (the North Island), where pressure for land and other resources had become intense. Here communities became larger, with many pā (fortified settlements) sited on hilltops and protected by ditches and palisades. Hunting and trapping had declined as population density increased; fish and shellfish now complemented crops. Some iwi now numbered many thousands, but Te Wai Pounamu remained sparsely populated.

Māori were generally relatively tall and sturdy, free from infectious diseases, adequately fed, and unlikely to die violently. Because of the dangers of childbirth, infant mortality and diet-related dental problems, Māori life expectancy was about 30 years. This was similar to that of Europeans in the 17th century.

Te ao hou: The new world

The first Europeans to reach Aotearoa were probably Abel Tasman's Dutch East India Company expedition in 1642. After four men were killed by local Māori when a landing was attempted in Golden Bay, Tasman sailed up the west coast of Te Ika a Māui without finding the ‘treasures or matters of great profit’ he sought. While this experience discouraged other Europeans from following in his wake, the name of a Dutch province (Zeeland) was given to a jagged line on maps of the Pacific.

In 1769, two European expeditions visited Aotearoa. That of Frenchman Jean de Surville ill-treated Māori, provoking retaliation against later visitors. The arrival two months earlier of the English explorer James Cook, on a voyage with both scientific and economic goals, had enduring consequences. Cook's mostly peaceful interactions with ‘noble savages’ excited imaginations in Europe, and his discovery of Aotearoa's natural resources ensured it would not again be forgotten there. Cook led two further expeditions which visited Aotearoa in the course of systematic exploration of the South Pacific.

Following establishment of a penal colony at Sydney in 1788, New Zealand became an economic offshoot of New South Wales. Whaling and shore-based sealing began in the 1790s. Flax, timber, potatoes and pigs were being traded with visiting ships by the 1800s and Māori soon found they could barter this produce for firearms.

Muskets revolutionised Māori warfare. Fired in sufficient numbers, they generated enough terror to enable enemies who lacked them to be routed by traditional means. Unprecedentedly large and wide-ranging Ngā Puhi taua settled old scores and generated new grievances across Te Ika a Māui during the 1820s. Other iwi exploited temporary leads in local arms races, in some cases using sailing ships to launch surprise attacks. Thousands were killed or enslaved, and tens of thousands displaced, provoking enduring disputes about land rights. By 1840, the ‘Musket Wars’ had subsided into an uneasy balance of terror.

Regular contact with Europeans had other negative consequences. Desired products could be purchased only through debilitating labour, often in unhealthy environments. Māori were vulnerable to infectious diseases, from which many died from the 1790s. The Māori population probably fell by half during the 19th century.

Māori social structures were also disrupted. Mana became linked to the acquisition of European goods and the Pākehā (Europeans) who provided access to them. In the early 19th century, these were mostly whalers in the South Island - where communities soon included ‘half-caste’ children - and missionaries in the North Island. Māori initially resisted Christianity, but embraced the skills through which it was communicated - reading and writing. Literate slaves acquired status, while the mana of illiterate chiefs fell. Knowledge, previously held in common or tied to specific roles, could now be possessed and communicated by anyone.

Contact with the outside world also benefited Māori. Introduced animals and crops enabled improved diets. Knowledge gained through social interaction and literacy was supplemented by Māori who travelled the world as ships' crew. Māori gradually developed some resistance to European diseases, and Pākehā settlers remained relatively few - 1,000 to 2,000 by 1839.

From 1840, however, when the British sovereignty first proclaimed by Cook was reasserted, Māori control over Aotearoa was threatened. Humanitarian concerns in Britain were eased by the signing of an agreement with some 500 chiefs. The differing and contested meanings in Māori and English of this Treaty of Waitangi clouded subsequent inter-racial relations. Māori ceded kāwanatanga (a word derived from ‘governorship’, but rendered as ‘sovereignty’ in the English text) to the British Crown, in exchange for rights as British subjects. They retained their taonga (‘treasured possessions’, including land, forests and fisheries) and could sell land only to the Crown. Māori accepted that the Crown's local representatives would have jurisdiction over immigrants who were arriving in increasing numbers, but the extent of their authority over Māori remained unclear.

Three main waves of settlers arrived in the next half-century. In the first, five separate ‘colonies’ were planted around the coast by 1850 under the auspices of the privately-owned New Zealand Company. A sixth was the most important: Auckland became the seat of government in 1841. These ‘mere encampments on the fringes of Polynesia’ existed on Māori terms. Several were saved from starvation in their first years by food grown by Māori. Communication among them was by ship, and irregular - most had more frequent contact with Sydney than with each other.

Racial tolerance was soon strained. The New Zealand Company had purchased land hastily and with scant regard for actual ownership. Māori increasingly resisted further sales - especially at the low prices offered - of land which immigrants arrived expecting to occupy. Rumoured and actual wars in the 1840s were followed by a largely effective boycott of land sales from 1854. Māori remained a majority for whom the decisions of the newly-elected General Assembly were largely irrelevant.

Artist's impression of Māori chief Te Rangihaeata (with arm outstretched) addressing Governor-in-Chief Sir George Grey (sitting) at Waikanae in 1851.

Governor George Grey had bought land and created institutions to assimilate Māori into British ways during his first term (1845-53). On his return in 1861, he employed more direct methods of establishing control. A war over land in Taranaki in 1860 had ended in stalemate. Grey decided to challenge the Kīngitanga (Māori sovereignty) movement in its Waikato heartland. A 14,000-strong army fought its way up the Waikato River in 1863-64 against strong resistance. War spread to Tauranga and both coasts of the North Island as messianic Pai Marire and Ringatū movements, which promised to expel the Pākehā, flourished. The strongest threat was posed by Titokowaru, who won several battles in southern Taranaki in 1868 before internal dissension lost him his army. With the flight of guerrilla leader Te Kooti to the ‘King's country’ in 1872, armed Māori resistance to British authority ended. The land of ‘rebels’ was confiscated, and much land belonging to ‘loyal’ Māori was also soon lost under a Native Land Court system which imposed individualised titles.

The second wave of immigration had begun in 1861 after the discovery of gold in Central Otago. Thousands of miners poured into Otago and Westland, swamping the ‘old identities’ of the carefully planned Otago and Canterbury settlements. From 1865, Chinese miners - the colony's first significant non-European immigrants - were brought in to rework the tailings.

The third influx of migrants, in the 1870s, was instigated by New Zealand's first ‘Think Big’ government, which provided assisted passages. Land opened for settlement by the wars required deforestation and conversion to farmland. The process was aided by railways which linked the main South Island towns in the 1870s, and those of the southern North Island by the early 1880s. Improved communications encouraged the abolition of separate provincial governments in 1876.

Recovering gold by sluicing on the West Coast in the 1880s.

The end of Māori autonomy was symbolised by the advance of a railway through the King Country in the 1880s. Because of difficult terrain, the Auckland-Wellington line was not completed until 1908. Dunedin and Auckland were now two days travel apart, compared with two weeks 40 years earlier. As use of telephones also increased - there were 33,000 by 1910 -New Zealand became more meaningfully a single country. From 1876, information that took up to 10 weeks to convey by letter could be transmitted to Britain instantaneously by undersea telegraph cable.

From the 1890s, refrigeration transformed New Zealand farming. Much of Waikato and Taranaki was soon covered by small, family-run dairy farms producing milk, and butter and cheese for export to Britain. Large runs in drier eastern areas had been growing wool for export since the 1850s; sheepmeat now also became a major export commodity. Coal steadily supplanted gold as the most important extracted mineral.

Politics, too, was transformed in the 1890s, when the ‘Continuous Ministry’ of run-holders and businessmen was replaced by a Liberal government supported by small farmers and the skilled workers of the growing and increasingly industrialised towns. New Zealand became the first country to grant women the vote in 1893. By 1900, when the Maori population had fallen to 46,000, the 750,000 Pākehā were evenly divided between the North and South islands.

The Liberals placed ‘ordinary working men’ and their families on farms - which promised them physical and mental health, and prosperity - by buying and subdividing large estates, and by acquiring much of the remaining Maori-owned land. Concern for the welfare of ageing ‘pioneers’ encouraged the introduction of old-age pensions for the ‘deserving poor’ in 1898; they were to be joined in the next 40 years by other worthy but narrowly defined groups, including war veterans and widows. Job security of urban workers was improved by provisions for the compulsory arbitration of employment disputes and regulation of wages.

The 20th century

Around 1900, Pakehā New Zealanders underlined their new sense of identity by rejecting an offer to join the new Australian federation, and accepting a change of status from ‘colony’ to ‘dominion’. They also seized a chance to prove themselves ‘better Britons’ by fighting Boers in South Africa. Living far from centres of culture and knowledge, ‘Maori-landers’ were proud of their adaptability and resourcefulness. Most of their innovations, such as mechanising the separation of cream from milk, were motivated by pragmatism. The imagination of the South Canterbury farmer Richard Pearse, who got off the ground before the Wright brothers, was exceptional.

The Liberal coalition began to unravel in the 1900s as the interests of small farmers and urban workers diverged. Farmers joined forces with urban employers in a Reform Party, while militant workers 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 a ‘red’ Federation of Labour. As in other settler societies, class war seemed imminent. But the threat had subsided by the time World War I broke out in mid-1914.

One hundred thousand New Zealanders served in the Great War alongside British forces. One in six were killed, many more came home as invalids, and another 8,000 to 9,000 New Zealanders died at the end of the war in the ‘Spanish flu’ pandemic. As their soldiers fought with distinction at Gallipoli, in Palestine and on the Western Front, New Zealanders' sense of identity within the Empire grew.

Still tied to Britain economically, New Zealand was buffeted by volatile commodity prices in the 1920s. Working-class aspirations now found political expression in the Labour Party, while Reform continued the tradition of activist government by creating producer boards to coordinate exports, and building a countrywide hydroelectric system. A conservative coalition failed to cope effectively with the Great Depression, and Labour won office in 1935.

Labour introduced a minimum wage, a 40-hour working week, compulsory unionism, a substantial state housing programme, and a comprehensive system of social security, which provided a safety net ‘from the cradle to the grave’. Labour also articulated an independent foreign policy. But this had limits: a balance of payments crisis in 1938 necessitated import and financial controls, which had the advantage of stimulating local industries.

New Zealand casualties in World War II were similar to those in World War I. While New Zealanders fought in North Africa and Europe, the country was garrisoned by United States forces training for the Pacific war. They made a substantial impression, especially on women. Aided by radio, the cinema and, later, television, the American invasion broadened New Zealanders' cultural horizons.

During World War II, Labour ‘manpowered’ both sexes and took control of the country's resources. Maori supported the war with unparalleled unanimity. A Maori Battalion was raised on tribal lines and a Maori War Effort Organisation coordinated civilian contributions. For the first time, Maori migrated to the cities in significant numbers, a trend which was to continue until the 1980s when manufacturing employment plummeted and rural life seemed more attractive. Successive governments worked to assimilate Maori into mainstream New Zealand life.

Young people made up a higher proportion of the population in the ‘baby-boom’ years after 1945. Growing up with British and American music, fashions and television programmes, they chafed at the modest expectations of their parents. There were jobs, homes, education and health care for all, although some consumer goods remained scarce. Family life in the suburbs, which transformed areas such as West Auckland and Wellington's Hutt Valley, was both satisfying and stultifying. Wider choices did become available: the contraceptive pill and recreational drugs brought new freedoms, experiences and dangers in the 1960s. The need to enlarge the paid workforce widened opportunities for women, and low-cost tertiary education expanded those of many working-class teenagers.

Taihape and the main trunk railway line in 1909.

The conservative National Party held power for most of the second half of the century. Until 1975, the terms of trade for New Zealand's primary exports (wool, meat, dairy products, timber) were high and so was the standard of living. Local manufacturing industries protected from foreign competition expanded further.

After energy crises in the 1970s, the terms of trade turned against most primary products and full employment disappeared. From the late 1970s, National attempted to increase New Zealand's energy self-sufficiency while subsidising farming incomes. Both policies were expensive failures.

The 1984-90 Labour government, and its National successor, challenged much that New Zealanders took for granted. Many government activities were corporatised and then privatised. Some fared poorly in private ownership - in 2001, the national airline and part of the railway system reverted to public ownership. Public education and health care, the social welfare system, and employees' rights were all constrained. The removal of most restrictions on economic activity encouraged both entrepreneurship and cultural diversity; the physical environment was more strongly protected; and New Zealand remained nuclear-free and robustly independent in foreign policy. Urban culture thrived as society was deregulated, and an influx of Pacific and East Asian immigrants increased New Zealand's ethnic diversity.

A Labour-led coalition government took office in 1999 and was re-elected in a slightly different form in 2002. Labour aimed to maintain the benefits of deregulation while reasserting a role for the state when markets failed. In a period of prosperity, its greatest challenge lay in Māori-Pākehā relations. After suffering disproportionately when full employment ended, Māori continued to lag in education, health and other social indicators.

Māori confronted the dominant culture directly from 1975 when a march reiterating land grievances generated much support. A statutory tribunal was established in the same year to investigate breaches of the Treaty of Waitangi. Others saw cultural renaissance as the key to empowerment, and schools in which only Māori was spoken, and Māori language radio stations, sprang up from 1981.

In the 1990s, the National government negotiated settlements of up to $170 million with individual iwi, and Māori entrepreneurship flourished. But many Māori feel entitled to a bigger share of national wealth. There have been several occupations of land whose ownership is disputed, and sales of artefacts have been disrupted. Māori increasingly assert rights to intellectual property under international law, and to the coastal foreshore and seabed under the Treaty of Waitangi. Indeed, many argue that the treaty requires the equal sharing of power between Māori and Pākehā; some that Māori sovereignty over Aotearoa has never been extinguished. Most New Zealanders, however, assume that all citizens have equal legal and political rights, an attitude that was reinforced in the 1990s by the introduction of an electoral system based on proportional representation. These debates seem likely to continue.

David Green, History Group, Ministry for Culture and Heritage

2.2 Chronology of New Zealand events

c1300Archaeological evidence indicates Polynesian settlement established by this date.
1642Dutch explorer Abel Janszoon Tasman discovers a land he calls Staten Landt, later named Nieuw Zeeland.
1769British explorer James Cook makes first of three visits to New Zealand, taking possession of the country in the name of King George III.
1790sSealing, deep-sea whaling, flax and timber trading begins, with some small temporary settlements. First severe introduced epidemic among Māori population.
1791First visit by a whaling vessel, the William and Ann, to Doubtless Bay.
1806First Pākehā women arrive in New Zealand.
1814British missionary Samuel Marsden makes first visit to New Zealand. Anglican mission station established. Sheep, cattle, horses and poultry introduced.
1815First Pākehā child, Thomas Holloway King, born in New Zealand.
1819Raids on Taranaki and Te Whanganui-a-Tara regions by Ngā Puhi and Ngāti Toa people led by chiefs Patuone, Nene, Moetara, Tuwhare and Te Rauparaha.
1820Ngā Puhi chief Hongi Hika visits England, meets King George IV and secures supply of muskets.
1821Musket wars begin with raids by Hongi Hika and Te Morenga on southern iwi and continue throughout the decade.
1822Ngāti Toa migration south to Cook Strait region, led by Te Rauparaha, begins.
1823Wesleyan Missionary Society mission established. First Church of England marriage between Pākehā and Māori: Phillip Tapsell and Maria Ringa.
1824Te 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.
1827Te Rauparaha's invasion of the South Island from Kapiti begins.
1830First acorn planted at Waimate North where agricultural mission and school established.
1831Whaling stations established at Tory Channel and Preservation Inlet.
1833James Busby arrives in the Bay of Islands to take up appointment as British Resident in New Zealand.
1834United Tribes' flag adopted by some 25 northern chiefs at Busby's suggestion.
1835Declaration of Independence by the ‘United Tribes of New Zealand’ signed by 34 northern chiefs.
1837New Zealand Association formed in London, becoming the New Zealand Colonisation Society in 1838 and the New Zealand 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.
1838Bishop Pompallier founds Roman Catholic mission at Hokianga.
1839William 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.
1840Treaty of Waitangi signed at Bay of Islands and later over most of the country. British sovereignty proclaimed. Hobson becomes first governor and sets up executive and legislative councils. New Zealand Company settlers arrive at Port Nicholson, Wellington. French settlers land at Akaroa. Local Māori initially provide food for these and later settlements.
1841European settlements established at New Plymouth and Wanganui. Capital shifted from Russell to Auckland.
1842Main body of settlers arrive at Nelson.
1843Twenty-two European settlers and four Māori killed at a confrontation at Tua Marina, near Wairau, in Marlborough. Robert FitzRoy becomes governor.
1844New Zealand Company suspends colonising operations due to financial difficulties.
1845Hone Heke begins war in the north. George Grey becomes governor. Half of all adult Māori are at least partly literate.
1846War in the north ends with capture of Ruapekapeka. Fighting between Māori and Pākehā around Wellington. Te Rauparaha captured by Grey. First New Zealand Constitution Act passed. Heaphy, Fox and Brunner begin exploring the West Coast. First steam vessel, HMS Driver, arrives in New Zealand.
1848Settlement founded by Scottish Otago Association. Provinces of New Ulster and New Munster established. Coal discovered at Brunner on the West Coast. Earthquake centred in Marlborough damages most Wellington buildings.
1850Canterbury settlement founded.
1852Second New Zealand Constitution Act passed creating general assembly and six provinces with representative government.
1853Idea of a Māori King canvassed by Tamihana Te Rauparaha and Matene Te Whiwhi. Many Māori agree not to sell any more land: 32 million acres have been bought by the government in the past five years.
1854First session of general assembly opens in Auckland.
1855Governor Thomas Gore Browne, appointed in 1854, arrives. Severe earthquake on both sides of Cook Strait.
1856Henry Sewell forms first ministry under responsible government and becomes first premier. Edward Stafford forms first stable ministry.
1858New Provinces Act passed. Te Wherowhero installed as first Māori King, taking name Potatau I.
1859First session of new Hawke's Bay and Marlborough provincial councils. Gold discovered in Buller River.
1860Waitara dispute develops into general warfare in Taranaki. Te Wherowhero dies and is replaced as Māori King by his son, Tawhiao. Kohimaramara Conference of Chiefs.
1861Grey begins second governorship. Gold discovered at Gabriel's Gully and Otago goldrushes begin. First session of Southland provincial council. Bank of New Zealand incorporated at Auckland.
1862First electric telegraph line opens - from Christchurch to Lyttelton. First gold shipment from Dunedin to London.
1863War 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.
1864War in the Waikato ends after battle of Orakau. Māori defeat British at Gate Pa, Tauranga. 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.

Bushmen take a break after hauling a kauri log with a team of bullocks to a sawmill in North Auckland around 1918.

1865Seat of government transferred from Auckland to Wellington. Native Land Court established. Māori resistance continues. Auckland streets lit by gas for first time.
1866Cook Strait submarine telegraph cable laid. Cobb and Co coaches start running from Canterbury to the West Coast.
1867Thames goldfield opens. Four Māori seats established in parliament. Lyttelton railway tunnel completed. Armed constabulary established.
1868Māori resistance continues through campaigns of Te Kooti Arikirangi and Titokowaru. New Zealand's first sheep breed, the Corriedale, developed.
1869New Zealand's first university, the University of Otago, established.
1870Last 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; more than 1,000 miles constructed by 1879. First rugby match in New Zealand played at Nelson. Auckland to San Francisco mail service begins.
1871Deer released in Otago.
1872Te Kooti retreats to the King Country and Māori armed resistance ceases. Telegraph communication links Auckland, Wellington and southern provinces.
1873New Zealand Shipping Company established.
1876Abolition of the provinces and establishment of local government by counties and boroughs. New Zealand-Australia telegraph cable established.
1877Education Act passed, establishing national system of primary education.
1878Completion of Christchurch-Invercargill railway.
1879Triennial Parliaments Act passed. Vote is given to every male aged 21 and over. Kaitangata mine explosion; 34 people die. Annual property tax introduced.
1881Parihaka 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.
1882First shipment of frozen meat leaves Port Chalmers for England on the Dunedin.
1883Te Kooti pardoned; Te Whiti and other prisoners released. Direct steamer link established between New Zealand and Britain.
1884King 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.
1886Mt Tarawera erupts and Pink and White Terraces destroyed; 108 people die. Oil discovered in Taranaki.
1887New 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.
1888Birth of writer Katherine Mansfield.
1889Abolition of non-residential or property qualification to vote. First New Zealand-built locomotive completed at Addington.
1890Maritime strike involves 8,000 unionists. ‘Sweating’ Commission reports on employment conditions. First election on a one-man one-vote basis.
1891John McKenzie introduces the first of a series of measures to promote closer land settlement. John Ballance becomes premier of first Liberal government.
1892First meeting of national Kotahitanga Māori parliament. The Kingitanga sets up its own Kauhanganui parliament.
1893Franchise extended to women. John Ballance dies and is succeeded by Richard John Seddon. Liquor licensing poll introduced. Elizabeth Yates becomes New Zealand's first woman mayor, of Onehunga. Banknotes become legal tender.

Nurses and laundry workers in Christchurch during the 1918 influenza epidemic.

1894Compulsory 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.
1896Brunner mine explosion; 67 people die. Census measures national population as 743,214.
1897First of series of colonial, and later imperial, conferences in London.
1898Old Age Pensions Act passed. First cars imported to New Zealand.
1899New Zealand army contingent sent to South African war. First celebration of Labour Day.
1900Māori Councils Act passed. Public Health Act passed setting up Department of Public Health in 1901.
1901Cook and other Pacific islands annexed. Penny postage first used.
1902Pacific cable begins operating between New Zealand, Australia and Fiji.
1903Richard Pearse achieves semi-controlled flight near Timaru.
1905The ‘Originals’ rugby team tours Britain and becomes known as the All Blacks.
1906Seddon dies and is succeeded by William Hall-Jones as prime minister.
1907New Zealand constituted as a dominion. Fire destroys parliament buildings.
1908Auckland to Wellington main trunk railway line opens. Ernest Rutherford awarded Nobel Prize in Chemistry. New Zealand's population reaches 1 million.
1909‘Red’ Federation of Labour formed. SS Penguin wrecked in Cook Strait; 75 people die. Compulsory military training introduced. Stamp-vending machine invented and manufactured in New Zealand.
1912William Massey wins vote in the house and becomes first Reform Party prime minister. Waihi miners strike. Malcolm Champion New Zealand's first Olympic gold medallist (as a member of the Australasian 200m freestyle relay swimming team).
1913Waterfront strikes in Auckland and Wellington.
1914World War I begins and German Samoa occupied. New Zealand Expeditionary Forces despatched to Egypt. Huntly coal mine disaster; 43 people die.
1915New Zealand forces take part in Gallipoli campaign. Reform and Liberal form National War Cabinet. Britain announces its intention to purchase all New Zealand meat exports during war.
1916New Zealand troops transfer to Western Front. Conscription introduced. Labour Party formed.
1917Battle of Passchendaele - about 1,000 New Zealanders die. Six o'clock public house closing introduced.
1918World War I ends. Influenza epidemic kills an estimated 8,500. Prohibition petition with 242,001 signatures presented to parliament.
1919Women eligible for election to parliament. Massey signs Treaty of Versailles. First official airmail flight from Auckland to Dargaville.
1920Anzac Day established. New Zealand gets League of Nations mandate to govern Western Samoa. First aeroplane flight across Cook Strait.
1921New Zealand division of Royal Navy established.
1923Otira tunnel opens. Ross Dependency proclaimed. Death of Katherine Mansfield.
1926National public broadcasting begins under auspices of Radio Broadcasting Co Ltd.

Members of the 1924 All Black rugby team board their ship en route to Sydney.

1928General election won by new United Party. Kingsford-Smith completes first trans-Tasman flight.
1929Depression deepens. Severe earthquake in Murchison-Karamea district; 15 people die. First health stamps issued.
1930Unemployment Board set up to provide relief work.
1931Newly formed coalition government under George Forbes wins general election. Hawke's Bay earthquake; 261 die. Substantial reductions in public service wages and salaries.
1932Compulsory arbitration of industrial disputes abolished. Unemployed riot in Auckland, Dunedin and Christchurch. Reductions in old age and other pensions.
1933Elizabeth McCombs becomes first woman MP. Distinctive New Zealand coins first issued.
1934First trans-Tasman airmail.
1935First Labour government elected under Michael Joseph Savage. Air services begin across Cook Strait.
1936Reserve 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. Jean Batten's record flight from England. Standard working week reduced from 44 to 40 hours for many workers.
1937Federation of Labour unifies trade union movement. RNZAF set up as separate branch of armed forces.
1938Social Security Act establishes revised pensions structure and the basis of a national health service. Import and exchange controls introduced.
1939World War II begins. Second New Zealand Expeditionary Force formed and a Maori Battalion organised on tribal lines. Bulk purchases of farm products by Great Britain. HMS Achilles, on loan to New Zealand, takes part in Battle of the River Plate.
1940Michael 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.
1941Japan enters the war. Maori War Effort Organisation set up. Pharmaceutical and general practitioner medical benefits introduced.
1942Economic stabilisation. New Zealand troops in Battle of EI Alamein. Food rationing introduced. Mobilisation of women for essential work.
1943New Zealand troops take part in invasion of Italy.
1944Australia-New Zealand Agreement provides for cooperation in the South Pacific.
1945War in Europe ends on 8 May and in the Pacific on 15 August. New Zealand signs United Nations charter. Maori Social and Economic Advancement Act passed. National Airways Corporation founded.
1946Family benefit of £1 a week becomes universal. Bank of New Zealand nationalised.
1947Statute 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.
1948Protest campaign against exclusion of Maori players from 1949 rugby tour of South Africa. Polio epidemic closes schools. Ruapehu and Ngauruhoe erupt. Meat rationing ends.
1949Referendum agrees to compulsory military training. National government elected. New Zealand gets first four navy frigates.
1950Naval and ground forces sent to Korean War. Legislative Council abolished. Wool boom. Empire Games held in Auckland.
1951Prolonged waterfront dispute - state of emergency proclaimed. ANZUS Treaty signed by United States, Australia and New Zealand. Maori Women's Welfare League established.
1952Population passes 2 million.
1953First tour by a reigning monarch, Queen Elizabeth II. Edmund Hillary and Sherpa Tensing Norgay first to climb Mt Everest. Railway disaster at Tangiwai; 151 people die. World sheep-shearing record set by Godfrey Bowen.
1954New Zealand signs South-east Asia Collective Defence Treaty. New Zealand gains seat on United Nations Security Council. Social Credit gets 10 percent of vote in general election, but no seat in parliament.
1955Pulp and paper mill opens at Kawerau. Rimutaka rail tunnel opens.
1956New Zealand troops deployed in Malaya.
1957National 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.
1958PAYE tax introduced. Arnold Nordmeyer's 'Black Budget'. First geothermal electricity generated at Wairakei. First heart-lung machine used at Greenlane Hospital, Auckland.
1959Antarctic Treaty signed with other countries involved in scientific exploration in Antarctica. Auckland harbour bridge opened.
1960Regular television programmes begin in Auckland. National government elected. Government Service Equal Pay Act passed.
1961New Zealand joins the International Monetary Fund. Capital punishment abolished.
1962Western Samoa becomes independent. Sir Guy Powles becomes first ombudsman. New Zealand Māori Council established. Cook Strait rail ferry service begins. Taranaki gas well opens. Olympic gold medallist Peter Snell establishes mile and half-mile world athletic records.
1964Marsden Point oil refinery opens near Whangarei. Cook Strait power cables laid.
1965Free trade (NAFTA) agreement negotiated with Australia. New Zealand combat forces sent to support US troops in Vietnam amid public protests. Cook Islands becomes self-governing.
1966International airport officially opens at Auckland. Te Ata-i-rangi-kaahu becomes first Māori Queen.
1967Referendum 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.
1968Inter-island ferry Wahine sinks in storm in Wellington Harbour; 2 people die. Three die in Inangahua earthquake.
1969Vote extended to 20-year-olds. National government wins fourth election in a row. First output from Glenbrook steel mill.
1970Natural gas from Kapuni supplied to Auckland.
1971New Zealand secures continued access of butter and cheese to the United Kingdom. Ngā Tamatoa protest at Waitangi celebrations. Tiwai Point aluminium smelter begins operating. Warkworth satellite communications station begins operation.

Prime Minister Michael Joseph Savage (wearing glasses) is greeted by an enthusiastic crowd during the 1938 general election at the end of the Labour Party's first term of government.

1972Labour government led by Norman Kirk elected. Equal Pay Act passed.
1973Great Britain becomes a member of the EEC. Naval frigate despatched in protest against French nuclear testing in the Pacific. New Zealand's population reaches 3 million. Rugby tour by South Africa cancelled. Colour television introduced.
1974Prime Minister Norman Kirk dies. Commonwealth Games held in Christchurch. Vote given to 18-year-olds.
1975Robert Muldoon becomes prime minister after National election victory. Māori land march protests against land loss. Waitangi Tribunal established.
1976Matrimonial Property Act passed. Pacific Islands overstayers deported. EEC import quotas for New Zealand butter set until 1980. Introduction of metric system of weights and measures. Subscriber toll dialling introduced.
1977New Zealand's 200-mile exclusive economic zone established. Bastion Point occupied by Māori land protesters.
1978Registered unemployed reaches 25,000. National government re-elected.
1979Air New Zealand plane crashes on Mt Erebus, Antarctica; 257 people die. Carless days introduced to reduce petrol consumption.
1980Saturday trading partially legalised. Eighty-day strike at Kinleith pulp and paper mill.
1981South African rugby team's tour brings widespread disruption.
1982Closer Economic Relations (CER) agreement signed with Australia. First kōhanga reo established. Year-long wage, price and rent freeze imposed - lasts until 1984.
1983Visit by nuclear-powered United States Navy frigate Texas sparks protests. Official Information Act replaces Official Secrets Act. New Zealand Party founded.
1984Labour Party wins snap general election. Finance Minister Roger Douglas begins deregulating economy. 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.
1985Anti-nuclear policy leads to refusal of visit by American warship USS Buchanan. Greenpeace vessel Rainbow Warrior bombed and sunk by French agents in Auckland harbour. New Zealand dollar floated. Author Keri Hulme wins Booker Prize for The Bone People. First case of locally-contracted AIDS reported. Waitangi Tribunal given power to hear Māori land grievances arising since 1840.
1986Homosexual 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 a pope.
1987Share 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 performed. New Zealand wins first rugby World Cup.
1988Number of unemployed exceeds 100,000. Bastion Point land returned to Māori ownership. Electrification of North Island's main trunk line completed. New Zealand Post closes 432 post offices. Fisheries quota package announced for Māori iwi.
1989Prime Minister David Lange suggests formal withdrawal from ANZUS. Jim Anderton founds New Labour Party. Lange resigns and Geoffrey Palmer becomes prime minister. Reserve Bank Act sets bank's role as one of maintaining price stability. First elections under revised local government structure. Sunday trading begins. Māori Fisheries Act passed.
1990New Zealand celebrates its sesqui-centennial. 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 withdrawn from circulation. Commonwealth Games held in Auckland. Telecom sold for $4.25 billion. Welfare payments cut.
1991Welfare payments further reduced. Alliance Party formed. Employment Contracts Act passed. Number of unemployed exceeds 200,000 for first time. New Zealand troops join multinational force in the Gulf War. Avalanche reduces the height of Mt Cook by 10.5m.
1992Government and Maori interests negotiate Sealord fisheries deal. Public health system reformed. State housing commercialised. New Zealand gets seat on United Nations Security Council.
1993New Zealand First Party launched. 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.
1994Government commits 250 soldiers to peacekeeping duty in Bosnia. Government proposes $1 billion cap for final settlement of Treaty of Waitangi claims. New Zealand's first casino opens in Christchurch. First fast-ferry passenger service begins operation across Cook Strait.
1995Team New Zealand wins America's Cup. Occupation of Moutua Gardens, Wanganui. Conservative, Christian Heritage and United New Zealand Parties launched. 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. New Zealand contingent returns from Bosnia.
1996First legal sports betting at TAB. First MMP election brings National/New Zealand First coalition government.

Damaged buildings after the 1931 Hawke's Bay earthquake.

Soldiers of the Maori Battalion prepare to move up into the line in Italy during World War II.

1997A $170 million settlement signed with Ngāi Tahu. Jim Bolger resigns as prime minister after a National Party coup while he is overseas. Bolger replaced by New Zealand's first woman prime minister, Jenny Shipley.
1998Auckland city businesses hit by power cut which continues for more than a month. New Zealand women's rugby team, the Black Ferns, becomes world champion. Coalition government dissolved, leaving Shipley's National Party as a minority government.
1999New Zealand sends peacekeeping troops to East Timor. Auckland hosts the APEC world leaders' conference. Former prime minister Mike Moore becomes head of the World Trade Organisation. The minority National government loses the November election and Labour forms government in coalition with the Alliance party and with the support of the Greens, who enter parliament for the first time with seven seats. Legal drinking age lowered from 20 to 18 years.
2000Air New Zealand gains ownership of Ansett Australia. Team New Zealand beats Italy's Prada 5-0 in the final series to retain the America's Cup. Labour government abolishes knighthoods. Dr Alan G MacDiarmid wins Nobel Prize for Chemistry for his part in the discovery and development of conductive polymers.
2001New Zealand-borm Russell Crowe wins best actor Academy Award for his performance in Gladiator. New Zealand's largest company, Fonterra, is formed from merger of the New Zealand Dairy Group and Kiwi Dairies. Qantas New Zealand and Ansett collapse. Government injects $550 million to keep Air New Zealand flying after the company announces a $1.4 billion loss - the largest in New Zealand's corporate history. Government disbands RNZAF combat wing. Shipley resigns and Bill English becomes leader of the National Party. Former America's Cup yachtsman Sir Peter Blake murdered by pirates at the mouth of the Amazon.
2002Labour wins election and forms a coalition government with Progressive Coalition and enters into a special arrangement with United Future. Rakiura, New Zealand's 14th National Park covering about 85 percent of Stewart Island, opens. Three New Zealanders among 185 killed in Bali terrorist bombing. Lowest road toll (402) since 1963. The Fellowship of the Ring, first film in The Lord of the Rings trilogy directed by New Zealand's Peter Jackson, wins four Oscars.
2003New Zealand loses America's Cup to Swiss challenger Alinghi, skippered by Russell Courts, previously of Team New Zealand. Population reaches 4 million. Privy Council replaced by New Zealand Supreme Court. National caucus votes in Don Brash as leader, replacing English. World premier in Wellington of Return of the King, final film in The Lord of the Rings trilogy.

Contributors

  • 2.1 David Green, History Group, Ministry for Culture and Heritage.

  • 2.2 Statistics New Zealand, New Zealand Press Association.

Websites

www.nzhistory.net.nz - History Group, Ministry for Culture and Heritage

www.nzpa.co.nz - New Zealand Press Association.

www.stats.govt.nz - Statistics New Zealand

Chapter 3. Government

A parliamentary select committee at work in Wellington.

3.1 Constitution

New Zealand's constitutional history can be traced back to the signing of the Treaty of Waitangi in 1840. The treaty is an agreement between the British Crown and Māori in which Māori gave the Crown rights to govern and the Crown guaranteed Māori full protection of their interests and status, and full citizenship rights. Five years earlier, on October 28 1835, an assembly of the Confederation of Chiefs of the United Tribes of New Zealand had proclaimed the country independent and signed a Declaration of Independence. New Zealand is a constitutional monarchy with a parliamentary government. Queen Elizabeth II has the title Queen of New Zealand. Table 3.01 lists Sovereigns of New Zealand since signing of the Treaty of Waitangi. A constitution is concerned with the establishment and composition of the legislative, executive and judicial branches of government, their powers and duties, and the relationship between these branches. New Zealand's Constitution Act 1986 brought together important statutory constitutional provisions and clarified 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. Other key written sources of New Zealand's constitution include the Electoral Act 1993, the Imperial Laws Application Act 1988 (lists United Kingdom statutes still in force in New Zealand) and Standing Orders of the House of Representatives. Other sources of the constitution include constitutional conventions, New Zealand legislation and decisions of the courts.

Table 3.01. Sovereigns of New Zealand

MonarchAccessionDiedAgeReigned (years)

1Abdicated; reigned 325 days.

Source: Statistics New Zealand

House of Hanover    
Victoria183719018163
House of Saxe-Coburg    
Edward VII19011910689
House of Windsor    
George V191019367025
Edward VIII11936197277 
George VI193619525615
Elizabeth II1952   

Welcoming high-ranking overseas dignitaries is an official duty of the Governor-General of New Zealand, Dame Silvia Cartwright.

The Crown and the governor-general

The Governor-General of New Zealand 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.

One of the governor-general's main constitutional functions 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 a government is intending to act unconstitutionally. This is known as the reserve power.

The Sovereign appoints the governor-general on the prime minister's recommendation, normally for a term of five years.

Table 3.02 lists Lieutenant-Governors, Governors and Governors-General of New Zealand since signing of the Treaty of Waitangi.

Table 3.02. Vice-regal representatives

Representative1Assumed officeRetired

1Honours are specified only if held on retirement from office.

Source: Office of the Governor-General

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  
Governor 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
Self-governing colony  
Governor of New Zealand  
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
Governor-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, GCMG, QSO21 Mar 199621 Mar 2001
Dame Silvia Cartwright, PCNZM, DBE4 April 2001 

Parliamentary tradition

Since 1856, New Zealand has been a constitutional monarchy with a parliamentary system of government.

The government cannot act effectively without parliament, because it cannot raise or spend money without parliamentary approval.

For most categories of expenditure, this approval takes the form of an annual vote of funds to the government. Parliament has to be assembled regularly, therefore, and thus has the opportunity to hold the government to account.

Electoral system

The general election in 1996 was the first held in New Zealand under the Mixed Member Proportional (MMP) system, where voters have a party vote and an electorate vote.

Voters choose what party they want in parliament with their party vote and which person they want to represent their electorate with their electorate vote.

For the 2002 election, New Zealand was divided geographically into 62 general electorates and seven Māori ones. There were also 51 seats for list Members of Parliament.

The number of general electorates may change as the population changes.

People of Māori descent can choose whether to be on the Māori or general electoral rolls. The number of Māori seats may change as the number of voters on the Māori roll changes and the Māori population as a whole changes.

The Electoral Act 1993, which sets out the way the New Zealand electoral system works, is the only statute in New Zealand with entrenched provisions.

Being entrenched means that if certain changes to the act are made, for example the method of voting, they must be passed by either 75 percent of MPs, or a majority vote in a referendum of all voters on the electoral rolls.

Normally, a simple majority (51 percent) of MPs is all that is required to make changes to an act.

Table 3.03 lists the Premiers and Prime Ministers of New Zealand.

Table 3.03. Premiers and Prime Ministers of New Zealand

Premier/prime minister1Term(s) of office

1Honours are specified only if held on retirement from office.

Source: Office of the Clerk of the House of Representatives

Premiers 
Henry Sewell7 May 1856-20 May 1856
William Fox20 May 1856-2 Jun 1856
Edward William Stafford2 Jun 1856-12 Jul 1861
William Fox12 Jul 1861-6 Aug 1862
Alfred Domett6 Aug 1862-30 Oct 1863
Frederick Whitaker, MLC30 Oct 1863-24 Nov 1864
Frederick Aloysius Weld24 Nov 1864-16 Oct 1865
Edward William Stafford16 Oct 1865-28 Jun 1869
William Fox28 Jun 1869-10 Sep 1872
Edward William Stafford10 Sep 1872-11 Oct 1872
George Marsden Waterhouse, MLC11 Oct 1872-3 Mar 1873
William Fox3 Mar 1873-8 Apr 1873
Sir Julius Vogel, KMG8 Apr 1873-6 Jul 1875
Daniel Pollen, MLC6 Jul 1875-15 Feb 1876
Sir Julius Vogel, KCMG15 Feb 1876-1 Sep 1876
Sir Harry Albert Atkinson, KCMG1 Sep 1876-13 Oct 1877
Sir George Grey, KCB13 Oct 1877-8 Oct 1879
John Hall8 Oct 1879-21 Apr 1882
Frederick Whitaker21 Apr 1882-25 Sep 1883
Sir Harry Albert Atkinson, KCMG25 Sep 1883-16 Aug 1884
Sir Robert Stout, KCMG16 Aug 1884-28 Aug 1884
Sir Harry Albert Atkinson, KCMG28 Aug 1884-3 Sep 1884
Sir Robert Stout, KCMG3 Sep 1884-8 Oct 1887
Sir Harry Albert Atkinson, KCMG8 Oct 1887-24 Jan 1891
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
Thomas MacKenzieLiberal28 Mar 1912-10 Jul 1912
Rt Hon William Ferguson MasseyReform10 Jul 1912-10 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 Sir Joseph George Ward, Bt, KCMGUnited10 Dec 1928-28 May 1930
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
Rt Hon Walter Nash, CHLabour12 Dec 1957-12 Dec 1960
Rt Hon Sir Keith Jacka Holyoake, GCMG, CHNational12 Dec 1960-7 Feb 1972
Rt Hon John Ross Marshall (later Sir)National7 Feb 1972-8 Dec 1972
Rt Hon Norman Eric KirkLabour8 Dec 1972-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 Elizabeth ClarkLabour/Alliance10 Dec 1999-15 Aug 2002
Rt Hon Helen Elizabeth ClarkLabour/Progressive15 Aug 2002-

3.2 Parliament and the cabinet

House of Representatives

The power to make laws lies at the heart of New Zealand's parliamentary system.

This power is vested in the Parliament of New Zealand by the Constitution Act 1986. Parliament consists of the Sovereign (normally represented by the governor-general) and an elected House of Representatives.

Table 3.04 shows seats held by political parties after general elections since 1890.

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

The Constitution Act forbids the house allocating public funds for any purpose unless first recommended by the Crown. At the same time, the law forbids the Crown taxing citizens without express parliamentary approval.

Under standing orders, private members are able 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.

Perhaps the most important privilege of the House of Representatives 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.

Table 3.04. Seats held by political parties after general elections

ElectionTotalLiberalConservativeLabourActNZ FirstAllianceGreenOtherIndependent

1Māori members whose party allegiances difficult to determine.

2Country Party.

3Rātana.

4Social Credit/Democrats.

5New Labour.

6Includes Speaker of the House.

7United.

8United Future 8 seats, Progressive Coalition 2 seats.

Source: Office of the Clerk of the House of Representatives

1890743825     417
1893745113     416
1896743925     416
1899744919     412
1902804719     4110
1905805816      6
Reforms
19088050261     3
19118033374     6
19148033416      
19198021478     4
192280223717     4
192580115512     2
192880272719    126
Coalition
193180 51 24   124
National
193580 19 53+23   224
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    14
196984 45 39     
197287 32 55     
197587 55 32     
197892 51 40    14
198192 47 43    24
198495 37 56    24
198797 40 57     
199097 67 29    15
199399 50 456 22  
1996120 446 3781713 17
1999120 39 499510717
2002120 27 52913 9108

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 terminated by prorogation or, as is now usually the case, directly by dissolution of parliament. Unless there is a new session, the prime minister's statement at the start of business in the second and third years of the parliamentary term 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 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.

Role of parties. For many years up to 1993, under the first past the post (FPP) system of electoral representation, the House of Representatives was characterised by the presence of two, large, dominant parties, with the majority party forming the government and the minority party the opposition.

This, however, has given way to multi-party representation under the mixed member proportional (MMP) system of electoral representation, adopted after two referendums, one indicative (1992) and one binding (1993).

The three general elections held since 1996 demonstrated that under MMP it is unlikely that any single party will command an absolute majority in the house and be able to form a government on its own account.

Because of the importance that 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) has become a primary means of developing policies and tactics.

Party representation. The general election on 27 July 2002 resulted again in the formation of a Labour-led minority coalition government. The Labour Party entered into a coalition government agreement with Jim Anderton's Progressive Coalition Party on 8 August 2002. An agreement was also concluded that day by the minority coalition government with United Future, which promised it would provide confidence and supply for the term of parliament to a Labour/Progressive government.

The new ministry was sworn in on 15 August 2002.

On 26 August 2002, a cooperation agreement was entered into by the government with the Green Party on agreed areas of policy development and legislation.

The third House of Representatives elected under MMP consisted of:

  • Labour 52 seats (45 electorate, 7 party list).

  • National 27 seats (21 electorate, 6 party list).

  • New Zealand First 13 seats (1 electorate, 12 party list).

  • ACT New Zealand 9 seats (9 party list).

  • Green Party 9 seats (9 party list).

  • United Future 8 seats (1 electorate, 7 party list).

  • Progressive Coalition 2 seats (1 electorate, 1 party list).

Legislative procedure. The legislative procedure starts in New Zealand when 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.

  • 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 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 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 private bills and local bills, with the member in charge getting a five-minute right of reply. For members' bills, there may be up to two 10-minute speeches and eight five-minute speeches with a 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. 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 business committee 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 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 to 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 or, if so instructed, part by part.

Once a bill has been fully considered by the committee, it is reported to the house with any amendments 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, a 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 47th New Zealand Parliament was called following the general election of 27 July 2002 and began sitting on 26 August 2002.

Salaries and allowances of parliamentarians. Salaries and allowances of parliamentarians are set by the Remuneration Authority and are shown in Table 3.05.

Table 3.05. Parliamentary salaries and allowances

SalaryAnnual salary or allowance payable from 1 November 20031

1Parliamentary Salaries and Allowances Determination (SR 2003/305).

Source: Office of the Clerk of the House of Representatives

Members of the Executive$
Prime Minister305,000
Deputy Prime Minister218,000
Minister in cabinet195,000
Minister with portfolio outside cabinet165,000
Minister without portfolio145,000
Parliamentary Under-Secretary130,000
Officers of the House of Representatives 
Speaker195,000
Deputy Speaker140,000
Assistant Speaker120,000
Chair of Select Committee120,000
Deputy Chair of Select Committee112,500
Leaders of non-government parties 
Leader of the Opposition195,000
Other party leaders (depending on number of MPs)120,000+
Deputy leader of party with 25 MPs or more120,000
Whips 
Senior Government Whip123,000
Other whips (depending on number of MPs)120,000+
Members of Parliament 
Member of Parliament110,000
Salary 
Expenses allowance 
Prime Minister17,000
Speaker16,000
Other Members of Parliament12,815

One of the roles of the Speaker of the House of Representatives is to read the prayer at the beginning of each sitting day.

Table 3.06 lists Members of the House of Representatives during the 47th parliament.

Table 3.06. House of Representatives, 47th parliament

Prime Minister - Rt Hon Helen Clark

Leader of the Opposition - Hon Bill English; Dr Don Brash (from 28 October 2003)

Speaker - Rt Hon Jonathan Hunt

Deputy Speaker - Ann Hartley

Clerk of the House - D G McGee

Member1Year of birthPrevious occupationElectorate/listParty

1Names are given by which individual members prefer to be addressed.

2Resigned with effect on 25 July 2003.

3Declared elected 28 July 2003, replacing Graham Kelly.

4Resigned with effect on 17 May 2004. Re-elected Māori Party MP for Te Tai Hauauru electorate 10 July 2004.

Source: Office of the Clerk of the House of Representatives

Adams, Paul1948Business ownerlistUnited Future
Alexander, Marc1958RestaurateurlistUnited Future
Anderton, Hon Jim1938Company directorWigramProg. Coalition
Ardern, Shane1960FarmerTaranaki/King CountryNational
Awatere Huata, Donna1949Māori development consultantlistACT
Baldock, Larry1954Local authority memberlistUnited Future
Barker, Hon Rick1951Trade unionistTukitukiLabour
Barnett, Tim1958Voluntary sector managerChristchurch CentralLabour
Benson-Pope, Hon David1950TeacherDunedin SouthLabour
Beyer, Georgina1957MayorWairarapaLabour
Bradford, Sue1952Community development workerlistGreen
Brash, Dr Don1940Governor of Reserve BanklistNational
Brown, Peter1939Company directorlistNZ First
Brownlee, Gerry1956TeacherHamNational
Burton, Hon Mark1956Community education organiserTaupoLabour
Carter, Hon Chris1952Electorate secretaryTe AtatuLabour
Carter, Hon David1952Businessman, farmerlistNational
Carter, John1950Local government officerNorthlandNational
Catchopole, Brent1953Marketing directorlistNZ First
Chadwick, Steve1948Nurse/midwifeRotoruaLabour
Choudhary, Dr Ashraf1949University lecturerlistLabour
Clark, Rt Hon Helen1950University lecturerMt AlbertLabour
Coddington, Deborah1953JournalistlistACT
Collins, Judith1959LawyerClevedonNational
Connell, Brian1956FarmerRakaiaNational
Copeland, Gordon1943Financial administratorlistUnited Future
Cosgrove, Clayton1969Public relations executiveWaimakaririLabour
Cullen, Hon Dr Michael1945University lecturerlistLabour
Cunliffe, Hon David1963Management consultantNew LynnLabour
Dalziel, Hon Lianne1960Trade unionistChristchurch EastLabour
Donald, Rod1957Voluntary sector administratorlistGreen
Donnelly, Hon Brian1949School principallistNZ First
Duncan, Helen1941Teacher, trade unionistlistLabour
Dunne, Hon Peter1954Deputy chief executive officerOhariu/BelmontUnited Future
Duynhoven, Hon Harry1955TeacherNew PlymouthLabour
Dyson, Hon Ruth1957Employment consultantBanks PeninsulaLabour
Eckhoff, Gerrard1947FarmerlistACT
English, Hon Bill1961FarmerClutha/SouthlandNational
Ewen-Street, Ian1950Organic farmerlistGreen
Fairbrother, Russell1944LawyerNapierLabour
Field, Hon Taito Phillip1952Trade unionistMangereLabour
Fitzsimons, Jeanette1945Organic farmer, environmental consultantlistGreen
Franks, Stephen1950LawyerlistACT
Gallagher, Martin1952Company director, teacherHamilton WestLabour
Goff, Hon Phil1953University lecturerMt RoskillLabour
Gosche, Hon Mark1955Trade unionistMaungakiekieLabour
Goudie, Sandra1953FarmerCoromandelNational
Gudgeon, Bill1942Polytechnic lecturerlistNZ First
Hartley, Ann1942Real estate agentNorthcoteLabour
Hawkins, Hon George1946TeacherManurewaLabour
Heatley, Philip1967EngineerWhangareiNational
Hereora, Dave1956Trade unionistlistLabour
Hide, Rodney1956Economic consultantlistACT
Hobbs, Hon Marian1947TeacherWellington CentralLabour
Hodgson, Hon Pete1950VeterinarianDunedin NorthLabour
Horomia, Hon Parekura1950Public servant, farmerIkaroa-RawhitiLabour
Hughes, Darren1977Executive secretaryOtakiLabour
Hunt, Rt Hon Jonathan1938TeacherlistLabour
Hutchison, Dr Paul1947GynecologistPort WaikatoNational
Jones, Dail1944LawyerlistNZ First
Kedgley, Sue1948Author, local authority memberlistGreen
Kelly, Graham21941Trade unionistManaLabour
Key, John1961Investment bankerHelensvilleNational
King, Hon Annette1945Chief executive officerRongotaiLabour
Laban, Luamanuvao Winnie1955Family therapistManaLabour
Locke, Keith1945Retail managerlistGreen
Mackey, Janet1953Real estate agentEast CoastLabour
Mackey, Moana31974Executive assistant, biochemistlistLabour
McCully, Hon Murray1953Public relations consultantEast Coast BaysNational
McNair, Craig1975Marketing managerlistNZ First
Maharey, Hon Steve1953University lecturerPalmerston NorthLabour
Mahuta, Nanaia1970Archivist librarianTainuiLabour
Mallard, Hon Trevor1954Executive assistantHutt SouthLabour
Mapp, Dr Wayne1952Law lecturerNorth ShoreNational
Mark, Ron1954Businessman, army officerlistNZ First
Newman, Dr Muriel1950Tertiary/secondary teacher, businesswomanlistACT
O'Connor, Hon Damien1958Tourism operatorWest Coast/TasmanLabour
Ogilvie, Bernie1941LecturerlistUnited Future
Okeroa, Mahara1946Regional directorTe Tai TongaLabour
Paraone, Pita1945Public servantlistNZ First
Parker, David1960Biotechnology businessmanOtagoLabour
Peck, Mark1953Trade unionistInvercargillLabour
Perry, Edwin1948Farm equipment salesmanlistNZ First
Peters, Jim1937School principallistNZ First
Peters, Rt Hon Winston1945LawyerTaurangaNZ First
Pettis, Jill1952Education administratorWhanganuiLabour
Pillay, Lynne1950Trade unionistWaitakereLabour
Power, Simon1969LawyerRangitikeiNational
Prebble, Hon Richard1948LawyerlistACT
Rich, Katherine1968BusinesswomanlistNational
Ririnui, Mita1951Minister of religionWaiarikiLabour
Robertson, Ross1949Industrial engineerManukau EastLabour
Robson, Hon Matt1950LawyerlistProg.Coalition
Roy, Heather1964Gallery contractorlistACT
Ryall, Hon Tony1964AccountantBay of PlentyNational
Samuels, Hon Dover1939Company directorTe Tai TokerauLabour
Scott, Lynda1956GeriatricianKaikouraNational
Shirley, Hon Ken1950Executive directorlistACT
Simich, Hon Clem1939General managerTamakiNational
Smith, Hon Dr Lockwood1948Managing directorRodneyNational
Smith, Murray1953LawyerlistUnited Future
Smith, Hon Nick1964EngineerNelsonNational
Sowry, Hon Roger1958Retail managerlistNational
Stewart, Barbara1952Training and development managerlistNZ First
Sutton, Hon Jim1941FarmerAorakiLabour
Swain, Hon Paul1951Trade unionistRimutakaLabour
Tamihere, Hon John1960Chief executive, lawyerTamaki MakaurauLabour
Tanczos, Nandor1966Business owner/directorlistGreen
Te Heuheu, Hon Georgina1943Consultant, advocate Treaty of Waitangi issueslistNational
Tich, Lindsay1947Management consultantPiakoNational
Tizard, Hon Judith1956Electorate secretaryAuckland CentralLabour
Turei, Metira1970LawyerlistGreen
Turia, Hon Tariana41944Iwi development workerTe Tai HauauruLabour
Turner, Judy1957TeacherlistUnited Future
Ward, Mike1942Local authority memberlistGreen
Williamson, Hon Maurice1951Planning analystPakurangaNational
Wilson, Hon Margaret1947University lecturerlistLabour
Wong, Pansy1955AccountantlistNational
Woolerton, Doug1944FarmerlistNZ First
Worth, Richard1948LawyerEpsomNational
Yates, Dianne1943Education officerHamilton EastLabour

Executive government

The executive government of New Zealand is carried out on behalf of the Sovereign (represented by the governor-general) by Ministers of the Crown who make up membership 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 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 cabinet is an informal body with deliberative functions.

The Executive Council tenders advice to the governor-general on the basis of policy formulated in cabinet.

The council is established under Clause VII of the Letters Patent and is the main vehicle for lawmaking by the executive. Authority to make statutory regulations, for example, is delegated by parliament to the governor-general in council.

The cabinet is, in effect, the highest policy-making body of government. It is the main vehicle by which the executive decides on major policy issues and legislative proposals, and it 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.

Proceedings of cabinet are informal and confidential, and decisions are usually made by consensus. By convention, cabinet accepts collective responsibility for its decisions, which ensures that, unless the matter is agreed to be one of party differentiation, 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 Clerk of the Executive Council.

The makeup of the New Zealand Government at 21 November 2003 is shown in Table 3.07.

Table 3.07. New Zealand Government
21 November 2003

Governor-General of New Zealand

Her Excellency The Honourable Dame Silvia Cartwright, PCNZM, DBE (assumed office 4 April 2001).

Executive Council

Membership of the Executive Council comprises all ministers, with the governor-general presiding.

TheCabinet
Source: Cabinet Office
1Rt Hon Helen Clark, Prime Minister, Minister for Arts, Culture and Heritage, Minister Responsible for Ministerial Services, Minister in Charge of the New Zealand Security Intelligence Service, Minister Responsible for the Government Communications Security Bureau.
2Hon Dr Michael Cullen, Deputy Prime Minister, Minister of Finance, Minister of Revenue, Leader of the House.
3Hon Jim Anderton, Minister for Economic Development, Minister for Industry and Regional Development, Minister Responsible for the Public Trust, Associate Minister of Health.
4Hon Steve Maharey, Minister for Social Development and Employment, Minister of Housing, Minister of Broadcasting, Associate Minister of Education (Tertiary Education), Minister Responsible for Tertiary Education Commission.
5Hon Phil Goff, Minister of Foreign Affairs and Trade, Minister of Justice, Minister of Pacific Island Affairs.
6Hon Annette King, Minister of Health, Minister for Food Safety.
7Hon Jim Sutton, Minister of Agriculture, Minister for Biosecurity, Minister of Forestry, Minister for Trade Negotiations, Minister for Rural Affairs.
8Hon Trevor Mallard, Minister of Education, Minister of State Services, Minister for Sport and Recreation, Minister Responsible for the Education Review Office, Minister for the America's Cup, Associate Minister of Finance, Minister for Adult and Community Education.
9Hon Pete Hodgson, Minister of Energy, Minister of Fisheries, Minister of Research. Science and Technology, Minister for Crown Research Institutes, Associate Minister for Industry and Regional Development, Associate Minister of Foreign Affairs and Trade, Convenor of the Ministerial Group on Climate Change.
10Hon Margaret Wilson, Attorney-General (includes responsibility for Serious Fraud Office), Minister of Labour, Minister in Charge of Treaty of Waitangi Negotiations, Associate Minister of Justice, Associate Minister for Courts.
11Hon Parekura Horomia, Minister of Māori Affairs, Associate Minister for Social Development and Employment, Associate Minister of Education, Associate Minister of Fisheries, Associate Minister of Forestry.
12Hon Lianne Dalziel, Minister of Commerce, Minister of Immigration, Minister Responsible for the Law Commission, Associate Minister of Justice, Associate Minister of Education (Special Education).
13Hon George Hawkins, Minister of Police, Minister of Internal Affairs, Minister of Civil Defence, Minister of Veterans' Affairs.
14Hon Mark Burton, Minister of Defence, Minister for State Owned Enterprises, Minister of Tourism, Deputy Leader of the House.
15Hon Paul Swain, Minister of Transport, Minister of Corrections, Minister of Communications, Minister for Information Technology, Associate Minister for Economic Development.
16Hon Marian Hobbs, Minister for the Environment, Minister Responsible for Disarmament and Arms Control, Minister Responsible for Archives New Zealand, Minister Responsible for the National Library, Associate Minister for Biosecurity, Associate Minister of Education, Associate Minister of Foreign Affairs and Trade (Official Development Assistance), Minister Responsible for Urban Affairs.
17Hon Ruth Dyson, Minister for the Accident Compensation Corporation, Minister for Senior Citizens, Minister of Women's Affairs, Minister for Disability Issues, Associate Minister of Health, Associate Minister for Social Development and Employment (CYF).
18Hon John Tamihere, Minister of Youth Affairs, Minister for Land Information, Minister of Statistics, Minister for Small Business, Associate Minister of Māori Affairs, Associate Minister of Commerce.
19Hon Chris Carter, Minister of Conservation, Minister of Local Government, Minister for Ethnic Affairs.
20Hon Rick Barker, Minister for Courts, Minister of Customs, Associate Minister of Justice, Associate Minister for Social Development and Employment.
21Hon Judith Tizard, Minister of Consumer Affairs, Associate Minister for Arts, Culture and Heritage, Associate Minister of Commerce, Associate Minister of Transport, Minister Responsible for Auckland Issues.
22Hon Tariana Turia, Minister for the Community and Voluntary Sector, Associate Minister of Māori Affairs (Social Development), Associate Minister of Health, Associate Minister of Housing, Associate Minister for Social Development and Employment.
23Hon Dover Samuels, Minister of State, Associate Minister for Economic Development, Associate Minister for Industry and Regional Development, Associate Minister of Tourism.
24Hon Damien O'Connor, Minister for Racing, Associate Minister of Agriculture, Associate Minister for Rural Affairs, Associate Minister of Health, Associate Minister of Immigration.
25Hon Harry Duynhoven, Minister of State, Associate Minister of Energy, Associate Minister of Transport (including Civil Aviation).
26Hon Taito Phillip Field, Minister of State, Associate Minister of Justice, Associate Minister of Pacific Island Affairs, Associate Minister for Social Development and Employment.
27Hon David Cunliffe, Minister of State, Associate Minister of Finance, Associate Minister of Revenue, Associate Minister of Communications, Associate Minister for Information Technology.
Parliamentary Under-secretary
Mita Ririnui, Parliamentary Under-Secretary to the Minister of Conservation, the Minister of Corrections, and the Minister in Charge of Treaty of Waitangi Negotiations.

Parliamentary elections

People 18 years and over have the right to vote in New Zealand's parliamentary elections. Enrolment as an elector is compulsory, but voting is not. To qualify for enrolment people must:

  • Be at least 18 years old.

  • Be New Zealand citizens or permanent residents.

  • Have lived continuously in New Zealand for at least a year at some time.

  • Have last lived continuously for one month in the electorate they are to be enrolled in.

Māori and people of Māori descent may choose to enrol for either a Māori or a general electorate, but may make the choice only at certain times. Māori may make the choice the first time they enrol, or at the time of the five-yearly Māori option exercise. The next Māori option will be in 2006.

Electoral rolls are maintained by the electoral enrolment centre, a division of New Zealand Post.

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 enrolled validly 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 electorates. 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 counted.

Voting patterns in recent general elections are shown in Table 3.08.

Table 3.08. Voting patterns 1981-2002

YearElectors on master rollValid votesInformal votesSpecial votes disallowedProportion of votes cast to electors on master roll

1Party votes rather than electorate votes.

2In 1999, there were 2,047,473 valid electorate votes cast and 37,908 informal electorate votes. In 2002, there were 1,9995,586 valid electorate votes and 33,289 informal electorate votes.

3In 2002, 15,156 special voters had both their electorate and their party vote disallowed, while 18,133 had their electorate votes disallowed but their party vote allowed because they voted in the wrong electorate.

Source: Ministry of Justice

  Number Percent
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
19962,418,5872,072,35918,183154,63388.28
19992,509,3652,065,4941,219,8871,241,88484.77
20022,670,0302,031,6171,28,6311,215,156376,98

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 electoral population figures provided by Statistics New Zealand.

Electoral boundaries are defined by the Representation Commission, which consists of 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.

Figures 3.01 and 3.02 show electoral boundaries for the general and Māori electoral districts for the 2002 and 2005 general elections.

When determining boundaries of Māori electoral districts, the commission is joined by the Chief Executive Officer of Te Puni Kōkiri and two Māori who are not public servants directly concerned with administration of the Electoral Act or Members of the House of Representatives. These two are nominated by parliament to represent the government and the opposition.

Figure 3.01. General electoral districts

General electoral districts

Figure 3.02. 2002 Māori electoral districts

2002 Māori electoral districts

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

Under the Electoral Act 1993, the South Island is allocated 16 general electorates. The number of North Island general and 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, communication facilities, topographical features and any projected variation in the general electoral population of the electorates.

Based on the South Island general electoral population of 868,923, the South Island general electorate quota for the 2002 general election was 54,308, resulting in 46 North Island general electorates (quota 54,296) and seven Māori electorates (quota 53,099). All electorates have an allowance of 5 percent above or below their electoral population quota.

The next revision of electoral boundaries will take place in 2006.

General election voting. There were 2,670,030 electors on the master roll for the 2002 general election. A total of 2,055,404 votes were cast, representing a turnout of 76.98 percent of electors on the master roll. This was the lowest percentage turnout since the 69.15 percent recorded in 1978. The highest percentage turnout in recent elections was the 93.71 percent in 1984. In 1996, the turnout was 88.28 percent and in 1999 it was 84.77 percent. Figure 3.03 shows the percentage of enrolled voters voting in general elections from 1879 to 2002.

Figure 3.03. Voter turnout

Voter turnout

3.3 State sector

State sector is the collective term for all the organisations of central government in New Zealand. It comprises all organisations included in the annual financial statements of the Crown.

These include:

The New Zealand Public Service - departments and ministries listed in the first schedule to the State Sector Act 1988. At 30 October 2003, there were 35 departments/ministries in the public service:

  • Archives New Zealand - www.archives.govt.nz

  • Crown Law Office - www.crownlaw.govt.nz

  • Department of Child, Youth and Family Services - www.cyf.govt.nz

  • Department of Conservation - www.doc.govt.nz

  • Department of Corrections - www.corrections.govt.nz

  • Department of Internal Affairs - www.dia.govt.nz

  • Department of Labour - www.dol.govt.nz

  • Department of the Prime Minister and Cabinet - www.dpmc.govt.nz

  • Education Review Office - www.ero.govt.nz

  • Government Communications Security Bureau - www.gcsb.govt.nz

  • Inland Revenue Department - www.ird.govt.nz

  • Land Information New Zealand - www.linz.govt.nz

  • Ministry of Agriculture and Forestry - www.maf.govt.nz

  • Ministry for Culture and Heritage - www.mch.govt.nz

  • Ministry of Defence - www.defence.govt.nz

  • Ministry of Economic Development - www.med.govt.nz

  • Ministry of Education - www.minedu.govt.nz

  • Ministry for the Environment - www.mfe.govt.nz

  • Ministry of Fisheries - www.fish.govt.nz

  • Ministry of Foreign Affairs and Trade - www.mfat.govt.nz

  • Ministry of Health - www.moh.govt.nz

  • Ministry of Housing - www.minhousing.govt.nz

  • Ministry of Justice - www.justice.govt.nz

  • Ministry of Maori Development - www.tpk.govt.nz

  • Ministry of Pacific Island Affairs - www.minpac.govt.nz

  • Ministry of Research, Science and Technology - www.morst.govt.nz

  • Ministry of Social Development (trading as Work and Income New Zealand) - www.msd.govt.nz

  • Ministry of Transport - www.transport.govt.nz

  • Ministry of Women's Affairs - www.mwa.govt.nz

  • National Library of New Zealand - www.natlib.govt.nz

  • New Zealand Customs Service - www.customs.govt.nz

  • Serious Fraud Office - www.sfo.govt.nz

  • State Services Commission - www.ssc.govt.nz

  • Statistics New Zealand - www.stats.govt.nz

  • The Treasury - www.treasury.govt.nz

Departments outside the public service - departments in terms of the Public Finance Act 1989, but not listed in the first schedule to the State Sector Act 1988 and, consequently, not part of the public service. At 30 October 2003, there were six departments outside the public service:

  • New Zealand Defence Force - www.nzdf.mil.nz

  • New Zealand Police - www.police.govt.nz

  • New Zealand Security Intelligence Service - www.nzsis.govt.nz

  • Office of the Clerk - www.clerk.parliament.govt.nz

  • Parliamentary Counsel Office - www.pco.parliament.govt.nz

  • Parliamentary Service - www.ps.parliament.govt.nz

State-owned enterprises (SOEs) - companies listed in the first schedule to the State-Owned Enterprises Act 1986 that operate on commercial lines and are companies under the Companies Act 1991. They are required to be as profitable and as efficient as comparable businesses in the private sector. The government may purchase services from SOEs, but generally will do so on the same basis as other purchasers. The government's interest in SOEs is substantially in their ownership. The government's shareholding interests in SOEs are supported by the Crown Company Monitoring Advisory Unit (CCMAU), which is administratively linked to the Treasury. At 30 October 2003, there were 15 SOEs:

  • Agriquality New Zealand Limited - www.agriquality.com

  • Airways Corporation of New Zealand Limited - www.airways.co.nz

  • Asure New Zealand Limited - www.asure.co.nz

  • Electricity Corporation of New Zealand Limited - www.ecnz.co.nz

  • Genesis Power Limited - www.genesispower.co.nz

  • Landcorp Farming Limited - www.landcorp.co.nz

  • Meridian Energy Limited - www.meridianenergy.co.nz

  • Meteorological Service of New Zealand - www.metservice.co.nz

  • Mighty River Power Limited - www.mightyriverpower.co.nz

  • New Zealand Post Limited - www.nzpost.co.nz

  • New Zealand Railways Corporation - www.nzrailcorp.co.nz

  • Solid Energy New Zealand Limited - www.solidenergy.co.nz

  • Terralink NZ Limited (in liquidation) - www.terralinkinternational.com

  • Timberlands West Coast Limited - www.timberlands.co.nz

  • Transpower New Zealand Limited - www.transpower.co.nz

Air NZ Ltd is also included in the Crown's financial statements for disclosure purposes as if it were an SOE.

Crown entities - organisations listed in the fourth schedule to 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. Crown entities make up a significant part of the state sector and include a wide variety of statutory corporations, statutory boards and authorities, corporations sole, Crown companies and trusts. The act establishes financial management and accountability provisions for bodies set up by the government or by legislation that depend wholly or partly on public funds. At 30 October 2003, Crown entities included 65 separate legal entities, as well as 21 district health boards, 32 reserves boards, 13 fish and game councils, 35 tertiary education institutions, 2,592 schools, 17 Crown-owned companies that included nine Crown Research Institutes, and six trusts. Most Crown entities are run by boards, who appoint chief executives. Some are companies subject to the Companies Act 1993 and to monitoring on the government's behalf by the Crown Company Monitoring Advisory Unit.

Offices of Parliament - The Office of the Ombudsmen, the Controller and Auditor-General and the Parliamentary Commissioner for the Environment are not part of the executive branch of the government, as their primary function is to provide a check on the executive's use of power and resources, but they report to parliament under the Public Finance Act.

The Reserve Bank of New Zealand - a stand-alone organisation included in the annual financial statements of the Crown.

The Māori Television Service is also part of the state sector.

At 30 June 2003, the number of staff employed in public service departments (excluding Crown entities and SOEs) was 33,129 (calculated on a full time equivalent basis). At 30 June 2001, the number was 30,355. When reform of the state sector began in the 1980s, about 70,000 people were permanent employees in government departments. Many jobs in government departments have shifted to Crown entities, SOEs or the private sector. The public service today is characterised by relatively small departments, which have defined roles in policy advice, service delivery, regulatory, or sectoral funding functions. Some bigger departments perform a combination of roles.

State Services Commissioner

The Office of State Services Commissioner is central to New Zealand's politically neutral permanent public service.

As holder of a statutory office, the commissioner acts independently in a range of matters concerning operation of the public service and the state sector.

As Chief Executive of the State Services Commission, the commissioner is also responsible to the Minister of State Services for the commission's capability and performance.

The Office of State Services Commissioner descends directly from the Public Service Commission, established in 1912 to employ all public servants, so protecting the public service from political interference and preserving its political neutrality.

The commissioner no longer employs all public servants, but in his employment of chief executives of public service departments, he continues to act as a buffer between ministers and the public service.

The State Sector Act 1988 sets out the roles and responsibilities of the State Services Commissioner.

In summary, the commissioner:

  • Employs public service chief executives on behalf of the Crown and reviews their performances.

  • Sets standards of conduct and integrity for the public service.

  • Investigates and reports on matters relating to departmental performance.

Those roles relate primarily to individual departments and their chief executives, and are those most likely to involve the exercise of statutory powers.

The commissioner has four other responsibilities that relate to the operation of the public service or state sector as a whole. These are to:

  • Promote and develop policies and standards for personnel administration and equal employment opportunities for the public service.

  • Promote senior leadership development in the public service and ensure that the public service has shared values and performs to a high standard.

  • Advise the government on the structure of the state sector, including the allocation of functions among departments.

  • Negotiate collective employment agreements applicable to employees of government departments and to employees of the education service. These responsibilities have been delegated by the commissioner to departmental chief executives and to the Chief Executive of the Ministry of Education respectively.

Much of the work enabling the commissioner to discharge his or her responsibilities is carried out by the State Services Commission on the commissioner's behalf.

The commissioner is appointed by the governor-general on the recommendation of the prime minister.

Table 3.09 lists chief executives of government departments at 12 November 2003

Table 3.09. Chief executives of government departments1

DepartmentTitleName

1At 12 November 2003.

Source: State Services Commission

Ministry of Agriculture and ForestryChief ExecutiveMurray Sherwin
Archives New ZealandChief Archivist and Chief ExecutiveDianne Macaskill
Department of Child, Youth and Family ServicesChief ExecutiveJackie Pivac
Department of ConservationDirector-General and Chief ExecutiveHugh Logan
Department of CorrectionsChief ExecutiveMark Byers
Crown Law OfficeSolicitor-General and Chief ExecutiveTerrance Arnold QC
Ministry for Culture and HeritageChief ExecutiveMartin Matthews
Ministry of DefenceSecretary of Defence and Chief ExecutiveGraham Fortune
Ministry of Economic DevelopmentChief ExecutiveGeoff Dangerfield
Ministry of EducationSecretary of Education and Chief ExecutiveHoward Fancy
Education Review OfficeChief Review Officer and Chief ExecutiveKaren Sewell
Ministry for the EnvironmentSecretary for the Environment and Chief ExecutiveBarry Carbon
Ministry of FisheriesChief ExecutiveWarwick Tuck
Ministry of Foreign Affairs and TradeSecretary of Foreign Affairs and Trade and Chief ExecutiveSimon Murdoch
Government Communications Security BureauDirector and Chief ExecutiveDr Warren Tucker
Ministry of HealthDirector-General and Chief ExecutiveDr Karen Poutasi
Ministry of HousingChief ExecutiveKatrina Bach
Inland Revenue DepartmentCommissioner of Inland Revenue and Chief ExecutiveDavid Butler
Department of Internal AffairsSecretary for Internal Affairs and Chief ExecutiveChristopher Blake
Ministry of JusticeSecretary of Justice and Chief ExecutiveBelinda Clark
Department of LabourSecretary of Labour and Chief ExecutiveDr James Buwalda
Land Information New ZealandChief ExecutiveBrendan Boyle
Ministry of Māori Development Te Puni KōkiriChief ExecutiveLeith Comer
National LibraryChief ExecutivePenny Carnaby
New Zealand Customs ServiceComptroller and Chief ExecutiveRobin Dare
Ministry of Pacific Island AffairsChief ExecutiveFuimaono Les McCarthy
Department of Prime Minister and CabinetChief ExecutiveDr Mark Prebble
Ministry of Research, Science and TechnologyActing Chief ExecutiveDr Helen Anderson
Serious Fraud OfficeDirector and Chief ExecutiveDavid Bradshaw
Ministry of Social DevelopmentChief ExecutivePeter Hughes
State Services CommissionState Services CommissionerMichael Wintringham
Statistics New ZealandGovernment Statistician and Chief ExecutiveBrian Pink
Ministry of TransportSecretary of Transport and Chief ExecutiveAlastair Bisley
The TreasurySecretary to the Treasury and Chief ExecutiveJohn Whitehead
Ministry of Women's AffairsActing Chief ExecutiveAnne Carter

Crown Company Monitoring Advisory Unit

The increasing number and diversity of limited liability companies owned by the Crown led it to establish the Crown Company Monitoring Advisory Unit (CCMAU) in 1993 to monitor the performance of these entities. CCMAU advises and supports primarily the Minister for State-owned Enterprises and the Minister for Crown Research Institutes. The shareholding ministers of other Crown companies (such as Television New Zealand, Radio New Zealand, Animal Control Products and three 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.

One of CCMAU's chief functions is the provision of advice to shareholding ministers relating to the development of corporate intent targets and monitoring the performance of Crown companies against those targets. Other functions include the provision of advice on company restructuring, expansion, diversification and divestment plans; the management of ownership issues; and identification of prospective directors and advice on director remuneration.

The unit, while independent for advice purposes, is attached to the Treasury for administrative purposes.

Controller and Auditor-General

The Controller and Auditor-General is an officer of parliament appointed by the governor-general under the Public Audit Act 2001. The position is independent of the executive government and only the governor-general, upon an address from the House of Representatives, can end tenure. The Controller and Auditor-General and the people acting under his or her delegation comprise the Audit Office.

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 from the Crown bank account. The Audit Office has to be satisfied that all issues from the account for the government's expenditure requirements are within 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 also 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 performance audits to ascertain whether public entities are carrying out their activities effectively and efficiently and are complying with their statutory obligations.

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.

Official information

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

  • Increase 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 their information is now governed by the Privacy Act 1993).

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

With the exception of the Parliamentary Counsel Service, the Official Information Act 1982 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.

Requests for access to official information can be made by a corporation sole and by a body of people, whether corporate or uncorporate. Protection of the privacy of natural persons may be overturned if it is in the public interest to make information available.

Among criteria to be considered when judging whether information should be withheld are whether, if the information were released, it would 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 to release information. This investigation is private and free. The formal recommendation of an ombudsman is binding unless overridden by the governor-general by order-in-council.

Ombudsmen

The principal function of ombudsmen is to enquire into complaints relating to administrative decisions of government departments and related organisations, hospitals and health authorities. Under the Ombudsmen Act 1975, there is provision for the appointment of a Chief Ombudsman and one or more ombudsmen in temporary or permanent positions.

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

Ombudsmen also investigate recommendations made to ministers by government departments, organisations or employees. Similarly, they look into recommendations made to local body councils or boards by any committee, subcommittee, officer, employee or member.

It is also the responsibility of ombudsmen to investigate complaints on decisions for the request of official information. Under the Protected Disclosures Act 2000, ombudsmen can provide guidance and information to employees who have made, or who are considering making, a protected disclosure pursuant to the act, and they fulfil the ‘appropriate authority’ requirements of the act. 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 avenues of administrative redress.

Table 3.10 details complaints made to the ombudsmen for the year ending 30 June 2003.

Table 3.1. Complaints to the ombudsmen
Year ending 30 June 2003

ActionOmbudsmen Act 1975Official Information Act 1982Local Government Official Information and Meetings Act 1987

- nil or zero

Source: Office of the Ombudsmen

Declined, no jurisdiction7991
Declined or discontinued (section 17)4415519
Resolved in course of investigation17816436
Sustained, recommendation made11-3
Sustained, no recommendation made112-
Not sustained639415
Formal investigation not undertaken, but explanation, advice or assistance given2,05930864
Complaint transferred to   
    Privacy Commissioner15323
    Health and Disability Commissioner2--
    Police Complaints Authority25--
Still under investigation at 30 June42727131
        Total3,311935172
        Total 20023,796863201

Privacy commissioner

The Office of the Privacy Commissioner Te Mana Matapono Matatapu is independent of the executive and of parliament and its functions are set out in the Privacy Act 1993.

One of the main purposes of the act is to promote and protect individual privacy. The act establishes 12 information privacy principles and four public register privacy principles. Both sets of principles are subject to any other law and apply to both public and private sectors.

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.

Public register privacy principles place some controls on the availability of public register information and its subsequent use.

The privacy commissioner has the power to issue codes of practice which may modify information privacy principles by prescribing different standards. Codes of practice can also prescribe how 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 personal health information by health agencies.

The Privacy Act also lays down rules controlling statutory information-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 other government departments held for different purposes. The act requires that an affected individual be given notice before adverse action is taken on the basis of a match.

The commissioner investigates complaints about breaches of a privacy principle, code of practice or information-matching rule. The investigation process emphasises conciliation. If a complaint cannot be settled, the privacy commissioner may refer it to the Director of Human Rights Proceedings, who may issue proceedings before the Human Rights Review Tribunal. Alternatively, aggrieved people may bring proceedings on their own behalf 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 the year ending 30 June 2003, the privacy commissioner referred three complaints to the Director of Human Rights Proceedings, and 23 complainants brought proceedings on their own initiative.

The privacy commissioner performs a general ‘watchdog’ role over privacy. In the June 2003 year, the commissioner made a number of reports to the Minister of Justice, and public statements on a range of issues affecting individual privacy. The commissioner examines new legislation and prepares reports on privacy issues and appears before parliamentary select committees considering bills.

The Official Information Act 1982 and the Local Government Official Information and Meetings Act 1987 require ombudsmen to consult with the commissioner on official information access requests where privacy is a possible ground for withholding information. In the year ending June 30 2003, 33 formal consultations under the two acts were completed.

The Office of the Privacy Commissioner website is www.privacy.org.nz

Table 3.11 details complaints made to the privacy commissioner in recent years.

Table 3.11. Complaints to the privacy commissioner
Years ending 30 June

Action19992000200120022003
Source: Office of the Privacy Commissioner
New complaints received1,0037988811,044928
Complaints current at start of year1,0681,1269661,0411,039
Number of complaints under process2,0711,9241,8472,0851,967
Number of complaints closed during year8959668061,049915
    No jurisdiction5645361623
    Complaints resolved without final opinion708775654901747
    Final opinion131146116132145

Human Rights Act 1993

The Human Rights Act 1993 amalgamated the Race Relations Act 1971 and the Human Rights Commission Act 1977 and added five new prohibited grounds of discrimination. There are 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. Areas in which it is unlawful to discriminate are 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.

Amendments to the Human Rights Act in 2001 provide that the Human Rights Act non-discrimination standard applies to private sector activities, and to public sector activities only in relation to employment, racial harassment, sexual harassment, racial disharmony and victimisation.

The 2001 amendments also provide that the New Zealand Bill of Rights Act 1990 non-discrimination standard applies to all public sector activities except employment, racial harassment, sexual harassment, racial disharmony and victimisation. The protection which the public sector previously had from the full impact of the Human Rights Act expired on 31 December 2001.

The 2001 amendment also combined the Human Rights Commission and the Office of the Race Relations Conciliator into a new Human Rights Commission. This organisation is strategically focussed on general human rights education and advocacy, while retaining some discrimination complaints roles.

The Human Rights Commission's role in complaints is as the publicly-funded entry point for all complaints of discrimination, whether relating to government or non-government activity. The commission attempts to assist the parties to resolve complaints using mediation or other low-level dispute-resolution mechanisms.

If low-level resolution fails or is inappropriate, the complainant may approach the independent Director of Human Rights Proceedings for possible litigation assistance. Complainants may also take their own litigation or engage their own legal counsel.

The Human Rights Review Tribunal is the specialist tribunal to determine discrimination proceedings. Where a complaint is upheld, including complaints about government policies and practices, a wide range of remedies are available, for example damages and orders of specific performance. When a complaint concerns legislation or validly-made regulations, and the complaint is upheld, the sole remedy available is a declaration of inconsistency. This does not invalidate the legislation, but the responsible minister is required to bring the declaration to the attention of the House of Representatives, along with the executive's response to that declaration.

There are appeal rights from the tribunal to the high court and proceedings may also be removed to the high court if appropriate.

Parliamentary Commissioner for the Environment

The Parliamentary Commissioner for the Environment - established by the Environment Act 1986 following reform of environmental administration in New Zealand - is an independent officer of parliament who reviews and provides advice on environmental issues and on the agencies and processes established by the government to manage the environment.

The primary objective of the commissioner's office is to maintain and improve the quality of the environment by providing advice to parliament, local councils, businesses, tangata whenua, communities and other public agencies. The commissioner may investigate any matter where the environment may be, or has been, adversely affected; assess the capability, performance and effectiveness of the New Zealand system of environmental management; and provide advice and information to help maintain and improve the quality of the environment.

During 2002/03, the commissioner initiated investigations into the primary production sector and the environmental sustainability of New Zealand's more intensive farms, into education for sustainable living, into the role of science in environmental policy and decision making, and into the environmental effects of cruise ships.

One environmental management audit was completed on developing a framework for assessing the environmental performance of the electricity sector.

The commissioner produced a new strategic plan in 2002, which maintains the direction of its predecessor but provides a shift in focus. Priority areas for investigation until 2007 were selected by considering environmental systems at risk, the drivers putting pressure on these systems, and environmental management responses. The priorities have been grouped into three broad areas: legislation and policies that impact on environmental sustainability; ecosystems at risk; and the performance of public authorities in meeting their environmental responsibilities.

The commissioner responded to 228 communications during 2002/03 from citizens, non-government organisations, select committees, public authorities and international correspondents requesting information or assistance on environmental issues. The commissioner's website is www.pce.govt.nz

Table 3.12 lists the number of reports and papers produced by the commissioner in recent years.

Table 3.12. Reports/ papers by the Parliamentary Commissioner for the Environment
Years ending 30 June

Activity2000200120022003
Source: Parliamentary Commissioner for the Environment
Investigation reports32373581
Information transfer papers or presentations242291189147
    Total274328224228

The Public Trust's former head office in Wellington is protected from exterior alteration by an Historic Places Trust heritage order.

Public Trust

Public Trust, the first organisation of its kind in the world, was launched in 1873 by an act of parliament to provide New Zealanders with the opportunity of writing a will, thereby decreasing the number of intestacies, and to provide executor and trustee services. Before its inception, problems had arisen with unscrupulous individuals cheating beneficiaries out of their inheritances.

Public Trust has been a self-funding government department operating, most recently, under the Public Trust Office Act 1957. However, the Public Trust Bill proposes changes to the office's status and structure. The bill proposes that:

  • The operations and undertakings of the Public Trust Office will be vested in a new statutory corporation to be known as Public Trust. The existing corporation sole (the Public Trustee), the Public Trust Office and the Public Trust Investment Board will be dissolved, and the new corporation will be their successor.

  • Public Trust will no longer be a government department, but will become a Crown entity subject to accountability and reporting arrangements under the Public Finance Act 1989.

  • Public Trust will have a board responsible to the minister for the management and operation of the organisation, including appointment of its chief executive.

  • Public Trust will continue to be responsible for carrying out existing public and social functions and to provide free wills and other non-commercial services when so requested and funded by the Crown.

  • Crown ownership of Public Trust is confirmed.

  • Provision is made for payment of dividends to the Crown, and also for a one-off payment of surplus capital immediately prior to establishment of the new corporation.

  • The independence of Public Trust in client matters is preserved and enhanced by a specific direction that it must, when managing and administering estates and in fulfilling any other fiduciary obligations, act in an independent manner free from any instruction or direction from the Crown.

With 35 outlets throughout New Zealand, Public Trust administers about 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 are 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 $425 million, its Group Investment Funds at around $300 million and the retail Public Trust Investment Funds at about $250 million. Public Trust also holds the statutorily-required deposits of insurance companies.

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

3.4 Local government

New Zealand has a system of local government largely independent of the central executive government. The 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.

Six special purpose authorities are constituted under their own acts and one, Infrastructure Auckland, is constituted under the Local Government Act 2002, the statute constituting regional councils and territorial authorities. Boundaries are usually defined by the Local Government Commission, or the Minister of Local Government.

Local authorities have their own sources of income, independent of central government, with the basic source (apart from income from trading activities under the control of territorial authorities) local taxes on landed property (rates). Rates are set by local authorities themselves, subject to the Local Government (Rating) Act 2002.

Several important statutes apply not only to local authorities as defined in the Local Government Act 2002, 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 Electoral Act 2001. Local authorities derive their functions and powers not only from local government legislation, 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 to their electorates through triennial local 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 ombudsmen, the Controller and Auditor-General and the Parliamentary Commissioner for the Environment. 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. The Minister of Local Government may appoint a review authority when it is considered there has been serious mismanagement by a local authority, and may require the local authority to implement the review authority's recommendations.

Local government organisation

New Zealand has 12 regional councils, 74 territorial authorities, 147 community boards and seven special authorities. The Local Government Act 2002 holds as central recognition of the existence of different communities in New Zealand, their separate identities and values, and the effective participation of local people in local government. Local authorities are required by statute to conduct their affairs in an open and proper manner, to separate their regulatory and non-regulatory activities and to adequately inform local communities of their activities. Emphasis is placed on setting objectives and measuring performance. Local authorities are permitted to corporatise or privatise their trading activities and may put out the delivery of services to competitive tender as an alternative to using in-house business units. Table 3.13 lists regional council, territorial authorities and numbers of councillors.

Table 3.13. Territorial authorities and councillors

Cities/districtsNumber of councillors1Council type

1Based on October 1998 elections. Figures include mayors.

2Unitary authority (city or district council and regional council responsibilities).

3Trading name of Manawatu/Wanganui Regional Council.

Source: Local Government New Zealand

Ashburton13District
Auckland20City
Auckland13Regional
Banks Peninsula8District
Buller12District
Carterton9District
Central Hawke's Bay11District
Central Otago14District
Chatham Islands9Council
Christchurch25City
Clutha15District
Dunedin15City
Environment Bay of Plenty12Regional
Environment Canterbury14Regional
Environment Southland9Regional
Environment Waikato14Regional
Far North11District
Franklin15District
Gisborne215District
Gore12District
Grey9District
Hamilton14City
Hastings16District
Hauraki14District
Hawke's Bay9Regional
Horizons311Regional
Horowhenua11District
Hurunui10District
Hutt City12City
Invercargill13City
Kaikoura8District
Kaipara11District
Kapiti Coast15District
Kawerau9District
Mackenzie11District
Manawatu11District
Manukau21City
Marlborough213District
Masterton11District
Matamata-Piako12District
Napier13City
Nelson213City
New Plymouth17District
Northland8Regional
North Shore16City
Opotiki11District
Otago12Regional
Otorohanga8District
Palmerston North16City
Papakura9District
Porirua14City
Queenstown-Lakes12District
Rangitikei12District
Rodney13District
Rotorua13District
Ruapehu12District
Selwyn12District
South Taranaki13District
South Waikato11District
South Wairarapa10District
Southland13District
Stratford11District
Taranaki10Regional
Tararua9District
Tasman214District
Taupo13District
Tauranga14City
Thames-Coromandel10District
Timaru13District
Upper Hutt11City
Waikato15District
Waimakariri15District
Waimate9District
Waipa13District
Wairoa10District
Waitakere15City
Waitaki16District
Waitomo11District
Wanganui13District
Wellington20City
Wellington13Regional
West Coast6Regional
Western Bay of Plenty13District
Westland13District
Whakatane14District
Whangarei14District

An option available to most councils for the 2007 elections is the establishment of Māori wards or constituencies if communities call for a poll on the issue. If a minimum of 5 percent of electors request a poll, and the subsequent poll result is favoured by 50 percent or more of electors, the poll is binding.

Regional councils. Regional councils are directly elected, set their own rates and have a chairperson elected by their members. Their main functions are matters under the Resource Management Act 1991 and the Soil Conservation and Rivers Control Act; the control of pests and noxious plants; harbour regulations and marine pollution control; regional aspects of civil defence; an overview of transport planning; and control of passenger transport operators. Some regional councils also have other functions, such as those formerly undertaken by land drainage boards.

Territorial authorities. New Zealand's 74 territorial authorities consist of 16 city councils, 57 district councils and the Chatham Islands Council. Territorial authorities 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 and 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 either be constituted by Order in Council giving effect to a determination of the Local Government Commission, or 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, is a distinct entity and a major centre of activity within the region.

Unitary authorities. Unitary authorities are territorial authorities which also have regional powers. Legislation in 1989 prevented any unitary authorities being established, other than in Gisborne. However, an amendment in 1992 not only created three more unitary authorities (Marlborough District, Tasman District and Nelson City), but made it possible for others to be created by submitting proposals to the Local Government Commission.

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 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). Boards have between four and 12 members.

Special purpose local authorities

The number of special purpose local authorities was greatly reduced following local body reform in 1989. 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, territorial authorities.

Categories remaining include scenic and recreation boards.

There are also some one-off authorities such as the Aotea Centre Board of Management, the Canterbury Museum Trust Board, the Council of the Auckland Institute and Museum, the Otago Museum Trust Board, the Masterton Lands Trust, the Greytown Lands Trust and Infrastructure Auckland.

Infrastructure Auckland. Infrastructure Auckland was created in 1998 to help address the Auckland region's land and passenger transport and stormwater problems. As successor to the Auckland Regional Services Trust, Infrastructure Auckland inherited the assets of the trust, except those of Watercare Services Ltd, which were transferred to Auckland local authorities. Infrastructure Auckland's assets are estimated to be worth around $1 billion and include 80 percent of the shares in Ports of Auckland Ltd and 100 percent of America's Cup Village Ltd and Northern Disposal Systems Ltd. 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. When Infrastructure Auckland was initially set up, it was controlled by nine members, six former members of the Auckland Regional Services Trust and three appointed by an 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 comprises 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. Members representing Manukau and Auckland City Councils have three votes, 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 members and the chairperson of Infrastructure Auckland, they also, among other things, monitor Infrastructure Auckland's performance.

Local government elections

Local government elections are held on the second Saturday in October every third year. The next elections will be in 2007.

All regional council, territorial authority, special purpose local authority and community board elections are conducted at the same time. At least once every six years, in the year before an election, regional and territorial authorities are required to review the number of members, the number and size of their electorates and whether or not community boards should be established. 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 wards, from the district as a whole, or a mixture of both. 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. When necessary, final decisions are made by the Local Government Commission.

Voting procedures. Although postal voting is now universal, any territorial authority may decide whether an election is to be conducted by attendance at a polling booth, or by post. The method of casting a vote is similar to parliamentary elections. The surnames of candidates are printed on the ballot paper and electors place a tick after the name of the candidate they wish to vote for. The voting system currently used is ‘first past the post’, except for district health boards and 10 local authorities who use the single transferable vote (STV) system. Other local authorities have the option of using STV at future elections.

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. Ratepayers who are not residents are entitled to enrol and vote in any region, district or community in which they pay rates. Rolls are compiled by territorial authorities, who usually compile rolls and conduct elections for other authorities as well. 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 timing of the vacancy.

Remuneration. 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. Maximum and minimum salary and allowance levels are set by the Remuneration Authority, giving the council or board the discretion to decide the actual rate within the prescribed limits.

Local Government Commission

The Local Government Commission consists of 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 objections relating to ward and membership proposals of a local authority following a representation review; and proposals for the constitution of communities.

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 report on them to the Minister of Local Government.

The Local Government Act 2002 also requires the commission to review and report to the Minister of Local Government on the operation of that act and the Local Electoral Act 2001.

The review is being carried out in two phases.

First, it must report on any amendments it considers should be made to the acts before the 2007 local body elections.

Second, it must report on wider issues relating to the two acts as soon as practicable after the 2007 elections.

3.5 National emblems and anthems

New Zealand coat of arms

The New Zealand coat of arms is protected under the Flags, Emblems and Names Protection Act 1981 and its lawful use is confined to official purposes. The first quarter of the shield on the coat of arms depicts four stars as representative of the Southern Cross, then three ships symbolising the importance of New Zealand's sea trade; in the second quarter is a fleece representing the farming industry. The wheat sheaf in the third quarter represents the agricultural industry, while the crossed hammers in the fourth quarter represent the mining industry. The supporters on either side of the shield consist of a Māori Chieftain holding a taiaha (a Māori war weapon) and a European woman holding the New Zealand flag. Surmounting the arms is the St Edward's Crown which was used in the coronation ceremony of Her Majesty Queen Elizabeth II. The crown symbolises the fact that Her Majesty is Queen of New Zealand under the New Zealand Royal Titles Act 1953.

New Zealand flag

The flag previously known as the New Zealand ensign was declared the national flag of New Zealand under the Flags, Emblems and Names Protection Act 1981.

The national flag 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 represented by four five-pointed red stars with white borders.

Contributors

  • 3.1 Ministry of Justice; Statistics New Zealand.

  • 3.2 Office of the Clerk of the House of Representatives; Cabinet Office; Chief Electoral Office; Ministry of Justice.

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

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

  • 3.5 Ministry for Culture and Heritage.

Websites

www.elections.govt.nz - Electoral Commission

www.vuw.ac.nz/inst-policy-studies - Institute of Policy Studies

www.lawcom.govt.nz - Law Commission

www.localgovtnz.co.nz - Local Government New Zealand

www.parliament.govt.nz - Office of the Clerk of the House of Representatives

www.ombudsmen.govt.nz - Office of the Ombudsmen

www.pce.govt.nz - Parliamentary Commissioner for the Environment

www.pco.parliament.govt.nz - Parliamentary Counsel Office

www.parliament.govt.nz - Parliamentary Service

www.ssc.govt.nz - State Services Commission

www.justice.govt.nz - Ministry of Justice

www.dpmc.govt.nz - Department for Prime Minister and Cabinet

Chapter 4. International Relations and Defence

Soldiers involved in a water approach training exercise on Lake Tekapo.

4.1 Relations with other countries

The New Zealand Government established the then Department of External Affairs and began stationing diplomatic representatives overseas in 1943. Today, New Zealand has diplomatic and consular representation in more than 40 countries, with multiple accreditation allowing New Zealand representatives to cover another 80 countries and states 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 at management of New Zealand's bilateral relations with other countries, and with its interests in international institutions. Other functions include management of 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 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 on behalf of all government departments, offer assistance to New Zealanders overseas, whether travelling in official or private capacities, and issue passports and visas overseas. The Ministry of Foreign Affairs and Trade website is www.mfat.govt.nz

The Pacific

The Pacific is a key area in New Zealand's international relations. New Zealand enjoys a close association with Pacific Island nations, with 11 diplomatic missions and consulates in the region and accreditation to a further six.

Special relationships exist 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 followed 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.

The Ministry of Foreign Affairs and Trade maintains contact with international organisations working on behalf of indigenous people.

Trade with the Pacific is important to New Zealand. Exports totalled $837 million for the year ending 30 June 2003, an increase of more than 70 percent in the two years since June 2001. Imports totalled $135 million in the year ending 30 June 2003, only $1 million more than two years before. Imports from Pacific countries have duty-free access on a non-reciprocal basis to New Zealand and Australian markets under the South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA).

New Zealand has developed extensive links with Pacific regional organisations. It was a founding member of the South Pacific Forum, formed in 1971 to promote regional cooperation, particularly in trade and economic development. Renamed the Pacific Islands Forum in 1999, it now comprises 16 Pacific countries and provides an opportunity to discuss regional and international issues of interest to the region, such as regional security, environmental issues, fisheries and economic development.

Pacific Islands Forum countries meet annually at heads of government level, with meetings throughout the year at ministerial and official levels to consider a variety of specific issues. New Zealand hosted the Pacific Islands Forum in August 2003. An important aspect of the forum's work is the annual Forum Economic Ministers' 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.

In 2003, the Pacific Agreement on Closer Economic Relations (PACER) came into force. The PACER is a framework agreement covering all Pacific Islands Forum countries, including Australia and New Zealand, and represents an important step in New Zealand's relations with Pacific countries. It provides for the development, over time, of arrangements to achieve closer trade and economic integration in the Pacific region.

The Pacific Island Countries Trade Agreement (PICTA), a free trade agreement among Pacific Islands Forum countries, came into force in late 2002. Over a period of 10 years, it will lead to establishment of a free trade area among Pacific island states.

The importance of fisheries as an economic resource in the Pacific led to completion in September 2000 of the Convention on the Conservation and Management of Highly Migratory Fish Stocks in the Western and Central Pacific Ocean (WCPFC). The convention is the first regional fisheries management arrangement to base itself on the 1995 United Nations Fish Stocks Agreement, and will lead to the establishment of a broad-based fisheries management organisation in the Pacific region, including both coastal states and distant water fishing nations. It was expected that the convention would come into force during 2004.

Other regional organisations of which New Zealand is a member include:

  • The Forum Fisheries Agency (FFA), which assists members with management and conservation of the region's marine resources.

  • The Secretariat of the Pacific Community (formerly the South Pacific Commission), which helps promote economic and social development in the region through work in agriculture, marine resources, health, socio-economic and statistical services, and community education.

  • The South Pacific Regional Environment Programme (SPREP), which focuses on protection and management of environmental resources.

  • The Pacific Forum Line (PFL), which facilitates regional trade through improved shipping links.

  • 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 Pacific covering official development assistance, defence and disaster coordination.

The France, Australia, New Zealand (FRANZ) arrangement is an important element in the provision of rapid emergency assistance to the region in the event of natural disasters such as tropical cyclones.

The Pacific is also the area of New Zealand's primary aid focus. Nearly half of the New Zealand Agency for International Development's (NZAID) budget - about $110 million - goes towards development assistance in the Pacific. NZAID has extensive bilateral relationships with countries in the Pacific, and provides significant support for regional organisations such as the Secretariat of the Pacific Community and the University of the South Pacific. Pacific regional programmes are divided into broad themes of health, education, law and justice, and the environment.

Security issues in the Pacific are characterised by internal and external security challenges stemming from factors including ethnic differences, economic disparities, land disputes and transnational crime. New Zealand has been extensively involved in regional efforts to resolve these security challenges, especially in Bougainville and the Solomon Islands. On Bougainville, New Zealand committed personnel to the Peace Monitoring Group (PMG 1998-2003) and the Bougainville Transitional Team (BTT-2003). New Zealand also contributed police and military personnel to the Regional Assistance Mission to the Solomon Islands (RAMSI).

Regional cooperation in security matters has been centred on the Pacific Islands Forum and its regional security committee. A significant development was the Biketawa Declaration made by forum leaders in 2000 under which the forum secretary-general was assigned a specific role in monitoring possible sources of conflict and developing methods of dispute settlement and conflict avoidance to prevent their developing into open conflict.

Figure 4.01 shows where the Ministry of Foreign Affairs and Trade has diplomatic and consular representation. The legend below also shows accreditations.

Figure 4.01. Overseas representation

Overseas representation

Australia

New Zealand enjoys no closer partnership than that shared with Australia. The relationship is central to New Zealand's trade and economic interests, its defence, security and foreign policy interests, and to the country's overall economic and social well-being.

The political framework for management of the relationship includes regular dedicated meetings between the Prime Ministers of New Zealand and Australia, between Ministers of Foreign Affairs and Trade, Ministers of Finance, Ministers for Trade Negotiations and Ministers of Defence. New Zealand is represented in Australia by a high commission in Canberra and consulates-general in Sydney and Melbourne.

The Trans-Tasman Travel Arrangement (TTTA) enables New Zealand citizens to travel, live and work in Australia, and Australian residents to receive similar access to New Zealand. A new social security agreement negotiated with Australia, covering superannuation and severe disability, came into effect on 1 July 2002. The new arrangement preserves the ability of New Zealanders to live and work in Australia (and vice versa) under the TTTA, while allowing both governments to determine their own policies regarding access to all other social welfare benefits.

There are more than 400,000 New Zealanders living in Australia and about 55,000 Australians in New Zealand. More than a million New Zealanders and Australians cross the Tasman on short-term visits each year.

Australia is New Zealand's most important trading partner and New Zealand is Australia's second largest market for manufactured goods. The Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER), signed in 1983, and its associated arrangements and agreements, is the main instrument governing trade and economic relations between the two countries. The economies of the two countries have become increasingly integrated since signing of the agreement. Complete free trade in goods was achieved five years ahead of schedule, on 1 July 1990. The 1988 CER Protocol on Services provides for free trade in nearly all services sectors.

The CER relationship also addresses a range of non-tariff measures, such as customs requirements, standards, business law regulations and occupational registration requirements. A Joint Food Standards Treaty was signed in 1995 and in December 2002 the Australia New Zealand Food Standards Code took effect. In 1998, CER was further expanded to include the Trans-Tasman Mutual Recognition Arrangement and, in 2000, an agreement on coordination of business law was signed. The 1996 Single Aviation Market Arrangement was expanded in 2000 to an ‘open skies’ agreement.

Australia is also New Zealand's closest and most important security partner. The alliance with Australia, founded in the Canberra Pact (1944), formalised in the ANZUS Treaty (1952) and finding current expression in the Closer Defence Relations concept, as confirmed in 2002, remains central to New Zealand's defence policies. Both governments are committed to achieving the highest possible level of interoperability with each other, while acknowledging the need for each to meet its own defence priorities. Australia and New Zealand have worked together closely and effectively in East Timor, Bougainville and the Solomon Islands.

Asia

New Zealand has a long association with Asia, dating back to its military involvement in the region during World War II and, later, the Korean War. New Zealand was a founding member of the Colombo Plan and contributed significant levels of development assistance to many Asian countries throughout the 1960s and 1970s. With the re-industrialisation of Japan and the rapid development of a number of Asian economies in the post-war period, the Asian region offered New Zealand new markets for its exports as Britain moved to join the European Economic Community in the early 1970s.

In the year ending June 2003, Asia took 34 percent of all New Zealand's exports and provided nearly 36 percent of imports. Trade in tourism and education services has been increasing rapidly, especially with the large economies of North Asia. In recent years, China has emerged as a significant economic player in its own right and is now New Zealand's fourth largest trading partner. There are also significant flows of direct investment between Asia and New Zealand.

With New Zealand's future prosperity inextricably linked with Asia, stability of the region remains integral to New Zealand's well-being. New Zealand invests considerable resources in developing closer political relations with neighbours in the Asian region and it is represented by a network of offices in Bangkok, Beijing, Hanoi, Ho Chi Minh City, Hong Kong, Jakarta, Kuala Lumpur, Manila, New Delhi, Seoul, Singapore, Shanghai and Tokyo.

Establishment of the Asia 2000 Foundation in 1991 has seen New Zealand's relations with Asia expand beyond the trade and economic prism. Support for sister city links, cultural exchanges and Asian language programmes in New Zealand schools has helped promote closer cultural ties with Asia. New Zealand's increasing Asian orientation has resulted in greater numbers of people from Asia coming to New Zealand to holiday, study, work or live. The Auckland region has become the focus of New Zealand's Asian community, with one in eight residents now of Asian descent.

At the political level, New Zealand is one of the original dialogue partners of the Association of South-East Asian Nations (ASEAN) and cooperates with members on a range of regional trade facilitation and economic development activities. A closer economic partnership agreement between AFTA (ASEAN Free Trade Area) and CER (New Zealand and Australia) was concluded in September 2002 and has adopted a work programme focussed on trade facilitation within the AFTA/CER region.

In the security arena, New Zealand takes part in the ASEAN Regional Forum, which provides ministers from throughout the Asia/Pacific region with an opportunity to focus collectively on regional security issues. New Zealand is also a member of the Five Power Defence Arrangement, which brings together Malaysia, Singapore, Britain, Australia and New Zealand.

Indian dancers take part in an Asia 2000 Festival of Lights in Auckland.

Americas

United States. New Zealand's relationship with the United States is one of its most important. Shared values underpin close government 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 long standing and close on issues such as international and regional security, human rights, 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 an interchange of ideas and experiences.

Canada. New Zealand and Canada enjoy a positive and close relationship, based on shared Commonwealth, United Nations 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 New Zealand's agricultural products, 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. Trade and investment is the primary focus of New Zealand's relationship with Latin America and the Caribbean. Exports mainly comprise dairy products, agricultural machinery and manufactured goods. New Zealand companies are involved in a wide range of activities in the region in the agricultural, forestry, fisheries, construction, telecommunications and energy sectors. New Zealand provides a modest amount of economic and social development assistance to the region and shares interests with a number of Latin American and Caribbean countries in areas such as international trade, the environment, Antarctica, disarmament and Pacific regional cooperation. New Zealand has embassies and consulates in Mexico, Brazil, Chile and Argentina. The Ambassador in Mexico is also accredited to Venezuela, Guatemala, Cuba and El Salvador; the Ambassador in Santiago is also accredited to Peru and Colombia; and the Ambassador in Buenos Aires is also accredited to the Mercosur group of Argentina, Brazil, Uruguay and Paraguay. In addition to honorary consuls in Bogota, Lima, Caracas, San Salvador and Montevideo, a New Zealand Consulate-General was opened in Sao Paulo in 1999. The High Commissioner in Ottawa is also accredited to the Caribbean countries of Barbados, Guyana, Jamaica and Trinidad and Tobago.

Europe

Western Europe. The European Union (EU) is a major political and economic entity and a significant player in world affairs. It admitted 10 new members on 1 May 2004 to become a community of 25 states. The EU is New Zealand's second largest market after Australia, and contact with the European Commission in Brussels, and also with the European Parliament, is critical to maintaining New Zealand's trade access to Europe. The EU is the largest market for a broad range of primary produce, including sheepmeat, wool, butter, kiwifruit, apples and venison. It is also the most important market for New Zealand's wine exports. Successful negotiations during the General Agreement on Tariffs and Trade (GATT) Uruguay Round resulted in a significant improvement in both the volume and overall stability of New Zealand's access to this market. While trade issues remain important, the breadth of New Zealand's relationship with the EU has expanded in recent years, with conclusion of air services agreements and a number of young peoples' working holiday schemes with individual member states. Europe has traditionally been New Zealand's third largest source of tourists, behind Oceania and Asia, and is a major contributor of new investment. Twice-yearly political consultations are held at ministerial level with the revolving EU presidency and the European Commission. New Zealand has embassies or consulates in Berlin, Brussels, Geneva, Hamburg, Madrid, Milan, Paris, Rome and The Hague and a high commission in London. These posts are cross-accredited to all other EU member states, including those admitted in 2004. 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 and the Baltics. The former communist states of Central and Eastern Europe and the Baltics have evolved into multi-party democracies with free-market economies. Poland, Hungary, the Czech Republic, Slovenia, the Slovak Republic, Lithuania, Latvia and Estonia joined the European Union on 1 May 2004, while Bulgaria and Romania are candidates to join in 2007. In 2004, Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovenia and Slovakia followed Poland, Hungary and the Czech Republic into the North Atlantic Trade Organisation (NATO). These political and economic changes have led to increased contacts between New Zealand and the countries concerned. 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. A New Zealand embassy was due to be opened in Warsaw in the second half of 2004. Commercial relations with Central and Eastern Europe are handled by the Trade New Zealand office in Milan, while the Baltic states of Estonia, Latvia and Lithuania are covered by the New Zealand Embassy in The Hague.

Russia and the Commonwealth of Independent States (CIS). Trade remains the central component of New Zealand's relations with the states that formerly made up the Soviet Union, the Russian Federation being the principal partner. Despite Russia's economic and financial problems, it remains an important, although diminished, market for New Zealand dairy products. The long-term potential for trade with some regions, notably the Russian far east, is strong. New Zealand cooperates with Russia on a range of international issues in regional bodies such as the Asia Pacific Economic Cooperation organisation and the Association of South-East Asian Nations Regional Forum, and is heavily involved in negotiations for the accession of Russia to the World Trade Organisation. New Zealand has an embassy in Moscow, which is accredited to Belarus, Kazakhstan, Kyrgyzstan, Turkmenistan, Ukraine and Uzbekistan. In 2001, a new honorary consulate was opened in Vladivostok to cover New Zealand's interests in the Russian far east.

Middle East and North Africa

The implications of events in the Middle East for international peace and security make developments there of ongoing concern to New Zealand. The two issues which have preoccupied the international community for many years are the Arab-Israeli dispute and the threat which Iraq has posed to its neighbours.

For more than 40 years, New Zealand has maintained a balanced and constructive approach to the Arab-Israeli dispute, consistently upholding the right of the Palestinian people to a viable state and, with equal consistency, Israel's right to exist within secure borders.

New Zealand has made a practical contribution to peace in the Middle East in the form of a contingent in the Sinai Multinational Force and Observers (MFO), based on the border between Egypt and Israel since 1982. New Zealand also contributes defence personnel to the United Nations Truce Supervision Organisation (UNTSO), headquartered in Jerusalem.

New Zealand deeply regretted that the multilateral approach to the Iraq crisis broke down and failed to avert conflict. The crucial issues now are the reconstruction of Iraq, the restoration of its sovereignty and the rebuilding of political and social structures to guarantee the Iraqi people a better life.

At the end of the 2003/04 financial year, New Zealand had contributed $9.8 million in humanitarian assistance for Iraq. In response to a United Nations Security Council request, in September 2003 New Zealand also deployed a defence force engineering group of 61 to undertake humanitarian and reconstruction work in southern Iraq.

New Zealand supports the Bonn Process under which Afghanistan is returning to constitutional democratic government. New Zealand has been involved continuously in security efforts in Afghanistan since late 2001, supporting both the International Security Assistance Force and Operation Enduring Freedom.

In September 2003, New Zealand took command of the Provincial Reconstruction Team (PRT) in Bamian (200km north west of Kabul), involving about 100 New Zealand Defence Force personnel drawn from the three services. PRTs are designed to assist the Afghanistan Transitional Authority extend its influence beyond Kabul. The focus is on enhancing the security environment and promoting the reconstruction effort. In addition, New Zealand had contributed $4.6 million of humanitarian assistance at the end of 2003.

New Zealand has significant economic interests in the Middle East. The region is a valuable market for New Zealand wool, dairy products, meat and, increasingly, manufactured goods and services. The Middle East is an important source for New Zealand's crude oil, polymers and fertilisers. In the year ending 30 June 2003, New Zealand exports to the region totalled $944 million, while imports for the same period were $1,400 million.

New Zealand has embassies in Saudi Arabia (Riyadh), Turkey (Ankara) and Iran (Tehran), and accreditations to Afghanistan, Bahrain, Egypt, Israel, Jordan, Kuwait, Oman, Qatar, and the United Arab Emirates. New Zealand embassies in Paris and Madrid are accredited to Algeria and Morocco respectively. The New Zealand Consulate-General in Dubai is also the regional office for New Zealand Trade and Enterprise.

Sub-Saharan Africa

New Zealand's official relations with Sub-Saharan Africa are in the main with the Commonwealth countries of southern and eastern Africa, with South Africa being the most substantial. There is a strong humanitarian focus to many of these relationships.

New Zealand has a long-standing involvement in development cooperation in Africa through its official development assistance programme. The focus of the programme is on primary and non-formal education, rural development and primary health care. There is also provision for short-term technical assistance and support for New Zealand non-government organisations (NGOs), including Volunteer Service Abroad. Expenditure on all facets of development assistance, including scholarships, during 2003 was $12.04 million.

New Zealand is also participating in the United Nations (UN) peacekeeping mission in Sierra Leone and in the UN demining programme in Mozambique.

Trade with Sub-Saharan Africa accounts for only a small proportion of New Zealand's global trade, with exports valued at around $250 million in the year ending 30 June 2003. Among major exports to the region were dairy, fish and other food products, casein and electrical equipment. Imports included petroleum products, iron and steel, vehicles and parts, tobacco, coffee and wine. In 2003, South Africa and Mauritius were New Zealand's most important markets in Sub-Saharan Africa. New Zealand has one mission in Africa, the office in Zimbabwe being closed in 2000. The New Zealand High Commission in Pretoria, South Africa, is accredited to 10 other southern and eastern African countries, Botswana, Kenya, Lesotho, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe. The New Zealand High Commission in London is responsible for relations with Nigeria.

4.2 Assistance to developing countries

Overview

The New Zealand Agency for International Development (NZAID) is the New Zealand agency responsible for international assistance to developing countries. New Zealand aid helps to eliminate poverty through development partnerships, particularly in regions of the Pacific. NZAID also supports projects in Asia, Africa and Latin America. NZAID concentrates its development assistance on activities that help fulfil basic needs, that achieve sustainable livelihoods and development, and that ensure safe and inclusive societies.

As Table 4.01 shows, NZAID's programme for the 2002/03 financial year exceeded $230 million. Figure 4.02 compares New Zealand's net official development assistance as a percentage of GDP with other countries.

Table 4.01. Spending on New Zealand aid programmes
Year ending 30 June 2003

ProgrammeSpendingProportion of total
Source: NZAID
 $(million)Percent
Pacific75.44633
Multilateral72.27031
Asia29.65713
Voluntary agencies19.5139
Scholarships16.0617
Other bilateral10.2614
Africa and the Americas6.9743
    Total230.182100

NZAID pursues its development objectives in the context of New Zealand's obligations to protect and promote the achievement of human rights as recognised by international instruments, standards and principles. NZAID's programme is divided for financial and administrative purposes into two broad schedules of activities: bilateral and multilateral.

Bilateral schedule

New Zealand's bilateral aid schedule is dominated by direct assistance on a country-to-country basis in the form of development projects and activities. This schedule includes a number of regional programmes which serve groups of bilateral partner countries; scholarship programmes for overseas students funded independently of the bilateral country programmes; the work of Volunteer Service Abroad (VSA) and non-government organisations (NGOs) working at grassroots levels in developing countries; and contributions for emergency and disaster relief operations, both government-to-government and through international agencies.

Figure 4.02. Net official development assistance
As proportion of gross national product Years ending 31 December1

Net official development assistanceAs proportion of gross national product Years ending 31 December1

Bilateral country and regional programmes are developed on a three-year rolling basis, with each year's programmes containing a mixture of continuing activities and new proposals. Development assistance is provided in many sectors, including agriculture, communications, conservation and environment, education and training, energy, fisheries, forestry, health, industry, public sector reform, social infrastructure, tourism, transport, water resources and gender development. The South Pacific has been a focal area for New Zealand's aid programme, with a regional approach to development strongly supported. In addition to programmes that span the region, support continues to be provided to key regional organisations. In 2002/03 these included the Foreign Investment Advisory Service; the South Pacific Project Facility; the Pacific Financial Technical Centre; the Pacific Islands Forum Secretariat; the Secretariat of the Pacific Community; the Forum Fisheries Agency; the University of the South Pacific; the South Pacific Regional Environment Programme; the South Pacific Applied Geoscience Commission; and the South Pacific Board for Educational Assessment.

In addition to its bilateral country programmes, New Zealand provides regionally-focused assistance to the Pacific in education, health, environment, governance, law and justice and gender issues, agriculture, fisheries, and trade and economic projects.

Scholarships. NZAID funding for non-bilateral scholarship schemes totalled approximately $16 million in 2002/03. These schemes comprised the Postgraduate Scholarships Scheme, the Commonwealth Scholarships Scheme, the Aotearoa Scholarships Scheme, the Geothermal Diploma Course, and dependants' fees scholarships.

Emergency and disaster relief. NZAID support for emergency and disaster relief programmes in 2002/03 totalled $35.46 million. Of this, 9 per cent was directed towards meeting emergency and disaster needs in the Pacific. This support covered immediate emergency assistance, reconstruction activities and preventative programmes through international agencies, New Zealand non-government organisations and their overseas partners, international non-government organisations, and partner governments. Support fell into the following main categories:

  • Annual core funding of United Nations humanitarian agencies: $2.85 million.

  • Annual core and programme funding of the International Committee of the Red Cross, the International Federation of the Red Cross, and the New Zealand Red Cross: $732,000.

  • Support for preventative programmes in the Pacific: $300,000.

  • Funding through New Zealand non-government organisations and their partners overseas: $5.58 million.

  • Direct response to emergency and disaster situations: $12.51 million.

Non-government organisations. A strategic policy framework for NZAID and New Zealand non-government organisations (NGOs) sets out principles, undertakings and guidelines for funding, policy development and information exchange. Strengthening civil organisations in partner countries is a key feature of NZAID's work. Relationships include long-term engagement with NGOs in Papua-New Guinea, Fiji, Samoa, Tonga and Indonesia. Support is provided to NGOs and community groups through small-project funds for rural development and local capacity building. In 2003/04, New Zealand-based NGOs directed more than $10 million from the Voluntary Agency Support Scheme (VASS) to partners overseas for community development work. Nine organisations received VASS funding on a block grant basis. These agencies select projects within the scheme's criteria and report on an annual basis. A number of other agencies received grants on a project-by-project basis. A further $5.58 million in emergency and disaster relief was disbursed by VASS though New Zealand NGOs to partners overseas. These funds provided support for emergency relief for victims of natural disasters, as well as for people affected by armed conflict. Volunteer Service Abroad, the Council for International Development, the Development Resource Centre (commonly known as Dev-Zone) and Trade Aid also received core funding.

Volunteer Service Abroad sends New Zealand volunteers to share their skills in developing regions of the world.

Multilateral schedule

The New Zealand Government is committed to multilateral approaches to global aid issues. In this context, the multilateral agencies and programmes of the United Nations, the Commonwealth, the World Bank and the Asian Development Bank, as well as a range of other international bodies, provide key vehicles for the distribution of aid.

Multilateral agencies and programmes provide a proven and effective means for New Zealand to address poverty, conflict, governance issues and humanitarian crises worldwide.

NZAID participated in two major global forums during 2002/03. These were the Financing for Development Conference (FfD) in Monterrey and the World Summit on Sustainable Development (WSSD) in Johannesburg. The ‘Monterrey Consensus’ which emerged from FfD included commitments to substantially increase aid levels, as well as working for better coherence between aid, international trade, private investment flows and initiatives to reduce the debt burden of development countries.

The first steps were taken in 2002 to use NZAID's Multilateral and Regional Agencies Assessment Framework to assess the impact of current engagements with multilateral agencies, the effectiveness of the agency, the fit with NZAID policies and priorities, and the value for money to the New Zealand taxpayer.

4.3 International organisations

United Nations

New Zealand was a founding member of the United Nations (UN) in 1945 and successive governments have strongly supported it as the major global instrument for maintaining peace and security, for developing friendly relations among countries, for encouraging international cooperation aimed at solving economic and social problems, for establishing and strengthening an international legal framework, and for promoting respect for human rights. The range and complexity of the functions of the UN and its specialised agencies have grown steadily during the years and 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 is a strong advocate of international law and is actively engaged in the global debate on peace and security issues, disarmament, conflict prevention, sustainable development, the environment, and the promotion of human rights. New Zealand is a member of the International Law Commission, the Statistical Commission of the Economic and Social Council of the United Nations and the Committee of Experts on the Transport of Dangerous Goods.

Contributions to the United Nations. Contributions to the United Nation's budget are based on members' capacity to pay. New Zealand contributed annual dues to the United Nations of $8.03 million for the regular budget in 2003 and $10.53 million for the peacekeeping budget for 2002/03. New Zealand's level of assessment for 2003 was 0.241 percent of the UN budget. Contributions to budgets of specialised United Nations agencies vary, with assessments fixed according to scales agreed by members of each agency.

Human rights. As a party to international human rights instruments, New Zealand is required to report regularly to UN monitoring bodies on measures it has taken to give effect to international standards.

During 2003, New Zealand submitted its second periodic report under the UN Convention on the Rights of the Child; its third periodic report under the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; its second periodic report under the International Covenant on Economic, Social and Cultural Rights; and the 12th, 13th and 14th consolidated reports under the International Convention on the Elimination of All Forms of Racial Discrimination. The fifth periodic report for the Convention on the Elimination of All Forms of Discrimination Against Women is being prepared by the Ministry of Women's Affairs.

At the 2003 sessions of the UN Commission on Human Rights and the Third Committee of the UN General Assembly, which both dealt with civil, political, economic, social and cultural rights issues, New Zealand supported resolutions addressing a wide range of international human rights concerns, in particular women's and children's rights; the rights of people with disabilities; and human rights treaty issues. New Zealand has also been actively involved in international initiatives focusing on indigenous people.

Specialised agencies. There are many subsidiary, specialised or otherwise-related agencies of varying sizes within the UN system, some with independent secretariats, budgets and operations. New Zealand is a member of all the major specialised agencies and of a number of related bodies. Among the largest is the Food and Agricultural Organisation, which aims to raise levels of nutrition and global living standards, to promote agriculture and food security and to expand the world economy. The World Health Organisation seeks attainment by all people of the highest possible levels of health. The International Labour Organisation (ILO) seeks to improve working and living conditions, while the UN Educational, Scientific and Cultural Organisation seeks to increase international cooperation through education, science and culture.

In 2003, New Zealand served on the governing bodies of the UN Environment Programme, the ILO and the World Meteorological Organisation. For the first time, New Zealand was elected to the World Heritage Committee in 2003. The committee is responsible for implementing the World Heritage Convention to which New Zealand became a party in 1984. Parties to the convention - 176 countries - agree to protect their natural and cultural heritage.

From 2002 to 2004, New Zealand was a member of the board of governors of the International Atomic Energy Agency, which is not a specialised agency but an independent intergovernmental organisation under the aegis of the UN. Also in this category is the Organisation for the Prohibition of Chemical Weapons, on whose executive council New Zealand is serving from 2004 to 2006.

World Trade Organisation

The World Trade Organisation (WTO) is the only international organisation dealing with rules of trade among nations. It acts as a single institutional framework over the General Agreement on Tariffs and Trade (GATT) and over the multilateral agreements that resulted from the Uruguay Round of trade negotiations between 1986 and 1994.

The GATT came into force in 1948. Its basic aim was to help trade flow as freely as possible by removing obstacles and increasing transparency, thereby contributing to international economic growth and development. By the time the WTO came into force on 1 January 1995, the GATT's contracting parties accounted for about 90 percent of world trade.

The WTO provides both a code of rules and a forum in which the 142 countries who belong to the organisation can discuss and address trade problems, and negotiate and enlarge world trading opportunities. It is based on the premises that the trading system should be:

  • 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. A second non-discrimination principle is ‘national treatment’, which requires that imported products are treated no less favourably than domestic products with respect to internal taxes, regulations and other requirements.

  • Freer - Barriers such as tariffs should progressively come down through negotiations.

  • Predictable - Businesses should be confident that trade barriers, including tariffs, non-tariff barriers and other measures, will not be raised arbitrarily. This is achieved by members making binding commitments not to raise trade barriers beyond current levels.

  • Transparent - Less transparent instruments, such as quotas and import licensing, are discouraged in favour of protection in the form of tariffs.

  • More competitive - Unfair practices, such as export subsidies and dumping products below cost to gain market share, are discouraged.

  • More beneficial to less developed countries - Developing countries are allowed more time to adjust, greater flexibility and special privileges to help them in their development objectives.

Eight rounds of multilateral trade negotiations were held under the auspices of the GATT, each with the aim of liberalising trade between 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 WTO, the Uruguay Round:

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

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

  • Extended the multilateral trading system to 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 the protection and enforcement of intellectual property rights.

  • Further reduced tariffs on goods.

Former New Zealand Prime Minister Mike Moore was appointed Director-General of the WTO in 1999. He was succeeded in September 2002 by Dr Supachai Panitchpakdi, former deputy Prime Minister of Thailand.

The highest decision-making level in the WTO is the Ministerial Conference, which meets every two years to make decisions on matters under WTO agreements. The Ministerial Conference that took place in November 2001 in Doha, Qatar, launched a new round of negotiations with the aim of concluding them by 1 January 2005. The new round was termed the Doha Development Agenda, to acknowledge the importance of development issues to the achievement of further trade liberalisation.

Key provisions in the Doha ministerial declaration included agreement to negotiate to improve market access for agricultural and non-agricultural products and services, new mandates to negotiate to reduce fishing subsidies, and recognition of the relationship between WTO trade rules and multilateral environmental agreements. The declaration also contained a reference to the work of the International Labour Organisation and to avoidance of mandates that could weaken critical WTO disciplines, such as the Sanitary and Phytosanitary Agreement.

The subsequent Ministerial Conference was held in Cancun, Mexico, from 10 to 14 September 2003 to take stock of progress in the round and provide any necessary political guidance. The conference failed to reach agreement on key issues, however. It was agreed, therefore, that the WTO General Council in Geneva would meet at senior officials' level no later than 15 December 2003 to take the action necessary to enable negotiations to move towards a successful and timely conclusion. In the absence of a consensus at this meeting, chair Perez del Castillo outlined areas where agreement looked possible and suggested the way forward, based on his consultations with members in the previous three months. It was left to incoming negotiating groups, formed in February 2004, to take the issues further

World Bank

The World Bank group consists of five closely-associated financial institutions: 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). New Zealand is a member of the IBRD, the IDA, the IFC and the ICSID.

The common objective of the institutions is to fight poverty and to improve living standards in developing countries by financing specific country-based and regional activities. These cover sectors such as health, education, social development, private sector development, gender, environment, and infrastructure development. Total new lending in the 2003 financial year was approximately US$18.5 billion.

The IDA provides highly concessional resources to low-income countries and US$7.3 billion was lent in 2003, compared with US$4.4 billion in 2000. New Zealand makes contributions to periodic replenishments of the IDA and in 2001 New Zealand made a commitment of NZ$36.5 million, payable over six years, amounting to a 0.12 percent share of total donor funding. New Zealand is currently participating in negotiations to contribute to the next replenishment.

New Zealand has also contributed approximately NZ$6 million to the IDA and International Monetary Fund (IMF) trust fund for Heavily Indebted Poor Countries (HIPC). These trusts give resources to heavily indebted poor countries to help relieve their debt servicing burdens to the IMF and the IDA. Twenty-six of the 38 countries eligible for debt relief currently receive assistance.

Asian Development Bank

The Asian Development Bank (ADB) is a regional development bank established in 1965. It has 63 members, of which 45 are in Asia and the Pacific. The ADB's goal is to reduce poverty in the region through sustainable economic growth, social development and good governance. New Zealand holds 54,340 shares in the ADB, about 1.56 percent of the bank's voting share.

New Zealand also makes contributions to the periodic replenishment of the ADB's Asian Development Fund (ADF), the bank's concessional lending facility for its poorest developing member countries.

In November 2000, the New Zealand Government approved a contribution of NZ$39.6 million payable over seven years. The total replenishment level was US$2.79 billion, to be shared among 25 donors. The contribution represented an increase in New Zealand's share of the total replenishment from 0.65 percent to 0.7 percent and was partly based on an increasing level of responsiveness from the bank to meeting the development needs of Pacific developing member countries. New Zealand is currently participating in negotiations to contribute to the next replenishment.

Commonwealth

The Commonwealth has 53 member countries representing approximately 1.7 billion people across the globe. New Zealand was a founding member of the Commonwealth in 1931 and has long been involved in a wide range of Commonwealth activities - the Empire or Commonwealth Games have been held in New Zealand three times.

Commonwealth policies and activities are decided at biennial meetings of Commonwealth Heads of Government (CHOGM). New Zealand was host to CHOGM in 1995.

Most activities are executed through the Commonwealth secretariat in London. Former New Zealand Minister of Foreign Affairs and Trade Don McKinnon was appointed Commonwealth Secretary-General in 1999 and re-elected for a second term in 2003.

New Zealand is the sixth largest contributor to the Commonwealth secretariat by volume and one of the eight largest contributors to combined Commonwealth funds. New Zealand actively promotes the Commonwealth's core beliefs and principles. Since 1992, New Zealanders have participated in numerous missions to observe elections in member countries, including South Africa in 1994, Zimbabwe in 2000 and 2002, Fiji in 2001 and Pakistan in 2002. The Commonwealth Ministerial Action Group (CMAG) functions as the Commonwealth's watchdog on democracy and was established in Millbrook, New Zealand, in 1995. New Zealand served on CMAG from 1995 to 1999. Countries currently on CMAG's agenda are Pakistan (suspended from the councils of the Commonwealth since 1999) and Fiji.

Organisation for Economic Co-operation and Development

The Organisation for Economic Co-operation and Development (OECD) - which New Zealand joined in 1973 - is a forum for democratic and market-oriented economies to study and develop economic, social, environment and development policies with the ultimate aim of fostering prosperity and sustainable development.

The OECD works on almost all of the key economic, social and development issues on the international agenda. Its work programme includes projects on growth and innovation, agricultural policy reform, employment and social inclusion, sustainable development, ageing populations, education, information and communications technology, health care issues, and global trade liberalisation. Its staff are among the world's leading authorities in many of these areas.

Based in Paris, the OECD has 30 members: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom and the United States.

The OECD has extensive cooperation programmes with key non-member countries, including China, Russia and Latin American countries. Also of central importance is its programme of contact with non-government organisations and the broader society to explain how the OECD's goals and activities are designed to promote the economic well-being of all citizens in both developed and developing countries.

In April 2003, New Zealand Prime Minister Helen Clark chaired the OECD's highest level annual meeting, the Ministerial Council.

New Zealand is a member of the International Energy Agency (IEA), an autonomous body within the OECD framework. The primary focus of the IEA is on oil security among members, but its programme embraces a wide range of energy issues. New Zealand is also a member of the Financial Action Task Force (FATF), an independent body housed in the OECD dedicated to combating money laundering and terrorist financing.

4.4 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 about 1,500. The central atoll, Nukunonu, is 92 kilometres from Atafu and 64 kilometres from Fakaofo. Western Samoa is 480 kilometres to the south.

The British Government transferred administrative control of Tokelau (then known as the Union Islands) to New Zealand in 1925. Formal sovereignty was transferred to New Zealand in 1948 by an act of the New Zealand Parliament. New Zealand statute law, however, does not apply to Tokelau unless it is expressly extended. 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 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 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 administration of the executive government of Tokelau. Under a programme of constitutional change agreed in 1992, the role of Tokelau's political institutions have been better defined and expanded. This process was formalised in January 1994 by delegation of the administrator's powers to the General Fono (National Parliament), and the Council of Faipule (now the Council for Ongoing Government) when the General Fono is not in session.

In 1996, the formal step of devolving legislative power was taken. With passage of the Tokelau Amendment Act 1996 by the New Zealand parliament, the General Fono has been able, since 1 August 1996, to exercise rule-making power. This power has been used primarily to manage 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 portfolios they hold represent 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 independent law-making power.

As part of the recent Modern House of Tokelau Project, the administrator's powers were delegated from the General Fono to the three village councils (Taupulega) in June 2004. The aim of the delegation to village council was to put in place a governance system that was functional in the local setting, blending the modern with the traditional. The challenge was to devise a structure which properly establishes the village as the focus of social and economic activities, that delivers services within the village, and that integrates traditional decision-making processes with modern advice and support.

A review of Tokelau public services carried out in 2003 has seen agreement by the General Fono to shift responsibility for public services away from the national office in Apia back to the three atolls. Village councils and public service agencies will work closely to ensure a good standard of public service delivery is maintained on the atolls. The national office in Apia will be restructured to enhance its capability to deliver services on a national basis, and to provide a liaison point for international issues.

In October 2003, the General Fono instituted a number of constitutional and law changes, including the decision that the Council of Faipule would be renamed the Tokelau Council for Ongoing Government. The new council comprises six members, the three Faipule and the three Pulenuku (village mayors). The position of Ulu o Tokelau (Leader of Tokelau) will continue to rotate on a yearly basis among the three Faipule. The General Fono has also agreed to formally explore the option of Tokelau seeking self-determination in free association with New Zealand.

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 the three widely separated communities. For these reasons, Tokelau relies substantially on external financial support, primarily from New Zealand.

Nonetheless, the development of government structures at the national and village levels has promoted a clear wish for Tokelau to be self-reliant to the greatest extent possible and on 1 July 2003, control of Tokelau's budget was handed over to the General Fono.

Ross Dependency

The Ross Dependency consists of the land, permanent ice-shelf and islands of Antarctica below 60° South and between 160° East to 150° West. New Zealand's Antarctic territory, therefore, comprises the Ross Ice Shelf, the Balleny Islands, Scott Island, and the landmass and adjacent islands within these longitudes to the point of their convergence at the South Pole. The land is almost entirely covered by ice and is uninhabited except for people conducting or supporting scientific research programmes. New Zealand operates a permanent scientific research station, Scott Base, on Ross Island in the dependency. New Zealand has exercised jurisdiction over the dependency since 1923, when an Imperial Order-In-Council vested in the New Zealand Governor-General executive and legislative power in respect of the dependency.

New Zealand has committed to the international governance of Antarctica through the Antarctic Treaty System (ATS), which consists of the 1959 Antarctic Treaty and associated agreements. The treaty system's primary purpose is to ensure Antarctica is used only for peaceful purposes and that it does not become the scene or object of international discord. It designates Antarctica as ‘a natural reserve, devoted to peace and science,’ promotes international scientific cooperation and bans mining, the dumping of nuclear waste and the deployment of military personnel (except in support of peaceful purposes) in Antarctica. Membership of the ATS has grown from the 12 original signatories of the treaty (of which New Zealand was one) to 45 parties, 27 of which have consultative or decisionmaking status. The Antarctic Treaty parties meet regularly to consider issues within its framework, such as scientific and logistic cooperation and environmental protection measures. Anyone seeking to carry out activities in the Ross Dependency, or who depart for Antarctica from New Zealand (notwithstanding their nationality) are required to prepare Environmental Impact Assessments (EIAs) under the Antarctica (Environmental Protection) Act 1994. On the basis of the EIA, the Minister of Foreign Affairs and Trade decides whether the activity may proceed. Permits must also be obtained for certain types of Antarctic activities. Official expeditions of governments which are parties to the Antarctic Treaty are exempt from these requirements.

Fishing in the Ross Sea is conducted consistent with conservation measures adopted by the Commission for the Conservation of Antarctic Marine Living Resources, based in Hobart. New Zealand has conducted exploratory fishing for toothfish in the Ross Sea since 1997.

A No 40 Squadron Hercules delivers supplies to Antarctica.

4.5 Defence

The Governor-General of New Zealand, as Commander-in-Chief of New Zealand, is empowered to raise and maintain 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 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 principal civilian adviser on defence matters to the Minister of Defence and to the government.

The military and civilian advisory roles are complementary. There is considerable overlap on defence, security and New Zealand Defence Force capability issues and this requires close cooperation and consultation between the Ministry of Defence and the New Zealand Defence Force. This coordination takes place on a regular basis through the Office of Chief Executives, which brings the Secretary of Defence and the Chief of Defence Force together to discuss policy issues of mutual interest, and on the Executive Governance Boards, which oversee major New Zealand Defence Force capital equipment and infrastructure projects.

Defence policy

The New Zealand Government's defence policy objectives are set out in The Government's Defence Policy Framework released in June 2000. The five key objectives for New Zealand's defence policy are:

  • To defend New Zealand and to protect its people, land, territorial waters, exclusive economic zone, natural resources and critical infrastructure.

  • To meet New Zealand's alliance commitments to Australia by maintaining a close defence partnership in pursuit of common security interests.

  • To assist in the maintenance of security in the South Pacific and to provide assistance to New Zealand's Pacific neighbours.

  • To play an appropriate role in the maintenance of security in the Asia-Pacific region, including meeting New Zealand's obligations as a member of the Five Power Defence Arrangements.

  • To contribute to global security and peacekeeping through participation in the full range of United Nations and other appropriate multilateral peace support and humanitarian relief operations.

The framework foreshadowed the government's plan to build a modern, professional and well-equipped defence force with the military capabilities necessary across all three services to meet New Zealand's objectives. Figure 4.03 shows New Zealand's principal defence force locations.

The government's blueprint for the New Zealand Defence Force was outlined in The Government Defence Statement - A Modern, Sustainable Defence Force Matched to New Zealand s Needs (8 May 2001).

Key components of the blueprint are:

  • Joint approaches to structure and operational orientation.

  • A modernised army.

  • A practical navy fleet matched to New Zealand's wider security needs. A refocussed and updated air force.

  • A funding commitment.

The New Zealand Defence Force is being reconfigured so that it is sustainable and affordable over the long term. A key aim is to enhance the capabilities of the force across all three services to undertake a range of combat and peace support operations. The government has taken decisions on a number of projects including:

  • The P-3 Orion maritime patrol aircraft mission systems upgrade, and communications and navigation systems upgrades.

  • The C-130 Hercules transport aircraft life extension, and communications and navigation systems upgrades.

  • Acquiring Boeing 757 aircraft to replace Boeing 727 aircraft.

  • Direct fire support weapons (automatic grenade launchers).

  • Medium range anti-armour weapon (Javelin missiles).

  • New ships for the navy.

This will improve the ability of the New Zealand Defence Force both to defend New Zealand's interests and to contribute effectively to international and regional peace and security.

Figure 4.03. Principal New Zealand Defence Force locations

Principal New Zealand Defence Force locations

While New Zealand may not face a direct military threat from another country in the foreseeable future, its interests continue to face a wide range of security challenges. Not all of these challenges are of a military nature. This has been underlined by the terrorist attacks on 11 September 2001, the Bali bombings on 12 October 2002, and subsequent bombings, including those in Jakarta.

The deployment of New Zealand Defence Force personnel to various trouble spots around the world is the most tangible sign of New Zealand's commitment to international peace and security. During 2003, New Zealand Defence Force elements were deployed to Afghanistan, the Arabian Sea and the Gulf of Oman in the fight against terrorism. New Zealand Defence Force personnel were also deployed to Iraq to assist with post-war reconstruction and rehabilitation efforts and to the Solomon Islands as part of the Regional Assistance Mission to the Solomon Islands. This was in addition to longer-standing commitments in the Middle East, the Balkans and Africa.

International defence relationships

Five Power Defence Arrangements. Concern about future security arrangements in the region led to the establishment in 1971 of the Five Power Defence Arrangements (FPDA) involving New Zealand, Australia, Singapore, Malaysia and the United Kingdom. Consultative in nature, the arrangements aim to contribute to the security of Malaysia and Singapore and to the long-term stability of the region. Members take part in a wide-ranging exercise programme that seeks to strengthen the ability of their armed forces to operate with each other. Defence ministers and defence chiefs meet regularly and there is a range of other exchanges. The exercises and contacts which New Zealand has with Malaysia and Singapore and the other partners is an important part of the New Zealand Defence Force's training programme, and one which has expanded significantly in recent years. On the occasion of the 30th anniversary of the FPDA in 2001, the five member countries reaffirmed their commitment to FPDA, recognising the important contribution it continues to make towards enhancing regional security.

Mutual Assistance Programme. Most South Pacific countries and some members of the Association of South-East Asian Nations (ASEAN) participate in the New Zealand Defence Force'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 disciplined 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. 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 the Cook Islands, Tonga, Vanuatu and Malaysia.

Australia. There is no strategic partnership closer than that between Australia and New Zealand. The two countries are bound together by geography and history, by shared values, beliefs and interests, and by the close relationships between their people. The security relationship between Australia and New Zealand is embodied in the concept of Closer Defence Relations (CDR), adopted in 1991 and realised through a programme of cooperative activities designed to give the relationship enhanced practical effect.

ANZUS. The ANZUS security treaty between Australia, New Zealand and the United States came into force in 1952. However, the United States is not prepared to accept restrictions over access to New Zealand ports by nuclear powered or armed ships of the United States Navy and 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 at 31 December 2003

United Nations Truce Supervision Organisation (UNTSO). New Zealand military observers have worked with UNTSO in Israel and neighbouring countries since 1954. They help monitor ceasefires, supervise armistice agreements, prevent isolated incidents from escalating and assist subsequent peacekeeping operations. New Zealand has seven military observers stationed in Israel and Syria with UNTSO.

Cambodian Mine Action Centre. 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 Programme (MADP). New Zealand's commitment to demining efforts in Mozambique began in 1994 and it currently provides two military demining experts, including the chief technical adviser.

Multinational Force and Observers (MFO), Sinai. 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 the MFO, including New Zealand, whose 26-strong contingent comprises a training and advisory team, a heavy transport section, engineers and staff officers.

Former Yugoslavia. The New Zealand Defence Force contributes seven staff officers to fill a range of appointments in the British forces headquarters within the Stabilisation Force (SFOR) in Bosnia. A contingent of 20 more personnel serves with various British units assigned to SFOR on a tour of duty during April to September in Bosnia each year.

The New Zealand Defence Force also maintains two military liaison officers and observers in the former Yugoslavia. One military observer is deployed in Croatia with the United Nations Mission Of Observers in Prevlaka and a military liaison officer is deployed with the United Nations Interim Administration in Kosovo.

New Zealand Defence Force engineers restore water supplies in Al Mufayat, Iraq.

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

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

Following the failure of UNAMET to stop violence in East Timor, the United Nations agreed to sanction a multinational force, INTERFET, to restore order until a United Nations-mandated force could be established.

New Zealand deployed ground troops, a helicopter detachment and naval units in support of INTERFET. The ground troops and the helicopter detachment were subsumed into the United Nations Interim Administration in East Timor (UNTAET) in January 2000.

In May 2002 UNMISET, the successor to UNTAET, stood up. This signalled reductions in the New Zealand troop contribution to Timor Leste. Currently, a small contingent of military observers -approximately 16 at any one time - continue to serve with UNMISET.

Regional Assistance Mission to the Solomon Islands (RAMSI). The RAMSI was deployed to the Solomon Islands following an invitation from Prime Minister Kanaleeza in July 2003.

The RAMSI is an Australian-led mission comprising Australian, Papua New Guinean, Fijian, New Zealand and Tongan foreign affairs and trade representatives, elements of the Australian Defence Force, the New Zealand Defence Force and police officers from Australia, New Zealand and the Pacific Islands.

Headquarters of the RAMSI is in Honiara and team sites are situated primarily on the islands of Guadalcanal and Malaita. The mission provides the framework for stabilising the security situation in the Solomon Islands. New Zealand initially contributed 230 personnel to the mission.

Casualties. There have been five fatalities among New Zealand Defence Force personnel serving in United Nations observer and peacekeeping missions.

Iraq. New Zealand Prime Minister Helen Clark announced on 1 August 2003 that New Zealand Defence Force engineers would be deployed to work alongside United Kingdom forces in southern Iraq. The deployment, for an initial period of 12 months, was to undertake humanitarian and reconstruction tasks consistent with United Nations Security Council resolutions and with New Zealand's policy position.

Community assistance

New Zealand Cadet Forces. Cadet forces comprise the Sea Cadet Corps, Air Training Corps and the New Zealand Cadet Corps. These are community-based youth groups who 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 Royal New Zealand Returned Services' Association.

There were 105 active cadet units at 30 June 2003 with a total strength of 3,300 cadets and 308 officers, compared with 103 units and a total strength of 3,225 cadets and 325 officers at 30 June 2002. The decline in officer strength is attributed to a change in the commissioning process where applicants now receive their commission on successful completion of the commissioning course.

Limited Service Volunteer Scheme. Limited service volunteer training courses have been run by the army at Burnham Camp since 1995, with additional staffing support provided by the navy and air force since 1998. The programme provides young unemployed volunteers with six weeks of residential motivational training, utilising the military culture and environment, outdoor activities and general life skills subjects.

Four hundred volunteers successfully completed training courses in the year ending 30 June 2003, compared with 500 in the previous year.

Disaster relief. The New Zealand 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 and medical supplies; and engineering and communications services.

Fisheries protection. Royal New Zealand Air Force Orion aircraft patrol the New Zealand 200-mile Exclusive Economic Zone. Information from surveillance patrols is passed to the Ministry of Fisheries. Fisheries officers are sometimes aboard aircraft when patrols are conducted. The air force conducted numerous patrols in the New Zealand area and several patrols in the South Pacific during 2003 and 2004.

Search and Rescue. All three New Zealand Defence Force services maintain a search and rescue capability, with naval and air units on 24-hour standby. 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 carries out emergency medical evacuations throughout New Zealand, the South Pacific and Antarctica.

Operation Antarctica. Eighty-nine New Zealand Defence Force personnel support Operation Antarctica in terminal and logistic support operations at Harewood in Christchurch, McMurdo Station Other assistance. Other assistance provided by the New Zealand 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.

A navy Seasprite helicopter winches people off HMNZS Endeavour during a search and rescue exercise.

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 4.02. Table 4.03 compares New Zealand's defence expenditure internationally. Table 4.04 shows numbers of defence force personnel.

Table 4.02. Defence expenditure
Years ending 30 June

Item2000200120022003

- nil or zero

Source: New Zealand Defence Force

 $(000)
Personnel533,437521,191528,721526,104
Operating379,627420,149428,185441,505
Depreciation196,611218,601209,458211,402
Capital charge320,550332,317266,668261,902
Other expenses76,952103,369-23,414
        Total output expenses1,507,1771,595,6271,433,0321,464,327
Less -    
Revenue(30,432)(31,834)(24,059)(21,166)
Surplus/(deficit)(77,924)(102,716)2,431(16,708)
        Subtotal(108,356)(134,550)(21,628)(37,874)
        Crown revenue provided1,398,8211,461,0771,411,4041,426,453

Table 4.03. International comparison of defence expenditure

CountryProportion of GDP

1Estimated.

2 Year ending 30 September. US budget definition differs from NATO definition.

3 Years ending 31 March.

4 Years ending 30 June.

5 Using NATO definition, excluding GST, capital charge and war pensions.

Source: New Zealand Defence Force

 Percent
United States23.93.43.23.02.93.23.13.4
United Kingdom33.43.13.02.72.72.52.42.4
Australia42.22.12.01.91.91.81.92.0
Sweden42.62.52.32.32.12.22.91.8
Canada31.61.51.31.21.31.21.11.2
New Zealand41.41.31.41.41.151.151.151.25

Table 4.04. Defence personnel
At 30 June

YearNavyArmyAir forceTotalCivilians (NZDF and 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
19982,1044,4312,9919,5262,195
19992,0804,4172,8859,3821,912
20001,9674,5132,7869,2661,936
20011,8934,5802,6249,0971,877
20021,9114,4922,1948,5971,879
20031,9694,3882,2458,6021,923

Royal New Zealand Navy

Command and administration. The Chief of Navy exercises full command of the navy. However, the fleet is tasked by the Commander Joint Forces New Zealand through the Maritime Component Commander based at Headquarters Joint Forces New Zealand, at Trentham. The Deputy Chief of Navy, based at the Naval Staff, in Wellington, is responsible to the Chief of Navy for the navy's ‘raise, train and maintain’ functions.

Shore establishments. The naval base at Devonport, Auckland, collectively titled HMNZS Philomel, consists of the navy's main naval barracks, wharf facilities, weapon ranges and administrative units; the Royal New Zealand Naval College, which is the navy's training establishment; the naval hospital; and the naval supply and armament depots. The base also contains the naval dockyard, which is a comprehensive engineering and support facility managed under a commercial management agreement. HMNZS Wakefield is the administrative unit for naval personnel in the Wellington area. There are four Royal New Zealand Naval Volunteer Reserve units in the main centres - HMNZS Ngapona in Auckland, HMNZS Olphert in Wellington, HMNZS Pegasus in Christchurch and HMNZS Toroa in Dunedin. There is also a Port Headquarters in Tauranga. Table 4.05 lists the navy's ships and helicopters and Table 4.06 on page 70 shows navy personnel from 1997 to 2003.

Table 4.05. State of the navy

Ship/helicopter typeNameForce

Note:In early 2002 the government allocated $500m for the purchase of a multi role vessel (MRV), two or three offshore patrol vessels (OPV), and a number of Inshore Patrol Vessels (IPV). The MRV will replace the frigate Canterbury, which is due to be decommissioned in 2005.

Source: New Zealand Defence Force

ANZAC class frigatesTe KahaNaval combat
 Te ManaNaval combat
Leander class frigateCanterburyNaval combat
Logistics (fleet replenishment)EndeavourNaval support
Survey shipResolutionHydrographic support
Diving support shipManawanuiDiving support
Training tenderKahuSea training
Inshore patrol craftHinauMine countermeasure
 KiwiMine countermeasure
 WakakuraMine countermeasure
 MoaMine countermeasure
Kaman Seasprite SH-2G helicopters x 5SeapriteNaval aviation

HMNZS Te Kaha's two RHIBs (Ridged Hull Inflatable Boats) in a training exercise off the New Zealand coast.

Table 4.06. Strength of the navy
At 30 June

Category1997199819992000200120022003

- nil or zero

Source: New Zealand Defence Force

Regular force (all ranks)2,0802,1042,0801,9671,8931,9181,978
Royal New Zealand Naval Volunteer Reserve (all ranks)395397401385385357354
        Total uniformed2,4752,5012,4812,3522,2782,2752,332
Civilian employees--524453434444441
        Total navy2,4752,5013,0052,8052,7122,7192,773

New Zealand Army

The New Zealand 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 United Nations force.

The Chief of Army (CA), under the Chief of Defence Force (CDF), retains full command of the army. The CA is assisted in fulfilling his statutory command requirements by the Army General Staff (Army GS). The Army GS has both a policy formulation and a policy implementation role.

The Land Component Commander (LCC), under the Commander Joint Forces New Zealand (COMJFNZ), commands operational elements of the army. The LCC, through the COMJFNZ, is assigned operational command of the 2nd Land Force Group, with headquarters at Linton, and the 3rd Land Force Group, with headquarters at Burnham, and commands all regular and territorial force units, with the exception of those elements assigned to the Army Training Group (ATG). The ATG, primarily based in Waiouru, reports directly to Army GS and is responsible for the majority of individual training conducted within the army.

Army specialist units, based at Auckland and Trentham, include a Special Air Services Group and a Military Police Company, and are commanded directly by the LCC.

Table 4.07. State of the army

HQ/unitLocationsRole

Note: CSSCombat Service Support, CS Combat Support, TF Territorial Force.

Source: New Zealand Defence Force

Army General StaffWellingtonCommand
HQ Joint Forces NZTrenthamCommand
1 NZ Special Air Services GroupAucklandSpecial forces
Force Military Police CompanyTrenthamCSS
HQ 2 Land Force GroupLintonCommand
16 Field RegimentLintonCS
Queen Alexandra's Mounted Rifles (Armoured Personnel Carriers)WaiouruCombat
1 Royal NZ Infantry RegimentLintonCombat
Auckland Northland RegimentAucklandTF
Wellington West Coast Taranaki RegimentWanganuiTF
Hauraki RegimentTaurangaTF
Wellington Hawke's Bay RegimentNapierTF
2 Engineer RegimentLintonCS
2 Signals SquadronLintonCS
Force Intelligence GroupTrenthamCS
2 Logistics BattalionLintonCSS
2 Health Services BattalionLintonCSS
HQ 3 Land Force GroupBurnhamCommand
2/1 Royal NZ Infantry RegimentBurnhamCombat
Canterbury Nelson Marlborough West Coast RegimentBurnhamTF
Otago Southland RegimentDunedinTF
3 Field TroopBurnhamCS
3 Signals TroopBurnhamCS
3 Logistics BattalionBurnhamCSS
HQ Army Training GroupWaiouruCommand
Land Operations Training CentreWaiouruTraining
Army DepotWaiouruTraining
Officer Cadet SchoolWaiouruTraining
Trentham Regional Support CentreTrenthamStatic support

Table 4.08. Strength of the army
At 30 June

Category1977199819992000200120022003
Source: New Zealand Defence Force
Regular force       
    Officers715725652731742735732
    Other ranks3,6763,7063,7653,7823,8383,7573,656
        Total4,3914,4314,4174,5134,5804,4924,388
Territorial force (all ranks)3,6803,3943,0852,4742,1592,1582,031
        Total uniformed8,0717,8257,5026,9876,7396,6506,419
Civilians801768734723643779687
        Total army8,8728,5938,2367,7107,3827,4297,106

Royal New Zealand Air Force

Command and administration. The Royal New Zealand Air Force is structured to provide a maritime patrol force, a fixed wing transport force and a rotary wing transport force. The Chief of Air Force, supported by the Air Staff, commands the air force.

Organisation. The Air Component Commander within Headquarters Joint Force New Zealand commands the Royal New Zealand Air Force's deployable operational units. The broad range of activities carried out to raise, train and sustain the operational units of the air force is provided under the direction of the Air Staff. Operational flying units are based at RNZAF Base Auckland and RNZAF Base Ohakea. RNZAF Base Ohakea also hosts primary flying training, while most ground training is done at RNZAF Base Woodbourne.

Logistics. Royal New Zealand Air Force logistics services are coordinated by Air Staff with specific levels of aircraft maintenance and supply support performed by operational squadrons and base logistics units. Much of the deeper level repair and overhaul work is contracted to the private sector in New Zealand and overseas. Most RNZAF training aircraft are maintained and supported by private contractor.

An RNZAF Iroquois helicopter on duty with the Regional Assistance Mission to the Solomon Islands (RAMSI).

Table 4.09 lists air force aircraft and Table 4.10 shows air force personnel from 1997 to 2003.

Table 4.09. State of the air force

AircraftLocation 
Source: New Zealand Defence Force
6 OrionsRNZAF Base AucklandMaritime Patrol Force
2 Boeing 757sRNZAF Base AucklandFixed Wing Transport Force
5 HerculesRNZAF Base AucklandFixed Wing Transport Force
14 IroquoisRNZAF Base OhakeaRotary Wing Transport Force
5 SiouxRNZAF Base OhakeaFlying Training
13 CT-4E Air TrainersRNZAF Base OhakeaFlying Training
5 King AirsRNZAF Base OhakeaFlying Training

Table 4.1. Strength of the air force
At 30 June

Category1997199819992000200120022003
Source: New Zealand Defence Force
Regular force       
    Officers640642619596571509508
    Other ranks2,3512,3492,2662,1902,0531,7141,718
        Total2,9912,9912,8852,7862,6242,2232,226
Territorial force (all ranks)180163163161176157155
        Total uniformed3,1713,1543,0482,9472,8002,3802,381
Civilians560528371384411390412
        Total air force3,7313,6823,4193,3313,2112,7702,793

4.6 Disarmament

New Zealand's role in the creation of the United Nations (UN), its opposition to nuclear testing, establishment of a nuclear-free New Zealand, and practical contributions to UN peacekeeping and demining operations, mean that New Zealand's voice on disarmament and arms control is listened to with respect.

New Zealand also exerts influence in cooperation with other like-minded countries, for example through its membership of the New Agenda Coalition (Brazil, Egypt, Ireland, Mexico, New Zealand, South Africa and Sweden), a strong advocate for multilateral progress towards nuclear disarmament.

The Ministry of Foreign Affairs and Trade's Disarmament Division includes five officers responsible for policy and treaty implementation. They prepare advice on disarmament and arms control issues for the Minister for Disarmament and Arms Control, represent New Zealand at international meetings and ensure that New Zealand's international legal obligations are implemented at the national level.

Officers of the ministry based overseas, including an Ambassador for Disarmament, are involved in negotiations and activities with disarmament organisations, mainly in Geneva, Vienna, New York and The Hague.

The government values the views of New Zealand's non-government peace and disarmament groups, whose representatives join official delegations to international meetings to contribute their advice and perspective on the pursuit of New Zealand's disarmament goals.

A statutory body, the Public Advisory Committee on Disarmament and Arms Control (PACDAC) was established under the New Zealand Nuclear Free Zone, Disarmament and Arms Control Act 1987 to:

  • Advise the Minister of Foreign Affairs and Trade on such aspects of disarmament and arms control matters as it thinks fit.

  • Advise the prime minister on implementation of the act.

  • Publish reports on disarmament and arms control matters, and on implementations of the act.

  • Make recommendations for grants from the Peace and Disarmament Education Trust, established from Rainbow Warrior compensation funds.

PACDAC comprises nine members, including the Minister for Disarmament and Arms Control, who is the chair. The other eight are appointed by the Minister of Foreign Affairs and Trade for three-year terms. PACDAC has recently been exploring ways of supporting conflict prevention/resolution initiatives in the South Pacific.

4.7 Intelligence and security

Inspector-General of Intelligence and Security. The Inspector-General of Intelligence and Security assists the prime minister in the oversight and review of the Security Intelligence Service and the Government Communications Security Bureau.

The inspector-general also ensures that each organisation's activities are lawful, and that any complaints about either of them are independently investigated.

The inspector-general is appointed by the governor-general on the recommendation of the prime minister following consultation with the leader of the opposition.

Security Intelligence Service

The New Zealand Security Intelligence Service (NZSIS) is a small government agency with approximately 140 staff, a head office in Wellington and regional offices in Auckland and Christchurch.

Principal functions of the NZSIS are to obtain, correlate and evaluate intelligence relevant to New Zealand's security and to advise ministers on security matters. These functions are outlined in the New Zealand Security Intelligence Service Act 1969 and amendments.

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 enforce measures of security.

The NZSIS reports directly to the Minister in Charge of the NZSIS, traditionally the prime minister, 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 the Inspector-General of Intelligence and Security, and by parliament's intelligence and security committee.

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, including formulation of communications security and computer security policy; promulgation of standards and 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; provision of advice as required by government departments and authorities in relation to official information which, although unrelated to national security, requires protection from disclosure to protect the functions of government, and for privacy, safety and commercial reasons.

  • Critical infrastructure protection-provision of warnings, guidance and coordination of the national response to IT-based threats to New Zealand's critical infrastructures (ie power, telecommunications, emergency services, banking and finance, transport and government) through operation of a Centre for Critical Infrastructure Protection.

  • Technical security - providing defence against eavesdropping and other forms of technical attack against New Zealand Government premises worldwide.

  • Signals intelligence - providing foreign signals intelligence to meet the national intelligence requirements of the New Zealand Government.

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

External Assessments Bureau

Part of the Department of the Prime Minister and Cabinet, the External Assessments Bureau (EAB) 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.

Table 4.11 lists annual expenditure on the three intelligence and security agencies since 1993.

Table 4.11. Expenditure on intelligence and security agencies
Years ending 30 June

YearEABNZSISGCSB
Sources: External Assessments Bureau New Zealand Security Intelligence Service Government Communications Security Bureau
  $(000) 
19932,25610,30420,967
19942,2899,98719,279
19952,1219,96419,498
19962,2169,96419,496
19972,27410,51418,506
19982,28710,58319,083
19992,29211,50021,289
20002,46210,95619,327
20012,54111,69020,119
20022,70913,51823,223
20033,12916,49329,169

Contributors

  • 4.1 - 4.4 Ministry of Foreign Affairs and Trade.

  • 4.5 New Zealand Defence Force.

  • 4.6 Ministry of Foreign Affairs and Trade.

  • 4.7 Department of the Prime Minister and Cabinet; New Zealand Security Intelligence Service; Government Communications Security Bureau; External Assessments Bureau.

Websites

www.asia2000.org.nz - Asia 2000 Foundation of New Zealand

www.vuw.ac.nz - Institute of Policy Studies

www.dpmc.govt.nz - Intelligence and Security

www.defence.govt.nz - Ministry of Defence

www.mfat.govt.nz - Ministry of Foreign Affairs and Trade

www.army.mil.nz - New Zealand Army

www.nzdf.mil.nz - New Zealand Defence Force

www.mfat.govt.nz/nzoda/nzoda.html - New Zealand Official Development Assistance (NZODA)

www.airforce.mil.nz - Royal New Zealand Air Force

www.navy.mil.nz - Royal New Zealand Navy

www.stats.govt.nz - Statistics New Zealand

www.vsa.org.nz - Volunteer Service Abroad

Chapter 5. Population

Current projections are for New Zealand's estimated resident population to peak at 4.81 million around 2046.

5.1 Population growth

The population of New Zealand reached 500,000 in 1880, boosted by the introduction of government-assisted immigration. The first million was passed in 1908, following economic recovery from the depression of the 1880s and 1890s. In the aftermath of World War II, the growth rate climbed dramatically, compared with stagnation in the early 1930s, as the baby boom and increased immigration took effect. 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. Nearly 20 percent of the population growth during this period came from net immigration. According to the estimated resident population of New Zealand, the four million milestone was reached in April 2003. Nearly all the population growth from three to four million was due to natural increase, with migration not contributing significantly.

Figure 5.01 compares the historical and projected growth of New Zealand's population to 2051.

Figure 5.01. Population growthHistorical and projected1

Population growthHistorical and projected1

Future demographic trends

Population trends can be difficult to predict because demographic changes affect and, in turn, are influenced by social, economic, political and other circumstance

However, demographic projections are generally more reliable than other types of forecasts for several reasons. Firstly, despite the range of influences that can impact on it, population change is fundamentally driven by births, deaths and net migration (arrivals minus departures). Secondly, birth and death rates are generally consistent over several years, especially for larger geographical areas, barring major catastrophes, wars or epidemics. Thirdly, three-quarters of New Zealand's population in 20 years time is already living. With the uncertainty of the births component removed, only migration and death can change the live population.

Some broad future trends and structural changes can be identified. For example, population ageing and sub-replacement fertility in New Zealand have raised the prospect of a slow-growth or no-growth environment in coming decades. The entry of large baby boom cohorts into retirement ages after 2010 will result in a burgeoning 65+ population. New Zealand's workforce will take on an older profile. Latest projections also point to greater ethnic diversity in the future, with Maori, Pacific and Asian populations all expected to increase their share of the New Zealand population.

Within the national scene there will be contrasting population changes, with a further concentration of population in the northern North Island likely.

Table 5.01 shows the growth in New Zealand's population as measured by Censuses of Population and Dwellings.

Table 5.01. New Zealand population By census

Census12PopulationIntercensal increaseAverage annual increase

1Omits censuses of 1851, 1864, 1867 and 1871 as censuses of Maori population were not taken in these years.

2Figures from 1981 onwards are census usually resident population counts, replacing census night population counts used previously. ... not applicable

Note:All figures randomly rounded to base 3.

Source: Statistics New Zealand

 NumberNumberPercentPercent
1858, 24 December115,461........
1874, 1 March344,985.........
1878, 3 March458,007113,02232,767.33
1881, 3 April534,03076,02316.605.10
1886, 28 March620,45186,42116.183.06
1891, 5 April668,65248,2017.771.50
1896, 12 April743.21474,56211.152.13
1901, 31 March815,86272,6489.771.90
1906, 29 April936,309120,44714.762.75
1911, 2 April1,058,313122,00413.032.52
1916, 15 October1,149,22590,9128.591.50
1921, 17 April1,271,667122,44210.652.27
1926, 20 April1,408,140136,47310.732.06
1936, 24 March1,573,812165,67211.771.13
1945, 25 September1,702,329128,5178.170.83
1951, 17 April1,939,473237,14413.932.37
1956, 17 April2,174,061234,58812.102.31
1961, 18 April2,414,985240,92411.082.12
1966, 22 March2,676,918261,93310.852.11
1971, 23 March2,862,630185,7126.941.35
1976, 23 March3,129,384266,7549.321.80
1981, 24 March3,143,307.........
1986, 4 March3,263,283119,9763.820.76
1991, 5 March3,373,926110,6433.390.67
1996, 5 March3,618,303244,3777.241.41
2001, 6 March3,737,277118,9743.290.65

Projected population

Projections given in this chapter draw on series 4 of the 2001-base national population projections. These projections assume that New Zealand women will average 1.85 births each (below the 2.1 children required for the population to replace itself without migration); life expectancy at birth will increase by about six years between 2001 and 2051 to reach 82.5 years for males and 86.5 years for females; and there will be a net migration gain of 5,000 people each year from 2007 onwards.

Given this scenario, the New Zealand estimated resident population is projected to pass the 4.5 million mark by 2021 and then peak at 4.81 million around 2046. The population is then projected to slowly decline, as deaths outnumber the combined effect of births and the net migration gain.

The number of people in New Zealand aged 65 and over is expected to more than double in the 50 years to 2051.

The pace of growth is not likely to be uniform. Growth is expected to average 1.2 percent a year between 2001 and 2006, 0.5 percent a year during the 2020s and just 0.1 percent a year during 2036-2041. The age structure of New Zealand's population will undergo significant changes as a result of past and likely future changes in fertility, improvement in longevity and a change in migration patterns. Overall, the population will take on an older profile. The median age (half the population is younger and half the population is older than this age) is projected to rise from 35 in 2001 to 38 by 2011 and to 45 in 2051 as the large number of people born in the 1950s to 1970s enter retirement ages (see Table 5.02).

Table 5.02. New Zealand population projections12

Categories200120112021203120412051

1Base: 30 June 2001.

2Medium projection (series 4).

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

Age group (at 30 June)  (000)  
All ages3,8804,2484,5064,7144,8074,807
        0-14 years877822791809777752
        15-39 years1,3891,4401,4751,4241,3791,371
        40-64 years1,1541,4101,4471,4331,4581,466
        65 years and over4615777921,0481,1941,217
Components of population change (years ending 30 June)  (000)  
Births565154525050
Deaths273034415057
Net migration-955555
Annual population change202725164-3
Median age (at 30 June)  In Years  
Age353840424445
Dependency ratio (at 30 June) Per 100 people aged 15-64  
        0-14 years342927282727
        65 years and over182027374243
        0-14 and 65 years and over534954656969

Age groups. The number of children (0-14 years) is projected to drop by about one-seventh to around 750,000 by 2051. They will then make up 16 percent of the population, compared with 23 percent in 2001. By contrast, there will be unprecedented growth in the number of New Zealanders in older ages (65 and over). Their number will more than double, from 460,000 in 2001 to 1.22 million in 2051. By then, 25 percent of the population will be aged 65 and over, up from 12 percent in 2001. As figure 5.02 shows, the largest increases in the 65 and over age group will occur in the decades ending in 2021 (216,000) and 2031 (256,000) when the ‘baby boomers’ move into this age group. In 2001, there were about two children for every person aged 65 and over. By the early 2020s, there will be about equal numbers of children and older people, but by 2051 there are projected to be about three older people for every two children. The 65 and over age group itself will age. The number of New Zealanders aged 90 and over is projected to grow from 15,000 in 2001 to nearly 140,000 in 2051. They will then make up 11 percent of the 65 and over population, compared with 3 percent in 2001. The working-age population (15-64 years) is projected to increase by about 290,000 (12 percent) to 2.8 million by 2051. But its share of the total population will shrink from 66 percent to 59 percent by the late 2030s and then remain about this level. The workforce will take on an older profile in the future. In 2001, those aged 40-64 made up 45 percent of the working-age population, a figure projected to increase to 50 percent after 2011. The median age of the working-age group is projected to increase from 38 years in 2001 to 40 years in 2011 and then remain between 40 and 41 for the next four decades.

The 2001 Census recorded 25 percent of women aged 65-69, and about 20 percent of men, actively involved in voluntary work.

Figure 5.02. Change in population aged 65 and over Historical and projected1

Change in population aged 65 and over Historical and projected1

Educational ages. While numbers in the various educational age groups are projected to fluctuate in the future, there will be a general downward trend in all groups. The fluctuations mainly reflect changes in births in preceding years and are likely to have significant impacts on the demand for teachers and other educational resources. Note, however, that the projected numbers refer to the New Zealand resident population. Between 2001 and 2021, the primary school age population (5-12 years) will drop by 63,000 (13 percent) to 417,000. This compares with a peak of 503,000 in 1975. Further decreases will mean that by 2051 there will be 80,000 fewer primary school age children than in 2001. The trend in the secondary school age population (13-17 years) is similar to that for the primary school age population, except that the peaks and troughs of the secondary school population lag behind those of the primary school age population by about six years. The secondary school age population is projected to increase from 283,000 in 2001 to 318,000 in 2006. Then the number will drop by 50,000 to 268,000 in 2026. By 2051, the secondary school age population will number 264,000, about 59,000 fewer than the 1976 peak. Peaks and troughs in the tertiary age population (18-22 years) lag those of the secondary school age population by about five years. During the decade ending 2011, there will be an increase of 66,000 to a peak of 335,000, partly driven by inflows of students from overseas. This will be followed by drops of 27,000 and 23,000 in the next two decades, and smaller changes thereafter. Figure 5.03 shows the projected population in each of the three educational age groups to 2051.

Figure 5.03. Population in educational age groupsHistorical and projected1

Population in educational age groupsHistorical and projected1

Ethnic and cultural diversity. New Zealand has been ethnically and culturally connected to Polynesia for at least 1,000 years. Its population and cultural heritage 200 years ago was wholly that of Polynesia, but it is now dominated by cultural traditions that are mainly European, emanating especially from the British Isles.

About 79 percent of New Zealanders are of European ethnicity. The indigenous Maori ethnic group makes up the next largest group of the population, about 14.1 percent in 2001. The other main ethnic groups are Asian and Pacific peoples, who made up 6.6 and 6.5 percent respectively of the resident population count at the 2001 Census. The ethnic and cultural composition of New Zealand has been shaped and reshaped by three main demographic processes: international migration, natural increase and inter-marriage. The most important of these processes has been international migration.

Ethnic population information presented in this chapter is based on the concept of self-identification. Each ethnic group includes people who identify with that ethnic group either solely or in conjunction with other ethnic groups, but excludes people who have ancestry but do not identify with that ethnic group.

Some people identify with two or more ethnic groups and therefore the broad European, Maori, Pacific and Asian populations are not mutually exclusive. All four ethnic populations are projected to experience growth between 2001 and 2021. The Asian population is projected to have the largest percentage growth, up some 122 percent. The Pacific and Maori populations will experience increases of 58 and 28 percent, respectively, while the European population will increase until 2010 before slowly declining. The higher Asian growth rate mainly reflects assumed levels of net migration from 119,000 during the five years 2002-2006 to 30,000 during 2017-2021. By comparison, the higher Maori and Pacific growth relative to the New Zealand population overall is mainly driven by births. In 2001, 14 percent of the New Zealand population identified with the Maori ethnicity and this is projected to increase to 17 percent in 2021. The Pacific and Asian shares are projected to increase from 7 to 9 percent and 7 to 13 percent respectively. By contrast, the European share of the New Zealand population is projected to fall from 79 percent in 2001 to 69 percent in 2021. The decline in the European share is a reflection of the slower growth rate of the European population compared with the growth rate of the total New Zealand population. Diversity in fertility and migration patterns means the various ethnic groups will follow different paths to population ageing in future decades. With a median age of 37 years in 2001, the European population has a much older age structure than the Maori (22 years) and Pacific (21 years) populations. Despite ageing, the median age of the Maori (27 years) and Pacific populations (24 years) in 2021 will still be lower than the median age of the total New Zealand population. Table 5.03 shows the New Zealand population by ethnicity and age group. Table 5.04 shows the projected New Zealand population growth in the European, Māori, Pacific and Asian ethnic groups.

The ethnic and cultural composition of New Zealand has been shaped by international migration, natural increase and inter-marriage.

By 2021, the primary school age population (5-12 years) is expected to be 13 percent (63,000) lower than the 2001 figure of 480,000.

Table 5.04. Ethnic population projections12

YearTotal New ZealandEuropeanMāoriPacificAsian

1Base: Estimated resident population of each ethnic group at 30 June 2001.

2People who identify with more than one ethnicity are included in each ethnic population, so figures do not add to stated totals.

3Half the population is older and half younger than this age.

Source: Statistics New Zealand

   (000)  
20013,8803,074586262272
20114,2483,124665332489
20214,5063,103749414604
  Population change (percent)  
2001-20211612858122
  Median age3 (in years)  
20013537222129
20113841242231
20214044272436

Table 5.03. Ethnic population projections12 Byage

Age group (in years)MāoriPacificAsianEuropean

1People who identify with more than one ethnicity are included in each ethnic population, so percentage figures add to more than 100.

2Ethnic projection series 6; New Zealand projections series 4.

3Base; Estimated resident population of each ethnicity at 30 June 2001.

Source: Statistics New Zealand

  Percent 
20013    
Under 152511774
        15-64146878
        65 and over42292
        All ages157779
2021    
Under 1528171562
        15-641691566
        65 and over73785
        All ages1791369

Territorial authority projections. About 90 percent of population growth in New Zealand in the 20-year period to 2021 will occur in the North Island. The four northernmost regions - Northland, Auckland, Waikato and Bay of Plenty - will account for nearly all North Island growth. The combined population of these four regions will increase by about 28 percent, from 1.98 million in 2001 to 2.53 million in 2021. The population of the rest of the North Island is expected to increase only 1 percent to 978,000 in 2021. The South Island's population is projected to increase by 7 percent to reach 1 million. Given these growth differentials, the northern North Island will be home to 56 percent of all New Zealanders by 2021, up from 51 percent in 2001. By contrast, the southern North Island's share will drop from 25 to 22 percent and the South Island's from 24 percent to 22 percent. Among cities and districts, there is considerable variation likely in population growth rates, largely because of differences in age structures, fertility levels and migration patterns. The Queenstown-Lakes District is projected to have the largest percentage growth during 2001-2021, up 64 percent, followed by Rodney District (up 50 percent), Tauranga City (up 46 percent) and Selwyn District (up 42 percent). By contrast, 39 of the 74 territorial authority areas are projected to decrease in population. The largest decreases are projected for the districts of Kawerau (down 25 percent), South Waikato (down 20 percent), Stratford (down 20 percent), Rangitikei (down 20 percent) and Waimate (down 20 percent). Figure 5.04 shows the projected percentage change in the population of regions between 2001 and 2021.

Figure 5.04. Projected population changes, 2001-20211By region

Projected population changes, 2001-20211By region

Families and households

The number of families in New Zealand is projected to increase by 230,000, or 22 percent, from 1.05 million in 2001 to 1.28 million in 2021. During the same period, the number of households is projected to increase by 380,000, or 26 percent, to 1.82 million.

A family refers to a couple, with or without child(ren), or one parent with child(ren), usually living together in a household. A household consists of either one person usually living alone, or two or more people usually living together and sharing facilities, in a private dwelling.

Families comprising couples without children are expected to become the most common family type from 2006. surpassing two-parent families. The number of couple-without-children families is expected to increase by 51 percent, from 407,000 in 2001 to 614,000 in 2021, while the number of two-parent families is expected to decline, from 446,000 to 418,000. The number of one-parent families is projected to increase from 198,000 in 2001 to 251,000 in 2021. Couple-without-children families include couples whose children have left the parental home, as well as couples who may live with children in the future. The main driver of their increasing number is the increasingly older population age structure and, specifically, the ageing of the large birth cohorts of the 1950s to 1970s. In 2001, 63 percent of partners in couple-without-children families were aged 50 and over.

The projected growth in couple-without-children families also partly reflects recent trends of fewer couples having children and more single parenting because of increasing numbers of separations and divorces; increasing rates of childbearing outside of couple relationships; and more complex shared care arrangements, with parents living in different households.

Among households, one-person households are projected to increase by 45 percent, from 333,000 in 2001 to 482,000 in 2021, largely due to the ageing of the population. The number of family households is also projected to increase between 2001 and 2021, by 21 percent from 1.02 million to 1.23 million. Other multiperson households (households containing more than one person, but not containing a family) are expected to number 102,000 in 2021, compared with 88,000 in 2001.

The average size of households is projected to decrease from 2.6 people in 2001 to 2.4 people in 2021, following the steady decline of recent decades. In 1951, there were 3.7 people per household, but by 1981 this had fallen to 3.0 people. The expected decline is due to an increase in the number of one-person households and a decrease in the average size of family households.

Summary. Although fertility has been below replacement level for most of the past quarter of a century and is likely to remain so in the foreseeable future, New Zealand's population will continue to grow slowly for some time. This is because the 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 65 years and over population, growing ethnic diversity and possible geographical redistribution of population, especially within territorial authorities.

Counting the population

Statistics New Zealand has adopted the ‘estimated resident population’ concept as a standard for producing official population estimates and projections.

This concept is viewed as a more accurate estimate of the population normally living in an area than the ‘census usually resident population count’. The estimated resident population of New Zealand includes all residents present in New Zealand and counted by the census (census usually resident population count), residents who are temporarily overseas (who are not included in the census), and an adjustment for residents missed or counted more than once by the census (net census undercount). Visitors from overseas are excluded.

Table 5.05 shows the estimated population of New Zealand from 1885 to 2003.

Table 5.05. Estimated population 1885-2003

YearTotal population at 31 DecMean population for year ending 31 Dec

1Population estimates for 1991 onwards are based on the resident population concept replacing the de facto population concept used previously. Resident population estimates are not strictly comparable with census usually resident population counts as they include adjustments for census undercount and New Zealand residents temporarily overseas.

PprovisionalRrevised

Source; Statistics New Zealand

Estimated de facto population 
1885619,300613,900
1886631,400624,300
1887645,300638,300
1888649,300647,300
1889658,000653,700
1890667,500662,700
1891676,100671,800
1892692,400684,200
1893714,300703,300
1894728,100721,200
1895740,700734,400
1896754,000746,300
1897768,900761,500
1898783,300776,100
1899796,400789,800
1900808,100802,200
1901830,800821,100
1902851,100840,900
1903875,600863,400
1904900,700888,200
1905925,600913,100
1906956,500943,300
1907977,200966,800
19081,008,400992,800
19091,030,7001,019,500
19101,050,4001,040,500
19111,075,3001,063,900
19121,102,5001,088,900
19131.134,5001,118,500
19141,145,8001,140,200
19151,152,6001,149,200
19161,150,2001,149,200
19171,147,4001,148,900
19181,158,1001,152,800
19191,227,2001,192,700
19201,257,6001,242,400
19211,292,7001,276,700
19221,318,9001,305,100
19231,343,0001,328,200
19241,370,4001,352,600
Estimated de facto population  
19261,429,7001,413,700
19271,450,4001,439,000
19281,467,4001,456,100
19291,486,1001,473,400
19301,506,8001,493,000
19311,522,8001,514,200
19321,534,7001,527,100
19331,547,1001,539,600
19341,558,4001,551,500
19351,569,7001,562,200
19361,584,6001,575,200
19371,601,8001,590,000
19381,618,3001,606,800
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
Estimated de facto population  
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
Estimated resident population1 
1991 R3,516,0003,495,800
1992 R3,552,2003,533,000
1993 R3,597,9003,573,600
1994 R3,648,2003,621,600
1995 R3,706,7003,675,800
1996 R3,762,3003,733,900
1997 R3,802,6003,782,600
1998 R3,829,2003,815,800
1999 R3,851,2003,837,300
2000 R3,873,0003,860,100
2001 R3,912,1003,886,000
20023,975,9003,942,100
2003 P4,039,0004,009,600

Table 5.06. North and South Island populations By census

Census1North IslandSouth IslandTotal population

1Figures from 1981 onwards are census usually resident population counts, replacing census night population counts used previously.

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 and Campbell Island. All figures randomly rounded to base 3.

Source: Statistics New Zealand

185887,15028,311115,461
1874155,472189,513344,985
1878199,524258,483458,007
1881234,648299,382534,030
1886290,010330,441620,451
1891321,246347,403668,652
1896377,955365,259743,214
1901431,472384,390815,862
1906521,898414,411936,309
1911610,599447,7141,058,313
1916695,397453,8281,149,225
1921791,919479,7511,271,667
1926892,680515,4601,408,140
19361,018,038555,7741,573,812
19451,146,315556,0141,702,329
19511,313,869625,6021,939,473
19561,497,363676,6982,174,061
19611,684,785730,2002,414,985
19661,893,327783,5942,676,918
19712,051,364811,2692,862,630
19762,268,393860,9913,129,384
19812,303,985837,4293,143,307
19862,412,660850,6233,263,283
19912,520,348853,5783,373,926
19962,718,189900,1143,618,303
20012,829,801907,4763,737,277

5.2 Distribution of population

Three major trends stand out in the geographic distribution and redistribution of New Zealand's population in the past 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 northward within each island and, with the exception of the past 20 years, from the South Island to the North Island. 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 census night population count living in the South Island began to steadily decrease. From the 1896 Census onward, the census night population of the North Island has exceeded that of the South. Since that time, the North Island's census night population has continued to grow at a greater rate, and its share of the total census night population has continued to increase.

In 1956, 69 percent of New Zealanders lived in the North Island. The percentage had risen to more than 72 by 1976 and in 2001 it was 76 percent.

Many influences have contributed to the population differential between the islands. The North Island has had a higher birth rate, a lower mortality rate and, as a result, a higher rate of natural increase. In addition, most overseas migrants choose to settle in the North Island.

Table 5.06 lists the populations of the North and South Islands on census night from 1858 to 2001.

Internal migration

The movement of people within and among 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 significant movement among regions. In addition to affecting the size of the population, inter-regional migration also influences age structures, fertility levels and population growth rates within regions. Table 5.07 shows population movements between regions between the 1996 and 2001 censuses.

Table 5.07. Migration between regions 1996-2001

RegionsPopulation1Migration inMigration outNet migration

1Census usually resident population count of all people aged five and over, 2001.

Note:All figures randomly rounded to base 3.

Source: Statistics New Zealand

Northland129,68717,48718,102-615
Auckland1,070,56565,60167,956-2,355
Waikato330,09044,04642,5731,473
Bay of Plenty221,13034,82726,2508,577
Gisborne40,1224,8397,503-2,664
Hawke's Bay132,16814,57716,704-2,127
Taranaki95,6228,63712,291-3,654
Manawatu-Wanganui204,16825,80632,040-6,234
Wellington393,07839,23437,0772,157
Tasman38,5448,0825,5292,553
Nelson38,9828,4128,310102
Marlborough37,0806,7386,162576
West Coast28,3593,7505,910-2,160
Canterbury450,63638,90730.2198,688
Otago170,85621,74420,6341,110
Southland84,7296,69912,129-5,430

Urban and rural

New Zealand is a highly urbanised country, with 86 percent of the census usually resident population count living in urban areas at the 2001 Census. Table 5.08 shows urban and rural populations at censuses from 1881 to 2001, while figure 5.05 shows changes in the proportions of urban and rural populations from 1881 to 2001.

Table 5.08. Urban and rural populations1 By census

Census2UrbanRural

1From 1881-1921, ‘urban’ based on boroughs and cities, ‘rural’ based on counties (including town districts). From 1926-2001, ‘urban’ based on urban areas and towns with populations of more than 1,000, with ‘rural’the remainder.

2Figures from 1981 onwards are census usually resident population counts, replacing census night population counts used previously.

3Based on boundaries as at 6 March 2001.

Note:All figures randomly rounded to base 3.

Source: Statistics New Zealand

 NumberPercentNumberPercent
Non-Māori population    
1881194,98240.1291,23759.9
1886245,61342.9327,32757.1
1891270,34243.4352,09856.6
1896307,29344.0391,73456.0
1901350,20245.6417,59754.4
1906424,61448.1458,79651.9
1911505,59950.4496,77949.6
1916585,30653.9501,25846.1
1921681,98756.2530,85343.8
Total population    
1926953,17268.0448,50032.0
19361,065,22867.9503,88632.1
19451,227,06972.2472,07727.8
19511,406,51772.7527,07927.3
19561,600,80973.8568,80626.2
19611,840,20376.4569,21723.6
19662,119,08679.3553,02320.7
19712,328,87681.5528,60918.5
19762,614,11983.6511,00516.4
198132,682,90685.4460,40114.6
198632,780,15185.2481,46714.8
199132,884,26085.5489,01214.5
199633,091,10485.5525,63314.5
200133,203,57485.7532,74014.3

Main urban areas

Seventy-one percent of the 2001 Census usually resident population count lived in main urban areas (places with 30,000 people or more). Between 1996 and 2001, most main urban areas experienced population growth, particularly those located in the north of both islands. However, most secondary urban areas (places with between 10,000 and 29,999 people) lost population during that period.

Table 5.09 shows the population of New Zealand's largest urban areas at selected censuses.

Table 5.09. Population of largest urban areas At selected censuses

Urban area188611911119361961198623199123199623200123

1Excludes Māori

2Boundaries as at 6 March 2001.

3Figures from 1986 onwards are census usually resident population counts, replacing census night population counts used previously.

... not applicable

Note:All figures randomly rounded to base 3.

Source: Statistics New Zealand

Auckland33,162102,675226,365448,365816,927878,223991,8331,074,513
Wellington25,94470,728159,357249,531323,421324,156334,065339,750
Christchurch29,65580,193133,515220,509295,749303,411325,251334,107
Hamilton1,2003,54320,09750,505138,645146,148158,046166,128
Dunedin23,24464,23685,608105,003107,331107,523110,790107,088
Tauranga1,1491,3475,80824,66062,37070,25782,09595,697
Palmerston North2,60710,99224,37243,18566,95170,23673,86072,681
Hastings1,5036,28517,91932,49056,71857,21958.50059,142
Napier7,68011,73619,17032,71552,52452,11954,29154,534
Nelson7,3148,23513,49425,32043,72545,87950,68853,688
Rotorua...2,3918,89825,06848,85550,77252,95652,608
New Plymouth3,0935,23818,59732,38847,37047,65248,87947,763
Invercargill8,25015,85825,91141,08852,81851,54049,40446,305
Whangarei...2,6649,86721,78944,09744,34645,87646,047
Wanganui4,90214,70325,74935,69440,51241,10041,09739,423
Kapiti...1,0685,36712,30623,04027,34230,29133,669
Gisborne2,1938,19615,87925,06532,01931,40132,60731,722
Timaru3,75311,28018,77126,42428,69227,78327,17126,748
Blenheim3,0933,7715,03711,95522,99823,78725,70426,547
Masterton...5,1819,09615,12019,35319,77019,68919,497

Figure 5.05. Urban driftProportions of urban and rural population

Urban driftProportions of urban and rural population

Population of local government areas

Tables 5.10 and 5.11 outline the estimated usually resident population count of New Zealand's 74 territorial authority areas and 16 regional council area.

Table 5.1. Estimated resident population At 30 June

Territorial authorityEstimated resident population1Annual population change June 2002-2003
200120022003

1Resident population estimates are not strictly comparable with census usually resident population counts as they include adjustments for census undercount and New Zealand residents temporarily overseas.

2Includes the population of inlets, ships, oil rigs and Bays- Waiheke, Kermadec, Mayor, Motiti and White Islands, which are not included within territorial authorities.

- nil or zero - figure too small to be expressed

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  Number NumberPercent
Far North District56,40056,80057,1003300.6
Whangarei District70,00070,70071,4007601.1
Kaipara District17,95017,95018,050700.4
Rodney District78,50081,10084,1003,0003.7
North Shore City194,200198,900205,0006,1003.1
Waitakere City176,200180,700185,6004,8802.7
Auckland City388,800401,500415,20013,6803.4
Manukau City298,200307,300317,50010,2103.3
Papakura District42,30042,70043,1004301.0
Franklin District53,30054,30055,5001,1302.1
Thames-Coromandel District25,80026,00026,3002601.0
Hauraki District17,25017,10017,000-100-0.6
Waikato District41,30041,70042,1004000.9
Matamata-Piako District30,30030,30030,300400.1
Hamilton City119,500122,000125,0002,9802.4
Waipa District41,40041,80042,4005801.4
Otorohanga District9,5909,5809,540-40-0.4
South Waikato District24,20023,80023,600-300-1.2
Waitomo District9,7809,6909,700100.1
Taupo District32,50032,80033,3004501.4
Western Bay of Plenty District39,30039,90040,7007902.0
Tauranga District93,30095,60098,5002,8603.0
Rotorua District66,90067,20067,6003700.5
Whakatane District34,00034,00034,000-30-0.1
Kawerau District7,2907,1706,990-170-2.4
Opotiki District9,5409,5509,580300.3
Gisborne District45,50045,20045,200-20-0.1
Wairoa District9,2609,0908,880-210-2.3
Hastings District69,60070,20070,5004000.6
Napier City55,20055,50055,8002800.5
Central Hawke's Bay District13,20013,20013,150-20-0.1
New Plymouth District68,40068,70069,1004400.6
Stratford District9,1108,9408,820-120-1.3
South Taranaki District28,40028,10027,900-130-0.5
Ruapehu District15,00014,55014,200-350-2.4
Wanganui District44,40044,20043,900-260-0.6
Rangitikei District15,50015,30015,100-180-1.2
Manawatu District28,20028,20028,300500.2
Palmerston North City75,20075,90077,1001,1901.6
Tararua District18,35018,15017,950-200-1.1
Horowhenua District30,60030,60030,600-10
Kapiti Coast District43,60044,40045,2008101.8
Porirua City49,50049,90050,3004400.9
Upper Hutt City37,70037,70037,800500.1
Lower Hutt City99,10099,60099,9003800.4
Wellington City171,100174,600179,1004,5002.6
Masterton District23,20023,30023,300300.1
Carterton District7,0007,0307,100600.9
South Wairarapa District8,9408,9308,860-70-0.7
Tasman District42,40043,50044,7001,1802.7
Nelson City42,90043,50044,4009202.1
Marlborough District40,70041,10041,7005701.4
Kaikoura District3,5803,5903,610200.6
Buller District9,8609,7609,720-40-0.4
Grey District13,20013,10013,100-20-0.2
Westland District7,9907,9407,930-20-0.2
Hurunui District10,15010,30010,4501401.4
Waimakariri District37,90038,80039,8009402.4
Christchurch City327,200332,000338,8006,7602.0
Banks Peninsula District8,0408,1408,200600.7
Selwyn District28,30029,20030,0008102.8
Ashburton District26,00026,10026,5003501.3
Timaru District42,80042,90042,900--
Mackenzie District3,7903,7503,760100.2
Waimate District7,2207,1507,120-30-0.5
Waitaki District20,50020,30020,200-140-0.7
Central Otago District14,75014,80014,9501200.8
Queenstown-Lakes District17,85019,25020,7001,4207.3
Dunedin City119,300120,300121,1008700.7
Clutha District17,55017,50017,400-80-0.5
Southland District29,40029,40029,400700.3
Gore District12,75012,65012,550-60-0.5
Invercargill City51,10051,40051,8004000.8
Chatham Islands Territory750750750-0.2
            Total New Zealand23,880,5003,939,1004,009,20070,0301.8

Table 5.11. Estimated resident population At 30 June

Regional councilEstimated resident population1Annual population change June 2002-2003
200120022003

1Resident population estimates are not strictly comparable with census usually resident population counts as they include adjustments for census undercount and New Zealand residents temporarily overseas.

2Includes the Kermadec Islands and people on oil rigs.

3Includes the Chatham Islands and people on oil rigs.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  Number NumberPercent
North Island     
Northland144,400145,400146,6001,1600.8
Auckland1,216,9001,251,6001,290,80039,1903.1
Waikato369,800373,300377,9004,5301.2
Bay of Plenty246,900250,100254,0003,8301.5
Gisborne45,50045,20045,200-20-0.1
Hawke's Bay147,300148,000148,5004600.3
Taranaki105,700105,500105,7002000.2
Manawatu-Wanganui227,500227,100227,3002300.1
Wellington440,200445,400451,6006,2201.4
            Total North Island22,944,3002,991,8003,047,60055,7901.9
South Island     
Tasman42,40043,50044,7001,1802.7
Nelson42,90043,50044,5009302.1
Marlborough40,70041,10041,7005701.4
West Coast31,10030,80030,700-80-0.3
Canterbury496,700503,600512,6009,0001.8
Otago188,300190,600192,9002,2401.2
Southland93,30093,40093,8004100.4
            Total South Island3936,100947,300961,50014,2401.5
            Total New Zealand3,880,5003,939,1004,009,20070,0301.8

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). The relative contribution of the two components has varied from one five-year census period to another, but net migration's share of population change has never exceeded 40 percent. Figure 5.06 shows contributions made by natural increase and net migration to New Zealand's total population change from 1861 to 2001.

Figure 5.06. Components of annual population changeNatural increase1 and net migration2 Years ending 31 March

Components of annual population changeNatural increase1 and net migration2 Years ending 31 March

Fertility

Changing levels of fertility over the years have played a major role in determining the size and structure of New Zealand's population.

Figure 5.07 shows the significant changes in the fertility rate (births per woman) in New Zealand from 1912 to 2003.

Figure 5.07. Fertility rate1Years ending 31 December

Fertility rate1Years ending 31 December

In 1935, the fertility rate in New Zealand fell to a low of 2.2 births per woman. This was attributed to fewer and later marriages, and family limitation within marriage. With 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.

Other features of the years following World War II were New Zealanders marrying younger, and marriage becoming almost universal. By 1961, half of all women were married before the age of 22, 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.

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 more than 27,000 in 1935 to about 42,000 in 1945, and to more than 65,000 in 1961. More than 1.1 million New Zealanders were born between 1946 and 1965 - the ‘baby boomers’. At its peak in 1961, the total fertility rate exceeded 4.3 births per woman and significantly exceeded figures for other developed nations.

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 introduction of the oral contraceptive pill in the early 1960s, but the ‘cause-and-effect’ relationship is not clear-cut. It is possible that 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 ‘baby boomers’ entering prime reproductive ages, births dropped from around 64,000 in 1971 to below 50,000 in 1982.

After 1983, there was a minor resurgence in the fertility rate, to 2.18 births per woman in 1990, but the rate subsequently dropped to 1.96 in 1996 and has remained around this level since. This level of fertility is slightly below the level required for the population to replace itself without migration.

From 22.8 years in 1964, the median age at first birth rose steadily to 30.6 years in 2003. In 2002 and 2003, the age group 30-34 replaced 25-29 as the most common age group for childbearing among New Zealand women.

Figure 5.08 shows the median age of childbearing for New Zealand women from 1962 to 2003, based on nuptial and ex-nuptial live confinements.

Figure 5.08. Median age of childbearingLive confinements1

Median age of childbearingLive confinements1

The dynamics of the fertility decline and of 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.

Between 1971 and 1986, the first marriage rate for women aged 20-24 dropped by about two-thirds, from 314 to 113 marriages per 1,000 never-married women.

By 2001, the first marriage rate for women aged 20-24 had dropped to 37 per 1,000. New Zealand women are marrying for the first time, on average, more than six years later than those who married for the first time in 1971.

The median age at first marriage in 2002 for women was 27.6 and 29.4 for men. This compared with 20.8 and 23.0 respectively in 1971.

A growing proportion of New Zealanders are remaining single through their 20s. 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 nearly 7,000 in 1966 to nearly 10,000 in 1976, and to more than 24,000 in 2001.

Figure 5.09 shows the ex-nuptial birth rate per 1,000 not-married women in New Zealand for selected years from 1896 to 2003.

Figure 5.09. Ex-nuptial birth rate1Years ending 31 December

Ex-nuptial birth rate1Years ending 31 December

Ex-nuptial births comprised 12 percent of all births registered in New Zealand in 1966 and 44 percent in 2003. Changing social norms have contributed to this increase. There is also a high incidence of ex-nuptial births among Māori. In 2003, 75 percent of all Mωori births were classified as ex-nuptial and they accounted for nearly half of New Zealand's ex-nuptial births.

Latest demographic measures indicate that there is still a significant ethnic differential in fertility levels in New Zealand. In 2000-02, the fertility rate for Māori women was 2.6 births per woman and for Pacific women 2.9 births, compared with 1.7 and 1.8 births for Asian and European women respectively.

Table 5.12 illustrates fertility trends and patterns from 1881 to 2003.

Table 5.12. Fertility trends and patterns Years ending 31 December

YearLive birthsCrude birth rate1Fertility rate2Gross reproduction rate34Net reproduction rate45Ex-nuptial birth rate46

1Live births per 1,000 estimated mean population.

2Average number of births a woman would have during her reproductive life using fertility rate characteristic of various childbearing age groups in that year.

3Average number of daughters a woman would have during her reproductive life, assuming age-of mother-specific birth rates experienced during that year continue to apply.

4Figures before 1966 exclude Maori population.

5Average number of daughters a woman would have during her reproductive life, assuming age-of-mother-specific birth rates and mortality rates experienced during that year continue to apply.

6Ex-nuptial births per 1,000 estimated mean number of not-married women aged 15-49. Before 1966, rates based on census counts of not-married women aged 15-44.

7Excludes Māori population.

8Births and fertility rates for 1998 lower than expected because of small change to rate at which births registered during 1998.

PprovisionalRrevised figures not available

Note:Birth and fertility rates for 1991 onwards based on resident population concept, replacing de facto population concept used previously.

Source: Statistics New Zealand

1881718,73238.00........
1886719,29933.14........
1891718,27329.01......9.38
1896718,61226.35......9.44
1901720,49126.34......9.04
1906724,25227.08......9.92
1911726,35425.99......8.93
1916728,50925.94......9.24
192129,62323.243.08....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
199159,91117.14R2.09 R1.01 R1.0050.17R
199259,16616.75 R2.06 R0.990.97 R49.90 R
199358,78216.45 R2.04 R0.990.9750.16R
199457,32115.83 R1.98R0.96 R0.9548.53 R
199557,67115.69R1.98 R0.960.9450.07 R
199657,28015,34R1,960.950.93R49.60 R
199757,60415.23R1.96 R0.96 R0.94 R48.97 R
1998855,34914.51 R1.89 R0.920.90 R47.02 R
199957,05314.87 R1.97 R0.960.95 R48.21 R
200056,60514.66 R1.98 R0.960.94 R47.50 R
200155,79914.36 R1,97 R0.970.95 R46.41 R
200254,02113.701.900.920.9043.40
200356,13414.00P1.96 P0.95 P0.94 P43.90 P

Table 5.13 provides a summary of vital statistics for the New Zealand population from 1950 to 2003.

Table 5.13. Vital statistics Years ending 31 December

YearLive birthsDeathsNatural increase1Average age at death
MaleFemale

1Live births minus deaths.

2Births lower than expected because of small change to rate at which births registered during 1998.

Note:Figures from 1991 onwards are based on the resident population concept, replacing the de facto population concept used previously.

Source: Statistics New Zealand

  Number Year
195049,33118,08431,24760.061.8
195555,59619,22536,37160.764.3
196062,77920,89241,88762.265.9
196560,04722,97637,07162.968.0
197062,05024,84037,21063.268.8
197556,63925,11431,52563,469.5
198050,54226,67623,86665.771.0
198551,79827,48024,31866.472.8
199060,15326,53133,62266.573.3
199159,91126,38933,52267.073.7
199259,16627,11532,05167.874.3
199358,78227,10031,68268.174.3
199457,32126,95330,36868.774.7
199557,67127,81329,85868.874.8
199657,28028,25529,02568.975.1
199757,60427,47130,13368.975.3
1998255,34926,20629,14369.175.5
199957,05328,12228,93169.976.3
200056,60526,66029,94569.976.0
200155,79927,82527,97470.676.8
200254,02128,06525,95670.976.9
200356,13428,01028,12470.877.0

Table 5.14. Life expectancy at birth International comparisons

CountryYear/periodMalesFemales

1Excludes Māori population.

Source: Statistics New Zealand

New Zealand1901-1905158.160.6
Australia1901-191055.258.8
Denmark1895-190050.253.2
Japan1899-190337.838.2
Norway1891-190050.454.1
United Kingdom190648.051.6
New Zealand1950-195267.271.3
Australia1953-195567.172.8
Denmark1951-196070.173.2
Japan1950-195259.663.0
Norway1951-195571.174.7
United Kingdom195166.271.2
New Zealand1970-197268.574.6
Australia1975-197769.576.4
Denmark1971-197570.976.5
Japan197069.374.7
Norway1971-197571.477.7
United Kingdom197168.875.0
New Zealand1980-198270.476.4
Australia198171.478.4
Denmark1981-198571.577.5
Japan198073.378.8
Norway1981-198272.679.4
United Kingdom198170.876.8
New Zealand1990-199272.978.7
Australia199375.080.9
Denmark1991-199272.477.8
Japan199276.182.2
Norway199274.280.3
United Kingdom199073.078.5
New Zealand2000-200276.381.1
Australia2000-200277.482.6
Denmark2001-200274.779.2
Japan200278.385.2
Norway200276.481.5
United Kingdom 2000-200275.780.4 

Mortality

A temperate climate, low population density, lack of heavy industry and good nutrition have given New Zealand a comparative advantage over other nations in terms of health. Ongoing advances in living standards, medical knowledge and technology, and health services continue to reduce mortality rates.

Nevertheless, New Zealand mortality rates mask the fact that Maori mortality rates are much higher than non-Māori, and that New Zealand life expectancy has been eclipsed by several other countries, as shown in Table 5.14.

A large part of longevity improvement in New Zealand occurred before 1930 and was due to the saving of life at younger ages. Allowing for higher Māori mortality, the infant mortality rate fell steadily from more than 100 deaths per 1,000 live births in the late 19th century to about 50 per 1,000 in the 1920s. As Table 5.15 shows, the infant mortality rate has continued to drop, from about 20 per 1,000 in the early 1960s, to 4.9 per 1,000 in 2003.

Table 5.15. Death rate By age and sex Years ending 31 December

YearUnder I11-45-1415-2425-3435-4445-5455-6465-7475 and over

1Per 1,000 live births.

2Excludes Māori population.

Pprovisional R revised

Note:Live births for 1901-1961 include late registrations, while those from 1981 onwards exclude late registrations. Death rates for 1991 onwards are based on the resident population concept, replacing the de facto population concept used previously.

Source: Statistics New Zealand

Males   Per 1,000 mean estimated population   
1901278.606.811.893.523.976.1611.9423.1250.59141.67
1921253.104.781.852.443.565.559.6119.9646.17128.60
194143.654.391.362.532.933.959.2021.1347.45140.17
196125.861.350.491.281.472.677.3719.7047.40125.90
198113.010.950.351.531.352.266.5717.3043.39114.11
2001 R6.140.330.201.081.201.563.269.0426.8687.33
20025,620.390.200.901.131.603.408.8624.9586.58
2003 P5.690.340.190.921.151.603.398.4123.7783.70
Females          
1901263.875.501.643.584.726.7010.6219.4443.32127.98
1921242.314.491.312.343.384.468.0014.8836.81120.23
194135.753.841.201.942.443.506.9015.0438.61118.74
196119.501.160.350.540.871.954.5911.2329.92104.72
198110.220.640.230.670.641.513.949.1923.7384.67
2001R4.440.330.180.410.510.902.476.3015.6872.37
20025.480.320.130.390.560.962.296.0415.6972.30
2003 P4.140.360.120.460.500.982.435.7115.3870.36
Both sexes          
1901271.406.171.773.554.336.4011.3721.6347.87135.71
1921247.824.641.582.393.475.108.8517.5941.90124.84
194139.814.121.282.222.673.728.0218.1643.06129.00
196122.761.260.420.921.182.315.9915.4337.71113.84
198111.651.560.291.110.991.895.2913.1532.6795.41
2001R5.300.330.190.750.841.222.867.6521.0778.11
20025.550.350.170.650.831.272.847.4320.1577.84
2003P4.930.350.160.700.811.282.907.0519.4275.62

Significant ethnic differentials exist in mortality rates.

According to 2000-2002 life tables, a newborn non-Māori girl could expect to live 81.9 years, and a newborn non-Māori boy could expect to live 77.2 years.

For Māori, life expectancy at birth was 73.2 years for females and 69.0 years for males. Lower non-Māori death rates at ages 45-79 years account for about three-quarters of these differences, and this partly reflects different rates of smoking and diabetes, as well as socio-economic differentials.

For example, the 1996 Census reported that 44 percent of Māori aged 15 and over were regular smokers, compared with 21 percent of non-Māori.

Women live longer than men and experience lower death rates at all ages, although men have closed the gap in recent decades.

A century ago, women could expect to outlive men by about 2.5 years. By 1950-1952, the female advantage had increased to 4.1 years, and by 1975-1977 it was 6.4 years. However, the male-female difference had narrowed to 4.8 years in 2000-2002.

Figure 5.10 shows movements in the median age at death for males and females since 1950.

Figure 5.1. Median age at death1Years ending 31 December

Median age at death1Years ending 31 December

External migration

New Zealand has traditionally been a country of immigration, although the intake has been small compared with immigration flows to New World countries such as Australia, Canada and the United States.

The end of World War II saw economic stability and reintroduction, in 1947, of an assisted/free passage scheme to attract working-age industrial and agricultural labour from the United Kingdom. Agreements were also negotiated to accept young non-British European migrants, and refugee immigration was allowed on humanitarian grounds. These grounds were to lead to the settlement of nearly 4,000 Indo-Chinese refugees in New Zealand during 1978-82.

Historical and regional considerations also led to establishment of immigration quotas for small Pacific Island countries.

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 1950 and 1967, New Zealand recorded a net gain of about 270,000 permanent and long-term migrants. In 16 of the 18 years, net migration was more than 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 outflow of 7,387 during 1968-1970.

While annual net migration in the following nine-year period varied between a net inflow of 27,477 in 1974 and a net outflow of 40,200 in 1979, the result was a small outflow of 2,831 people.

The two most recent decades have seen major and unprecedented changes in external migration levels and patterns. The preponderance of immigrants from the United Kingdom and Ireland 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 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 ending 31 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 60 percent 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. The turnaround was short-lived, however.

During the remainder of the 1980s, the number of departures resumed an upward movement, reaching a peak in 1989, with 70,941 emigrants, giving a net outflow of 24,708 people for that year.

The 1990s 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 ending 31 March 1991, there was a net gain of 11,616 people.

By 1995 this had almost doubled to 21,697 and by 1996 reached 29,832. This figure dropped to 20,948 in 1997 and further to 2,707 in 1998.

Between 1999 and 2001, there were net population losses from migration, with departures exceeding arrivals by 12,600 in 2001.

There was a net gain of 25,635 in 2002 and, during the year ending 31 March 2003, arrivals exceeded departures by 41,592 - the highest recorded March year net gain of permanent and long-term migrants.

Net migration from Asia increased significantly between 1988 and 1996, then declined over the next three years, before steadily increasing between 2000 and 2003, when a net gain of 32,655 was recorded.

Table 5.16 provides a summary of external migration from 1880 to 2003.

Table 5.16. External migration Years ending 31 March

YearTotalPermanent and long-termShort-term
ArrivalsDeparturesNetArrivalsDeparturesNetArrivalsDeparturesNet

Rrevised

Note:Only total arrivals and departures recorded prior to 1930.

Source: Statistics New Zealand

Five-year totals         
188098,87730,37668,501      
188573,86144,77629,085      
189075,06379,747-4,684      
1895101,50888,06713,441      
190093,03784,3988,639      
1905141,67899,50142,177      
1910190,772146,78343,989      
1915202,087165,28636,801      
192098,47390,5327,941      
1925199,791151,28548,506      
1930192,606167,34625,26053,98816,08137,907138,618151,265-12,647
1935111,933118,076-6,14313,46614,830-1,36498,467103,246-4,779
1940171,424159,51411,91022,87119,2673,604148,553140,2478,306
194535,00332,4142,5896,5979,241-2,64428,40623,1735,233
1950158,637135,43923,19851,48730,02021,467107,150105,4191,731
1955306,837239,14867,689116,51037,41979,091190,327201,729-11,402
1960395,218347,02148,197115,30851,16964,139279,910295,852-15,942
1965737,703676,13761,566156,46275,05581,407581,241601,082-19,841
19701,278,8671,273,4095,458155,008127,81427,1941,123,8591,145,595-21,736
19752,506,7142,400,234106,480274,842196,99377,8492,231,8722,203,24128,631
19803,793,4833,874,575-81,092204,867319,964-115,0973,588,6163,554,61134,005
19854,772,2574,766,9935,264213,059247,712-34,6534,559,1984,519,28139,917
19907,359,3407,394,389-35,049226,420306,653-80,2337,132,9207,087,73645,184
19959,773,4299,711,64161,788280,508220,47360,0359,492,9219,491,1681,753
200013,519,01613,462,49156,525337,781303,48034,30113,181,23513,159,01122,224
Annual totals         
19871,321,7291,317,3724,35744,36058,629-14,2691,277,3691,258,74318,626
19881,554,9921,555,949-95747,84463,469-15,6251,507,1481,492,48014,668
19891,669,6371,687,935-18,29846,23370,941-24,7081,623,4041,616,9946,410
19901,701,0561,702,689-1,63352,00156,019-4,0181,649,0551,646,6702,385
19911,772,5241,757,94814,57657,08845,47211,6161,715,4361,712,4762,960
19921,809,8851,806,9472,93849,01044,7234,2871,760,8751,762,224-1,349
19931,898,7691,890,6898,08049,56242,7146,8481,849,2071,847,9751,232
19942,057,0052,041,21215,79357,25741,67015,5871,999,7481,999,542206
19952,235,2462,214,84520,40167,59145,89421,6972,167,6552,168,951-1,296
19962,464,7322,436,10628,62680,28850,45629,8322,384,4442,385,650-1,206
19972,726,8972,689,11837,77976,89655,94820,9482,650,0012,633,17016,831
19982,651,737R2,649,814R1,923R62,92860,2212,7072,588,809R2,589,593R-784R
19992,755,895R2,769,847R-13,952R56,58066,779-10,1992,699,315R2,703,068R-3,753R
20002,919,7552,917,6062,14961,08970,076-8,9872,858,6662,847,53011,136
20013,218,9953,214,0374,95866,46579,065-12,6003,152,5303,134,97217,558
20023,336,5553,269,15867,39788,36562,73025,6353,248,1903,206,42841,762
20033,481,4983,417,54063,95898,67157,07941,5923,382,8273,360,46122,366

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.

There are slightly more females than males in the New Zealand population at present. This contrasts with early colonial days, when there was a large surplus of males, especially young males. Each census has seen 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. Females again outnumbered males in 1968 and the ratio has increased steadily since then, with the 2001 Census showing 1,823,007 males and 1,914,273 females usually resident in New Zealand, representing a sex ratio of 95 males to 100 females.

Figure 5.11 shows the age and sex distribution of the New Zealand population at 10-year intervals from 1971 to 2001.

Changes in the age structure of New Zealand's population have been profound during the past 100 years. The changes largely reflect ‘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 people of younger and middle working ages) have added significantly to these structural changes.

The ‘baby boom’ lifted the proportion of children in the population to 33 percent in 1961, with nearly half the population under the age of 25.

The subsequent sharp decline in fertility, increased longevity and movement of the ‘baby boomers’ into working ages caused a major realignment of the age structure. The median age of the population rose by 8.3 years between 1976 and 2001, from 26.5 years to 34.8 years.

At the 2001 Census, there were 847,743 children under the age of 15, down from 928,205 in 1976. They made up 23 percent of the population (down from 30 percent in 1976). The 15-64 age group has risen considerably since 1976 (by more than half a million) to number 2,439,111 at the 2001 Census. However, the proportion of the male population in working ages has declined slightly since 1991, whereas the proportion of the female population in the working ages has continued to increase.

The greatest change in the age structure of the population is at the older ages. Since 1976, the number of people aged 65 and over has increased by more than one and-a-half times and the number aged 80 and over has more than doubled.

There are population sub-groups within New Zealand with remarkably different age structures.

Ethnic groups such as Māori and Pacific peoples have more youthful populations, commonly characteristic of developing nations. At the 2001 Census, they contained nearly twice the proportion of children under 15 years as their European or Asian counterparts. Nearly two-thirds of their populations were under 30 and their median ages were about 15 years lower than their European counterparts.

At the other end of the age scale, only about 4 percent of the Māori, Asian and Pacific peoples populations were aged 65 or more, compared with 14 percent for the European ethnic group, reflecting both different life expectancy and recent migration history.

Figure 5.12 shows birth and death rates since 1855.

Figure 5.11. Age-sex distributionTotal population at selected census years

Age-sex distributionTotal population at selected census years

Figure 5.12. Birth and death rates1,2Years ending 31 December

Birth and death rates1,2Years ending 31 December

Contributors

  • 5.1-5.4 Statistics New Zealand.

Websites

www.dia.govt.nz - Department of Internal Affairs

www.minedu.govt.nz - Ministry of Education

www.stats.govt.nz - Statistics New Zealand

Chapter 6. Ministry of Social Development

‘A country where young people are vibrant and optimistic through being supported and encouraged to take up challenges.’ - Youth Development Strategy Aotearoa vision statement.

6.1 Social diversity

Ethnicity

Ethnicity is a key variable in explaining differences in social characteristics, social well-being and social change. The population census has traditionally been the main source of national statistics on ethnicity in New Zealand, although prior to 1991 a biological or race-based measure was used. Since 1991, people have been asked to identify which ethnic group or groups they belong to, and multiple responses are counted.

The 2001 Census question differed from that used in the 1996 Census in two main ways: the wording of the question did not encourage multiple responses, and there were no tick-box categories for European ethnic groups, apart from New Zealand European.

As a result, data from the 1991 Census, which used a similar ethnicity question to 2001, is being used for comparison purposes.

Information presented in this chapter is based on the census usually resident population count. This is a count of all people who usually live in New Zealand and were present in New Zealand on the night of the census. It excludes visitors from overseas and New Zealand residents who were temporarily overseas on census night.

In 2001, nine out of 10 people living in New Zealand identified with one ethnic group only, but young people were far more likely to list multiple ethnicities. For example, one in five children under the age of five gave more than one ethnic response in 2001. This is a reflection of the increasing ethnic diversity of the New Zealand population.

As Table 6.01 on page 96 shows, 80 percent of people living in New Zealand in 2001 were European. However, compared with other major ethnic groups, there had been only a small increase in the European population since 1991.

The Māori population grew by 21 percent between 1991 and 2001, to comprise just under 15 percent of the population.

Other major ethnic groups made even more rapid gains, with the Asian population more than doubling in the same period to 6.6 percent of the total population.

For the first time in recent censuses, people of Asian ethnicity outnumbered Pacific peoples (6.5 percent of the population) in 2001.

Table 6.01. Ethnic groups of population (total responses)

Ethnic group (total people)1991 Census2001 CensusIntercensal percentage change 1991-2001
NumberPercentage of population12NumberPercentage of population12

1Includes response unidentifiable, response outside scope and not stated.

2Calculated in terms of specified cases only. – figure too small to be expressed

Note:The number of responses is greater than the total population, as multiple responses are counted

Source: Statistics New Zealand

European2,783,02583.22,868,00980.03.1
Māori434,84713.0526,28114.721.0
Pacific peoples167,0705.0231,7986.538.7
Asian99,7563.0237,4596.6138.0
Other6,6930.224,9240.7272.4
Not elsewhere included28,113 150,546  
            Total New Zealand resident population3,373,926 3,737,277 10.8
Selected ethnic groups (total responses)     
New Zealand European2,618,44578.32,689,30875.02.7
Māori434,84713.0526,28114.721.0
Samoan85,7432.6114,4323.233.5
Chinese44,1361.3100,2032.8127.0
Indian29,8200.959,8231.7100.6
Cook Island Maori37,2331.151,1411.437.4
Tongan23,1750.740,7131.175.7
English53,3251.634,0741.0-36.1
Dutch24,7320.727,3960.810.8
Niuean14,4270.420,1480.639.7
Korean93019,0260.51,945.8
British16,6590.516,5240.5-0.8
South African2,0070.114,8890.4641.9
Scottish14,0940.412,7920.4-9.2
Irish7,3920.211,1990.351.5
Filipino4,9170.111,0910.3125.6
Japanese2,9700.110,0020.3236.8
Fijian5,1000.27,0410.238.1
Tokelauan4,1460.16,2040.249.6
Sri Lanka2,4060.16,0420.2151.1
Arab1772,8560.11,513.6
Croat/Croatian1712,5020.11,363.2
Iraqi2462,1450.1772.0

There were also large gains in the ‘other’ ethnic group, which includes African, Middle Eastern and South American ethnic groups. These increases largely reflect changes in migrant source countries and a move away from the more traditional source countries such as the United Kingdom. Ethnic groups such as Korean, Arab, Croatian, Iraqi and South African are examples of specific ethnic groups that made huge population gains in the past decade. Table 6.02 compares the age structure of the major ethnic groups in New Zealand.

Table 6.02. Comparison of age structure of major ethnic groups 2001 Census

Age group (in years)Proportion of population in age groups
EuropeanMāoriPacific peoplesAsianOther

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

   Percent  
0- 46.812.814.17.710.0
5-1414.724.524.715.919.7
15-2412.417.417.821.518.3
25-3413.515.115.415.917.6
35-4415.413.512.417.917.5
45-5413.68.57.811.49.8
55-649.74.84.45.64.1
65-747.42.52.32.92.0
75-844.90.70.80.90.8
85 and over1.60.10.10.20.3
            Total100.0100.0100.0100.0100.0

Country of birth

The increasing diversity of New Zealand's population is reflected in changes in the country of birth of the population. In 2001, people who were born in New Zealand made up 80.5 percent of those people who usually live in New Zealand, down from 82.5 percent in 1996 (see Table 6.03).

Table 6.03. Country of birth of population

Country of birth1996 Census2001 CensusIntercensal percentage change 1996-2001
NumberPercentage of responses1NumberPercentage of responses1

1Calculated in terms of specified cases only. ... not applicable

Note:All totals randomly rounded to base 3.

Source: Statistics New Zealand

New Zealand2,848,20982.52,890,86980.51.5
Australia54,7111.656,2591.62.8
Samoa42,1741.247,1181.311.7
Fiji18,7740.525,7250.737.0
Tonga14,0400.418,0510.528.6
Cook Islands13,7550.415,2220.410.7
Other Oceania and Antarctica10,5330.311,8770.312.8
            Total Oceania and Antarctica3,002,19386.93,065,12185.42.1
United Kingdom and Ireland230,0496.7225,1236.3-2.1
Netherlands23,4300.722,2420.6-5.1
Germany7,0680.28,3820.218.6
Other Europe25,0980.728,9230.815.2
            Total Europe285,6488.3284,6707.9-0.3
North Africa and Middle East7,2390.212,1740.368.2
Malaysia11,8890.311,4600.3-3.6
Philippines7,0020.210,1370.344.8
Other South-east Asia18,4410.523,5950.727.9
China19,5180.638,9491.199.6
Korea, Republic of12,1830.417,9340.547.2
Taiwan10,9320.312,4860.314.2
Hong Kong11,7630.311,3010.3-3.9
Japan6,5010.28,6220.232.6
India12,8070.420,8890.663.1
Other North-east, Southern and Central Asia6,8850.210,4010.351.1
            Total Asia117,9153.4177,9484.650.9
Northern America19,0650.621,1140.610.7
Central and Southern America3,5610.14,3950.123.4
            Total America22,6260.725,5090.712.7
South Africa11,3340.326,0610.7129.9
Other sub-Saharan Africa6,1140.210,1520.366.0
            Total sub-Saharan Africa17,4450.536,2131.0107.6
Not specified/born at sea165,078...147,816...-10.5
            Total3,618,303 3,737,277 3.3

Between 1996 and 2001, New Zealand's overseas-born population rose by approximately 93,600, an increase of 15.5 percent. Much of this increase occurred in Auckland, where people born overseas now account for one in every three.

While people born in the United Kingdom and Ireland continue to comprise the largest immigrant group, at around 6.3 percent of the total population, their number fell slightly, by 4,926, between 1996 and 2001. There were large increases in the number of people born in Asia, Africa and the Middle East. The proportion of the New Zealand population born in Asia increased from 3.4 percent to 4.6 percent during the period 1996 to 2001. Those born in China doubled, from 19,518 in 1996 to 38,949 in 2001. In the same period, the Indian-born population increased by 63.1 percent (to 20,889), those born in the Republic of Korea by 47.2 percent (to 17,934), and the Philippines-born population by 44.8 percent (to 10,137).

The number of people born in South Africa increased by 129.9 percent between 1996 and 2001, to 26,061. The number of people born in North Africa and the Middle East rose from 7,239 in 1996 to 12,174 in 2001, an increase of 68.2 percent. The rest of the sub-Saharan-born population increased by 66 percent, to 10,152.

Figure 6.01 shows birthplaces as a proportion of all New Zealanders born overseas.

Figure 6.01. Birthplaces as a proportion of all overseas-born New Zealanders1901 and 2001

Birthplaces as a proportion of all overseas-born New Zealanders1901 and 2001

Christianity remains the dominant religion of New Zealanders, with 61 percent of 2001 Census respondents identifying with this group.

Religious affiliation

Changes to the 2001 Census question on religious affiliation mean direct intercensal comparisons cannot be made. Previous censuses collected only one response for religious affiliation, whereas up to four responses were collected in 2001.

Results from the 2001 Census showed that Christianity (including Māori Christian) remained the dominant religion, with 61 percent of people identifying an affiliation to this group. Around 30 percent of people stated they had no religion, and 7 percent objected to answering the religious affiliation question.

Within the Christian religion, the Anglican (28 percent), Catholic (23 percent), Presbyterian (20 percent) and Methodist (6 percent) denominations continued to have the majority of affiliates. Together their members made up more than 75 percent of all Christian denominations (including Māori Christian). Of those who identified with Māori Christian, the most popular denominations were Rātana (77 percent) and Ringatū (24 percent).

Although non-Christian religions are becoming more established in New Zealand, they each still make up only about 1 percent of the population. The three most common non-Christian religions in 2001 were Buddhist (1 percent), Hindu (1 percent) and Islam/Muslim (0.7 percent).

Table 6.04 summarises responses to the religious affiliation question in the 1991, 1996 and 2001 Censuses.

Table 6.04. Religious affiliation1

Religious affiliation (total responses)199119962001

1Data for 2001 not directly comparable with previous data, as in the 1991 and 1996 censuses only one response to religious affiliation was collected. In the 2001 Census, up to four responses were collected. Where a person reported more than one religious affiliation, each was counted in its applicable group. The 1991 and 1996 data includes Ecumenical, which, in 2001, was included in Uniting/Union Church and Ecumenical. The 1996 data includes Fundamentalist and Born Again, which, in 2001, was included in Evangelical, Born Again and Fundamentalist.

.. figures not available

Note:All totals randomly rounded to base 3.

Source: Statistics New Zealand

Buddhist12,76228,13141,634
Anglican732,048631,764584,793
Catholic498,612473,112486,012
Presbyterian, Congregational and Reformed553,386470,442431,547
Christian (not further defined)79,317186,891192,165
Methodist139,494121,650120,705
Pentecostal49,59669,33367,239
Baptist70,15553,61351,426
Latter-day Saints48,00941,16639,912
Brethren21,91521,93320,406
Jehovah's Witness19,18219,52717,826
Adventist15,67514,69114,868
Salvation Army19,99214,62512,618
Evangelical, Born Again and Fundamentalist5,1691,58411,019
Orthodox4,2636,9339,588
Lutheran4,9655,0074,314
Other Christian3,2762,7663,558
Church of Christ and Associated Churches of Christ4,8424,2333,270
Protestant (not further defined)1,7852,7782,784
Uniting/Union Church and Ecumenical1,0261,7281,389
Asian Christian..222195
Hindu18,03625,55139,798
Islam6,09613,54523,631
Judaism/Jewish3,1264,8096,636
Māori Christian56,05545,45063,597
Spiritualism and New Age5,1969,78616,062
Other19,86310,17618,783
No religion670,455867,2641,028,052
Object to answering251,709256,593239,244
            Total people3,316,0053,405,3063,468,813

Citizenship

New Zealand's citizenship legislation is contained in the Citizenship Act 1977, the Citizenship (Western Samoa) Act 1982 and the Citizenship Regulations 1978. The principal legislation, the 1977 act, includes the territories of the Cook Islands, Niue, Tokelau and the Ross Dependency in the definition of New Zealand for purposes of New Zealand citizenship.

Under the act, a person may be a New Zealand citizen by birth in New Zealand or by descent from a New Zealand citizen parent. British citizens resident in New Zealand throughout 1948 may also 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 born outside 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 24th 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 provisions 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 applicants satisfy the Minister of Internal Affairs that they:

  • Have been ordinarily resident in New Zealand for the three years immediately 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 live 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 before 15 September 1982, or 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 approved for 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.

Figure 6.02 shows citizenship applications granted from 1960 to 2003.

Figure 6.02. CitizenshipApplications granted

CitizenshipApplications granted

New Zealand citizens may be deprived of their citizenship if it was obtained by fraud, false representation, wilful concealment of relevant information, or by mistake.

New Zealand citizens may also choose to renounce their citizenship if they hold citizenship of another country.

Table 6.05 on page 100 shows the country of birth of approved citizenship applicants from 2000 to 2003.

Table 6.05. Citizenship approvals By country of birth Years ending 31 December

Country of birth2000200120022003
Source: Department of Internal Affairs
Aden0300
Afghanistan2236125120
Albania03155
Algeria16261115
American Samoa1715217
Angola1032
Argentina1214148
Armenia2303
Australia816892111
Austria251585
Azerbaijan2225
Bahamas0000
Bahrain712612
Bangladesh22173100138
Barbados0001
Bechuanaland0000
Belarus1632311
Belgian Congo0100
Belgium9456
Belize0001
Benin1000
Bermuda2200
Bhutan1000
Bolivia1517
Born at sea1000
Bosnia    
-Herzegovina49312620
Botswana10856
Brazil24382824
British Guiana2200
British Virgin    
Islands0003
Brunei241384
Bulgaria42565038
Burma50321514
Burundi30134
Cambodia205201269316
Cameroon1121
Canada186183123130
Cayman Islands0100
Ceylon479403293
Channel Islands141553
Chile15301125
China3,7522,5791,8962,032
Colombia1161520
Congo30111
Costa Rica1234
Croatia135814040
Cuba0211
Cyprus11346
Czech Republic12418
Czechoslovakia211471
Democratic Republic of the Congo00020
Denmark6473
Dominican Republic1100
East Germany3200
Ecuador2212
Egypt23716475105
El Salvador9120
England3,0642,5271,8231,893
Eritrea2,51519 
Estonia1210
Ethiopia79109154103
Falkland Islands0200
Fiji1,2531,2731,1391,047
Finland24115
France45384639
French Indo-China7954101
French Polynesia8043
French Territory of the Afars and Issas0100
Georgia11866
Germany42565988
Ghana26262111
Gibraltar5211
Gilbert and Ellice Islands51051
Gilberts Islands0100
Gold Coast2200
Greece71067
Guam0020
Guatemala0530
Guyana1100
Haiti0010
Honduras1000
Hong Kong1,270740539255
Hungary21151816
Iceland1000
India1,8471,3761,3501,255
Indonesia1087410693
Inner Mongolia0000
Iran180204240228
Iraq1,047528434509
Ireland053226
Isle of Man1051
Israel38213024
Italy22372330
Ivory Coast0111
Jamaica5355
Japan32392927
Jordan53502327
Kazakhstan18202112
Kenya40445243
Kiribati0163
Korea1,9541,036668594
Kuwait55906248
Kyrgyzstan0021
Laos62181713
Latvia41109
Lebanon2761419
Lesotho0021
Liberia6755
Libya199145
Lithuania3122
Luxembourg0001
Macao2121145
Macedonia328895819
Madagascar2013
Malawi2591
Malaya14612581
Malaysia183202234289
Maldives2001
Mali0011
Malta5554
Mauritius5376
Mexico1224916
Micronesia0000
Moldova0511
Mongolia0002
Morocco811610
Mozambique2502
Myanmar062223
Namibia8232426
Nauru2104
Nepal64563324
Netherlands Antilles1000
Netherlands East Indies10701
Netherlands New Guinea0020
New Caledonia4402
New Hebrides1010
New Zealand4200
Nigeria26332327
North Borneo4610
North Vietnam233050
Northern Ireland84723749
Northern Mariana Islands1100
Northern Rhodesia342383
Norway2335
Nyasaland2001
Oman12645
Ottoman Empire1000
Pakistan473172168134
Palau0000
Palestine210123
Panama3101
Papua New Guinea65139
Paraguay0102
Peru30261913
Philippines949829652555
Pitcairn Island1210
Poland60644334
Portugal5325
Portuguese    
East Africa0010
Portuguese    
East Timor0000
Puerto Rico0211
Qatar4826
Republic of Ireland6859913
Rhodesia032415
Romania35344366
Russia315149231247
Rwanda25152
Rwanda-Burundi1000
Samoa1949588820
Sarawak31200
Saudi Arabia43423013
Scotland391292241241
Senegal1000
Serbia and Montenegro0004
Seychelles1000
Sharjah1000
Sierra Leone2476
Singapore117949183
Slovakia2019
Slovenia6741
Solomon Islands4485
Somalia256313401260
South Africa2,0102,0281,9731,992
South Korea28171748
South Vietnam686691
South West Africa91021
Southern Rhodesia971342712
Spain131044
Sri Lanka295335539469
St Kitts and Nevis0012
St Vincent1000
Sudan23285566
Surinam1013
Swaziland2530
Sweden8252733
Switzerland76694760
Syria31752615
Tahiti0133
Taiwan1,9701,6191,069546
Tajikistan1000
Tanganyika11510
Tanzania441412
Thailand269217248232
The Gambia0011
The Netherlands123967488
Tibet0110
Togo2101
Tonga365408271207
Transjordan1000
Trinidad and Tobago3213
Tunisia3866
Turkey40352623
Turkmenistan0010
Tuvalu414610
U.S.A363281225348
Uganda5453
Ukraine135905864
United Arab Emirates49905536
Uruguay1212
USSR1792024032
Uzbekistan81244
Vanuatu0023
Venezuela41033
Vietnam8086211213
Wales1161137679
West Germany643531
Western Samoa1,6831,541719369
Yemen111129
Yugoslavia427196187292
Zaire2330
Zambia24252526
Zimbabwe212910298
            Total29,60923,53519,76918,296

Immigration

Immigration legislation and policy is administered by the New Zealand Immigration Service (NZIS), part of the Department of Labour.

The role of the NZIS is to manage immigration for national advantage on behalf of the government. The NZIS has branches throughout New Zealand and overseas. The Ministry of Foreign Affairs and Trade processes temporary applications on behalf of the NZIS in some countries where the NZIS is not represented.

Residence. People who want to migrate permanently to New Zealand can apply under one of the three residence streams of the New Zealand Immigration Programme: Skilled/business, family sponsored and international/humanitarian. Each stream has a number of categories. For the 2002/03 year, the immigration programme's residence approval target was 45,000 (plus or minus 5,000). This was the same as for the 2001/02 financial year and an increase of 7,000 on the 2000/01 goal.

Residence applications are considered on the basis of whether principal applicants meet the policy criteria set by the government. Principal applicants may include their partners and dependent children in their application. All applicants must meet health and character requirements, and all migrants over the age of 16 in the skilled migrant, investor and entrepreneur categories must meet a minimum standard of English.

The English standard can be met by either exceeding the specified score in the International English Language Testing System (IELTS), or by showing other evidence of English ability. Skilled migrants must have an average of 6.5 on the IELTS scale across the four skill areas (speaking, writing, listening and reading) and business migrants must have an average of 5. Non-principal applicants who do not meet the standard may still be granted residence, provided they purchase English language tuition to be taken up once they arrive in New Zealand.

Skilled/business. This stream consists of the Skilled Migrant Category and the Business Categories of Investor, Entrepreneur and Employees of Businesses Relocating to New Zealand. In 2002/03, there were 30,443 people approved for residence under the skilled/business stream. This represented 63 percent of all approvals. The General Skills Category (GSC) provided 26,650 of these approvals and a further 3,793 people were approved under the business categories.

Skilled Migrant Category (SMC) - The SMC replaced the GSC from 17 December 2003. This policy change shifted the focus of skilled immigration policy from the passive acceptance of residence applications to the active recruitment of applicants with the skills that New Zealand needs. Potential migrants submit expressions of interest, information from which is used to score points for a number of employability and capacity-building factors. Potential migrants must meet a pre-set number of points in order to enter a pool of potential residence applicants. Prospective migrants will be invited to apply for residence based on their ranking in the pool and subject to them meeting health, character and English language requirements and initial verification requirements. Principal applicants who are invited to apply must be aged between 18 and 55 inclusive. Applications for residence are assessed against government residence policy and the applicant's ability to settle and contribute to New Zealand. A person who can demonstrate their ability to settle in New Zealand successfully, through having skilled employment or an offer of skilled employment in New Zealand, or a New Zealand postgraduate qualification may qualify for residence. A person who has potential, but does not have these attributes, will be interviewed to gather more information. Either a residence or a work to residence visa/permit may be issued to these people.

Investor - Applicants are awarded points based on age, business experience and investment funds of at least $1 million. Applicants who reach the pass mark and meet English language, health and character requirements can be issued with residence visas or permits. Once invested, the funds must be retained in New Zealand for two years. Residence can be revoked if this condition is not met.

Entrepreneur - People who have successfully established a business that benefits New Zealand, and have been self-employed in New Zealand in that business for at least two years, can be granted residence under this category. Successful establishment means the applicant has established, purchased, or made a substantial investment in a profit-making business operating in New Zealand. A business is considered to benefit New Zealand if it creates employment, revitalises an existing business, enhances New Zealand's export markets or introduces new skills or technologies to New Zealand.

Employees of Businesses Relocating to New Zealand - This category is available on a case by case basis to essential employees of businesses relocating to New Zealand who do not qualify for residence under any other category.

Family sponsored. Thirty percent of approvals were allocated to the family sponsored stream for the 2002/03 financial year and 13,045 people were approved. The family sponsored stream allows migrants in a variety of close relationships with New Zealand citizens or residents to be sponsored for residence. Sponsors must have held New Zealand residence for at least three years immediately prior to sponsorship, and must sign a declaration that they will provide accommodation and financial support for the first two years of the migrant's residence in New Zealand. Financially dependent children under the age of 25 may also be sponsored. Parents (or grandparents or legal guardians if the parents are dead) qualify for sponsorship under certain conditions. Adult children and siblings who have no siblings or parents in their home country are eligible to be sponsored for residence, along with their dependants, providing they have a job offer in New Zealand. A family quota exists for a small number of sponsored parents, siblings, adult children and grandparents who do not meet other family policy criteria.

Partnership policy. New partnership rules were introduced in September 2003. To qualify for residence under this policy, all applicants have to prove that they have been living in a genuine and stable relationship with a New Zealander for 12 months or more at the time of application, whether or not they are in a marriage or de facto relationship (whether opposite or same sex).

Sources of migration. Of the 48,538 people approved for residence in New Zealand in 2002/03, both China and India accounted for 16 percent each, with a further 14 percent from Great Britain and five percent from South Africa.

In 2001/02, there were 52,856 people approved for residence. China was the source of 17 percent of these approvals, followed by India with 16 percent and Great Britain with 12 percent.

In 2002/03, the General Skills Category (GSC) accounted for 55 percent (26,650) of all approvals and a further 27 percent (13,045) were granted residence under the family sponsored stream.

In 2001/02, the GSC accounted for 59 percent (31,359) of the total number of residence approvals and the family sponsored stream for 22 percent (11,733) of all residence approvals.

The largest percentage of people approved under the GSC in 2002/03 came from India, with 23 percent of GSC approvals, followed by Great Britain and China, both with 15 percent of approvals.

Temporary entry

All travellers arriving in New Zealand, including New Zealand citizens, must produce a valid passport or another form of recognised travel document.

With the exception of New Zealand citizens (which includes people born in the Cook Islands, Niue and Tokelau), Australian citizens and a small number of other people exempt under the Immigration Act 1987, everyone entering New Zealand is required to obtain a permit to remain in New Zealand. Categories for temporary permits include:

  • Visitors - People may enter New Zealand as visitors if they are tourists, visiting friends or relatives, studying for less than three months, playing sport or performing in cultural events without pay, or making short business trips. A visitor's permit is usually granted for an initial period of three months, and may be extended for up to a further six months. Citizens of more than 50 countries have been granted visa waivers and do not need to apply for a visitor's visa before they travel to New Zealand (they are granted a visitor's permit at the border). Visitors from countries without visa waivers need to apply for a visitor's visa prior to travelling to New Zealand. Visitors must have sponsorship or sufficient funds to support themselves while they are in New Zealand, and must have an outward ticket or some other travel arrangements.

  • Students - International students are required to apply for a visa before travelling to New Zealand to study, or, if they are from a visa waiver country, they may apply for a student permit in New Zealand if they intend studying for more than three months. Students must show that they have been offered a place at a recognised educational institution, evidence that course fees have been paid, a guarantee of accommodation, the ability to support themselves and a return ticket (or the 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 allowed to work full time during the Christmas/New Year holiday period.

  • Guardian - In September 2003, a new visa and permit category was introduced allowing the parents of young international students to live with and care for their children while they study in New Zealand. The guardian visa applies to children aged 17 and under and who are enrolled for Year 1 to 13 at a New Zealand school. The currency of the guardian visa is linked to the child's student visa and can be renewed annually. Only one parent or guardian in each family is eligible for a guardian visa.

  • Work - The objective of New Zealand's work permit policy is to contribute to developing New Zealand's human capability base by facilitating the access of New Zealand employers to global skills and knowledge. 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. For immigration purposes ‘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. A work permit is still required if payment is made by an overseas employer. The NZIS continues to issue temporary work visas and permits to contribute to New Zealand's capacity base, to assist employers to meet short-term skill needs and to allow migrants who wish to set up businesses in New Zealand do so. To facilitate work visa and permit applications from employers, where skills appear to be in shortage, a regionally-based labour market skills shortage list was established in 2000. This is updated quarterly. In 2002, new work permit categories were introduced that provide a pathway for gaining residence in New Zealand. These categories allow people who are interested in applying for residence in New Zealand to work for up to two years prior to lodging their application for residence. These categories include the Priority Occupations List and the Talent Visa.

  • Priority Occupations List (POL) - Applicants are eligible under this category if they have an offer of employment for an occupation that is included on the POL and have the necessary qualifications, training or experience and (if required) registration to undertake the offer of employment. The offer of employment must be for at least 24 months, be full time, be compliant with all relevant New Zealand employment laws and have a salary of at least $45,000 a year.

    Up to 31,000 young people aged 18-30 can work for up to 12 months while on holiday in New Zealand.

  • Talent (Accredited Employer) - Businesses operating in New Zealand can apply to become accredited employers with the NZIS. Accredited employers are able to recruit workers directly from overseas to fill skill shortages, provided those workers meet immigration criteria. Talent visa holders are eligible for permanent residence after two years, provided they have met the conditions of their visa and have an offer of on-going employment. There are more than 230 accredited employers in New Zealand and more than 650 applications were approved in the two years following its introduction.

  • Talent (Arts, Culture and Sports) - Under this category, a person who has an international reputation, a record of excellence in their field, and who will enhance the quality of New Zealand's accomplishments and participation in that field, may be granted a work permit. An applicant must be sponsored by a New Zealand organisation of national repute. They may be eligible for permanent residence after a two-year temporary residence period, provided they have met the conditions of their visa and have an offer of on-going employment.

  • Working holiday schemes - Work permits may be issued each year to up to 31,000 young people (aged 18 to 30) participating in one of New Zealand's reciprocal working holiday schemes. The reciprocal nature of the schemes allow young New Zealanders to work in partner countries. Work permits are issued for up to 12 months, although under most of the schemes work is limited to three months with any one employer, as work is regarded as incidental to the main purpose of undertaking a holiday. Working holiday schemes have been established for people from Argentina, Canada, Chile, Denmark, France, Germany, Hong Kong, Ireland, Italy, Japan, Malaysia, Netherlands, South Korea, Sweden, the United Kingdom and Uruguay. New Zealand and Singapore have established a similar but more limited work exchange programme, with participants required to hold a tertiary qualification.

  • Long-term business visa - Work permits may be granted for up to three years to business people 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. English language requirements were introduced for this category of applicants in November 2002.

International/humanitarian

This migration stream comprises the refugee quota, successful refugee status claimants, the Samoan quota, the Pacific access category, a category for Pitcairn Islanders and the domestic violence policy. Ten percent of residence approvals were allocated to this stream for the 2002/03 financial year and 3,286 people were approved.

Refugees. New Zealand is committed to working with the international community to help resolve refugee problems. The immigration service manages the Refugee Quota Programme, which allows up to 750 refugees to settle in New Zealand each year. In 2002/03, there were 684 people accepted for resettlement in New Zealand. (A planned selection mission was cancelled due to security concerns in the lead up to the war in Iraq, meaning fewer refugees could be resettled.) The Refugee Quota Programme consists of a number of categories including women at risk, medical/disabled, protection, emergency and other. The 2002/03 quota consisted of refugees from Iraq, Afghanistan, Sri Lanka, Myanmar, Palestine and other countries.

Women at risk - Seven women were accepted under this category in 2002/03. These were women who were mandated refugees and who were without the support of their traditional family protectors or community. They may have been in need of additional protection, for example, from abduction, sexual abuse and/or exploitation.

Medical/disabled - Six people were accepted under this category in 2002/03. These were mandated refugees with a medical condition that could not be treated in the country of refuge. Cases in this category can be rejected if resources and treatments are not available in New Zealand.

Protection - In 2002/03, 639 people were accepted under this category. These were people who required protection from being returned to their country of persecution, from expulsion from their country of refuge or from a physical threat to their security.

Emergency and other - Thirty-two refugees were accepted under these categories in 2002/03.

All refugees attend a six-week orientation programme run by the immigration service at its Mangere Refugee Resettlement Centre. The service locates and maintains sponsors who assist refugees to settle in the community following their initial induction. Refugees accepted under the quota are granted residence permits on arrival 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.

New Zealand also considers claims for refugee status from people who arrive in New Zealand and seek asylum. Claims are assessed under the 1951 United Nations Convention and 1967 Protocols Relating to the Status of Refugees. The refugee status branch of the immigration service assesses refugee status claims in the first instance. In 2002/03, around 20 percent of refugee status claimants were found to meet the definition of a refugee. The number of refugee status claims in New Zealand has reduced in recent years. Should a claim be declined, the claimant may appeal to the Refugee Status Appeals Authority.

Samoan quota. Up to 1,100 Samoan citizens may be granted residence in New Zealand each year under this quota. English language, health and character requirements must be met and the principal applicant must also have an offer of employment in New Zealand.

Pacific access. This category was introduced on 1 July 2002, and enables up to 250 people from Tonga, 250 people from Fiji, 75 people from Tuvalu and 75 people from Kiribati to be granted residence each year. Applicants must be citizens of their country, meet English language, health and character requirements, and have an offer of employment in New Zealand.

Pitcairn Islanders. A special residence category exists for Pitcairn Islanders because New Zealand recognises there are limited employment opportunities on the island. Pitcairn Islanders will be considered for residence if they have an offer of employment in New Zealand and meet health and character requirements.

Domestic violence policy. This policy enables ex-partners of New Zealand citizens or residents to apply for residence when their relationship has ended as a result of domestic violence and they are unable to return to their home country for cultural or social reasons.

Removal and deportation

The Immigration Act, as amended in 1999, emphasises that all visitors must have valid permits to be in New Zealand lawfully, and that those who do not may be removed. Any person may appeal on humanitarian grounds against removal to the Removal Review Authority within 42 days of becoming unlawfully in New Zealand. People removed from New Zealand are not eligible to return for five years after the date of their departure. The act provides for the deportation of people who threaten national security, suspected terrorists and criminal offenders who are residents of New Zealand. Such people may appeal on humanitarian grounds to the Deportation Review Tribunal, an independent tribunal administered by the Ministry of Justice. If the tribunal dismisses an appeal, the deportation order remains in place. A further appeal, only on a point of law, may be made to the High Court of New Zealand. Anyone in this category deported from New Zealand is not permitted to return without special permission from the Minister of Immigration.

Information. Further information about immigration policy, application forms, leaflets and fees can be obtained from New Zealand Immigration Service branches in New Zealand and overseas, or from New Zealand diplomatic and consular representatives overseas. The immigration service's website is www.immigration.govt.nz

6.2 Māori society

Demography

Statistics on Māori ‘ethnicity’ in the 2001 Census of Population and Dwellings are collected on the basis of personal identification, individual perception and choice.

Ethnicity statistics in 2001 are generally comparable with 1991 Census statistics. Changes to the form of the ethnicity questions used in the 1996 and 2001 Censuses have resulted in some data that is not consistent between 1991 and 1996 nor between 1996 and 2001. This applies particularly to the ‘European’ ethnic groups, including the ‘New Zealand European’ ethnic group, but also to the ‘Māori’ ethnic group. Because data between 1991 and 2001 may not be affected, comparison should be made between 1991 and 2001 Census data when measuring the real effects of population change.

While statistics based on ethnicity are widely used for analysing Māori ethnic group growth and distribution, and are relevant to many of the present day requirements of users, it should be noted that the concept used to measure the Māori electoral ethnic group is based on Māori descent. People are counted as having Māori ethnicity if they have given this response as any one of their ethnicities.

Age distribution.Table 6.06 compares the Māori ethnic group population at the 1991 and 2001 Censuses by age group. When the intercensal change is analysed on a consistent age group basis (ie the 0-4 year group at the 1991 Census is compared with the 10-14 year group at the 2001 Census), the contribution made by net external migration and natural increase to growth of the Māori ethnic group can be seen. Another factor which affects this pattern is ethnic mobility (when a person changes ethnicity between censuses).

Table 6.06. Māori ethnic group By age group1

Age group (in years)1991 Census2001 CensusIntercensal percentage change 1991-2001
NumberPercentageNumberPercentage

1Māori ethnic group census usually resident population count.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

0-462,00114.367,56012.89.0
5-951,07511.766,11412.629.4
10-1449,96811.562,80511.925.7
15-1730,0216.931,0715.93.5
18-1919,8904.618,4563.5-7.2
20-2442,8559.942,0968.0-1.8
25-2939,5649.140,1647.61.5
30-3433,9967.839,2527.515.5
35-3926,0106.038,3257.347.3
40-4420,7454.832,8596.258.4
45-4915,4383.625,0954.862.6
50-5413,8363.219,4733.740.7
55-5910,6532.413,8272.629.8
60-647,8361.811,5532.247.4
65-695,0641.27,9411.556.8
70-742,9310.75,0701.073.0
75-791,7250.42,6850.555.7
80 and over1,2390.31,9410.456.7
            Total434,847100.0526,281100.021.0

At the 2001 Census, the Māori ethnic group was significantly younger in age structure than the total population. This youthfulness is demonstrated by the fact that 37.3 percent of the Māori population were aged under 15, compared with 22.7 percent of the total New Zealand population.

By contrast, only 3.4 percent of the Māori population was aged 65 and over, compared with 12.1 percent of the total New Zealand population. These differences reflect both the higher historical fertility (in terms of birth numbers) and mortality levels of the Māori ethnic group relative to the New Zealand population.

The impact of the levels and directions of net external migration on the age structures of the two populations has been much less.

Male to female ratio. Females outnumbered males in the Māori ethnic group at the 2001 Census, repeating the pattern established at the 1991 Census.

In 2001, there were 268,797 Māori females and 257,481 Māori males, representing a sex ratio of 104.4 females to every 100 males.

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.

The Māori fertility rate fell rapidly during the 1960s and 1970s and 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 2.55 births per woman in 2003 remains 40 percent higher than that for non-Māori women (1.82 births per woman).

Unlike non-Māori, who have sub-replacement fertility, Māori fertility remains about 20 percent above ‘replacement level’ (2.1 births per woman).

At the 2001 Census, 37.3 percent of the Māori population were under the age of 15, compared with 22.7 percent of the total New Zealand population.

In 2003, the median age at childbearing was 26.1 years for Māori women and 31.1 years for non-Māori women.

Figure 6.03 shows the Māori ethnic group population as a proportion of the total New Zealand population from 1901 to 2001.

Figure 6.03. Māori ethnic group1As proportion of New Zealand population

Māori ethnic group1As proportion of New Zealand population

Geographical distribution. Changes in the regional distribution of the Māori ethnic group between the 1991 and 2001 Censuses are shown in Table 6.07.

People of Māori ethnicity continue to be concentrated in North Island regions (where 87.6 percent live) and more especially in the northern regions of Northland, Auckland, Waikato and Bay of Plenty.

The proportion of the Māori ethnic group in the North and South Islands increased 18.9 and 38.5 percent respectively during the 1991-2001 intercensal period.

The Tasman and Nelson regions showed the largest percentage increases between 1991 and 2001.

Redistribution of the Māori population between 1991 and 2001 was 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 6.07. Māori ethnic group1 By region

Region1991 Census2001 CensusIntercensal percentage change 1991-2001
NumberPercentageNumberPercentage

1Māori ethnic group census usually resident population count.

2Includes Chatham Islands.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

North Island     
Northland35,6108.240,7347.714.4
Auckland103,58723.8127,62624.323.2
Waikato59,98513.872,82213.821.4
Bay of Plenty53,17512.263,65412.119.7
Gisborne17,8204.119,3653.78.7
Hawke's Bay28,2426.532,0886.113.6
Taranaki12,7622.914,5592.814.1
Manawatu-Wanganui34,5758.039,2677.513.6
Wellington42,0789.751,1239.721.5
            Total North Island387,83489.2461,23887.618.9
South Island     
Tasman1,6290.42,7780.570.5
Nelson1,7070.43,2190.688.6
Marlborough2,7780.63,8940.740.2
West Coast2,0250.52,5470.525.8
Canterbury22,0055.131,6326.043.7
Otago7,4101.710,5422.042.3
Southland9,1292.110,0381.910.0
            Total South Island46,68010.764,65312.338.5
Area outside region23300.13900.118.2
            Total New Zealand434,847100.0526,281100.021.0

The Treaty of Waitangi Te Tiriti O Waitangi

The Treaty of Waitangi was signed at Waitangi on 6 February 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 governments or the courts. A 1987 court ruling ensured, however, that the treaty 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 ruling 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, established under the Treaty of Waitangi Act 1975, has exclusive authority 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.

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 appointed for their expertise in matters likely to come before the tribunal, plus a chairperson who is either a judge, or a 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. Membership of the tribunal reflects partnership in the Treaty of Waitangi through equal representation of Māori and Pākehā.

The tribunal may inquire only 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 three broad categories of historical claims (eg past government actions), contemporary claims (eg current government policies or practices) and conceptual claims (eg ownership of natural resources).

The tribunal does not settle claims; it makes recommendations to the government on how claims might be settled, and all claims are settled by negotiation with the government. Generally, the tribunal has the authority to make recommendations only. 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.

Transfers    
YearTo general rollTo Māori roll transfersTotal
TotalPercentTotalPercentTotal
20014,86626.013,87274.018,738
19977,04032.714,47167.321,511
New Enrolments    
YearTo general rollTo Māori roll transfersTotal
TotalPercentTotalPercentTotal
Source: Electoral Enrolment Centre
20013,43618.515,13881.518,574
19972,66420.210,51779.813,181

The tribunal cannot make recommendations over the return of private land. It can register the claim of any Māori with a grievance against a policy, practice, act, or omission of the Crown, and it may refuse to inquire into claims that are frivolous or vexatious.

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 the protocols of the marae.

At 30 June 2003, the tribunal had registered 1,042 claims since 1975.

Of these, 25 percent had been disposed of (having been reported on, directly negotiated, withdrawn etc), 17 percent had been inquired into and were in the process of being reported on, 32 percent were in research and/or hearing and 26 percent had yet to be dealt with.

The tribunal's website is www.waitangi-tribunal.govt.nz

The Office of Treaty Settlements Te Tari Whakatau Take e pa ana ki te Tiriti o Waitangi. The Office of Treaty Settlements was established on 1 January 1995 to give better focus to government objectives to resolve historical claims under the Treaty of Waitangi.

The office 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 specific claims.

  • To acquire, manage and dispose of Crown-owned property for purposes related to treaty claims.

For administration and financial management purposes, the office is attached to, but funded separately from, the Ministry of Justice, having its own Vote: Treaty Negotiations.

At the beginning of 2004, the office was dealing with about 25 claimant groups at the pre-negotiation, negotiation or implementation stage.

The Office of Treaty Settlements website is www.ots.govt.nz

Māori organisations

Māori Trustee. The Māori Trustee provides a sustainable framework for the development and utilisation of Māori resources to accelerate Māori development.

To achieve this, the Māori Trustee:

  • Manages clients' assets to best advantage through sound and prudent management practices.

  • Unlocks the potential of Māori assets by identifying new opportunities for land use and business development.

  • Enhances its financial services, including lending, by working with the public sector, including the Māori business facilitation service Poutama, the Ministry of Agriculture and Forestry and the private sector.

New Zealand Māori Council Te Kaunihera Māori. The New Zealand Māori Council is constituted under the Māori Community Development Act 1962 and is a founding member of the World Indigenous People's Council.

Some of the functions of the council 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 provisions of the Treaty of Waitangi and for effecting change in the status of Māori through acts of parliament. It challenged the Crown in the Privy Council in respect of fisheries settlement (especially the Māori Fisheries Act 1989), te reo Māori and Māori broadcasting, the State-owned Enterprises Act 1986 and the Crown Forest Assets Act 1989.

As a statutory body, the council is accountable to the government for its funding. The council is based on the 946 marae throughout New Zealand. It represents 17 district Māori councils, which nominate three delegates to attend full council meetings. The council also includes representatives from the Māori Women's Welfare League, and Māori Wardens. The executive committee consists of the chairman of each district council. The council 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.

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 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, 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 widely representative, it is an obvious source of collective Māori opinion from which acceptable policies for Māori development might take shape.

The congress is led by two presidents and has three elected officers. Membership includes five delegates from 45 participating iwi. The 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 Women's Welfare League Te Roopu Wahine Māori Toko i Te Ora. The Māori Women's Welfare League is a national voluntary organisation with its philosophy being the well-being of Māori women and their families. The league has a nationwide network of 165 branches, with a membership of 3,000. It has been actively involved with Māori families and communities since 1951, improving health, housing, education, welfare, justice and economic development for Māori people.

Te reo Māori

Te reo Māori is the language of the indigenous people of New Zealand and an official language of the country. The Māori language renaissance, which began about 30 years ago, has fostered many Māori language initiatives to regenerate te reo Māori, including kωhanga reo (Māori language immersion preschool movement), kura kaupapa Māori and wharekura (Māori language immersion primary and secondary schools), and whare wānanga (Māori tertiary institutions). There are also 21 Māori radio stations, and a Māori television service which began operations in 2004. Legislation that led to the declaration of Māori as an official language of New Zealand and establishment of the Māori Language Commission Te Taura Whiri i te Reo Māori was passed in 1987.

Kωhanga reo. Te kωhanga reo is a whānau (family) base where Māori language, values and customs are naturally acquired by preschool 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 whānaungatanga (family responsibilities) through the medium of Māori language. There were 546 kωhanga reo throughout New Zealand in 2004, where 10,495 children were taught in te reo Māori. Approximately 55,000 children have passed through te kωhanga reo since it was established in 1982. The kωhanga reo movement provides a variety of courses and training programmes which can be accessed by whānau through their own kωhanga 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 in the administration and management of the kωhanga reo operation.

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.

6.3 Pacific peoples

Demography

The 2001 Census provides the most recent and complete data on New Zealand's Pacific ethnic groups.

Pacific ethnic group population statistics are compiled on the basis of self-identification, and are based on the concept of ethnicity, allowing comparisons between 1991 and 2001 Census data.

Pacific ethnic groups include people of Samoan, Cook Island Maori, Niuean, Tokelauan and other Pacific (eg Hawaiian and Tahitian) ethnic groups.

People who specified themselves as belonging to one or several Pacific ethnicities are defined as belonging to those Pacific ethnic groups.

Table 6.08. Pacific ethnic groups1 By age group

Age group (in years)1991 Census2001 CensusIntercensal percentage change 1991-2001
NumberPercentageNumberPercentage

1Pacific ethnic groups census usually resident population count.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

5-919,85411.930,48013.153.5
10-1419,11311.426,88911.640.7
15-1917,22610.321,4869.324.7
20-2416,69510.019,7828.518.5
25-2915,6279.417,9767.815.0
30-3413,0807.817,7787.735.9
35-3910,7886.516,0116.948.4
40-448,5475.112,7535.549.2
45-495,9973.610,1314.468.9
50-544,7102.87,9773.469.4
55-593,3392.05,6672.469.7
60-642,6221.64,4611.970.1
65-691,7311.03,1501.482.0
70-741,0590.62,2411.0111.6
75-795610.31,2690.5126.2
80 and over3900.29750.4150.0
            Total167,073100.0231,798100.038.7

Age distribution.Table 6.08 compares the Pacific population at the 1991 and 2001 Censuses on an age group basis. When intercensal population growth is analysed on a consistent age group basis (ie the 0-4 year group at the 1991 Census is compared with the 10-14 year group at the 2001 Census), the major contribution made by net immigration to the increase in Pacific peoples is evident. In addition, the big increase of 64,725 (38.7 percent) in the Pacific population during the 1991-2001 intercensal period was partly a result of significant natural increase (births less deaths). At the 2001 Census, the Pacific population was considerably younger in age structure than the total New Zealand population, with 38.9 percent of Pacific peoples under 15 years, compared with 22.7 percent of the total New Zealand population. By contrast, only 3.3 percent of Pacific peoples were aged 65 and over, compared with 12.1 percent of the total New Zealand population.

People of Pacific ethnicities in New Zealand have had a different age structure in the past from that of the Māori ethnic group. 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 intermarriage, the ageing of Pacific peoples and relatively high fertility rates, the age structure has, since 1996, been almost identical with the Māori ethnic group. Two other features affect the Pacific population: first, the number of Pacific peoples born in New Zealand has shown a significant increase only in the past two decades, 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 and Māori ethnicities. More than 25 percent of all people under five belonging to Pacific ethnic groups also belong to the Māori ethnic group.

Geographical distribution. Distribution of Pacific peoples by New Zealand region is shown in Table 6.09 on page 112. All regions, except Southland, experienced significant growth in their Pacific populations between the 1991 and 2001 Censuses. The Auckland Region had the greatest numerical increase, 42,825 (66.2 percent) of the national increase of 64,725 during the 10-year period. In 2001 however, 66.7 percent of the Pacific population lived in the Auckland Region, 0.2 percentage points lower than the proportion in 1991.

Migration to New Zealand

Cook Islands. The Cook Islands gained independence in free association with New Zealand in 1965. Its people retained the right of free entry to New Zealand and significant emigration began from the 1950s, and increased during the 1960s and 70s.

The most common destinations were Auckland and Wellington. Smaller numbers of migrants went to provincial towns, where factory work was readily available. The 2001 Census recorded 51,486 Cook Island Maoris living in New Zealand.

Niue. Niue achieved self-government in free association with New Zealand in 1974 and Niueans were granted right of free entry, residence and New Zealand citizenship. Among New Zealand's attractions for Niueans is a more certain way of life. Niue is particularly vulnerable to natural disasters, such as drought and cyclones, and successive cyclones in 1959, 1960 and 2004 had a devastating effect. In 2001, there were 20,148 Niueans living in New Zealand, most of them in Auckland.

Table 6.09. Pacific ethnic groups1 By region

Region1991 Census2001 CensusIntercensal percentage change 1991-2001
NumberPercentageNumberPercentage

1Pacific ethnic groups census usually resident population count.

2Includes Chatham Islands. -nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

North Island     
Northland1,5870.92,9431.385.4
Auckland111,85566.9154,68066.738.3
Waikato6,9304.110,5244.551.9
Bay of Plenty3,2461.95,4632.468.3
Gisborne5040.31,1370.5125.6
Hawke's Bay2,5171.54,7102.087.1
Taranaki6330.41,0590.567.3
Manawatu-Wanganui3,3482.05,0312.250.3
Wellington26,13315.632,28313.923.5
            Total North Island156,75393.8217,83394.039.0
South Island     
Tasman1260.12220.176.2
Nelson2250.15940.3164.0
Marlborough1770.14080.2130.5
West Coast1440.11860.129.2
Canterbury5,8383.58,6193.747.6
Otago2,2381.32,6461.118.2
Southland1,5660.91,2780.6-18.4
            Total South Island10,3116.213,9536.035.3
Area outside region29-12-33.3
            Total New Zealand167,073100.0231,798100.038.7

Tonga. The Kingdom of Tonga is an independent nation, where population pressures have forced the nation to adopt emigration as an official policy. In 1970, a scheme was initiated under which Tongans were allowed to migrate to New Zealand temporarily to work in unskilled jobs within the processing industry. Many also went to Australia and to the United States. There were 40,716 Tongans living in New Zealand in 2001, most of them in Auckland.

Tokelau. The small island group of Tokelau was declared a British Protectorate in 1889. New Zealand took over administration on behalf of Britain in 1925 and it became part of New Zealand's territory in 1948, with full political independence gained in 1994. The 10 square kilometres of Tokelau's three atolls have few natural resources, apart from lagoons, coconut palms and the ocean. The atolls are also vulnerable to cyclones. After a devastating cyclone in 1966, the New Zealand Government set up a resettlement scheme which involved about 500 people, half the Tokelauan population. These people voluntarily left Tokelau and resettled in Porirua and forest-industry towns like Rotorua. In 2001, there were 6,204 Tokelauans living in New Zealand, compared with 1,502 in Tokelau.

Figure 6.04 shows the pattern of net Pacific migration to New Zealand from 1980 to 2003.

Figure 6.04. Net Pacific migration to New Zealand1Years ending 31 March

Net Pacific migration to New Zealand1Years ending 31 March

Samoa. Samoa's 13 islands are divided into Samoa and American Samoa. The six islands east of the 171 st meridian were annexed by the United States in 1899. New Zealand assumed control of Western Samoa at the start of World War I and retained it until 1962, when Western Samoa became independent. Western Samoa has recently been renamed Samoa. Emigration from Western Samoa picked up in the mid-1960s and escalated through to the early 1970s - largely through the process of chain migration. Rapid population growth, a decline in export prices for cocoa and copra, a banana crop disease and a major cyclone in 1966 were persuading factors for migrants. The Treaty of Friendship signed at Western Samoa's independence ensured emigrants would not have to register in New Zealand as aliens. Samoans constitute the largest group of Pacific peoples living in New Zealand - 115,017 in 2001. The majority of Samoans live in Auckland.

Fiji. There were 7,041 Fijians living in New Zealand in 2001, a 38 percent increase on the 1991 figure. New Zealand-born Fijians made up 47 percent of the Fijian population in New Zealand in 2001, while 32 percent of Fijians born overseas had been living in New Zealand for between 10 and 20 years. Fifty-seven percent of Fijians living in New Zealand lived in the Auckland urban area, with the next largest concentration, 11 percent, being in the Wellington urban area.

6.4 Asian population

Demography

The Asian ethnic group in New Zealand increased markedly in the decade between 1991 and 2001. The 2001 Census of Population and Dwellings provides the latest statistical information on changes in the structure and size of the Asian ethnic group. Tables in this section are based on the concept of ethnicity and are established on the basis of self identification. This allows comparisons between 1991 and 2001 Census data. Figure 6.05 shows Asian migration to New Zealand from 1980 to 2003.

Figure 6.05. Asian migration to New Zealand1Years ending 31 March

Asian migration to New Zealand1Years ending 31 March

Asian ethnicities. Even though most people of Asian ethnicities more than doubled in the decade between 1991 and 2001, their shares of the total Asian ethnic group changed only marginally.

In 2001, with a share of 44.1 percent, people of Chinese ethnicities were the largest within the Asian ethnic group and experienced the biggest numerical increase in their population, from 44,793 in 1991 to 105,057 in 2001.

People of Indian ethnicities represented 26.1 percent of the Asian ethnic group in 2001, and during 1991-2001 the Indian ethnic group in New Zealand rose from 30,609 to 62,187.

The Korean ethnic group experienced the highest percentage increase during the 10-year period, rising from 930 to 19,026.

People of South-east Asian ethnicities were the third largest group within the Asian ethnic group.

In 2001, 30,648 (12.9 percent) of the Asian ethnic group were of South-east Asian ethnicities, and more than 33 percent of these were of Filipino ethnicity.

Age distribution.Table 6.10 on page 114 compares the Asian population in New Zealand at the 1991 and 2001 Censuses by age group.

When intercensal population growth is analysed on a consistent age group basis (ie the 0-4 year group at the 1991 Census is compared with the 10-14 year group at the 2001 Census), it is evident that the major contribution to the increase in the Asian ethnic group is from net immigration. The increase of 138,420 (138.8 percent) in the Asian population during the 1991-2001 intercensal period was the result of large net migration gains.

Table 6.1. Asian ethnic groups1 By age group

Age group (in years)1991 Census2001 CensusIntercensal percentage change 1991-2001
NumberPercentageNumberPercentage

1Asian ethnic groups census usually resident population count..

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

5-99,0939.118,3817.7102.1
10-149,0219.019,5218.2116.4
15-199,0069.027,10211.4200.9
20-249,3399.424,01810.1157.2
25-2911,84711.917,9797.551.8
30-3411,58911.619,9478.472.1
35-399,4209.422,7229.5141.2
40-447,1317.119,8068.3177.7
45-494,3114.315,6906.6264.0
50-542,9913.011,5204.8285.2
55-592,1632.27,1613.0231.1
60-641,6081.66,1922.6285.1
65-691,0591.14,4341.9318.7
70-746570.72,5891.1294.1
75-794470.41,4850.6232.2
80 and over4710.51,2540.5166.2
            Total99,756100.0238,176100.0138.8

Between the 1991 and 2001 Censuses, the Asian ethnic group grew by an average rate of 9.1 percent a year, compared with 1.0 percent for the total New Zealand population. This also had a significant impact on the overall age structure of the Asian group. At the 2001 Census, 72.3 percent of the Asian ethnic group were of working age (15-64 years), compared with 65.3 percent for the total New Zealand population. By contrast, only 4.1 percent of Asian were aged 65 and over, compared with 12.1 percent of the total New Zealand population.

Geographical distribution. Distribution of the Asian ethnic population by region at the 1991 and 2001 Censuses is shown in Table 6.11. The Asian ethnic group continues to be concentrated in the main regions of Auckland, Wellington and Canterbury. The Auckland Region experienced the largest growth in Asians, both in numerical and relative terms, between the 1991 and 2001 Censuses. The Auckland Region's Asian population increased by nearly 100,000 to reach 151,602 in 2001 and represented 71.5 percent of the national increase of 138,420 between 1991 and 2001.

Table 6.11. Asian ethnic groups1 By region

Region1991 Census2001 CensusIntercensal percentage change 1991-2001
NumberPercentageNumberPercentage

1Asian ethnic groups census usually resident population count.

2Includes Chatham Islands territory. - nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

North Island     
Northland1,0201.01,9980.895.9
Auckland52,58452.7151,60263.7188.3
Waikato5,4485.512,0215.0120.6
Bay of Plenty2,1212.15,2022.2145.3
Gisborne4290.46210.344.8
Hawke's Bay1,7701.82,9371.265.9
Taranaki1,0021.01,5000.649.7
Manawatu-Wanganui4,3444.46,5642.851.1
Wellington19,53319.627,81911.742.4
            Total North Island88,25788.5210,26488.3138.2
South Island     
Tasman1320.13660.2177.3
Nelson3780.48610.4127.8
Marlborough1830.23870.2111.5
West Coast1770.22460.139.0
Canterbury6,9967.019,4318.2177.7
Otago3,0753.15,7662.487.5
Southland5610.68490.451.3
            Total South Island11,49911.527,90611.7142.7
Area outside region23-3--
            Total New Zealand99,756100.0238,176100.0138.8

6.5 Human rights

Human Rights Commission Te Kāhui Tika Tangata

The Human Rights Commission is an independent Crown entity charged with administration of the Human Rights Act 1993.

In December 2001, parliament made significant changes to the act, affecting both the Human Rights Commission and the Office of the Race Relations Conciliator.

As a result of the Human Rights Amendment Act 2001:

  • The commission and the race relations office have become one new organisation.

  • The government is no longer exempt from fully complying with human rights standards.

  • Complaint-handling procedures have been streamlined to allow for more flexibility and accessibility in dispute resolution.

  • The role of the Proceedings Commissioner has been disestablished and a separate Office for Human Rights Proceedings has been created.

  • Two primary functions have been set out for the commission:

    • to advocate and promote respect for, and an understanding and appreciation of, human rights in New Zealand society, and

    • to encourage the maintenance and development of harmonious relations between individuals and among the diverse groups in New Zealand society.

The commission also has the power to mediate disputes relating to unlawful discrimination on the grounds of sex and sexual harassment; marital status; religious belief; ethical belief; colour; race and racial harassment; ethnic or national origins; disability; age; political opinion; employment status; and sexual orientation in the areas of employment, education, access to public places, the provision of goods and services, housing and accommodation, partnerships, qualifying bodies, organisations of employees and employers, vocational training, and trade and professional associations.

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 legislation before parliament, and issuing guidelines to assist compliance with the act.

The commission has published guidelines on advertising, pre-employment, health insurance, the rights of pregnant workers, and dealing with sexual harassment.

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 Maori.

Human Rights Commissioners, of whom there are eight, 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 and/or experience of matters likely to come before the commission.

The commission has offices in Auckland, Wellington and Christchurch and its website is www.hrc.co.nz

Enquiries. There were 19,118 enquiries received in the year ending 30 June 2003, compared with 23,893 in the June 2002 year and 21,384 in the June 2001 year. The largest single proportion of enquiries in the June 2003 year concerned workplace disputes (9.6 percent), while the single largest ground of discrimination cited in enquiries was disability (18 percent), followed by ethnic or national origins (16 percent).

Complaints. In the year ending 30 June 2003, 1,101 complaints were received, compared with 786 in the previous June year and 514 in the year ending 30 June 2001. Approximately 49 percent of the alleged breaches of the Human Rights Act arose in the context of goods and services, while just under 27 percent concerned employment. The prohibited ground of discrimination most cited in complaints was disability, where there were 273 alleged breaches of the act. The second most frequently cited prohibited ground of discrimination was race, where 169 breaches were alleged.

Equal Employment Opportunities Trust

The Equal Employment Opportunities (EEO) Trust was established in 1991 by the government and the private sector to promote EEO principles and best practice in the workplace. Trustees are representative of both public and private sectors. The trust encourages employers to recognise the business benefits of employing on the basis of merit and helps them to get full potential from a diverse workforce. Annual EEO Trust Work and Life Awards recognise organisations and individuals that champion work/life balance.

The EEO Trust's website is www.eeotrust.org.nz

Rotorua's Te Utuhina Manākitanga Trust was a winner in the Equal Employment Opportunities Trust's annual work and life awards.

Women's issues

The 110th anniversary in 2003 of New Zealand women winning the right to vote provided an opportunity to celebrate the achievements of women and reflect on the remaining inequalities. Pay equity, increasing women's representation on decision-making bodies, ensuring women's economic independence, work-life balance, and reducing domestic violence are some of the areas in which further work is required.

The Ministry of Women's Affairs is working with other government departments to implement the Action Plan for New Zealand Women following its launch early in 2004. The government-wide plan, aimed at improving the circumstances of women in New Zealand, has three themes:

  • Economic sustainability - women having enough money to care for themselves and those who depend on them.

  • Work-life balance - balancing work, family, whānau and community roles.

  • Well-being - preserving women's general well-being, including their safety, security, housing, physical and mental health.

The Ministry of Women's Affairs website is www.mwa.govt.nz

Youth issues

The Ministry of Youth Development works with the government and communities to promote the development of young New Zealanders and to uphold the principles of the Treaty of Waitangi through being experts in promoting positive youth policies and programmes, leaders in involving young people in decision making and providers of quality youth development programmes.

The ministry is funded by the government to:

  • Provide policy advice on policies, services and legislation affecting young people and their future. This includes researching and reporting on young people's issues and contributing to other matters that affect young people.

  • Administer and fund the youth development programmes New Zealand Conservation Corps, Youth Service Corps and Specialist Youth Service Corps. The 20-week programmes are a mix of challenging recreation, practical work, and life skills education. Members of the programmes contribute to their communities through conservation activities or community work.

The ministry consults young people and those who work with them to provide the government with a sound understanding of the issues in young people's lives. The ministry provides information to young people and those who work with them on what others are doing in similar areas and about changes in policies and practices.

Youth Parliament. Parliament opens its doors every three years for a Youth Parliament, which gives young people a chance the find out how parliament works and what it is like to be a Member of Parliament. Youth MPs get involved in things that real MPs do, like debating in the house, asking ministers questions in parliament, taking part in select committees and having their own Speaker of the House. A Youth Parliamentary Press Gallery is also established. The next Youth Parliament is in 2007.

Youth suicide prevention. Suicide among young people is a growing problem in modern societies and New Zealand's suicide rate is one of the highest in the world.

In 2000, there were 96 youth deaths from suicide - 23 fewer than in 1999 and the lowest number of deaths since 1986. Males accounted for 84 percent of youth suicide deaths in 2000.

Suicide is a complex problem for which there is no one cause or cure. Instead, there are a range of biological, cultural, economic, social and psychological influencing factors. Most suicides, however, can be prevented and it is possible to reduce the level of youth suicide.

The government has produced a national strategy to deal with the challenge of preventing young people from considering suicidal behaviour. However, the government cannot reduce youth suicide on its own. It needs the support and involvement of individuals, families, communities, services and businesses.

The New Zealand Youth Suicide Prevention Strategy was developed by the former Ministry of Youth Affairs, the Ministry of Māori Development Te Puni Kokiri and the Ministry of Health.

The strategy was launched in March 1998 and has two components: In Our Hands, which is the general population strategy, and Kia Piki Te Ora o te Taitamariki, which specifically targets Māori needs and approaches. The strategy helps government, communities, families/whānau and individuals to act together to reduce youth suicide and suicidal behaviour. It takes a broad-based and coordinated approach to youth suicide prevention, covering things such as health promotion, treatment and post-intervention support.

Family issues

Property (Relationships) Act 1976. The Matrimonial Property Act 1976 was amended in 2001 to provide for the division of property when a married or de facto couple separates, or when one of the partners in a married or de facto relationship dies.

Domestic Violence Act 1995. The Domestic Violence Act 1995, which replaced the Domestic Protection Act 1982, 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 which is available to a wider range of people in closer relationships than under previous legislation. The act also places particular emphasis on the provision of programmes for victims and their children and for the perpetrators of domestic violence.

Guardianship Act 1968. The Guardianship Act 1968 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. The Child Support Act 1992 provides for the child support division of the Inland Revenue Department to assess the amount of child support to be paid by non-custodial parents according to a specific formula. The division collects and pays child support to the Crown when custodial parents are social welfare beneficiaries, and direct to custodial parents not receiving social welfare benefits. Child support is also paid to the Crown where a child is in the care of the Department of Child, Youth and Family Services. In addition, the Inland Revenue Department collects and pays court-ordered spousal maintenance and, if requested, maintenance for spouses and/or children agreed on voluntarily.

Contributors

  • 6.1 Statistics New Zealand; Department of Internal Affairs; New Zealand Immigration Service.

  • 6.2 Statistics New Zealand; Ministry of Justice; Ministry of Māori Development (Te Puni Kokiri); New Zealand Māori Council; Māori Congress; Māori Women's Welfare League; Te Kohanga Reo National Trust; Māori Language Commission.

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

  • 6.4 Statistics New Zealand.

  • 6.5 Human Rights Commission; Equal Employment Opportunities Trust; Ministry of Women's Affairs; Ministry of Youth Affairs.

Websites

www.dia.govt.nz - Department of Internal Affairs

www.dol.govt.nz - Department of Labour

www.eeotrust.org.nz - Equal Employment Opportunities Trust

www.hrc.co.nz - Human Rights Commission

www.justice.govt.nz - Ministry of Justice

www.tetaurawhiri.govt.nz - Māori Language Commission

www.poutokomanawa.co.nz/otautahi/default.asp - Māori Women's Welfare League

www.tpk.govt.nz - Ministry of Māori Development Te Puni Kωkiri

www.minpac.govt.nz - Ministry of Pacific Island Affairs

www.mwa.govt.nz - Ministry of Women's Affairs

www.youthaffairs.govt.nz - Ministry of Youth Development

www.nzfec.org.nz - New Zealand Federation of Ethnic Councils

www.immigration.govt.nz - New Zealand Immigration Service

www.rms.org.nz - Refugee and Migrant Service

www.ssc.govt.nz - State Services Commission

www.stats.govt.nz - Statistics New Zealand

www.kohanga.ac.nz - Te Kohanga Reo

Chapter 7. Social Development

The Citizens Advice Bureau says no problem or question is too big or too small for its 2,750 volunteer workers and 112 paid staff.

7.1 Ministry of Social Development

The Ministry of Social Development was established on 1 October 2001, bringing together the income support and employment services of Work and Income New Zealand, and the policy advice and research functions of the Ministry of Social Policy. The merger marked a shift in New Zealand's social services, from social welfare to social development.

Social development is a planned, co-ordinated process of improving people's lives.

The Ministry of Social Development works closely with other social sector agencies, such as health, education and housing, to improve all areas of people's lives.

The ministry's framework covers children and young people, working-age people, older people, families and communities.

The ministry undertakes social research and evaluation, gives cross-sectoral policy advice to the government, delivers income support and employment services through Work and Income, and delivers services to students through Study Link.

The ministry also administers the Office for Disability Issues, the Office for the Community and Voluntary Sector and the Office for Senior Citizens. On 1 October 2003, the ministry took over administration of the Ministry of Youth Development.

Policy, research and evaluation

The ministry's strategic social policy group monitors and reports on the social well-being of New Zealanders and delivers policy advice to the government on cross-sectoral policy issues.

The sector policy group delivers policy advice on the care and protection of children and young people; on social assistance and employment; on positive ageing and retirement; on disability issues; and on family and community development.

The Centre for Social Research and Evaluation researches key social policy issues, provides evidence to support policy development, and evaluates the effectiveness of government policies and programmes.

In the year ending 30 June 2003, the ministry provided more than 1,000 reports to ministers. It also produced its annual Social Report and the reports New Zealand Living Standards 2000 and Living Standards of Older Māori.

Benefits and pensions

The Ministry of Social Development provides benefits and pensions through 170 Work and Income centres throughout New Zealand, Employing approximately 5,500 people, Work and Income had more than a million clients in the 2002/03 financial year.

An average 1,600 applications for benefits or pensions were processed each day, while 66,000 transactions were handled daily by mail, telephone and personal contact.

Work and Income pays a wide range of benefits, supplementary benefits, pensions, loans and subsidies.

Weekly rates of income support at 1 April 2003 are listed in Table 7.01.

The Ministry of Social Development provides financial assistance and employment services through its Work and Income centres.

Table 7.01. Income support weekly rates At 1 April 2003

Type of income supportNet weekly payment
Source: Ministry of Social Development
 $
Unemployment benefit/sickness benefit granted on or after 1 July 1998 
Without children: 
    Single 18-19 years old, at home107.76
    Single 18-19 years old, away from home134.70
    Single 20-24 years old134.70
    Single 25 and over161.65
    Married couple (each partner)134.70
With children: 
    Single (1 child)231.53
    Single (2 children or more)252.60
    Married couple (each partner)143.14
Sickness benefit (granted before 1 July 1998) 
Without children: 
    Single 18-24 years old147.34
    Single 25 and over161.65
    Married couple (each partner)139.54
With children: 
    Single (1 child)231.53
    Single (2 children or more)252.60
    Married couple (each partner)143.14
Invalid's and transitional retirement benefit 
Without children: 
    Single 16-17 years old163.51
    Single 18 and over202.05
    Married couple (each partner)168.38
With children: 
    Single (1 child)265.43
    Single (2 children or more)285.03
    Married couple (each partner)168.38
Widow's and domestic purposes benefit 
    Women alone/single adult168.38
    Sole parent (1 child)231.53
    Sole parent (2 children or more)252.60
Domiciliary care domestic purposes benefit for caregivers 
    Single 16-17 years old163.51
    Single 18 and over202.05
    Sole parent (1 child)265.43
    Sole parent (2 children or more)285.03
Orphan's and unsupported child benefit 
    Under 5 years78.55
    5-9 years old95.40
    10-13 years old103.82
    14 and over112.23
Independent youth benefit 
    Single 16-17 years old134.70
New Zealand superannuation and veteran's pension 
    Single living alone245.30
    Single sharing226.43
    Married person188.69
    Married couple (both qualify)377.38
    Married couple with non-qualifying spouse (each partner)179.91

Benefits paid in the year ending 30 June 2003 included:

  • Caring benefits - the domestic purposes benefit-sole parent; the domestic purposes benefit-caring for the sick and infirm; and the domestic purposes benefit-woman alone.

  • Incapacity benefits - the sickness benefit; and the invalid's benefit.

  • Work-related benefits - the independent youth benefit; and the unemployment benefit.

  • Miscellaneous benefits - the emergency benefit; the transitional retirement benefit; the unsupported child benefit; the orphan's benefit; and the widow's benefit.

  • Military service pensions - the veteran's pension; the war disability pension; and the dependant's pensions. Concessions to assist with interest payments on land and buildings, medical treatment and other expenses are also available.

  • New Zealand superannuation.

  • Supplementary benefits and lump sum assistance payments - the accommodation supplement; the childcare subsidy; the out-of-school care and recreation (OSCAR) subsidy; the disability allowance; funeral grants; the special benefit; the special needs grant; the training incentive allowance; advance payments of income support; and recoverable assistance available to people who are not receiving benefits or pensions.

Income adjustment. People receiving the invalid's benefit, the widow's benefit, any domestic purposes benefit, the sickness benefit, an unemployment benefit, or a transitional retirement benefit are income-tested and some are subject to stand down periods. The levels at which all benefits are paid are adjusted annually in line with movement in the consumers price index (CPI). In addition, the CPI-adjusted rate for New Zealand superannuation and the veteran's pension is compared with average wage levels to ensure the after-tax payment rate for couples is between 65 and 72.5 percent of the after-tax average ordinary time weekly wage.

Income exemptions. For people receiving an unemployment benefit, a sickness benefit, an independent youth benefit or a transitional retirement benefit, and for non-qualified spouses of people receiving New Zealand superannuation, each dollar of weekly income above $80 reduces the weekly rate of income support by 70 cents. For people receiving an invalid's benefit, a widow's benefit or any domestic purposes benefit, the level of income support reduces by 30 cents for every dollar earned between $80 and $180 a week. Every additional dollar of income above $180 a week reduces the benefit by 70 cents.

Unemployment benefit. This benefit is available to people who are unemployed, capable and willing to undertake full-time work, and taking reasonable steps to obtain employment. The benefit is also available to people who are not full-time students but are engaged in full-time employment-related training programmes. At 30 June 2003, 111,906 people were receiving an unemployment benefit, 14,036 fewer than at 30 June 2002. At the same date, 4,291 people in training were receiving an unemployment benefit, 301 more than at 30 June 2002.

Domestic purposes benefit. The domestic purposes benefit is available to parents caring for children without the support of partners, to people caring at home for someone who would otherwise be hospitalised and, in some circumstances, to older women living alone. At 31 December 2003, 111,065 people were receiving a domestic purposes benefit, 1,175 more than at 31 December 2002.

Widow's benefit. The widow's benefit is available to women whose husbands or de facto partners have died. At 30 June 2003, 8,659 people were receiving the widow's benefit, 115 fewer than at 30 June 2002.

Invalid's benefit. The invalid's benefit is available to people aged 16 and over who are either totally blind or permanently and severely restricted in their capacity for work due to a disability. At 30 June 2003, 68,507 people were receiving the invalid's benefit, 3,978 more than at 30 June 2002.

Sickness benefit. The sickness benefit is available to people aged 18 and over who lose earnings as a result of being temporarily incapacitated for work. At 30 June 2003, 39,902 people were receiving a sickness benefit, 3,522 more than at 30 June 2002.

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, but is delivered to people receiving benefits through payments by Work and Income.

Childcare subsidy. A childcare subsidy provides financial assistance to low-income families with dependent children under five years to obtain access to preschool childcare services. In the year ending 30 June 2003, there were 39,979 approved applications for childcare subsidies, 2,287 fewer than in the year ending 30 June 2002.

OSCAR subsidy. An OSCAR (Out of School Care and Recreation) subsidy provides financial assistance to low-income families with dependent children aged five to 13 to help with costs of care before and after school and in holiday programmes. In the year ending 30 June 2003,9,666 applications for an OSCAR subsidy were approved, 615 fewer than in the year ending 30 June 2002.

Orphan's benefit and unsupported child benefit. The orphan's benefit and the unsupported child benefit are paid to people caring for an orphan or an unsupported child. At 30 June 2003, 6,789 people were receiving one of these benefits, 457 more than at 30 June 2002.

Child disability allowance. The child disability allowance is a non-taxable allowance paid to the parent or guardian of a seriously physically or mentally disabled child who requires constant care and attention. There were 27,342 children covered by the child disability allowance at 30 June 2003, 3,594 more than at 30 June 2002. There were 7,822 new applications for the allowance granted in the year ending 30 June 2003, an increase of 1,481 on new applications granted in the previous year.

Other assistance

Disability allowance. The disability allowance is an income-tested allowance paid to people with special costs arising from a disability or a personal health need. At 30 June 2003, 219,040 people were receiving a disability allowance, 13,867 more than at 30 June 2002. Clients receiving a disability allowance may have been receiving the allowance for themselves or for one or more dependants.

Community Services Card. The Community Services Card is an entitlement card which people on low to middle incomes can use to reduce the cost of doctors' fees and prescription charges. At 30 June 2003, there were 1,088,960 cardholders, 9,513 fewer than at 30 June 2002.

Special needs grant. A special needs grant is a one-off payment made in an emergency situation where the need cannot be met in any other way and where the person has insufficient financial resources to meet the need. For the year ending 30 June 2003, 396,447 grants were made, an increase of 8,983 on the previous year. Table 7.02 provides more details.

Special benefit. The special benefit provides financial assistance for people who have ongoing expenses that exceed their income and who are in individual circumstances of hardship which warrant the receipt of a special benefit. At 30 June 2003, 35,380 people were receiving a special benefit, 19,154 more than at 30 June 2002.

Advance payment of benefit. Advance payment of a benefit is available to all people receiving benefits to assist them to meet essential needs they would otherwise be unable to meet. In the year ending 30 June 2003, 313,279 advance payments of benefits were granted, 14,264 more than in the previous year.

StudyLink. In the year ending 30 June 2003, more than 57,000 student allowances and 156,000 student loans were paid.

Table 7.03 shows spending on income support and pensions since 1940, while Table 7.04 shows the number of income support services and pensions in force.

Training incentive allowance. A training incentive allowance helps meet costs associated with attending recognised occupational or work-related courses which provide specific work skills. The allowance is available to people receiving the widow's benefit, the invalid's benefit, or any domestic purposes benefit.

Payment while in hospital. Income support clients with no dependent children receive income support at the going rate for the first 13 weeks of hospitalisation. Following 13 weeks of hospitalisation, they receive a reduced rate. The benefit rate is not reduced for clients with dependent children.

Continuation of benefit after death. Certain benefits and pensions may be paid for four weeks following a client's death.

Support of children by non-custodial parents

Child support. Responsibility for the collection of child support payments from non-custodial parents rests with the Inland Revenue Department. The collection aims to ensure that parents contribute to the support of their children according to their ability to provide.

New Zealand superannuation

As at 1 April 2003, the New Zealand superannuation scheme provided $245.30 a week for a single person living alone and $377.38 a week for a married couple (or $359.82 if one spouse did not qualify). Payments are subject to normal taxation.

At 30 June 2003, there were 457,278 people receiving New Zealand superannuation, 6,843 more than at 30 June 2002. The qualifying age for New Zealand superannuation has been 65 since 1 April 2001.

Transitional retirement benefit. The transitional retirement benefit helps those adversely affected by the increase from 60 to 65 years in the qualifying age for New Zealand superannuation. It was introduced on 1 April 1994. At 30 June 2003, there were 2,110 people receiving the benefit, 3,008 fewer than at 30 June 2002. The decrease reflects contraction of the period during which clients are eligible to receive the benefit but not to receive superannuation.

More than 1 million New Zealanders use a Community Services Card to reduce the cost of doctor's fees and prescription medicines.

War pensions

Vote: Veterans' Affairs - Social Development provides for payment of pensions and concessions for those who served in World War 1 and 11, Korea, Operation Grapple, Malaya, Vietnam, Mururoa, the Gulf, Angola, Bosnia, Sierra Leone, East Timor, Afghanistan, the Solomon Islands and Iraq.

Also included is routine service in New Zealand before 1 April 1974. Since then, service personnel have been covered under accident compensation provisions.

The War Pensions Act 1954 is administered by the Secretary for War Pensions, who is also Director of Veterans' Affairs New Zealand.

Processing and payment of war pensions is carried out by Work and Income on behalf of the secretary.

Decisions on eligibility for war pensions are made by war pension claims panels, acting under delegation from the secretary. Each claims panel consists of a nominee from the Royal New Zealand Returned Services Association and an employee of Veterans' Affairs New Zealand.

Table 7.05 shows the number of war pensions in force at 30 June 2003.

Veteran's pension. The veteran's pension is available to ex-service personnel with a significant disability. The pension is paid at the same rate as New Zealand superannuation and, like superannuation, is taxable. At 30 June 2003, 7,812 people were receiving the veteran's pension, 285 more than at 30 June 2002.

War disability pension. War disability pensions provide tax-free compensation for people who served in the armed forces and who suffer from a disability or disabilities related to that service. At 30 June 2003, 17,578 war disability pensions were in force.

Other war pension provisions. In addition to war disability pensions, the war pensions programme also provides pensions for surviving spouses, and additional allowances and concessions for clients receiving war disability pensions. The additional allowances and concessions available include concessions on interest payments connected to lands and buildings and assistance with medical expenses.

War pensions are increasingly related to the ageing of the population and have remained constant in recent years.

At 30 June 2003, 22,271 war pensions were in force, including war disability pensions. This was 488 fewer than at 30 June 2002.

Social security agreements

New Zealand has overseas social security agreements with Australia, Canada, Denmark, Greece, Ireland, Jersey and Guernsey, the Netherlands and the United Kingdom.

The main purposes of the agreements are to encourage the free movement of labour and to ensure that, when a person has lived or worked in more than one country, each of those countries takes a fair share of responsibility for meeting the costs of that person's social security coverage.

The agreements are becoming part of the basic infrastructure of the global village, enabling people to move about the world, for short or long periods, either to work or to be with family, without jeopardising their social security coverage.

By entering into such agreements, New Zealand is better able to attract skills, specialist knowledge and technical know-how from overseas.

A widening network of agreements also provides more options for New Zealanders who wish to live overseas in their retirement.

General portability. Under the general portability provision, people eligible to receive New Zealand superannuation or a veteran's pension in their own right may receive 50 percent of the payment while living outside New Zealand, provided they are not living in a country which has a social security agreement with New Zealand. Applications under this provision must be made while the applicant is living in New Zealand.

Special portability arrangement. People leaving New Zealand to live in a Pacific country can receive a rate of New Zealand superannuation or veteran's pension based on their New Zealand residence since the age of 20.

People with 10 years New Zealand residence since the age of 20 receive 50 percent of New Zealand superannuation or the veteran's pension.

People with between 10 and 20 years New Zealand residence since the age of 20 are entitled to an additional 5 percent of superannuation or veteran's pension for each year of residence over 10 years. At the date of application, they must be both living and present in New Zealand, and intending to live in the Pacific country for 52 weeks or more.

Pacific countries covered by the arrangement are: American Samoa, the Cook Islands, the Federated States of Micronesia, Fiji, French Polynesia, Guam, Kiribati, Marshall Islands, Nauru, New Caledonia, Niue, Northern Mariana Islands, Palau, Papua New Guinea, Pitcairn Island, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu, and Wallis and Fortuna.

7.2 Department of Child, Youth and Family Services

The Department of Child, Youth and Family Services was established on 1 October 1999 following integration of two Department of Social Welfare business units, the Children, Young Persons and Their Families Service and the New Zealand Community Funding Agency. The department has statutory responsibility for children and young people whose family circumstances put them at risk of abuse and neglect, offending behaviour or poor life outcomes. The department provides direct services for children and young people in need of care and protection, for those who have committed offences and for those involved in adoption processes.

Care and protection

Table 7.06 shows the number of care and protection notifications received and the number assessed as requiring further investigation and action by a social worker. All cases accepted for investigation are assigned a criticality rating, or response category, at time of intake.

Table 7.06. Care and protection notifications Years ending 30 June

Action199819992000200120022003
Source: Department of Child, Youth and Family Services
Care and protection notifications received23,65227,21826,58826,70727,50731,781
Notifications for further investigation18,25221,93021,98322,86823,80527,394
Critical - immediate response (same day)2,6593,4813,3112,8802,5893,045
Very urgent (same day + one calendar day)1,9762,5932,6012,1911,7381,656
Urgent (same day + six calendar days)7,2219,2919,84011,18013,06714,963
Low urgency (same day + 27 calendar days)6,6106,7026,2126,5566,4027,730

In the year ending 30 June 2003, 31,781 notifications involving children and young people under the age of 17 were received, of which 27,394 required further action. In the previous year, there were 27,507 notifications, with 23,805 requiring further investigation. After investigation, findings are classified and recorded under the categories of physical abuse, sexual abuse, emotional abuse, neglect, self-harm behaviour, problem behaviour/relationship difficulty, or abuse not found. Table 7.07 lists investigation findings for these categories.

Table 7.07. Abuse and neglect investigation findings Years ending 30 June

YearSexual abusePhysical abuseEmotional abuseNeglectBehavioural/relationship problemsSelfharm suicidalAbuse not foundTotal

1Some investigations might still have been waiting findings at the time the data was extracted.

Source: Department of Child, Youth and Family Services

19981,5021,6711,0802,3563,8561196,93717,521
19991,3751,6601,4142,2604,0881159,54320,455
20001,2232,2082,3032,9393,6851459,78722,290
20018271,5671,5762,1892,6268911,43320,307
20021,2502,0662,1533,0533,4738315,00727,085
200311,2882,0022,2822,9393,32812814,23826,205

When, on investigation, it is decided that the Department of Child, Youth and Family Services needs to remain involved with a child or family, direct services may be provided through family/whanau agreements, care agreements, family group conference plans or court plans.

Case management. The Children, Young Persons and Their Families Act 1989 provides for a range of plans, agreements and orders relating to the care, custody and guardianship of children and young people. Family/whanau agreements are negotiated by a social worker when a family agrees there is a problem to address and agrees voluntarily to intervention. 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. Table 7.08 shows the number of agreements signed from 1998 to 2003.

Table 7.08. Family/whanau agreements Years ending 30 June

 199819992000200120022003
Source: Department of Child; Youth and Family Services
Agreements signed2,0512,7622,5552,3052,3952,346

When a family/whanau agreement is not considered to be appropriate, intervention may occur through the statutorily defined process of a family group conference. The Department of Child, Youth and Family Services manages family group conference plans and court orders to provide care for the children while working towards their return to parents, family or whanau. Examples of these include custody orders, plans resulting from family group conferences, counselling orders and support orders. Table 7.09 lists plans completed and in force from 2001 to 2003.

Table 7.09. Care and protection plans and orders Years ending 30 June

Plans and ordersCompleted during yearIn force during year
200120022003200120022003

- nil or zero

Source: Department of Child, Youth and Family Services

Family group conference plans2,4272,5402,9851,7751,2741,090
Counselling order3312224540
Custody pending determination7261,1289261,0222,0593,211
Service order1371821835501,4442,131
Restraining order4874792226571,016
Interim restraining order35656069149243
Support order2538901,2386481,0291,142
Interim support order253654232464
Custody order6401,1201,6323,30710,12615,045
Interim custody order8172107123323431
Guardianship order - sole9865112270704906
Guardianship order - additional2685416391,7305,5618,274
Temporary care agreement251,9181,678940300229
Extended care agreement12316827390243196
Extended care agreement disabled8-1988
Care for moderate disability---1--
            Total4,8978,8029,97910,80123,94634,026

Emergency actions. The Children, Young Persons and Their Families Act 1989 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.

Youth justice services

Youth justice services provided by the Department of Child, Youth and Family Services under the Children, Young Persons and Their Families Act 1989 and the Criminal Justice Act 1985 include:

  • Working with police to find options and to ensure that cases are brought into the formal system only when public interest and/or safety is an issue.

  • Providing programmes and services targeted at youth at risk of offending, re-offending, or those with poor life outcomes. These include young people with conduct disorders, 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.

Management of youth justice plans.Table 7.10 shows that family group conference (FGC) plans predominate over court plans as a means of managing young people who come to the notice of the Department of Child, Youth and Family Services through the youth justice provisions of the Children, Young Persons and Their Families Act 1989. FGCs encourage participation in the resolution of care and protection issues and often avoid the need for court involvement. Plans formulated by a FGC must be reviewed by reconvening the conference or by a less formal process.

Table 7.10. Youth justice family group conference plans and court orders Years ending 30 June

Plans and ordersCompleted during year
2000200120022003
Source: Department of Child, Youth and Family Services
Family group conference plans3,6453,9704,1044,283
Supervision orders495442391380
Community work orders1191186457
Supervision with activity orders1511238483
Supervision with residence orders125122119132
            Total4,5354,7754,7624,935

Youth justice family group conferences. Family group conferences (FGCs) are convened to address the offending behaviour of children and young people. They bring together, in a statutory-defined forum, members of the offender's family or whanau, law enforcement officers and victims to agree how the young offender will be held accountable, and to agree on appropriate intervention plans.

Care services. Two main placement options are used in New Zealand for children and young people requiring alternative care. These are either based in a home (extended family, caregivers, family home, special purpose family home, specialist or group homes) or in a residential care centre (short or extended-term local or national residences).

Table 7.11 shows admissions to national residences in recent years.

Table 7.11. Admission to national residences Years ending 30 June

 199519961997199819992000200120022003
Source: Department of Child, Youth and Family Services
Admissions1,5101,3371,0509898101,058814746751

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 in non kin-based care.

The Children, Young Persons and Their Families Act 1989 shifted the emphasis away from longer-term, extended-care placements towards restoring usual care giving 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 - There were 3,085 children in non-family/whanau care and 1,395 in family/ whanau care at 30 June 2002. By 30 June 2003, there were 3,117 in non-family/whanau care and 1,565 in family/whanau care.

  • Residential care - The current Residential Services Strategy (RSS) building programme dates from a review of the RSS in 1996 and cabinet agreement to build or upgrade nine residential facilities. The strategy allowed for the establishment of specialist units for young sex abusers, for conduct disorder children and young people, and for the separation of youth justice and care and protection residential facilities. This approach continues to form the basis of the RSS building programme.

Adoption assessment, placement and information services

The adoption information and services unit of the Department of Child, Youth and Family Services is responsible for statutory adoption services.

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 New Zealand Family Court.

Post-adoption services for birth and adoptive families are provided when requested, or referrals made.

Table 7.12 shows access to adoption information from 1994 to 2003.

Table 7.12. Access to adoption information

Action1994199519961997199819992000200120022003

- nil or zero

Sources: Department of Child, Youth and Family Services Department of Internal Affairs

Original birth certificates issued to adopted people1,8491,5971,5801,9251,4461,3561,2301,030943902
Original vetoes from adopted people2636173022814-6
Renewal vetoes from adopted people--51134568-9
Cancelled vetoes from adopted people14817-235122
Birth parent applications for identifying information717610650534450392325303285269
Original vetoes from birth parents34691266022154215
Renewal vetoes from birth parents--35177191113131011
Cancelled vetoes from birth parents151410261115-

Table 7.13 shows adoptions by New Zealand citizens in recent years.

Table 7.13. Adoptions by New Zealand citizens Years ending 30 June

Adoption type1997199819992000200120022003

1A registration may occur in a different fiscal year from the adoption report, hence total adoptions may not always equal the sum of the adoption reports written by the department for the same period. Any disparity is included under ‘adoption type not recorded’.

Source: Department of Child, Youth and Family Services

Adoption of New Zealand children
    Adoption reports in respect to Non-relatives131125122877810481
    One parent and spouse1791741221201198971
    Relatives1631161111171049671
    Foster parents2813158992
    Adoption type not recorded190115413292798
Total591543411364319325323
Adoption of foreign children
    In New Zealand court to non-relatives101361614713
    In New Zealand court to relatives60894790504838
    In overseas court436358350274344256265
Total506460403380408311316
            Total adoptions granted or recognised by New Zealand1,0971,003814744727636639

Other social services

Approval and contracting with not-for-profit providers. Community providers are funded each year by the Department of Child, Youth and Family Services to provide a variety of social services from non-departmental output classes. The department is responsible for the allocation and management of funding and support to iwi and community-based social and welfare services in accordance with government policies and criteria. Table 7.14 shows budget allocations for contracted social services in 2002 and 2003.

Table 7.14. Non-departmental budget allocations Years ending 30 June

Allocation20022003
Source: Department of Child, Youth and Family Services
 $(000)
Information and advice1,4261,426
Education and prevention services9,6409,547
Family well-being services46,96749,291
Counselling and rehabilitation services13,61713,435
Emergency and special purpose housing and associated services995995
Strengthening providers and communities8,9679,391
            Total81,61284,085
Other expenses to be incurred by the department  
    Contingency and innovations fund365365
    Stronger communities action fund1,4901,916

Contributors

  • 7.1 Ministry of Social Development; Office of the Retirement Commissioner.

  • 7.2 Ministry of Social Development; Veteran's Affairs New Zealand; Department of Child, Youth and Family; Registrar General's Office, Department of Internal Affairs; New Zealand Association of Citizens Advice Bureaux.

Websites

www.cyf.govt.nz - Adoption Information and Services Unit

www.cab.org.nz - Citizens Advice Bureau

www.cyf.govt.nz - Department of Child, Youth and Family Services

www.dia.govt.nz - Department of Internal Affairs

www.msd.govt.nz - Ministry of Social Development

www.retirement.org.nz - Office of the Retirement Commissioner

www.sorted.org.nz - Office of the Retirement Commissioner (money management)

www.nzrsa.org.nz - Royal New Zealand Returned Services Association

www.winz.govt.nz - Work and Income

Chapter 8. Health and Safety

Scientists at Wellington's Malaghan Institute carry out research into cancer, asthma, multiple sclerosis and infectious diseases.

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. Seventy-eight percent of health care is publicly funded, with out-of-pocket payments and private insurance being the other main contributors.

Ministry of Health

The Ministry of Health is the government's primary advisor on health policy and disability support services and is responsible, among other things, for monitoring the performance of district health boards (DHBs) and other health sector Crown entities; implementing, administering and enforcing relevant legislation and regulations; providing health information and processing payments; providing nationwide planning and maintenance of service frameworks; and planning and funding public health, disability support services and other service areas that are retained centrally.

The Ministry of Health consists of eight directorates; each led by a deputy director-general.

  • The Corporate and Information Directorate provides management of national data collections and the dissemination of health information through the New Zealand Health Information Service. It processes claims, payments and agreements on behalf of DHBs for the health and disability sector and provides legal advice on policy development, legislation and regulations, litigation, prosecutions, medico-legal issues, contracts and contracting, legal compliance, health regulatory frameworks and statutory decision making.

  • The Clinical Services Directorate provides an interface between the ministry, health providers, health professionals and communities, and manages the strategic development of publicly-funded clinical services and inter sectoral programmes. It evaluates new services, systems and innovative projects, and administers safety and facility-licensing legislation.

  • The DHB Funding and Performance Directorate is responsible for funding and monitoring the performance of DHBs and other health sector Crown entities. It supports DHB strategic planning, annual planning and Crown Funding Agreement processes, and provides nationwide planning and maintenance of service frameworks.

  • The Disability Services Directorate plans and develops support services for disabled people and their families and whānau; funds disability support service providers; and contributes to implementation of the New Zealand Disability Strategy.

  • The Māori Health Directorate provides policy advice on the strategic direction of the health and disability sector with respect to Māori health and disability.

  • The Mental Health Directorate is responsible for implementing the Mental Health Strategy and for the administration of regulations related to mental health.

  • The Public Health Directorate is responsible for the direction of population health services and for the regulation for public health and safety. The directorate contains the National Screening Unit, the National Radiation Laboratory and Medsafe.

  • The Sector Policy Directorate provides strategic policy advice to the government across all aspects of the health and disability sector, with a particular focus on long-term funding requirements. The directorate also administers health professional statutes and assesses the implications of emerging health sector issues.

Ministry of Health business units employ 41 percent of the ministry's staff. The business units and their responsibilities:

  • The New Zealand Health Information Service is responsible for the stewardship, management and coordination of national data collections and the dissemination of health information.

  • Health PAC is responsible for processing claims, payments and agreements on behalf of DHBs for the health and disability sector, including the audit of claims and agreements to ensure they comply with contract requirements.

  • The National Screening Unit is responsible for ensuring the effective delivery of the national breast and cervical cancer screening programmes.

  • Medsafe is responsible for the regulation of therapeutic products in New Zealand.

  • The National Radiation Laboratory is responsible for expert advice, service provision and research capability on matters concerning public, occupational and medical exposure to radiation, the performance of radiation equipment, and the measurement of radiation and radioactivity.

  • The Clinical Training Agency is responsible for funding post-entry clinical training programmes.

District health boards

New Zealand's 21 district health boards are Crown entities and have both funding (planning and funding health services for their populations) and provider (delivery of hospital and related services) roles.

Established under the New Zealand Public Health and Disability Act 2000, the statutory objectives of district health boards are to improve, promote and protect the health of communities, to promote integration of health services, especially primary and secondary care services, and to promote effective care or support of those in need of personal health services or disability support. Boards also have the responsibility of promoting the independence, inclusion and participation in society of people with disabilities and of reducing health outcome disparities among various population groups.

Boards are expected to show a sense of social responsibility, to foster community participation in health improvement, and to uphold the ethical and quality standards commonly expected of providers of services and public sector organisations.

The boards work with all health care provider organisations to ensure the provision of specified health services and balance each community's needs for health and disability services.

Crown-owned public hospitals are the main providers of secondary health care services. Primary and community-based care comes from private/non-government owned providers such as general practitioners, Māori providers and disability support providers.

Boards have a majority of elected members, with some members appointed by the Minister of Health. Each board has three statutory advisory committees: a community and public health advisory committee, a disability support advisory committee and a hospital advisory committee. Each board has a separate operating charter and a set of accountabilities and reporting requirements.

The 21 district health boards and their constituencies are:

  • Northland - Far North, Whangarei, Kaipara.

  • Waitemata - Rodney, North Shore, Waitakere.

  • Auckland - Auckland north-west and gulf, Auckland north-east, Auckland south.

  • Counties Manukau - Manukau, Mangere, Manurewa, Franklin, Papakura.

  • Waikato - Thames-Coromandel, Waikato, Hamilton, South Waikato.

  • Bay of Plenty - Western Bay of Plenty, Tauranga, Whakatane.

  • Lakes - Rotorua north, Rotorua south, Taupo.

  • Tairawhiti - Gisborne, Tairawhiti.

  • Hawke's Bay - Wairoa, Hastings, Napier-Chatham Islands, Central Hawke's Bay.

  • Taranaki - New Plymouth, Taranaki north, Taranaki south.

  • Whanganui - Wanganui, Waimarino, Rangitikei.

  • Midcentral - Manawatu, Palmerston North, Tararua, Horowhenua.

  • Wairarapa - Masterton, Carterton, South Wairarapa.

  • Hutt - Lower Hutt central, Lower Hutt harbour, Wainuiomata.

  • Capital and Coast - Kapiti Coast, Porirua, Wellington north-west, Lambton, Wellington southeast.

  • Nelson-Marlborough - Tasman, Richmond, Nelson, Marlborough, Blenheim.

  • West Coast - Buller, Grey, Westland.

  • Canterbury - North Canterbury, Christchurch, Mid-Canterbury.

  • South Canterbury - Timaru, Temuka-Pleasant Point, Mackenzie-Geraldine, Waimate.

  • Otago - Waitaki, Central Otago, Clutha, Dunedin north, Dunedin south.

  • Southland - Queenstown-Lakes, Southland, Gore, Invercargill.

Residual Health Management Unit

The Residual Health Management Unit (RHMU) is the Crown financing agency for district health boards. This is essentially a banking role whereby the unit provides boards with term debt through a similar range of facilities as private sector banks.

Other functions undertaken by the RHMU are management of the historical debt of former area health boards, management of the boards' residual assets, such as long-term property leases, management of contingent legal liabilities of the former boards, and assisting district health boards dispose of surplus property, including land.

The RHMU operates under the provisions of the New Zealand Public Health and Disability Act 2000.

Advisory committees

National Advisory Committee on Health and Disability. The National Advisory Committee on Health and Disability (National Health Committee) advises the government on the quality and mix of public health, personal health and disability support services that should be publicly funded. It also provides independent public health policy advice to the minister, a role strengthened in the New Zealand Public Health and Disability Act 2000 by the requirement for the National Health Committee to establish a public health advisory committee. The National Health Committee seeks to ensure that maximum benefit is obtained from public funds for health care and public health services. The National Health Committee website is www.nhc.govt.nz

National Advisory Committee on Health and Disability Support Services Ethics. The committee's statutory functions are to advise the Minister of Health on ethical issues of national significance in respect of any health and disability matter, including research, to determine nationally-consistent ethical standards across the health sector, and to provide scrutiny for national health research and health services. The committee is required to consult with those involved in the funding or provision of services, and with other people the committee considers appropriate, before providing advice on an issue. The committee is required to deliver to the minister at least once a year a report setting out its activities and summarising its advice on matters referred to it.

Health Workforce Advisory Committee. A key task of the committee is to provide independent assessment and recommendations to the Minister of Health on health workforce capacity and on the requirements needed to meet the objectives of health and disability strategies. The committee is also required to facilitate cooperation among organisations involved in health workforce education and training.

Ministerial Advisory Committee on Complementary and Alternative Health. This committee is responsible for providing information and advice to the Minister of Health on complementary and alternative health care. Among its tasks is to provide advice on whether, or how, specified complementary and alternative health practitioners should be integrated into the mainstream health system.

The Child and Youth Mortality Committee is responsible for reviewing the deaths of children and young people aged between 28 days and 25 years with a view to reducing the number of preventable deaths. The committee's key task is to gather secure information from a range of agencies that will support the reviewing of deaths.

National Ethics Committee on Assisted Human Reproduction. The National Ethics Committee on Assisted Human Reproduction is responsible for reviewing assisted human reproduction proposals (including health research and innovative treatment proposals), for providing guidelines for fertility clinics, and for providing advice to the Minister of Health on matters relating to assisted human reproduction.

The National Health Epidemiology and Quality Assurance Committee is responsible for providing the Minister of Health with advice on any matter of health epidemiology and quality assurance, but must specifically examine perinatal, child and adolescence morbidity and mortality.

New Zealand Blood Service

The New Zealand Blood Service (NZBS) ensures the supply of safe blood and blood products. It is also responsible for all aspects of the integrated national blood transfusion service, from the collection of blood from volunteer donors to the transfusion of blood products within the hospital environment - ‘vein to vein’ transfusion.

The New Zealand Blood Service is responsible for all aspects of the integrated national blood transfusion service, including ‘vein-to-vein’ transfusions.

Health research

Health Research Council of New Zealand. The Health Research Council of New Zealand (HRC) was established under 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 people's health, and clinical research. HRC funding is largely allocated through Vote: Research, Science and Technology, with funding for ethics policy advice coming from Vote: Health. Total government funding for the council's work in 2003/04 was $49.48 million. The council's website is www.hrc.govt.nz

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 more than 40 full-time scientists dedicated to the relief of human suffering through scientific research into the causes, nature and treatment of disease.

Malaghan Institute scientists carry out research into cancer, asthma, multiple sclerosis and infectious diseases, including tuberculosis and RSV (a respiratory infection most serious in children under 12 months).

The institute has a commitment to educating, fostering and developing scientists, which it regards as essential to the continuing success of scientific research in New Zealand. To that end, the institute sponsors programmes for doctoral candidates, summer internships for university students and a science investigator award for secondary students.

The Malaghan Institute is funded by contestable research grants, contributions from corporate sponsors, and bequests and donations. Formerly housed at the Wellington School of Medicine, the institute recently moved to a larger, state-of-the-art facility at Victoria University which provides greater scope for the institute's research capabilities.

The Malaghan Institute website is www.malaghan.org.nz

Health expenditure (public)

Health expenditure (public) in New Zealand amounted to an estimated $8 billion for the financial year ending 30 June 2002, as shown in Table 8.01. This represented 20 percent of the government's total budgeted expenditure for the financial year.

Table 8.01. Health expenditure1 Years ending 30 June

Sector199419951996199719981999200020012002

1CPI-deflated, non-health items excluded.

2Expressed in 1998/99 dollars.

Note:Figures may not add to stated totals due to rounding.

Source: Ministry of Health

    $(million)2    
Public5,3505,4895,5345,8436,2086,4906,9847,6028,319
Private1,5511,6241,6831,7171,8511,8861,9682,3002,361
            Total6,9027,1127,2187,5608,0598,3768,9529,90210,680

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 and enrolled entry to their professions, while others need no formal training. The Health Practitioners Competence Assurance Act 2003 seeks to protect the health and safety of members of the public by providing mechanisms to ensure that health practitioners are competent and fit to practise their professions.

Doctors. The Medical Council of New Zealand is a statutory body operating under the Medical Practitioners Act 1995. The primary purpose of the council is to protect public health and safety through the registration of appropriately-trained doctors and the maintenance of medical competence. Registration is evidence that a doctor has met a certain standard. In addition to registration, the council has responsibilities in the areas of doctor education, standards, conduct and health.

The main functions of the council are:

  • Registration - The council registers all doctors working in New Zealand. Doctors who complete medical training outside New Zealand or Australia must show they meet certain standards by examination and/or assessment before registration is granted. Doctors with recognised higher postgraduate training are vocationally registered in recognised branches of medicine (sometimes called specialists).

  • Medical education - This involves accreditation of New Zealand medical schools, courses and curricula and, in association with the Australian Medical Council, accreditation of Australasian medical schools. The council approves hospitals as suitable for the education, training and experience of interns in their seventh year, the mandatory period before general registration. In addition, it promotes vocational and continuing medical education in New Zealand and accredits societies and colleges responsible for postgraduate or higher training.

  • Health - The council manages the rehabilitation and continued monitoring of doctors who, because of some mental or physical health problem, may not be fit to practise for a period of time.

  • Professional standards - Legislation provides for the council to review competency of doctors and to implement remediation as appropriate, including, if necessary, imposing conditions on annual practising certificates or registration. The council also ensures doctors maintain their competency to practise through continuing medical education, peer reviews and individual audits to overcome any knowledge or skill gaps.

  • Complaints and discipline - The act establishes a Medical Practitioners Disciplinary Tribunal, an autonomous body separate from the medical council. The council does, however, receive complaints if the matter occurred before July 1996 and must liaise with the Health and Disability Commissioner and, as appropriate, appoint complaints assessment committees to establish what action is to be taken on such complaints.

The number of practising doctors at 31 March 2003 was 10,355.

The council's website is www.mcnz.org.nz

Dentists. The New Zealand 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 2003 was 1,946, a decrease of 372 on the June 2001 figure. The Dental Act 1988 provides for a disciplinary structure, with an independent complaints assessment committee (CAC) and the tribunal comprising both dentists and lay members. From inception of disciplinary procedures in 1988 to 31 March 2003, the council referred 173 written complaints against registered dentists to the CAC. Of these, 96 complaints were closed after CAC investigation, five complaints were under investigation, 54 complaints were heard by the tribunal, 10 complaints were withdrawn by the complainant during CAC investigation, six complaints were withdrawn by the complainant at the tribunal hearing, one dentist was not fit to plead before the tribunal, and one file sent to the tribunal was withdrawn and closed by the CAC. The Health and Disability Commissioner is now the primary vehicle for dealing with complaints about dentists. All complaints against a dentist regarding events which occurred after 1 July 1996 are referred to the commissioner, who is concerned with breaches of the Code of Consumers' Rights. Any matters that do not breach the code, but nevertheless may require professional disciplinary action, are still referred to the CAC for investigation. Professional dental 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 comprehensive, general, general and obstetric, psychiatric, and psychopaedic nurses, a register of midwives and a roll for enrolled nurses. As at 31 March 2004, annual practising certificates were held by 51,602 nurses and midwives, 2,981 more than at 31 March 2001 and an 11 percent increase on the numbers registered five years earlier on 31 March 1999. All registered nurses and midwives are educated through three-year degree courses leading to registration as a comprehensive nurse or midwife. Post-basic education ranges from regular in-service and short clinical courses to diploma and transition to degree courses at polytechnics, and certificates, diplomas and degrees to doctorate level 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 has developed requirements for competence-based practising certificates. Complaints about nurses and midwives are referred to the Health and Disability Commissioner. The council heard 20 disciplinary matters in 2003.

Psychologists. The Psychologists' Board is constituted under the Psychologists' Act 1981. The board is concerned with registration and education of psychologists and the discipline of registered psychologists. At 31 March 2003, there were 2,141 registered psychologists (an increase of 305 on the March 2001 figure), with 1,308 (an increase of 147 since March 2001) holding annual practising certificates. Current legislation requires registration only for those psychologists practising in the state services or in institutions licensed under the Mental Health (Compulsory Assessment and Treatment) Act 1992.

The New Zealand Dental Council registers dentists and promotes high standards of professional education and conduct among dentists.

Physiotherapists. The Physiotherapy Board, constituted under the Physiotherapy Act 1949, registers physiotherapists who are safe and competent to practise in New Zealand, disciplines registered physiotherapists 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 31 January 2003, there were 6,169 registered physiotherapists (an increase of 610 on the 2001 figure), with 2,774 (an increase of 271) 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. Three-year, full-time training courses are conducted at the Auckland University of Technology and at Otago Polytechnic. Successful completion of a course is required for registration. At 31 March 2003, there were 2,981 registered occupational therapists (an increase of 194 on the March 2002 figure), with 1,609 (an increase of 63) holding annual practising certificates.

Dietitians. The Dietitians' Board is constituted under the Dietitians' Act 1950. A15-month postgraduate training course for dietitians is conducted at the University of Otago. The prerequisite qualification for entry into the programme is a three-year Bachelor of Consumer and Applied Science, or a Bachelor of Science degree from the University of Otago. At 31 March 2003, there were 1,083 registered dietitians (an increase of 26 on the March 2002 figure), with 385 (an increase of six) holding annual practising certificates.

Optometrists are trained at the University of Auckland in a five-year, full-time degree course.

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 five-year, full-time degree course. Dispensing opticians are trained through a two and-a-half-year correspondence course. At 31 March 2003, there were 1,053 registered optometrists, 531 of whom held annual practising certificates, and 178 registered dispensing opticians, with 99 holding annual practising certificates. There were 36 more optometrists and dispensing opticians holding practising certificates at 31 March 2003 than there had been a year earlier.

Podiatrists. The Medical Auxiliaries Act 1966 provides for the constitution of a Podiatrists' Board. The board registers qualified podiatrists and sets standards of education and conduct. The Auckland University of Technology offers a three-year Bachelor of Health Science (Podiatry) degree, the qualification recognised for registration. At 6 November 2003, there were 514 registered podiatrists, 39 more than at 30 June 2001. Of these, 254 held annual licenses, compared with 231 in 2001

Chiropractors. The Chiropractic Board is constituted under the Chiropractors' Act 1982 and is concerned with the registration, education and professional conduct of practising chiropractors. Graduates from board-approved chiropractic colleges are eligible to take the board's competency examination and successful candidates are considered for registration by the board. The New Zealand College of Chiropractic offers a five-year course leading to a Bachelor of Chiropractic degree. On 30 June 2003, there were 271 registered chiropractors in New Zealand, compared with 418 at 30 June 2001.

Pharmacists. Until 18 September 2004, the Pharmacy Act 1970 provided for the registration of pharmacists, all of whom had to be members of the Pharmaceutical Society of New Zealand. The society provided 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 acted as the registering authority for pharmacies under the provisions of the Pharmacy Registration Regulations 1975. On 18 September 2004, the Health Practitioners Competence Assurance Act 2003 repealed the Pharmacy Act and dissolved the Pharmaceutical Society of New Zealand. A Pharmacy Council became responsible for the registration, competence to practice and discipline of pharmacists. Licensing of pharmacies became the responsibility of the Ministry of Health under the Medicines Act 1981. Entry to the pharmacy profession is via a four-year degree course at either the University of Auckland or the University of Otago, followed by a formal one-year pre-registration programme of practical training in order to achieve competence and gain registration as a pharmacist. Reciprocal recognition of qualifications exists between New Zealand and the states of Australia, with other applicants individually assessed. On 1 January 2004, there were 3,893 pharmacists on the register, 34 more than the year before. At the same time, there were 909 registered community pharmacies, compared with 930 in January 2003, 943 in January 2002 and 1,057 in January 1994.

Assurance Act 2003 repealed the Pharmacy Act and dissolved the Pharmaceutical Society of New Zealand. A Pharmacy Council became responsible for the registration, competence to practice and discipline of pharmacists. Licensing of pharmacies became the responsibility of the Ministry of Health under the Medicines Act 1981. Entry to the pharmacy profession is via a four-year degree course at either the University of Auckland or the University of Otago, followed by a formal one-year pre-registration programme of practical training in order to achieve competence and gain registration as a pharmacist. Reciprocal recognition of qualifications exists between New Zealand and the states of Australia, with other applicants individually assessed. On 1 January 2004, there were 3,893 pharmacists on the register, 34 more than the year before. At the same time, there were 909 registered community pharmacies, compared with 930 in January 2003, 943 in January 2002 and 1,057 in January 1994.

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 imaging, nuclear medicine, radiation therapy, ultrasound imaging and magnetic resonance imaging. At 31 March 2003, there were 3,123 registered practitioners (an increase of 148 on the June 2001 figure), 1,648 of whom held annual licences (an increase of 127). Students study diagnostic-imaging at UNITEC, UCOL and Christchurch Polytechnic Institute of Technology. Those who wish to study radiation therapy undertake a three-year course at the University of Otago's Wellington School of Medicine and Health Sciences.

Medical laboratory technologists. The Medical Laboratory Technologists Board is constituted under the Medical Auxiliaries Act 1966 and is concerned with the training, registration and conduct of those engaged in the practice of medical laboratory science/technology. The University of Otago, Massey University and Auckland University of Technology offer a Bachelor of Medical Laboratory Science degree, and the board also approves a diploma route to registration. From September 2004, the board became the Medical Laboratory Science Board under the Health Practitioners Competence Assurance Act 2003. At 31 March 2003, there were 2,877 registered medical laboratory technologists, an increase of 139 since 30 June 2001. Of these, 1,428 were licensed to practise, compared with 1,318 in 2001.

Clinical dental technicians and dental technicians. The Dental Technicians' Board controls the registration of clinical dental technicians and dental technicians, liaises with educational establishments on training and examination requirements and advises the Minister of Health on any matter relating to the work of clinical dental technicians and dental technicians. The board is constituted under the Dental Act 1988, which is being phased out by the Health Practitioners Competence Assurance Act 2003. As at 31 March 2003, 160 clinical dental technicians (an increase of 26 on the 20 November 2001 figure) and 178 dental technicians (a decrease of 12) were registered and held annual practising certificates. Dental technicians train at the School of Dentistry, University of Otago, where, after completing a three-year training programme, they graduate as a Bachelor in Dental Technology. After obtaining their degree and working for at least two years as a dental technician, they are eligible to complete the Postgraduate Diploma in Clinical Dental Technology from the School of Dentistry.

8.2 Health service benefits and subsidies

General practitioner subsidies. People on low incomes who are not enrolled in a Primary Health Organisation access the government subsidy for general practitioner visits through a community services card, issued to an individual and dependent family members. People with high health needs access the government subsidy through a high use health card. The subsidy for children under the age of six is $35, and for those six years and over it is $20 for cardholders and $15 for non-cardholders. Adult cardholders receive a subsidy of $15 per consultation. A higher subsidy is paid to general practitioners in certain rural areas, and an immunisation benefit covers the cost of vaccinations for children under the age of 16.

Hospital treatment. Inpatient, outpatient and day treatment in New Zealand public hospitals is free for all people eligible to access publicly-funded health services. Services related to public hospital treatment, such as pharmaceuticals and x-rays, are also free. Inpatient, outpatient and day treatment in public psychiatric hospitals is free. Mental health services, including pharmaceuticals, are free to day patients or outpatients, including those who are patients of community mental health teams and are on community treatment orders.

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 included in the pharmaceutical schedule and prescribed by health professionals with prescribing rights. The pharmaceutical schedule is a list of drugs and services subsidised by the government. Special mechanisms are in place to ensure people get access to non-schedule drugs in exceptional circumstances. The government sets a standard maximum pharmaceutical charge of $15 an 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 children under the age of six. In addition, there is a subsidy on contraceptives. Children under six are exempt from charges on pharmaceuticals, with the exception of one or two specific items. Individuals or families pay the pharmaceutical charge of $15 for the first 20 pharmaceutical items from 1 February each year. The government then additionally subsidises pharmaceutical needs, and non-cardholder families and high use health cardholders pay a residual charge of $2 an item until the following 1 February. Community services cardholders do not pay a prescription charge until the following 1 February.

Dental services. Routine dental care is free for preschoolers, primary school children and adolescents. Dental therapists provide dental care for preschoolers and primary school children. Dentists under contract to district health boards provide dental care for adolescents. Some public hospitals have dental departments which provide services to patients. The government also funds emergency dental treatment for low income earners.

Maternity services. Eligible women in New Zealand receive free pregnancy, childbirth and postnatal care from general practitioners or midwives through benefits paid by the Ministry of Health. Some women choose to receive primary maternity care from a specialist obstetrician and may then be charged above the rate provided by the benefit. If there are clinical reasons requiring the involvement of a specialist obstetrician, the service is available free from public hospitals. Approximately 96 percent of births take place in hospitals, but midwives may provide care to women who choose to have their babies at home. 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 and home help in New Zealand is free when provided by a registered nurse or midwife employed by a district health board or an approved organisation. Subsidies are available to organisations that provide domestic help in appropriate cases to older people or families with young children. District health boards 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.

Artificial aids. Specific benefits from the Ministry of Health are available in various circumstances for a range of artificial aids. These include breast prostheses, hearing aids, wheelchairs, artificial eyes and wigs. Specific eligibility conditions as to the suitability of the aid and the necessity for it apply in each case. Benefits generally contribute to the initial cost and to replacements.

PHARMAC. The Pharmaceutical Management Agency (PHARMAC) is a Crown entity reporting to the Minister of Health whose main role is to manage New Zealand's pharmaceutical schedule - the list of nearly 2,400 subsidised prescription drugs and related products. The schedule, updated monthly, records the price of each drug, the subsidy it receives from public funds and the guidelines or conditions under which it is subsidised. In 2002/03, 63 new products were added to the schedule, compared with 78 new products in 2001/02. District health boards spent $512 million on pharmaceuticals (drug cost ex manufacturer) in the year ending 30 June 2003, up $9 million (1.8 percent) on the previous year. This controlled increase reflects PHARMAC's ability to negotiate lower prices, which offsets volume growth and spending on new pharmaceuticals. PHARMAC also promotes the optimal use of prescription medicines and manages the purchasing of some pharmaceuticals used in hospitals.

HealthPAC. The role of HealthPAC (formerly Health Benefits) is to make government subsidy payments to health professionals on behalf of the Ministry of Health and to monitor 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. HealthPAC handles approximately $1.2 billion in payments a year, involving more than 34 million items in pharmacy payments alone. HealthPAC also provides information to the Ministry of Health, health providers and other appropriate agencies about patterns of spending on health prescription costs and medicine usage, health trends and claiming patterns.

8.3 Public health

Public health services are generally those provided to populations rather than to individuals or those provided to individuals who require population-wide planning, such as population-based screening and development of an immunisation register. Public health supports a population health approach which takes into account all factors which determine health, and systematically plans how these will be tackled and how inequalities can be reduced. Public health services account for 1.9 percent of health services funded through Vote: Health.

The Public Health Directorate of the Ministry of Health is responsible for providing policy and strategic advice on public health issues and services, for monitoring the state of the health of the population, for developing and enforcing public health legislation, for developing public health strategies and for planning and funding public health services.

Twelve public health units based in district health boards (DHB) provide health promotion, health protection and disease prevention services to all 21 DHB districts.

Public health activities are also carried out by local authorities who have a role in the improvement, promotion and protection of public health and are charged with developing long-term plans with a focus on community public health. Around 200 non-government providers also provide complementary public health services at national, regional and local level.

Public health review

Work continued during 2003 and 2004 on a major review of the Health Act 1956 and a proposed Public Health Bill. The new bill will provide the primary legislative framework for the identification, assessment and management of risks to public health. While the focus will be on environmental health and communicable disease control, the bill is being developed to allow action in relation to a wide range of current and emerging public health risks.

Safe drinking water

Safe drinking water is an essential prerequisite for public health. If a community's drinking water supply becomes contaminated by pathogenic organisms, a large number of people can be infected quickly and this can lead to the spread of infectious diseases in pandemic proportions. Chemical contamination of drinking water also has to be guarded against. Although direct health risks are lower than for contamination by pathogens, public concern about chemical contamination is often high.

The Ministry of Health tells the public about the safety of both public and privately-owned community drinking water supplies by way of a grading system. Grades given for water source and water treatment range from A1 (completely satisfactory) to E (completely unsatisfactory). Gradings are determined by the extent to which the supply complies with drinking water standards 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 Register of Community Drinking Water Supplies in New Zealand lists all 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 that could potentially be of public health significance. The 2002 register covers 1,964 community drinking water supplies. The grades awarded vary greatly, with Auckland's drinking water given an A grade, Wellington's between A and C, Christchurch's B and Dunedin's between B and E.

Radiation protection

Potential harm from radioactive materials and equipment that generates radiation is controlled by the Christchurch-based National Radiation Laboratory (NRL), a specialist business unit of the Ministry of Health.

The Radiation Protection Act 1965 and the Radiation Protection Regulations 1982 provide controls to protect users of radiation, patients undergoing medical examinations or treatment using radiation, and members of the public, by licensing users and controlling the buying, selling and disposal of radioactive materials and radiation equipment. The legislation is currently under review as it has been overtaken by technology changes, modern radiation protection practices and security requirements (particularly in relation to the control of radioactive material).

The NRL grants licences to use radioactive materials, issues consents for the sale of radioactive materials, records notifications of the sale of irradiating apparatus, develops codes of safe practice, and audits individuals and facilities for compliance with the regulatory framework. The NRL also provides support to front line emergency services, with a 24-hour emergency response capability.

The NRL provides a variety of radiation safety services, including personal dosimetry, calibration of radiation measurement equipment, and specialist advice in both ionising and non-ionising radiation. The NRL operates a number of radionuclide monitoring stations that measure radioactivity in the atmosphere and in rainwater. Some of this work is carried out as part of New Zealand's responsibilities under the Comprehensive Nuclear Test Ban Treaty. The National Radiation Laboratory website is www.nrl.moh.govt.nz

Control of medicines and drugs

The Medicines Act 1981 and the Medicines Regulations Act 1984 provide controls over therapeutic substances in New Zealand. New medicines and related products require the approval of the Minister of Health before they can be marketed. Consent is given only 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) claimed to be effective for a therapeutic purpose is considered 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 notification or until the director-general signifies consent.

Medicines are classified as either ‘prescription medicines’, ‘pharmacist medicines’ (for sale by a pharmacist personally), ‘pharmacy-only medicines’, or 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 inquire into an objection to a recommendation that the Minister of Health refuse to consent to the distribution of a new medicine.

The New Zealand and Australian governments are considering establishing a trans-Tasman agency to regulate therapeutic substances. This agency will operate under a treaty between the two countries and new therapeutic products legislation in both countries. The treaty if approved, was expected to commence operating in 2005.

Misuse of drugs

A wide range of drugs capable of being misused, including illegal and prescription drugs, are controlled by the Misuse of Drugs Act 1975 and the Misuse of Drugs Regulations 1977. It is an offence to obtain, manufacture, possess, consume, supply, or offer to supply controlled drugs unless authorised under the act.

Controlled drugs are divided into three classes. Heavier penalties are provided for offences involving Class A drugs, such as heroin and methamphetamine. Classes B and C contain many drugs legitimately used for medical and scientific purposes, such as morphine and pethidine. Cannabis plants, fruit and seeds are included in Class C. Substances manufactured from a cannabis plant are Class B. Illegal dealing in any class of controlled drug is subject to penalties varying from imprisonment to fines.

The rapid emergence of potentially dangerous ‘designer’ drugs necessitated a quicker way to control these drugs. In 2000, parliament amended the Misuse of Drugs Act 1975 to create a more rapid and evidence-based process of classifying drugs. The amendment clarified the basis of drug classification to relate to risk of harm to individuals and society arising from the drug. The risks range from Class A (very high) and Class B (high) to Class C (moderate risk). An expert advisory committee has been established to assess the relative risk of various drugs and to make classification recommendations to the Minister of Health.

In response to a rapid increase in the use of methamphetamine, the government reclassified it as a Class A drug. The reclassification focuses on controlling the supply of methamphetamine by giving police more effective tools to deal with suppliers, manufacturers and importers of methamphetamine. The government also announced a methamphetamine action plan designed to build resilience in at-risk communities, improve treatment options and develop community action programmes to deal with methamphetamine-related issues.

The National Drug Policy (NDP) is a comprehensive strategy to minimise all legal and illegal drug-related harm. The NDP is a cohesive policy framework, coordinating initiatives of relevant government agencies under a three-pronged approach, including:

  • Supply control (limiting the availability of drugs through, for instance, law enforcement).

  • Demand reduction (reducing the desire to use drugs through, for example, education programmes).

  • Problem limitation (mitigating the harm already occurring from drugs through treatment services).

The NDP, led by the Ministry of Health, provides a basis for priority setting, inter sectoral decision making and strategic alignment. The NDP is currently under review and a new National Drug Policy was planned to be completed in late 2004. To further assist in deterring drug abuse, the Ministry of Health, the New Zealand Customs Service and the New Zealand Police have maintained the National Drug Intelligence Bureau since 1972. The National Drug Policy website is www.ndp.govt.nz

Alcohol

Alcohol is a feature of New Zealand life. For many it is a symbol of hospitality, and is used on occasions to celebrate important events in people's lives. When alcohol is misused, however, the resulting harm can be considerable. Alcohol abuse can lead to physical and mental health problems, injury and death on the roads, drownings, violence, fetal abnormalities, absenteeism and impaired work performance.

Figure 8.01 shows alcohol consumed in New Zealand.

Figure 8.01. Alcohol consumptionPer person aged 15 and over Years ending 31 March

Alcohol consumptionPer person aged 15 and over Years ending 31 March

Land Transport Safety Authority figures indicate that in 2002 alcohol was a contributing factor in about 26 percent of fatal road accidents and 13 percent of injury accidents. In annual terms, the social costs of alcohol misuse in New Zealand have been estimated at between $1.5 billion and $2.4 billion.

The Alcohol Advisory Council of New Zealand (ALAC) promotes moderation in the use of alcohol and develops and promotes strategies aimed at reducing alcohol-related problems.

Alcohol and other drug issues are one of the priority areas for action identified in the New Zealand Health Strategy. Following on from this, the National Alcohol Strategy released in 2001 contains a comprehensive range of initiatives that span demand reduction, supply control and problem limitation measures.

Tobacco

Smoking is the greatest single preventable cause of premature death in New Zealand. Each year about 4,700 New Zealanders die from cancers, cardiovascular disease, chronic obstructive pulmonary disease and other diseases caused by their smoking. There is also increasing evidence of harm to adults and children from exposure to second-hand smoke in homes, workplaces and enclosed public places. Smokers who die from tobacco-related causes lose, on average, 14 years of life compared with non-smokers.

From 1999 to 2002, tobacco smoking decreased slightly, from 25.5 percent to 24.5 percent of the population aged 15 and over. This was lower than the 1990 smoking level of 28 percent and maintained a trend of decreasing smoking since 1983. Increases in the prevalence of smoking by secondary school students in the 1990s have been reversed, with a downward trend apparent between 1999 and 2002 for both males and females.

There is a continuing high prevalence of smoking among adult Māori, with 49 percent of the adult population in 2002 smokers. Forty-two percent of female Māori fourth form students reported being at least weekly smokers. Figure 8.02 shows tobacco consumption per person in New Zealand.

Figure 8.02. Tobacco consumptionPer person aged 15 and over Years ending 31 December

Tobacco consumptionPer person aged 15 and over Years ending 31 December

The successes of New Zealand's tobacco programme have been achieved through a mix of tobacco legislation, taxation, health promotion and cessation support.

Legislation introduced in 2004 strengthening the Smoke-free Environments Act 1990 is expected to create new momentum for a reduction in smoking. The amendments reduced exposure to environmental tobacco smoke by creating smoke-free workplaces, including bars, restaurants and cafes. They also restricted further access by minors to tobacco products and placed restrictions on the display of tobacco products at point of sale.

Communicable disease control

Medical practitioners are required under the Health Act 1956 to notify their medical officer of health of cases of notifiable diseases they suspect or diagnose. Notification data is recorded on a computerised database 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) on behalf of the Ministry of Health. The Ministry of Health monitors the prevalence of communicable diseases, 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. The ministry is also responsible for policy development, promulgation of regulations and the fulfilment of international disease reporting requirements.

Outreach immunisation services began in 2003 to improve immunisation rates among groups with high rates of vaccine-preventable diseases.

Immunisation. A National Immunisation Register (NIR), health promotion resource development and ongoing education for providers of vaccination services were key features of the National Immunisation Programme in 2003. The NIR is a computerised information system to help health care providers keep a record of a child's immunisation status. It will enable authorised health professionals to quickly and easily determine immunisation status and will help to ensure children receive immunisations at the right time. The NIR will enable information sharing between health care providers to assist with follow-up of those individuals whose immunisations are significantly overdue.

The NIR is a key tool in implementation of the meningococcal vaccination programme, rolled out during 2004.

Outreach immunisation services were developed in 16 district health boards during 2003. These are designed to improve immunisation rates among Māori, Pacific peoples and other groups with high rates of vaccine-preventable diseases and low rates of immunisation. In addition to ongoing support from local immunisation coordinators or facilitators, a short-term mentoring and support role has also been established.

Food safety and quality

The New Zealand Food Safety Authority (NZFSA), established on 1 July 2002, is the New Zealand controlling authority for imports and exports of food and food-related products.

It also administers legislation covering food for sale on the domestic market; the primary processing of animal products and official assurances related to their export; the export of plant products; and controls surrounding registration and use of agricultural compounds and veterinary medicines.

Under the Food Act 1981, the NZFSA is responsible for development of food safety standards and for implementing food standards and regulations. The Food Act and amendments require food for sale not to be labelled or advertised in a misleading manner. It provides for composition and labelling, and for safe food processing and handling.

Enforcement of food legislation and investigation of food complaints and food-borne illnesses are undertaken by health protection officers, Food Act officers and medical officers of health.

The New Zealand food industry is working towards managing food safety risks by the Hazard Analysis Critical Control Point (HACCP) system.

From 1 July 1997, food businesses have been able to apply to either the NZFSA or the relevant territorial local authority for an exemption from food hygiene regulations. For an exemption to be granted, the business must have an effective, independently-audited, HACCP-based food safety programme that fulfils specific requirements set out in the act. The food industry and the NZFSA have been working closely together in this transition process, which is underpinned by the development of guidance documents in the form of codes of practice.

The Food Hygiene Regulations 1974 apply to a food business until an exemption is granted to that business. The regulations contain minimum requirements for construction, and provisions for the maintenance of food premises and the conduct of workers. Environmental health officers of local territorial authorities carry out inspections to check compliance. Public health unit health protection officers and medical officers of health provide specialist advice to local authorities on these matters.

The joint Australia New Zealand Food Standards Code covers labelling (including ingredient listing, date marking, nutritional panels, warning statements and claims about nutrition) and the composition of food (including ingredients, food additives, vitamins and minerals or other substances that may be used, in food, contaminants and microbiological standards). The code took full legal effect on 20 December 2002. Its provisions are available in full on the website www.foodstandards.govt.nz

Dietary supplements are regulated as foods under the Dietary Supplements Regulations 1985. The regulations define dietary supplements, state maximum daily doses for some nutrients, list food additive permissions and labelling requirements. As with other foods, it is the manufacturers/importer's responsibility to ensure their products are safe and comply with legal requirements. Dietary supplements may not be sold for therapeutic purposes. While most dietary supplements are sold as capsules, pills or in powder form, some are sold in food form. The Dietary Supplements Regulations 1985 are likely to be replaced by future joint Australia New Zealand healthcare and therapeutic products legislation.

The New Zealand Food Safety Authority's website is www.nzfsa.govt.nz

Cancer control

Cancer is a major health issue for New Zealanders. About 16,000 people develop cancer each year, excluding skin cancer, and about 7,500 die from the disease. One in three New Zealanders will have some experience of cancer, either personally or through a relative or friend.

Reducing the incidence and impact of cancer is one of 13 population health objectives in the New Zealand Health Strategy, launched in December 2000.

Cancer control is an organised approach to reducing the community burden of cancer through prevention, screening and early detection, treatment, support and rehabilitation, and palliative care.

The strategy encompasses the following goals:

  • Reduce the incidence of cancer through primary prevention.

  • Ensure effective screening and early detection to reduce incidence and mortality.

  • Ensure effective diagnosis and treatment to reduce morbidity and mortality.

  • Improve the quality of life for those with cancer, their family and whānau through support, rehabilitation and palliative care.

  • Improve the delivery of services across the continuum of cancer control through effective planning, coordination and integration of resources and activity, monitoring and evaluation.

  • Improve the effectiveness of cancer control in New Zealand through research and surveillance.

A cancer control task force has been established to develop the implementation plan for the strategy. The plan will identify the priorities, including what can be done in the short term and what needs to be phased in over a longer period. An implementation workshop providing input into the plan was held in late 2003.

Reports relating to the strategy's development are available on the website www.moh.govt.nz/ cancer control.

The New Zealand Cancer Control Trust's website is www.cancercontrol.org.nz

Services for older people

The majority of older people are fit and well and live independent lives. However, with advancing age, older people become increasingly high users of health and disability support services such as home support, residential care and provision of equipment.

In the 2002/03 financial year, Vote: Health expenditure was $7,744 million (inc GST) and about 39 percent of that was spent on the 11.9 percent of the population aged 65 and over. Expenditure increases exponentially with age. It was estimated that in the 2002/03 financial year, health expenditure was $1,014 for each person aged 15-64, $3,925 for each person aged 65-74, $7,430 for those aged 74-85 and $14,657 for those aged 85 and over.

The Health of Older People Strategy released in 2002 provides a framework for future service development for older people. Key directions in the strategy are an integrated approach to service planning and provision, and a greater emphasis on community-based services to support older people to ‘age in place’ (remain at home with a good quality of life).

An estimated 31,000 people (7 percent) aged 65 and over were in residential care in 2004. People are now entering residential care later and with a higher level of dependency than in the past. Proposed legislative changes to the income and asset-testing regime governing an individual's contribution to the cost of long-term residential care were under consideration by the government in 2004.

Initiatives developed to enable people to remain at home are being evaluated in Hamilton, Hutt Valley and Christchurch. Results of the evaluation will provide district health boards (DHBs) with information about key components of successful community programmes for older people.

In October 2003, funding for disability support services for older people was devolved from the Ministry of Health to DHBs. This has enabled DHBs to plan, fund and deliver a wide range of health and disability support services for older people.

Voluntary welfare organisations

Voluntary welfare organisations make valuable contributions to aspects of public health. Vote: Health, through a variety of contracts and other agreements, funds a wide range of independent service providers and related organisations, including, among others, the Royal New Zealand Plunket Society, the New Zealand Family Planning Association and the New Zealand AIDS Foundation.

Mental health

The Ministry of Health has responsibility for leading implementation of the National Mental Health Strategy and the Mental Health Commission's Blueprint for Mental Health Services in New Zealand (1998). The national strategy is set in statute (the Mental Health Commission Act 1998) and since its development has resulted in a nominal increase of 174 per cent in public sector funding for mental health services.

The national strategy is based on the development of community-based services and the provision of specialist services for the 3 percent of the population most severely affected by mental illness. Mental Health Commission funding is targeted at this group.

Growth in funding has been accompanied by a significant growth in services, 69 percent of which are community based and 31 percent inpatient. Non-government organisations receive 28 percent of the funding for community-based services.

New Zealand's 21 district health boards have responsibility for the provision of mental health services, as both flinders and providers.

Te Puāwaitanga (2002) is the Māori mental health national strategic framework developed to assist the mental health sector and district health boards to recognise the importance of cultural identity as an essential component of mental health care, and to develop and provide services that meet the needs of Māori.

Building on Strengths (2002) outlines a national approach to the provision of education and guidance on mental health promotion, along with planned priority actions for promotional activities. The Like Minds, Like Mine initiative focuses on destigmatising mental illness and on improving the social environment for people with serious mental illness.

In 2004, the National Mental Health Strategy was under revision, with a draft plan to follow Moving Forward (1997) being developed. The new plan proposed to update and modernise the strategic framework, taking into account major policy, structural and best practice developments. The new plan was expected to be available for public consultation late in 2004 and was expected to cover the spectrum of interventions from promotion and prevention to primary care and specialist services.

Suicide

Suicidal behaviour is a significant and preventable public health issue in New Zealand. It is a major cause of death and injury, and a significant contributor to social and health costs. In 2000, there were 458 deaths by suicide and in the 2000/01 financial year there were 6,117 hospitalisations for suicide attempts.

In the 1990s, New Zealand youth suicide rates were among the highest of member nations of the Organisation for Economic Co-operation and Development, and the New Zealand Youth Suicide Prevention Strategy was launched in 1998 to address the problem. Led by the Ministry of Youth Development, the strategy consists of two components - Kia Piki te Ora o te Taitamariki, which specifically addresses Māori youth suicide, and In Our Hands, which outlines steps to reduce suicidal behaviour among all youth. Together, they take a broad-based approach to suicide prevention, from community development and mental health promotion to early identification of risk factors and treatment, support after a suicide, restricting access to means of suicide, encouraging safe media reporting, and information and research.

In recognition of the need to provide a comprehensive framework for preventing suicide across all age groups, not just youth, work has begun on developing an All-age Suicide Prevention Strategy. The work is being led by the Ministry of Health and the Ministry of Youth Development, and will build upon gains made and lessons learnt from the New Zealand Youth Suicide Prevention Strategy.

Disability support services

The Ministry of Health is responsible for disability support services policies and planning, and directly funds disability support services for people with long-term disabilities (mostly people under 65 years). District health boards provide health and support services for older people with disabilities.

To access disability support services, a person must be assessed as having either a physical, intellectual, sensory, psychiatric or age-related disability, or a combination of these, where the disability is 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.

Disability support services aim to promote and maximise the independence of people with disabilities, provide rehabilitation, and support opportunities for people to participate as fully as possible in their families, communities and societies.

Disability support services include:

  • Home-based support services - eg personal care, home help.

  • Carer support services - eg respite care, caregiver and family support programmes.

  • Environmental support services - eg equipment, communication/hearing aids, grants for vehicle purchase and modifications, housing modifications, subsidised items such as breast prostheses.

  • Day and vocational services.

  • Residential care for people with long-term disabilities (mostly people under 65 years).

  • Habilitation and rehabilitation - eg deafness/blindness services.

Support services are provided through a variety of voluntary organisations, private businesses such as rest homes, and district health boards, with most services community based.

While the ministry is a significant government funder of disability support services, other funding agencies include district health boards, the Ministry of Education, the Accident Compensation Corporation and Work and Income. Although support services are funded largely from tax revenue, consumers may be required to pay part charges for some services.

Disability support services expenditure was approximately $1.416 million in 2002/03, compared with $1.315 million in the 2001/02 financial year. During 2002/03, approximately 56 percent of expenditure on disability support services was spent on residential care for older people and for people with intellectual, physical or sensory disabilities. The other key areas of expenditure were assessment, treatment and rehabilitation (12 percent); home-based support (11 percent); environmental support services (5.4 percent); carer support (4 percent); and respite care (1 percent).

Family health

The health of families in New Zealand is promoted cooperatively by the Ministry of Health, district health boards, government departments, voluntary agencies, hospital and health services and health professionals.

Sexual and reproductive health

Like other countries, New Zealand seeks to maintain sexual and reproductive health and to minimise harm and unwanted pregnancies by delivering health promotion and protection programmes. Programmes vary from communicable disease prevention to working with the education sector to encourage healthy choices by youth. Unwanted pregnancies and unacceptably high rates of sexually transmitted infections among young people remain a constant concern. In 2004, the Ministry of Health launched a national public health campaign aimed at reducing the rates of HIV/AIDS and other sexually-transmitted infections.

Māori health

Several national health indicators have improved for Māori in recent years, including increases in life expectancy and significant decreases in rates of sudden infant death syndrome, cervical cancer and rheumatic fever.

However, Māori still face poor health outcomes and on average die eight to nine years earlier than non-Māori.

While access to health services plays a role, the health of individuals is generally determined by socio-economic statuses such as employment, housing and education. Behavioural and biological risks are also believed to play a part, and these risks are inequitably distributed across socio-economic and ethnic groups.

The task of improving Māori health means not only addressing issues of access to effective health services, but also tackling underlying social and economic conditions that impact on health.

The government and the Ministry of Health have encouraged Māori to participate in providing their own health services, and there are now about 220 providers helping to make services more accessible and culturally appropriate for Māori.

Eight priority areas have been identified for Māori health - immunisation, hearing, smoking cessation, diabetes, asthma, oral health, mental health and injury prevention. Cardiovascular disease and sexual health are also priorities.

The Māori Health Strategy He Korowai Oranga introduced during 2002 has four pathways to improving Māori health:

  • Whanau, hapū, iwi and Māori community development.

  • Māori participation throughout the health and disability sector.

  • Effective health and disability services delivered to Māori.

  • Intersectoral action to reduce inequalities and tackle the wider determinants of health.

Women's health

The Ministry of Health provides policy advice on a range of issues of particular relevance to women. These include contraception, sexual and reproductive health, infertility, pregnancy and childbirth services, abortions, breast cancer and cervical screening.

Women's health services are provided by district health boards, health professionals and a large number of community and consumer groups.

Cervical cancer screening. International evidence suggests that morbidity and mortality from invasive cervical cancer can be reduced with an organised screening programme aimed at detecting and treating pre-cancerous changes to the cervix. New Zealand's National Cervical Screening Programme was established in 1990 and is targeted at women aged 20-69.

Breast cancer screening. Established in 1998, the Breast Screen Aotearoa (BSA) programme provides two-yearly mammographic screening to asymptomatic women aged 45-70, along with assessment and treatment services. Breast cancer is the leading cause of cancer deaths in New Zealand women. As at December 2002, the programme had detected cancer in 2,338 women.

Child health

The Ministry of Health-developed Child Health Strategy provides direction to the health and disability sector on overall improvement in child health and disability outcomes. The strategy recognises that improving child health and disability outcomes requires a comprehensive approach involving:

  • Greater focus on health promotion.

  • Disease prevention and early intervention.

  • Better coordination of resources.

  • Development of a national Child Health Information Strategy.

  • Child health workforce development.

  • Improved child health research and evaluation.

  • Leadership in child health.

The strategy emphasises the need to reduce inequalities in health and disability outcomes by focusing on Māori children, Pacific children, children whose families experience multiple social and economic disadvantages, and children with high health and disability support needs. District health boards and the Ministry of Health purchase a comprehensive range of health services, including high quality secondary and tertiary paediatric services, primary care and well-child services that focus on disease prevention and health promotion.

Services set out in the Well Child Tamariki Ora national schedule include newborn screening; developmental, vision and hearing screening for children aged 0-4; and immunisation. Well-child services for this age group are provided by a range of providers including hospitals, Plunket and Māori and Pacific providers. The schedule recommends examination by family doctors at about six weeks of age and whenever there is anxiety over acute or chronic illness or development.

Infant mortality was 6.3 deaths per 1,000 live births in 2000, continuing the reduction that began in the early 1990s following release of the New Zealand Cot Death Study. Figure 8.03 shows the downward trend in infant mortality rates.

A Youth Health Action Plan was published in 2002, following extensive consultation with health, social service and educational professions, and with young people. The plan identifies the need to improve young people's mental and physical health, with special reference to Māori and Pacific youth and those with disabilities and chronic illness. Participation by young people in the development of policy, programmes and the running of health services was emphasised.

Immunisation. Two important milestones in the provision of immunisation services in New Zealand occurred in 2002 and in 2004. These were the development and implementation of the National Immunisation Register (NIR) and the meningococcal vaccine programme. The NIR began its roll out in South Auckland following three years of development. Based on a New Zealand-developed well-child information system, NIR provides accurate coverage, support and recall data, and provides access to a child's information by authorised health immunisation professionals. The NIR was rolled out ahead of the meningococcal vaccine programme, which began in South Auckland in June 2004. The programme follows many years of planning and the development of a specific vaccine for the strain of meningococcal infection epidemic in New Zealand for more than 10 years. The burden of this epidemic has been disproportionately borne by Māori and Pacific peoples infants. Table 8.02 shows the recommended immunisation schedule by age, and the diseases immunised against.

Dental health

New Zealand's dental health services combine a school dental service for children, dental benefits for adolescents and private practice services for adults. Major hospitals also provide dental services for in-patient and other special groups.

School dental service. The school dental service works to maintain a high standard of dental health for preschool and school children, starting at the age of two and-a-half and continuing to the highest class at primary or intermediate school. Dental therapists, after completing either a two or three-year training course, provide children with routine dental care. 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 care beyond the scope of 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 in 2002, the average number of teeth with fillings was 1.6, and 44 percent of children had no fillings in their permanent teeth.

Dental services for teenagers. Young people receive dental benefits up to the age of 18.

Dental research. Dental 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. Sixty-two percent of New Zealanders on reticulated water supplies in 2002 lived in areas with fluoridated water. 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 fluoridation and non-fluoridated water supplies has decreased. The benefit of fluoridation in preventing dental decay is greatest for those in low socio-economic groups, for Māori and for children.

8.4 Hospitals

About 190,000 people received publicly-funded surgery in the year ending 30 June 2001 and, on average, 19,700 people a day received full or partial age-related subsidies for rest homes or continuing care hospitals. The Ministry of Health also funded 4,080 beds in community homes for people with intellectual, physical, neurological or sensory disabilities.

Outpatients

Outpatients and accident and emergency (A&E) attendances have not been accurately and consistently recorded over time. However, available evidence suggests that these attendances have risen steadily in recent years. In 1999/2000, there were approximately 740,000 publicly-funded A&E events, representing a rate of 192 events per 1,000 people. People under the age of 25 are most likely to use A&E services, while those aged 45-64 have the lowest rate of use.

In 1999/2000, medical and surgical specialties saw more than 1 million outpatients each, representing rates of 262 and 273 per 1,000 people respectively. The elderly use medical and surgical outpatient services at a much higher rate than those aged under 65. People aged 65 and over, comprising about 12 percent of the New Zealand population, accounted for approximately 24.9 percent of the total number of medical/surgical outpatient treatments and 24.7 percent of the total cost for the corresponding services.

Figure 8.03. Infant mortality1Death of infants under the age of one Years ending 31 December

Infant mortality1Death of infants under the age of one Years ending 31 December

Table 8.02. Recommended immunisation schedule from 2002

AgeVaccine

1Diphtheria, tetanus, whooping cough (acellular pertussis), and inactivated poliovirus vaccine.

2Haemophilus influenzae type b and hepatitis B vaccine.

3Diphtheria, tetanus, acellular pertussis and Haemophilus influenzae type b vaccine.

4Measles, mumps, rubella vaccine.

5Adult-type tetanus-diphtheria vaccine. In addition, hepatitis B vaccine and hepatitis B immunoglobulin is given at birth to babies of a mother who is a carrier of hepatitis B, and BCG is offered to babies who will be living in households where there are recent immigrants from high risk countries or persons with current or past history of tuberculosis. Rubella vaccine or MMR is available for susceptible women.

Source: Ministry of Health

6 weeksDTaP-IPV1, Hib-Hepatitis B2
3 monthsDTaP-IPV, Hib-Hepatitis B,
5 monthsDTaP-IPV, Hepatitis B,
15 monthsDTaP/Hib3, MMR4
4 yearsDTaP-IPV, MMR
11 yearsTd5
45 yearsTd
65 yearsTd, annual influenza vaccine

Table 8.03. Clients seen by mental health teams Year ending 31 December 2001

Team typeClients seenBed nightsAverage bed nights
Source: Ministry of Health
Community47,8006,7380.1
Alcohol and drug17,10417,9181.0
Child, adolescent and family14,1481,4510.1
Inpatient8,375285,10834.0
Psychogeriatric3,98825,2576.3
Kaupapa Māori3,6391,6380.5
Forensic3,40549,12914.4
Residential65381,504124.8
Other11,96319,2021.6
            Total111,075487,9454.4

Hospital beds

There were 445 hospitals in New Zealand in 2002. Eighty-five of these were publicly funded and 360 were privately owned. The number of hospital beds available in 2002 was 23,825, 12,484 in public hospitals and 11,341 in private hospitals providing high-level care. In 1998, hospital beds totalled 30,282, 14,298 in public hospitals and 15,984 in private hospitals. Most public hospitals provide acute and elective care for patients in their district. A few public hospitals provide tertiary services on a regional or national basis. The majority of privately-owned hospitals provide continuing care accommodation for older people. A number of these hospitals also provide separate rest home accommodation for older residents.

Length of stay in public hospitals. People are spending less time in hospital for medical and surgical treatment than previously. The average length of stay in hospitals fell by 50 percent in the decade to 2000/01, from 6.6 days 3.3 days. The reasons for the shorter stays are advances in medical technology, such as new medical treatments and more effective drugs, improved community and follow-up care, and more effective hospital administration.

Mental health consultation. Specialist teams provide mental health services in the community, backed up where necessary by inpatient care. Table 8.03 shows numbers seen by the various mental health teams, while Table 8.04 shows the number of people seen by district health board mental health services.

Table 8.04. Clients seen by district health board mental health (including alcohol and drug) services By age group Year ending 30 June 2002

Age group0-910-1920-2930-3940-4950-5960-6970-7980 and overTotal

Note:Excludes data from non-government organisations.

Source: Ministry of Health

Male2,9948,4778,2449,9267,3753,5581,7201,21690244,412
Female1,2656,7127,2459,8667,3364,1302,1831,7971,89142,425
            Total4,25915,18915,48919,79214,7117,6883,9033,0132,79386,837
Totals in 2001...3,12512,52513,17516,96612,5986,7833,3962,6562,27573,499

8.5 Causes of death

Malignant neoplasms (cancer), ischaemic heart disease and cerebrovascular disease were the leading causes of death in New Zealand in 1999 collectively accounting for 60.9 percent of all deaths (cancer 28.5 percent, ischaemic heart disease 22.4 percent and cerebrovascular disease 10 percent). Table 8.05 lists the major causes of death in New Zealand from 1997 to 1999.

Table 8.05. Major causes of death 1997-99

Cause of deathNumber of deathsCrude rate per million of mean population
199719981999199719981999
Source: New Zealand Health Information Service
Malignant neoplasms7,2827,5827,6742,0132,0952,013
Diabetes mellitus633730740175202194
Chronic rheumatic heart disease135138148373839
Hypertensive disease262283232727861
Ischaemic heart disease6,3696,2036,5711,7601,7141,723
Other forms of heart disease1,2831,1411,256355315329
Cerebrovascular disease2,5662,4922,835709689744
Diseases of arteries, arterioles and capillaries652535600180148157
Pneumonia972415623269115163
Bronchitis, emphysema and asthma415507670115140176
Other diseases of respiratory system1,5221,2261,437421339377
Peptic ulcer12610896353025
Cirrhosis of liver126111143353138
Congenital anomalies191189176535246
Conditions of perinatal mortality134109120373031
Motor vehicle accidents550529533152146140
Other injury and poisoning672566649186156170
Suicide and self-inflicted injury561577513155159135
All other diseases3,1613,0163,208874834841
            Total27,61226,45728,2247,6317,3127,402

Cancer. Cancer was the cause of 28.7 percent of all deaths in New Zealand in 2000. The lungs were the major site of male cancer deaths, accounting for 20.9 percent of deaths. Other common sites for males were the large bowel and prostate. The main cause of female cancer deaths was breast cancer, which caused 17.8 percent of female cancer mortality, followed by cancer of the large bowel. In 2000, 95.1 percent of cancer deaths occurred at age 45 and over, with 70.9 percent of deaths occurring at 65 years and over, as shown in Table 8.06.

Table 8.06. Deaths from malignant cancer 2000

Age groupMalesFemales
NumberRate per 100,000 of population at ages givenPercentage of total deaths at ages givenNumberRate per 100,000 of population at ages givenPercentage of total deaths at ages given
Source: New Zealand Health Information Service
Under 596.10.232.20.1
5-14134.30.3113.80.3
15-24176.30.4155.80.4
25-4411520.62.818731.75.3
45-64933226.522.6913219.226.1
65 and over3,0331,537.973.62,371934.167.7
            Total4,120218.2100.03,500180.0100.0
Totals in 19994,063216.3100.03,611186.6100.0

Perinatal deaths. The term perinatal deaths covers fetal deaths of 20 or more weeks gestation or 400 grams birthweight, and infant deaths within 168 hours of 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 live-born infant before the first year of life is completed.

Table 8.07 shows fetal and infant mortality rates in New Zealand in 2000 by ethnicity. Table 8.08 compares infant mortality rates in selected Organisation for Economic Co-operation and Development countries in 1988, 1998 and 1999.

Table 8.07. Fetal and infant mortality rates1 By ethnicity Year ending 31 December 2000

Category of deathMāoriPacific peoplesOtherTotal
NumberRateNumberRateNumberRateNumberRate

1Rate per 1,000 live or total births.

Source: New Zealand Health Information Service

            Total fetal925.8416.62366.73696.4
Early neonatal483.0325.2952.71753.1
Late neonatal120.891.5200.6410.7
Post neonatal754.7223.6461.31432.5
            Total infant1358.56310.21614.63596.3

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 be done only 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 the provisions of the law can be met, an authorising certificate is issued. New Zealand's abortion law is kept under review by the three-member 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 advisers also monitor counselling services for women seeking advice about their pregnancy and keep the committee informed on related issues.

Table 8.08. Infant mortality rates for selected OECD countries1

Country198819981999

1Rate per 1,000 live births.

Sources: Organisation for Economic Co-operation and Development New Zealand Health Information Service

Greece11.06.76.2
New Zealand10.95.45.8
United Kingdom9.05.75.8
Australia8.75.05.7
Portugal13.06.05.6
Switzerland6.84.84.6
Germany7.54.74.5
Austria8.14.94.4
Japan4.83.63.4
Iceland6.22.62.4

Table 8.09 shows the number of abortions performed in New Zealand each year from 1997 to 2003, by age group. Table 8.10 compares New Zealand's abortion rate with those of a number of low fertility countries.

Table 8.09. Abortions1 By age group Years ending 31 December

Age group (in years)1997199819992000200120022003

1New Zealand-registered induced abortions.

Source: Abortion Supervisory Committee

11-1456655674667889
15-192,9062,8322,8463,1073,2403,6023,757
20-244,4844,3554,4774,5484,7285,1245,670
25-293,3783,3813,4473,3993,4503,4503,619
30-342,3692,3682,4352,4962,5552,6762,800
35-391,5021,5591,6421,8231,7301,7151,846
40-44492444560613593686692
45 and over21253843484938
            Total15,20815,02915,50116,10316,41017,38018,511
Expanded age groups (in years)       
Under 16215238232262283388368
16-192,7472,6592,6702,9193,0233,3923,478

Table 8.1. Abortion rates New Zealand and other low fertility countries Latest available year ending 31 December

CountryCrude YearGeneral abortion rate1abortion rate2

1Per 1,000 estimated mean population.

2Per 1,000 estimated mean number of women aged 15-44.

3Includes abortions performed in hospitals but not counted by Medicare.

4Residents only.

5Includes most clinic abortions and abortions in the United States for Canadian residents.

6Abortion reporting incomplete and rates at least 20 percent higher than those stated.

7Includes abortions for foreign women living in the Netherlands

PprovisionalRrevised .. figures not available

Source: Abortion Supervisory Committee Statistics New Zealand

New Zealand19903.314.0
 19953.716.2
 20004.219.0
 20014.2R19.1
 20024.420.0
 20034.621.0
Australia31996..22.2
United States2000..21.3
New Zealand20034.621.0
Sweden20023.719.6
England and Wales420023.316.1
Canada520013.4..
Norway20023.014.8
Denmark20002.914.6
Japan620012.713.8
France61997..13.1
Scotland42002P2.310.9
Finland20022.110.9
Netherlands720021.88.7
Germany2002..7.7

8.6 Accidents

Road crashes. Motor vehicle crashes 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 ending 31 December 2002, there were 9,798 reported crashes, resulting in 404 fatalities and injuries to 13,918 individuals. Table 8.11 classifies these crashes by cause.

Table 8.11. Classification of motor vehicle crashes Years ending 31 December

Classification of crashes20012002
InjuriesInjuries
FatalSeriousMinorTotalFatalSeriousMinorTotal
Source: Land Transport Safety Authority
Overtaking or lane change248935146422100415537
Head on (not overtaking)1364619541,5511174971,1081,722
Lost control or ran off road on straight422771,0571,376492701,0691,388
Lost control or ran off road while cornering1285652,1042,797996562,2683,023
Collision with obstruction983340432861357426
Rear end1809281,0099861,2201,315
At intersections or driveways        
Turning versus same direction1165512588888614710
Crossing no turn19161817997121259871,124
Crossing vehicle turning810667178514155827996
Vehicles merging124176201127183211
Right turn against1015878495251339331,071
Vehicles manoeuvring878439525678509593
Pedestrian crossing road3822262188131241646918
Pedestrian - other1138911401043104157
Miscellaneous92888125134078131
            Total4552,4359,93312,8234042,60011,31814,322

Figure 8.04 shows the contributing factors, by proportion, for injury accidents on New Zealand roads.

Figure 8.04. Road accidentsContributing factors by proportion Year ending 31 December 2002

Road accidentsContributing factors by proportion Year ending 31 December 2002

Special road safety initiatives, such as the ‘anywhere - anytime’ speed camera campaign, are designed to help keep the road toll down.

Road safety

Road safety in New Zealand is administered by the Land Transport Safety Authority, with road laws enforced by the New Zealand Police. Publicity directed towards road safety is carried out through press, radio, television, posters and other forms of advertising. Special road safety campaigns and traffic improvement courses are held from time to time.

Integrating traffic education into school programmes is a major component of the road safety programme. Traffic education units are cooperatively planned and implemented, with police officers, teachers and others in the community working together to plan and implement traffic education interventions based on the special social and traffic needs of the community. The LTSA also funds the Road Sense programme, which provides professional development to 100 schools throughout New Zealand. Road Sense facilitators show teachers how to use road safety as a context to teach the curriculum. A network of 45 people coordinates community organisations working in road safety at the local authority level.

The New Zealand Automobile Association runs a defensive driving course for licensed drivers.

Advice on road safety policy is given to the 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.

Table 8.12 shows the age groups of people killed or injured in motor crashes in New Zealand for five consecutive years. Table 8.13 shows road crash casualties and rates from 1991 to 2002.

Table 8.12. People killed or injured in motor crashes By age group Years ending 31 December

Age group (in years)Killed1Injured
1998199920002001200219981999200020012002

1Killed immediately or died within 30 days of accident.

Source: Land Transport Safety Authority

Under 519914108224217221207204
5-91681188407363387359386
10-141115161515623632573550639
15-1975726266542,2902,1131,8602,2182,506
20-2466575052471,7591,5791,4731,6921,867
25-2957564437381,2901,2351,1251,1671,265
30-3434354333371,0991,0418941,1071,152
35-3934313227278928918478901,082
40-443431343122732720737846947
45-492131252119570583531616719
50-541519213529467517462553619
55-591714211618368347342345471
60-641818121615266300281337396
65-691531191413235235231251306
70-741718241815212242227255261
75-791921181515200215169218226
80 and over1926152318212216182238253
Age unknown14161186566553420519619
            Total50150846245540412,41211,99910,96212,36813,918

Table 8.13. Road crash casualties and rates

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
199458016.216,600464.1480.3
199558216.016,870463.1479.1
199651413.814,796398.0411.8
199753914.413,375355.6370.0
199850113.212,412327.5340.7
199950813.311,999315.5328.8
200046212.110,962286.2298.3
200145511.812,368321.2333.0
200240410.313,918353.3363.6

Table 8.14 gives an international comparison of death rates in motor crashes in 2000 and 2001 for a number of countries including New Zealand.

Table 8.14. International comparison of motor crash death rates1 Years ending 31 December

 20002001
Persons killedPersons killed per 100,000 populationPersons killed per 10,000 vehiclesPersons 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 and is the most recent available.

.. figures not available

Source: Land Transport Safety Authority

United States41,82115.21.942,11614.81.9
France8,07913.62.48,16113.82.3
New Zealand46212.11.845511.81.7
Australia1,8249.51.51,7379.01.4
Canada22,9279.51.6......
Germany7,5039.11.56,9778.51.3
Japan10,4038.21.310,0607.91.3
Sweden5916.71.25546.21.1
Norway3......2756.11.0
United Kingdom3,5806.01.23,5986.11.2

Figure 8.05 shows that the trend in the past 15 years has been for a reduction in the road toll.

Figure 8.05. The road tollNumbers killed Years ending 31 December

The road tollNumbers killed Years ending 31 December

Water accidents. Water Safety New Zealand is responsible for water safety education in New Zealand, ensuring the safe participation of New Zealanders in all types of water activity. Formed in 1949, Water Safety New Zealand represents the interests of 31 aquatic sports and recreational organisations. It is funded by the New Zealand Lottery Grants Board and through sponsorship of specific programmes by organisations such as the Accident Compensation Corporation.

Water Safety New Zealand ensures the water safety needs of the community are met through public education, information and statistics, research, and advice and consultancy. Water Safety New Zealand runs its own programmes and promotions, as well as supporting and funding water safety educational activities by member organisations such as Swimming New Zealand, Surf Life Saving New Zealand, the Coastguard Boating Education Service, the New Zealand Outdoor Instructors' Association and the New Zealand Underwater Association.

Water Safety New Zealand produces teaching manuals, booklets, stickers, posters and certificates. It has a comprehensive video library, including titles on boating safety, safety at the beach, river safety and learning to swim. These free resources are complemented by a water safety video written and performed by school children for school children which is available for purchase.

Water Safety New Zealand's website is www.watersafety.org.nz

Table 8.15 on page 152 shows the number of drownings in New Zealand from 1991 to 2002, categorised by activity.

Table 8.15. Drownings Years ending 31 December

Activity199111992119931199419951996P1997P1998P1999P2000P2001P2002P

1Figures for 1991-93 have been confirmed against coroners' reports.

Pprovisional - nil or zero

Source: Water Safety New Zealand

Recreational            
Boating152235142322181713242125
Surf sports1-111--43451
Whitewater sports14-521--2-3-
Recreational fishing118121181135961115
Underwater sports9771112710841148
Swimming1871217221918261911815
Other recreational244897644313
            Total recreational575271677757656454595367
Non-recreational            
Immersion accidents303025322335333932323037
Road vehicles221518162515121312111510
Other transport1-12---42---
Commercial fishing67101418-124431
Other commercial2-2-511214--
Rescuing others452-11232425
Suicides and homicides242024132013251418191714
Miscellaneous11114--1-2-1
            Total non-recreational907883658283738871766768
            Total drownings147130154132159140138152125135120135

General accident statistics. Accidents, poisoning and violence caused 5.6 percent of deaths from all causes in 1999 (the latest New Zealand Health Information Statistics available), compared with 6.3 percent in 1998. The largest single external cause of death was motor vehicle crashes (533 deaths compared with 529 in 1998), followed by suicide (516 deaths and 577 in 1998). Accidental falls accounted for 269 deaths, compared with 199 in 1998.

Table 8.16 shows the cause, number and rate per million population of deaths from external causes in New Zealand from 1997 to 1999. Table 8.17 classifies 1999 deaths from leading external causes by age and sex, while Table 8.18 lists the place of occurrence of fatal non-transport accidents from 1996 to 1999.

Table 8.16. Deaths from external causes Years ending 31 December

Cause199719981999
NumberCrude rate per million populationNumberCrude rate per million populationNumberCrude rate per million population

1Includes falls aboard ships and from horseback.

2Includes drowning from water transport.

- nil or zero

Source: New Zealand Health Information Service

Motor vehicle crashes550146.2529139.5533139.8
Other transport accidents16717.86015.86517.0
Suicide and self-inflicted injury561149.1577152.1516135.3
Accidental falls24264.319952.526970.6
Accidental drowning and suffocation211831.410226.910728.1
Homicide6918.357155113.4
Accidents caused by fire and flames338.8205.3225.8
Accidents caused by machinery174.5133.4123.1
Accidental poisoning277.2112.992.4
Accidents caused by firearms--61.610.3
All other external causes9926.39825.811028.9
            Total deaths from external causes1,783473.91,672440.81,695444.6

Table 8.17. Deaths from external causes By sex and age Year ending 31 December 1999

Age group (in years)Motor vehicle accidentsAccidental drowningAccidental poisoningAccidental fallsSuicide and self-inflected injuryHomocideAll other injury and poisoningTotal
MFMFMFMFMFMFMFMF

- nil or zero

Source: New Zealand Health Information Service

0-1417151251--2337424176446
15-249246103118-83374213721196
25-34821712-2-8-10620104191223953
35-44462491--6374359133417768
45-5438139-2-13151153-20813637
55-641917611-453264-1988537
65-742726211-16131892-13107959
75+28261---56134186-11919122186
            Total3491846111811111583851313912160851,113582
Totals in 199835817166883100994451323225172531,181491

Table 8.18. Fatal non-transport accidents1 Years ending 31 December 1996-99

Place of occurrenceNumber of accidentsCrude rate per million of population
19961997199819991996199719981999

1Excludes surgical and medical misadventure and later complications, and late effects of injuries.

- nil or zero

Source: New Zealand Health Information Service

Home598624623575165166164151
Farm231620146454
Mine and quarry21211-1-
Industrial premises162210164634
Recreation/sport182614195745
Street/highway4738444513101212
Public building253429277987
Residential institution1121208915431322440
Other specified place16518317516046494442
Place not specified10172429028191124
            Total1,1071,1361,0481101306302276289

Male deaths by external causes. Males accounted for 65.6 percent of deaths from external causes in 1999 (the latest New Zealand Health Information Service statistics available). Males aged 25-34, followed closely by those aged 15-24, had the highest number of deaths for any particular age group, with suicide being the most common cause of death, followed by motor vehicle accidents.

Accident and injury rates for preschool children. The mortality rate for children aged from 1 to 4 from accidents and injury in 2000 was 14.9 per 100,00 population. In 1999, it was 15.6 per 100,000 population, in 1998 14.2 per 100,000 and in 1997 22.1 per 100,000. In 2000, the system of coding deaths in New Zealand was changed, so comparison with earlier years should be treated with caution.

Injury prevention

The Ministry of Health and a number of other agencies fund injury prevention activities throughout the country.

A key activity undertaken in 2003 was completion of the New Zealand Injury Prevention Strategy and its first implementation plan. The strategy and action plans set out a number of priority action areas for the first five years. These are:

  • Motor vehicle crashes.

  • Suicide and deliberate self-harm.

  • Falls.

  • Workplace injuries.

  • Assault.

  • Drowning and near drowning.

The Ministry of Health and the Ministry of Youth Affairs are the lead agencies for suicide and deliberate self-harm.

Activities connected with the strategy involve national coordination contracts, resource development and information sharing through regional support networks, and working with local communities and local government agencies to ensure injury prevention issues achieve the right emphasis in public health promotion.

8.7 Accident insurance

New Zealand was the first country more than 30 years ago to introduce comprehensive 24-hour, no-fault personal accident insurance cover for people injured in accidents.

Legislation creating the accident compensation scheme took effect on 1 April 1974, replacing a statutory workers' compensation scheme, compulsory third-party motor vehicle accident insurance and a criminal injuries compensation scheme. The new scheme 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 covers all New Zealand residents, New Zealand residents temporarily overseas and overseas visitors in New Zealand.

The scheme is managed by a statutory corporation, the Accident Compensation Corporation (commonly known as ACC), formerly the Accident Compensation Commission.

The Accident Insurance Act 1998 dramatically altered the scheme's structure by introducing competition to the market for work-related accident insurance. However, the Accident Insurance Amendment Act 2000 and the Accident Insurance (Transitional Provisions) Act 2000 returned ACC as the compulsory state provider of workplace accident insurance.

From 1 July 2000, ACC was again able to provide accident insurance for all work and non-work injuries for all New Zealanders. Private insurers continue to manage any ongoing claims that occurred between 1 July 1999 and 30 June 2000.

The Injury Prevention, Rehabilitation and Compensation Act, passed in September 2001, came into effect from 1 April 2002. This act reintroduced lump sum payments for injuries resulting in permanent impairment, required ACC to develop a code of claimant rights, and made a number of changes to entitlements for injured people.

Accident Compensation Corporation

The Accident Compensation Corporation (ACC) is a Crown entity with a board of directors appointed by the Minister for the Accident Compensation Corporation. A service agreement between the board and the minister specifies ACC's desired outcomes and objectives, and acts as an accountability mechanism.

In the year ending 30 June 2003, ACC accepted 1.52 million claims, a 3.7 percent increase on those accepted in the previous year. About 15,000 of the 2003 claims involved moderate or serious injury, with the rest involving basic medical attention only. In addition to new claims, ACC continued to provide support to people for the ongoing effects of injuries received in previous years.

The Accident Compensation Corporation is a major funder of injury prevention programmes.

Services. The main services ACC provides to injured people are:

  • Cost of retrieval from accident scene, when ambulance or air transport is necessary.

  • Cost of physical rehabilitation, including cost of some public hospital and private hospital treatment; contribution to cost of ‘primary health care provider’, such as general practitioner, for consultation and treatment relating to minor injury; and some contribution to cost of travel for treatment.

  • Compensation for loss of earnings. Weekly payments of up to 80 percent of a claimant's pre-injury income for the period during which the claimant is unable to work as a result of the accident. Abated compensation is available if the claimant is able to resume work on reduced earnings.

  • Vocational support. Providing retraining to enable claimants to return to their previous employment, or to alternative employment.

  • Personal support designed to make living with the results of an accident more comfortable. This can include payment of an independence allowance, 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 daily life.

  • Lump sum compensation. A one-off payment to compensate for permanent impairment resulting from injury. The lump sum is paid in addition to any other entitlements or assistance a claimant may receive from ACC. The amount of the payment depends on the level of permanent impairment.

Funding. ACC is funded by all New Zealanders, with the funding reserves policy moving in 1998 from a ‘pay-as-you-go’ basis to a ‘fully funded’ basis. This change required ACC to set premiums today to cover the full future cost of each claim, and to establish reserves to meet the full future entitlement of people injured in the past. This brought ACC into line with usual insurance practice and means that each generation pays the cost of its own accidents, rather than passing the cost on to future generations.

ACC receives income from: Earners, who pay premiums based on their total earnings, collected with PAYE tax; motor vehicle owners, who pay part of their annual motor vehicle registration fee and a two-cents-a-litre petrol tax; the government, on behalf of non-income earners; all employers and self-employed people; investment of funds held to cover claims costs.

Costs. Injury costs are assigned to one of seven separate accounts:

  • The employers' account meets the cost of all work-related injuries. The account is funded from employer premiums based on injury risk.

  • The self-employed work account meets the cost of injuries to self-employed people.

  • The residual claims account meets the cost of work injuries occurring before July 1999 and non-work injuries to earners occurring before 1 July 1992. Work injuries occurring before 1 July 1999 and non-work injuries of workers sustained before 1 July 1992 are paid from this account. The account is funded by employers and self-employed people.

  • The earners' account meets the cost of injuries occurring to earners outside their workplace after 1 July 1992 (often injuries resulting from accidents in the home or in sport or recreation). Injuries involving motor vehicles on public roads are not included. The account is funded from earners' premiums paid through PAYE.

  • 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 personal injuries involving motor vehicles on public roads. It is funded from motor vehicle registration premiums and petrol tax.

  • 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. The account is funded from the earners' and non-earners' accounts.

In the year ending 30 June 2003, ACC's net levy income totalled $2,574.3 million and total expenditure was $1,978.4 million. Table 8.19 shows claims registered from 1997 to 2003.

Table 8.19. ACC claims registered By account Years ending 30 June

Account1997199819992000200120022003

... not applicable

Source: Accident Compensation Corporation

Non-earners728,799741,619799,183711,919732,946723,126725,494
Earners413,673417,014413,716400,971449,837458,832497,780
Employers.........323155,264198,811210,954
Self-employed work.........35,13150,67949,14148,302
Motor vehicle43,57146,01943,78733,76432,50034,90936,711
Medical misadventure757510513654432662672
Residual claims281,177258,923242,4719,0281,314856600
            Total1,467,9771,464,0851,499,6701,191,7901,422,9721,466,3371,520,513

8.8 Emergency management

Ministry of Civil Defence and Emergency Management Te Rākau Whakamarumaru. The Ministry of Civil Defence and Emergency Management leads the way in making New Zealand and its communities resilient to hazards and disasters.

The overarching strategy for achieving this is through a risk management approach to the four ‘Rs’-reduction, readiness, response and recovery. This approach starts with recognising hazards and the vulnerability of communities and infrastructure to those hazards. By addressing the possible effects of these hazards, the focus can move to measures for reducing risks and managing potential impacts.

The ministry aims to put the right tools, knowledge and skills in the hands of those responsible for designing and implementing solutions at the local level. It does this by working closely with local government, utilities and emergency services involved in civil defence emergency management.

The ministry's website is www.civildefence.govt.nz

Fire protection

Fire protection involves fire safety and operational firefighting. 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 New Zealand Fire Service Commission is responsible for ensuring statutory requirements set down in the Fire Service Act 1975 are met. The commission comprises five members appointed by the government and is the national purchasing and policy-setting agency. The commission, established under the Forest and Rural Fires Act 1977 as the National Rural Fire Authority, is responsible for coordinating 112 rural fire authorities operating in areas outside designated fire districts, where operational firefighting is provided by the New Zealand Fire Service. The net cost of funding the commission, after allowing for miscellaneous income, is met by a levy on insured property collected by the insurance industry. For the year ending 30 June 2003, the levy produced $215.89 million, compared with $204.43 million for the year ending 30 June 2002. Miscellaneous revenue amounted to $10.06 million, compared with $9.91 million for the 2002 year.

New Zealand Fire Service. Fire safety and fire prevention are the key aims of the New Zealand Fire Service. The service has an operating structure designed to deliver decision-making response and resources to frontline operations. Senior managers are specifically responsible for fire safety and enhancement of fire safety technology.

Eight fire regions are responsible for fire safety programmes, fire fighting resources and the training and operational efficiency of brigades within their fire districts. Thirty of 348 fire districts are served mainly by career firefighters, with some stations augmented by volunteers, while the remaining 318 districts are staffed by volunteers. Nationally in 2003, there were 1,569 career firefighters, compared with 1,580 in 2002 and 1,690 in 2001. There were more than 8,000 volunteers and 3,000 volunteer rural firefighters in 2003, numbers similar to the previous year. Support staff (including those at communications centres in Auckland, Wellington and Christchurch) totalled 478 in 2003, which was six more than in 2002.

The New Zealand Fire Service has the responsibility to fight fires in all urban fire districts and, to the extent that its ability to fight fires is not compromised, to respond to other emergencies at which its fire fighting resources can be utilised.

Table 8.20 shows the number and nature of incidents attended by fire brigades in recent years

Table 8.2. Incidents attended by fire brigades Years ending 30 June

 1998199920002/0120022003

1Relating to cars, trucks, vans, motorbikes and ships.

2Volunteer brigade attending an incident in another brigade's territory.

3Figures for 2002, 2003 not differentiated.

- nil or zero

Source: New Zealand Fire Service

Fires      
Fires relating to structures7,1126,5446,6775,4996,5466,839
Mobile property fires13,5403,5803,2962,6223,1983,206
Vegetation fires5,0914,2113,7314,3253,5724,728
Chemicals, flammable liquids and gases fires141120124797378
Miscellaneous fires8,4077,0826,1576,6987,0137,845
            Total24,29121,53719,98519,22320,40222,696
Fatalities (all fires)464130443734
Hazardous emergencies      
Flammable liquid, gas incidents609659642591820760
Chemical, biohazard, radioactive incidents15315412693185161
Mobile properties hazardous incidents14,5455,5565,8674,1954,4144,486
Other7947967999441,1441,171
            Total6,1017,1657,4345,8236,5636,578
Special service calls      
Animal rescue408416384329323348
Repair roof223326136224297274
Other, including assisting ambulance or police4,2244,5604,4345,1936,1745,918
            Total4,8555,3024,9545,7466,7946,540
Natural disasters      
Earthquakes-83-2-
Volcanic eruptions423225
Tsunami, tidal waves27-5--
Floods5511,3867016211,049519
Wind storms, tornadoes, cyclones etc3036571525029346
Natural disasters - not classified above31610621
            Total8632,0768691,1361,148571
False alarms      
Good intent6,5807,1316,5226,8746,6476,604
Malicious1,7571,9472,1261,7961,7201,761
Defective apparatus/installation6,9777,8957,5116,6797,0236,754
Accidental operation4,9364,9955,7485,9686,6276,170
Other2,2372,7032,5413,3913,9714,679
            Total22,48724,67124,44824,70825,98825,968
Other emergencies      
Over pressure, rupture, explosives, over heating437414432349375443
Rescue, emergency, medical call2,6502,8901,2531,4781,8491,882
Mutual aid, cover moves24666221--3
            Total3,1333,3701,6871,8482,2242,325
            All incident types61,73064,12159,37758,48463,11964,678

8.9 Occupational safety and health

Primary responsibility for the provision of occupational safety and health policy advice and services is held by the Department of Labour's Occupational Safety and Health Service (OSH). The Maritime Safety Authority and Civil Aviation Authority have responsibility for the administration and enforcement of legislation in their respective sectors. The Accident Compensation Corporation (ACC) also plays a major role in workplace injury prevention. The principal legislation is the Health and Safety in Employment Act 1992, the object of which is to promote the prevention of harm in the workplace. To achieve this, the legislation:

  • Defines hazards and places of work.

  • Promotes excellence in health and safety management.

  • Imposes enforceable duties on those who are responsible for work, and those who do the work.

  • Provides for the making of regulations and codes of practice dealing with particular hazards or types of work.

  • Encourages employee participation and a cooperative approach between employers and employees to workplace health and safety.

The act sets out the responsibilities of employers, employees, principals to contracts, and others who exercise control of places of work. It provides for detailed guidance material to be created by either mandatory regulations, or by codes of practice approved by the Minister of Labour, after consultation with industry. Approved codes are not mandatory, but are recognised statements of good practice. Other good practice guidelines are also developed by OSH, in conjunction with industry. Following a comprehensive review by the government, the Health and Safety in Employment Act was amended in 2002, with changes coming into force on 5 May 2003. The amending legislation made changes to the law in the following areas:

  • Extended coverage to include mobile workers, volunteers and trainees, as well as the maritime and aviation sectors.

  • Employee participation required in the improvement of workplace health and safety.

  • Compliance encouraged through increased fines and a new system of infringement notices.

  • Stress and fatigue among workers classified as types of harm and hazards covered by the act.

Health and safety in employment legislation provides for the compulsory wearing of safety helmets for all-terrain vehicle (ATV) users.

OSH focuses on supporting safe and healthy workplace practices and reducing work-related illness, injury and deaths through:

  • Working with other government agencies in promoting and supporting health and safety in the workplace.

  • Providing information and advice to help workplaces self-manage health and safety.

  • Identifying changes and risks in workplaces through environmental scoping.

  • Promoting research and influencing society's attitudes towards workplace health and safety.

  • Investigating workplace accidents and complaints and enforcing health and safety legislation.

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 hazardous substances affecting public safety. OSH also surveys agents certifying the safety of hazardous equipment, and audits workplaces for compliance with the law. OSH has 14 regional offices and a Wellington head office. Of 286 staff employed at October 2003, 178 were field staff, including health and safety inspectors or occupational medicine specialists. During 2002/03, OSH field staff carried out 20,617 proactive visits to workplaces, with 11,206 to provide information or advice, and 9,411 to assess compliance with the legislation. In addition, 10,599 investigations were carried out in response to notifications or complaints. In the 2002/03 financial year, OSH investigations led to the commencement of 136 prosecutions. During the year, of the 141 cases determined, 119 resulted in convictions. Funding is through a levy on employers, collected with ACC levies. At 1 January 2004, the levy was 5c per $100 of wages paid. OSH's budgeted Crown funding for the 2002/03 year was $29,005 million to provide policy advice ($1.603m), promote excellence in self-managing occupational safety and health hazards in the workplace ($25.682m) and for regulatory functions outside the Health and Safety in Employment Act 1992 ($1.720m). The OSH website is www.osh.dol.govt.nz

Table 8.21 lists the number of fatal accidents, by industry, investigated by OSH for the years 1995 to 2003.

Table 8.21. Fatal accidents investigated by the Occupational Safety and Health Service By industry Years ending 30 June

Industry19952000200112002120031

1Includes bystanders killed as a result of workplace accidents - none in 2001, five in 2002 and 16 in 2003.

2Includes fatalities in extractive industries, eg mining - two in 2001, five in 2002 and one in 2003.

Source: Department of Labour

Agriculture and hunting418172522
Forestry and logging114727
Construction161791214
Other141872342302
            Total4557407373

Occupational disease. 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. As Table 8.22 shows, this involved 1,088 cases in 2001/02 and 1,344 cases in 2002/03.

Table 8.22. Occupational disease notifications Years ending 30 June

Disease category19952000200120022003

1Notifiable Occupational Disease System classifications were reorganised for notifications received after 1 July 1998, meaning some categories of data are not directly comparable with others from this date.

2The significant increase in notifications of occupational cancers is due to the OSH-Massey University Cancer Research Project gaining ethical committee approval to contact New Zealand Cancer Registry registrants with bladder cancer, non-Hodgkin's lymphoma and leukaemia.

- nil or zero

Source: Occupational Safety and Health Service Department of Labour

Asbestos-related disease132    
Occupational asthma97108110511021961
Other occupational respiratory disease34    
Occupational disease due to chemical exposure11580785864
Chronic solvent-induced neurotoxicity63    
Occupational cancer313291992122
Occupational illness due to infection4956437367
Occupational noise-induced hearing loss575330459536891
Occupational overuse760135946168
Occupational skin disease9144282723
Other1-46153213
            Total1,9198128511,0881,344

Contributors

  • 8.1 Ministry of Health; Health Research Council of New Zealand; Malaghan Institute of Medical Research; Medical Council of New Zealand; Dental Council of New Zealand; Nursing Council of New Zealand; Registration Boards Secretariat Ltd; Physiotherapy Board; Pharmaceutical Society of New Zealand; Dental Technicians' Board.

  • 8.2 Ministry of Health; PHARMAC.

  • 8.3 Ministry of Health.

  • 8.4 Ministry of Health.

  • 8.5 Ministry of Health; OECD; Abortion Supervisory Committee.

  • 8.6 Land Transport Safety Authority; Water Safety New Zealand; Ministry of Health.

  • 8.7 Accident Compensation Corporation.

  • 8.8 Ministry of Civil Defence and Emergency Management; Statistics New Zealand; New Zealand Fire Service Commission.

  • 8.9 Occupational Safety and Health Service.

Websites

www.acc.co.nz - Accident Compensation Corporation

www.alcohol.org.nz - Alcohol Advisory Council of New Zealand

www.healthcamps.org.nz - Children's Health Camps

www.dentalcouncil.org.nz - Dental Council of New Zealand

www.dentaltec.org.nz - Dental Technicians' Board

www.dol.govt.nz - Department of Labour

www.fpanz.org.nz - Family Planning Association

www.hdc.org.nz - Health and Disability Commissioner

www.hrc.govt.nz - Health Research Council

www.healthsponsorship.co.nz - Health Sponsorship Council

www.Itsa.govt.nz - Land Transport Safety Authority

www.malaghan.org.nz - Malaghan Institute of Medical Research

www.mcnz.org.nz - Medical Council of New Zealand

www.mentalhealth.org.nz - Mental Health Foundation

www.civildefence.govt.nz - Ministry of Civil Defence and Emergency

www.moh.govt.nz - Ministry of Health

www.transport.govt.nz - Ministry of Transport

www.ndp.govt.nz - National Drug Policy

www.otago.ac.nz/prevmed/npc.html - National Poisons and Hazardous Chemicals Information Centre

www.nrl.moh.govt.nz - National Radiation Laboratory

www.nzaf.org.nz - New Zealand Aids Foundation

www.fire.org.nz - New Zealand Fire Service Commission

www.healthcamps.org.nz - New Zealand Foundation for Child and Family Health

www.nzhis.govt.nz - New Zealand Health Information Service

www.nursingcouncil.org.nz - Nursing Council of New Zealand

www.osh.dol.govt.nz - Occupational Safety and Health

www.pharmac.govt.nz - Pharmaceutical Management Agency Ltd (PHARMAC)

www.psnz.org.nz - Pharmaceutical Society of New Zealand

www.huttvalleydhb.org.nz - Public Health Service

www.regboards.co.nz - Registration Boards Secretariat Ltd

www.stats.govt.nz - Statistics New Zealand

www.spinz.org.nz - Suicide Prevention

www.watersafety.org.nz - Water Safety New Zealand Inc

www.wnmeds.ac.nz - Wellington School of Medicine

Chapter 9. Education

Kindergartens are the predominant provider of early childhood education in New Zealand.

9.1 Curriculum

The New Zealand Curriculum Framework sets out the policy direction for learning and teaching in New Zealand state and state-integrated schools. It describes a range of principles which underpin and give direction to the curriculum.

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 life-long 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; and 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.

  • Mathematics.

  • Science.

  • Technology.

  • Social sciences.

  • The arts.

  • Health and physical well-being.

The framework also sets out essential skills to be developed by all students through a range of learning experiences across the whole curriculum. These skills are communication; numeracy; information; problem solving; self management and competitive; social and cooperative; physical; and work and study. The framework also outlines the commonly-held attitudes and values which should be developed and reinforced in the curriculum.

The framework is supported by more detailed national curriculum statements. Teaching and learning programmes based on these statements for each of the seven essential learning areas are mandatory for state and state-integrated schools to the end of Year 10.

A stock take of the national curriculum completed in 2003 found the structure to be sound, but recommended changes so that the curriculum better articulated expectations of teaching and learning.

A major recommendation of the stock take was that all Year 7 to 10 students have the opportunity of learning a second language. The recommendations of the stock take are being implemented through the New Zealand Curriculum Project.

The curriculum provides flexibility to enable teachers to develop classroom programmes to meet diverse needs. Classroom planning is supported through assessment tools, which provide information on the achievement and progress of students.

While literacy and numeracy continue to be priorities, the curriculum supports learning that encourages creative thinking, problem solving, a love of learning and healthy attitudes to oneself and others.

9.2 National Qualifications Framework

The National Qualifications Framework (NQF) brings together senior secondary education, industry training and tertiary education under one system.

Coordinated and administered by the New Zealand Qualifications Authority (NZQA), the framework is based on nationally agreed ‘unit standards’ and ‘achievement standards’. Each standard belongs to one of 10 framework levels.

Certificates awarded at Levels 1-3 include the senior secondary education qualification the National Certificate of Educational Achievement (NCEA). New Zealand Scholarship is at Level 4 and diplomas are awarded at Levels 5 and 6; bachelor degrees, graduate diplomas and certificates at Level 7; postgraduate diplomas and certificates, and bachelor degrees with honours, at Level 8; masters degrees at Level 9; and doctorates at Level 10.

Each student receives a Record of Learning - a personalised list of credits the student has achieved.

The framework means students can continue their studies wherever they wish - at school, university, polytechnic, a private or government training establishment, wananga, or even in the workplace. NZQA updates the student's Record of Learning when it receives results from the training organisations.

In the year ending 30 June 2002, 87,016 NQF qualifications were awarded, a 15 percent increase on the previous year.

National Certificate of Educational Achievement

NCEA qualifications are designed to:

  • Acknowledge achievement across a range of learning fields, particularly those identified in the New Zealand Curriculum Framework.

  • Act as learning goals.

  • Attest to the ability to participate in, and benefit from, further study, thereby promoting lifelong learning.

The NCEA includes a range of subjects and skills not previously examinable under the School Certificate, University Entrance, Bursary and Scholarship examinations it replaced. It allows for recognition of a broader range of student achievements, such as performance ability, research measurement and laboratory skills.

Success in NCEA external examinations is measured against nationally-agreed standards of achievement. These standards have been developed in line with both English and Maori language curriculums to ensure equity of access to the new qualification.

The NCEA shows differences between ‘achieving the standard’, ‘achieving the standard with merit’ and ‘achieving the standard with excellence’.

The NCEA is similar to a university degree. Students gain performance grades in each part of each subject and are able to cross-credit between qualifications. Candidates, while working towards the NCEA, are also able to work towards other national certificates and qualifications.

NCEA Level 1. Holders of an NCEA Level 1 have typically shown themselves able to work at directed activities, with limited responsibility for decisions about the organisation of their work. The qualification is available mainly to Year 11 school students and is awarded to those credited with a minimum of 80 credits at Level 1 or above who have met literacy and numeracy requirements. A minimum of eight credits is required from specified literacy subfields and/or listed standards, and a minimum of eight credits from specified numeracy subfields and/or domains.

NCEA Level 2. NCEA Level 2 is designed to enable access to the foundation skills required for employment. People certificated at Level 2 have typically shown themselves able to integrate knowledge and skills to solve familiar problems; access and use available sources of information; and work in directed activity. The qualification also provides a foundation for further study and knowledge. This qualification is mainly available to Year 12 school students and is awarded to those credited with a minimum of 80 credits, of which a minimum of 60 credits is at Level 2 or above, from achievement standards and/or unit standards anywhere on the National Qualifications Framework.

The new National Certificate of Educational Achievement includes a range of subjects and skills not previously examinable.

NCEA Level 3. NCEA Level 3 is designed to enable access to the skills required for employment. People certificated at Level 3 have typically shown themselves able to integrate knowledge and skills to solve unfamiliar problems; access, analyse and use available sources of information; and work independently in undirected activity. The qualification also provides a more advanced foundation for further study and knowledge. NCEA Level 3 is available mainly to Year 13 school students and is awarded to those credited with a minimum of 80 credits at Level 2 or above, of which a minimum of 60 credits is at Level 3 or above, from achievement standards and/or unit standards anywhere on the National Qualifications Framework.

NCEA Level 4 (New Zealand Scholarship). New Zealand Scholarship extends the best secondary school students and enables top scholars to be identified and acknowledged. New Zealand Scholarship candidates are expected to have completed a full year of study of courses assessed by NCEA Level 3 achievement standards. New Zealand Scholarship holders will have demonstrated outstanding achievement across at least three scholarship subjects; high-level critical thinking, abstraction and generalisation; and the ability to integrate, synthesise and apply knowledge, skills, understanding and ideas to complex situations. Depending on the learning area, effective communication; original or sophisticated solutions, performances or approaches; critical evaluation; and flexible thinking in unfamiliar/unexpected contexts; will also have been displayed.

Sixth Form Certificate (transitional). When NCEA Level 2 was introduced in 2003, secondary schools could opt to enter students for the new qualification or for Sixth Form Certificate (transitional). Grades from the transitional award generate NCEA Level 2 credits. The certificate is awarded on a single subject basis to 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 they do not have to sit it as a Sixth Form Certificate (transitional) 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.

9.3 Administration of education

Ministry of Education Te Tahuhu o te Matauranga

The mission of the Ministry of Education is to raise achievement and reduce disparity in learning outcomes for all New Zealanders by working closely with the education sector and the community.

The ministry provides policy advice to the Minister of Education on all aspects of education, from early childhood to post-compulsory, including employment-related education and training; oversees the implementation of approved policies; and ensures the optimum use of education resources. Through implementation of the New Zealand Disability Strategy, the ministry aims to involve disabled people increasingly in its policy and practice.

The ministry provides funding to early childhood centres, schools, universities, polytechnics, colleges of education and wananga, ensuring distribution matches government policy. It approves charters in all of these institutions and also negotiates funding bids by tertiary institutions.

Since February 2002, the ministry has provided special education services previously provided by Specialist Education Services.

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, curriculum and early childhood development through contractual arrangements with other agencies.

The ministry's website is www.minedu.govt.nz

Special education. The aim of the government's special education policy is to improve learning opportunities for all children and young people with special education needs at their place of learning. Children and young people with special education needs include students with disabilities, learning difficulties, communication or behaviour difficulties, and sensory or physical impairments. Resources provided include funding, therapy, staffing, specialised programmes, equipment and other materials, transport, advice and support. The policy encourages schools and early childhood centres to work closely with students, their families, whanau, communities and specialists to identify needs and together make the best decisions to meet these needs. The Ministry of Education provides specialist advice and support directly to children and young people and their teachers, schools and families. This is likely to involve a combination of specialised services, tailored educational programmes, in-classroom teacher support and equipment.

Future needs. A key planning role for the Ministry of Education is assessing the need for new schools and classrooms. The primary school age population (5-12 year olds) peaked at 480,000 in 2003 and is now in decline. The secondary school age population (13-18 year olds) is experiencing significant growth, which is expected to continue to 2006 or 2007, after which it will also decline. While these are national projections, there are significant local variations, with some areas already in heavy decline and others sustaining long-term growth. Based on the current profile, more than 170 new classrooms were planned in the 2003/04 financial year, as well as the purchase of six new school sites, plus the building of nine new schools and several kura kaupapa Maori.

Early Childhood Development

Early Childhood Development (ECD) Nga Kaitaunaki Kωhungahunga was established as a Crown entity in 1989. Its role was to promote and encourage the development and provision of quality, accessible and appropriate early childhood education services. Most functions of ECD were integrated into the Ministry of Education on 1 October 2003 and the entity was expected to be disestablished during 2004 by passage of the Education (Disestablishment of Early Childhood Development Board) Amendment Act. The ECD function of assessing and disbursing grants to new and existing licence-exempt groups is now carried out by the ministry.

New Zealand Qualifications Authority

The New Zealand Qualifications Authority (NZQA) Mana Tohu Matauranga o Aotearoa is a Crown agency reporting directly to the Minister of Education. Its aim is to promote improvement in the quality of education and training in New Zealand.

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; and administer national examinations, both secondary and tertiary.

The authority's website is www.nzqa.govt.nz

The Education Review Office

The Education Review Office (ERO) Te Tari Arotake Matauranga is a government department which reports publicly on the quality of education and the care of students in schools and early childhood services. ERO's findings help decisions and choices made by parents, educators, managers and others.

The chief executive of ERO is the Chief Review Officer, who formally accredits review officers to carry out reviews in schools and early childhood services. There are approximately 120 designated review officers in nine local offices, a national Maori evaluation unit, and a Pacific evaluation unit. ERO carries out education reviews, cluster reviews of educational institutions and services, and national evaluations of education issues. It also provides contract evaluation services.

In an education review, ERO investigates and reports to boards of trustees, early childhood service managers and the government on the quality of education provided for students in individual services and schools. Reviews of individual schools and early childhood services are scheduled, on average, once every three years. The review schedule is based on prior performance and current risk analysis.

Reviews are more frequent in particular cases, such as low quality performance or where there are major risks to students and their safety. ERO reports on individual schools and services are available to the public. They can be obtained from the individual school or service, from any ERO office or from the ERO website, www.ero.govt.nz

ERO also publishes national reports which evaluate specific educational issues, using information from its reviews. National reports cover areas such as curriculum, assessment, barriers to learning, principals and teachers, early childhood education, management, school types, cluster reports, senior school students and advice to parents.

New Zealand Teachers' Council

The New Zealand Teachers' Council Te Pouherenga Kaiako o Aotearoa is a Crown entity established under the Education Standards Act 2001. It maintains an on-line register of teachers who fit the requirements of the act, are of good character, are fit to be teachers, are satisfactorily trained to teach, are satisfactory teachers in practice and who hold a current practising certificate.

Teacher registration is compulsory for teachers employed in kindergartens and in private and state schools.

Teachers are issued with a practising certificate valid for three years. There were 67,000 teachers with current practising certificates at 30 June 2003. Renewal of the practising certificate is dependent on teachers demonstrating they are still satisfactory teachers.

Teachers who do not meet registration requirements can be temporarily employed with a limited authority to teach. Such employment must be renewed annually. Names of teachers who have their registration cancelled are placed on the council's publicly-accessible web register.

The council operates reciprocal registration with Australia under the Trans Tasman Recognition Agreement.

The council is a member of the National Association of State Directors of Teacher Education and Certification (NASDTEC) in North America, the world's largest teacher licensing authority.

This gives New Zealand access to NASDTEC's 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.

The council is funded from practising certificate fees paid by teachers. Its website is www.teacherscouncil.govt.nz

Learning Media

Learning Media Te Pou Taki Korero is a commercial Crown-owned company whose services and products contribute significantly to education in New Zealand and overseas.

Export sales of educational resources and professional development services make up about 30 percent of Learning Media's annual revenue of more than $28 million.

Learning Media exports to the United States, the United Kingdom, Canada, Australia and parts of Asia, Africa, Scandinavia and the Pacific.

In New Zealand, Learning Media produces many of the educational resources the Ministry of Education provides to teachers and students, as well as running key professional-development programmes. It is the world's largest publisher of te reo Maori resources and publishes in six Pasifika languages. Learning Media produces educational resources in a variety of media for other New Zealand government, local government, commercial, and not-for-profit organisations.

Learning Media's website is www.learningmedia.co.nz

Other administrative bodies

Boards of trustees. All state and state-integrated primary, intermediate and secondary schools are governed by boards of trustees. Boards include three to seven parent representatives, the principal of the school and a staff representative. Parent representatives are elected by parents of students enrolled at the school. Where there are students enrolled full time in Year 9 or above, a student representative must be elected to the board. 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. The proprietors of integrated state schools have the right to appoint up to four representatives to boards of trustees.

A board of trustees works in partnership with its community, principal, teachers and the government to ensure the best possible educational outcomes for its students. In consultation, each board develops a school charter, which communicates the vision and direction for the school, its goals for the long and short term and its approach to meeting its legal responsibilities. 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 to their community and the Ministry of Education in April/May of each year.

Tertiary councils. Under the Education Act 1989, polytechnics are controlled by councils, members of which represent business, industry, local authorities, universities, women's and ethnic groups, as well as other educational and community interests. Colleges of education councils include representatives from universities and teacher organisations, while wananga have their own councils, made up of representatives from their communities. All universities are established under their own acts of parliament and the council of each university is the governing body.

9.4 Government funding

Table 9.01 shows that government expenditure on education from 1992/93 to 2002/03 increased steadily, both in dollar terms and as a proportion of government expenses.

Table 9.01. Government expenditure on education

YearEducation expensesGross domestic product1Education expenses as a percentage of GDPTotal government expensesEducation expenses as a percentage of government expenses

1This is the expenditure measure of GDP and may differ slightly from figures published previously which were based on the production measure of GDP.

2Education and total government expenses from 1997/98 exclude GST on Crown spending.

Eestimate .. not available

Source: Ministry of Education Statistics New Zealand The Treasury

 $(million)Percent$(million)Percent
1992/934,53975,2466.031,42914.4
1993/944,62781,3875.729,63915.6
1994/954,80387,0525.530,40015.8
1995/964,94992,6795.331,74315.6
1996/975,33596,9115.532,95316.2
1997/9825,16297,1075.332,85215.7
1998/995,33798,2775.434,36715.5
1999/20005,712103,7985.534,53616.5
2000/016,136106,1835.836,69916.7
2001/026,473110,0975.937,97017.0
2002/03E7,152....41,23417.3

Early childhood education

Early childhood education funding is payable to licensed and chartered early childhood service providers.

Funding provided by the government is not intended to cover the full cost of providing early childhood services. Rather, it is intended to subsidise the cost of these services, with the expectation that parents will also contribute funding, usually by way of fees.

In addition to funding from the government and parents, some services also have other sources of revenue, such as donations and fund-raising activities.

To receive government funding, a service must be open continuously for at least two and-a-half hours. Each service can claim funding for a maximum of six hours a child place a day, up to 30 hours a child place a week.

The funding formula varies according to the type of service, the quality standard met and the ages of children enrolled. The base rate of funding (Rate 1) is higher for children under two years of age ($5.57) than that payable for children over two years of age ($2.79) in recognition of the higher staff:child ratios required for children under two. A higher rate of funding (Rate 2) is paid to services that maintain levels of qualified staff or staff:child ratios above the minimum licensing requirements. Again, a higher rate is paid for children under two ($6.36) than for those over two ($3.18). Kindergartens are funded at a higher rate than other services (Rate 3, $3.97).

A new system of early childhood funding is proposed for implementation by 2005.

Compulsory schooling

Compulsory schooling in New Zealand is funded for state and state-integrated schools at levels adequate to ensure delivery of the curriculum to all students entitled to attend school.

State and state-integrated schools receive funding from the Ministry of Education for operational funding, staffing entitlement, school property and school transport assistance.

Expenditure is controlled by each school's board of trustees, with the board's financial management audited by the Audit Office.

Private schools receive a government subsidy and charge student fees.

For all schools, education provision and school management and governance are reviewed by the Education Review Office.

Operational funding. Levels vary according to school type, student numbers and year levels, and the school's property profile. State and state-integrated schools receive operational funding delivered on an entitlement and a targeted basis. Many boards of trustees choose to supplement this resourcing with funds raised by the local community to provide for extra activities and staffing. Schools may also receive the following targeted funding entitlements:

  • Maori language resourcing - the level of funding depends on the level of Maori immersion contained in the programme.

  • Targeted funding for educational achievement - funds to address barriers to learning associated with socio-economic factors, based on the school's roll and the location of students' homes.

  • Targeted funding for isolation - to recognise the additional costs of accessing the goods and services needed to operate an isolated school and to deliver the curriculum.

  • Careers information grant - to provide school-based careers information for secondary students.

  • Secondary Tertiary Alignment Resource (STAR) - for senior programmes in area and secondary schools.

  • Special education grant and learning support funding - to assist with support for students with moderate special education needs.

Supplementary funding is also available on application to support students with verified high and very high special education needs and for students needing programmes of English for speakers of other languages.

Staffing entitlement. Schools receive a formula-driven entitlement to employ teachers. This provides schools with a measure of security and stability, enabling them to make long-term decisions about students' curriculum and pastoral care needs. Above entitlement, additional staffing is provided in response to specific identified needs. Teachers' salary funding is managed centrally and accessed through the Ministry of Education's education service payroll.

School property. New Zealand's state school property portfolio consists of about 2,300 schools and 2,500 houses. There are also more than 300 state-integrated schools which, although part of the state network, are not owned by the Ministry of Education, but by individual proprietors, mainly representing the Catholic church. These proprietors may charge attendance dues to finance capital work, whereas this is the responsibility of the Ministry of Education for full state schools. Of the full state school portfolio, 65 percent are located in urban areas, while 35 percent are in rural areas. There are more than 21,000 individual buildings, of which nearly 90 percent were constructed after 1950. Replacement value of the portfolio is $10 billion, excluding state-integrated schools. Managing state school property is a shared responsibility between the ministry and each school's board of trustees. The ministry represents the owner, provides advice to both schools and the government on property management policies, and allocates capital funding to schools for property-related works. The ministry also maintains a database of all land and buildings, arranges insurance, town-planning designations, building warrants of fitness, the sale of surplus property, and administers housing for some teachers and caretakers. Boards of trustees for both state and integrated schools manage schools on a daily basis, ensuring all building, health and safety laws are met, as well as planning and implementing property-related works to maintain and improve the teaching and learning environment of schools.

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 government-subsidised 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. 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 long distances to do so. Approximately 2,300 school bus services carry students to and from school each day.

School boarding bursaries. Boarding assistance is available to school pupils who need to live away from home in order to receive their education. The annual value of a school boarding bursary is $2,340, paid to the school in equal amounts at the end of each term.

Tertiary education

Demand-driven rather than capped funding was introduced for the tertiary sector in 1999. In 2002, 220,340 equivalent full-time students (EFTS) were funded with $1,617 billion. Two years earlier, in 2000, 177,847 EFTS were funded with $1,274 billion.

The EFTS system funds tertiary institutions in bulk according to the number of equivalent full-time students and the courses those students are taking. These funded places are provided by the government in advance of the funding year. The system has abolished central government decision making about tertiary institutions' levels of staffing, operating grants and capital works projects. These responsibilities now lie with the management of each institution.

A new tertiary funding framework was planned to be in place from 2004. Built from a mix of funding modes, it has three broad elements - funding for teaching and learning, funding for research, and targeted funding. Funding will continue to be delivered to tertiary providers and industry training organisations as bulk grants.

Private training establishments (PTEs). In 2002, the government provided $164 million to 234 private providers to subsidise tertiary tuition costs for more than 26,500 equivalent full-time students (EFTS). The government reduced the tuition subsidy by 9.5 percent in 2003 and also capped EFTS-based funding for PTEs at $146 million.

StudyLink. A service of the Ministry of Social Development, StudyLink provides the following financial support for students aged 18 and over attending a secondary school or tertiary institution, (students aged 16 and 17 may also be eligible in some circumstances):

  • Student allowance is a weekly payment to help students with living costs while they are in full-time study. For single students, the level of payment depends on the student's age, parental income if the student is under 25 and whether or not the student lives at home. There are also separate rates for students with a dependent spouse and/or dependent children, for those with an earning spouse, and for those married to another student. Single students living away from the parental home, some married students and those receiving a ‘with dependent’ rate of student allowance may also qualify for an accommodation benefit. Rates of allowances are reviewed annually. Table 9.02 shows student numbers and amounts paid in student allowances, accommodation benefits and bursary payments in recent years.

    Table 9.02. Student allowance, accommodation benefit, bursary By student numbers and amounts paid Years ending 31 December

     2000200120022003

    1A student is a person who received at least one payment in the calendar year specified.

    Source: Ministry of Social Development

    Number of students1    
        Student allowance68,08470,23168,86964,036
        Accommodation benefit53,25554,36653,50850,429
        Bursary14,77314,60314,19914,060
    Amounts paid$
        Student allowance397,235,377367,453,027366,745,446350,563,532
        Accommodation benefit41,723,97242,655,28442,378,86842,035,984
        Bursary2,338,2002,310,8002,245,2002,210,900
    Average$
        Student allowance5,8345,2325,3255,474
        Accommodation783785792834
        Bursary158158158157

    The Kelburn campus of Victoria University of Wellington, one of New Zealand's eight universities.

  • The student loan scheme was established in 1992 to assist students participate in tertiary education. The Ministry of Education is responsible for managing strategic policy of the scheme. StudyLink is responsible for delivery and administration of payment. This includes assessment of loan applications, administration of the payment of compulsory fees to providers and payment of living costs and course-related costs to students. Students can get a loan to cover compulsory fees payable at enrolment (private training establishment students can borrow only up to $6,500 for fees per loan account); a maximum of $1,000 a year to assist with course-related costs such as equipment, textbooks and field trips; and living costs for full-time students of $150 a week for the length of the course (less any entitlement to a student allowance). Each time a new loan is taken out, an administration fee of $50 is charged. Full-time students can access fees, course-related costs and living costs; part-time (32 weeks or more) students can access fees and course-related costs, while part-time (less than 32 weeks and studying at least 0.3 equivalent full-time study values) students can access fees only. Loans incur interest and are repayable through the Inland Revenue Department. The level of repayment is based on taxable income.

  • The unemployment benefit student hardship is paid to students unable to obtain employment and in hardship during the break between periods of study. Eligibility is dependent on age, residency status, income, study status, job search status and hardship.

  • Supplementary assistance. StudyLink also administers a range of supplementary assistance for students, such as help with childcare or disability costs. Eligibility is dependent on individual circumstances.

  • Step up scholarships. StudyLink now administers step up scholarships for students studying certain human and animal health science degree courses. These were introduced in September 2003 for study in 2004.

Table 9.03 shows loan money drawn by students, repayments or refunds, and administration fees for recent years.

Table 9.03. Student loans, repayments, administration fees Years ending 31 December

 2000200120022003

1A student is a person who received a least one payment in the calendar year specified.

2Standard administration fee is $50. Averages are higher because of a small number of students who have more than one loan in a year.

Source: Ministry of Social Development

Number of students1    
    Fees122,833138,334139.323144.678
    Course-related costs72.59194.31996.563101.664
    Living costs70.98277.40577.69979.373
    Repayments or refunds41.08735.58637.47438.278
    Administration charges128.104143.703144.952150.754
Amount paid$
    Fees468.864.957551.265.300560.550.975593.922.339
    Course-related costs65.008.00088.177.89690.810.50895.143.228
    Living costs241.736.567268.628.200281.638.016297.737.889
    Repayments or refunds-35.943.724-39.310.502-43.808.978-51.210.852
    Administration charges6.498.4507.334.3507.418.1507.717.100
Average$
    Fees3.8173.9854.0234.105
    Course-related costs896935940936
    Living costs3.4063.4703.6253.751
    Repayments or refunds-875-1.105-1.169-1.338
    Administration charges251515151

Rural Education Activities Programme

The Rural Education Activities Programme is a community-managed package of educational resources operating in rural communities in the Far North, Eastern Bay of Plenty, Tairawhiti (East Coast), Central Plateau, Central King Country, Ruapehu, Tararua (Southern Hawke's Bay), Wairarapa, Marlborough, Buller, Westland, Central Otago and Southland.

Each programme provides educational support and assistance across all education sectors.

The adult and community sector has a range of activities and programmes including access to information about adult learning opportunities and assistance with meeting adult education needs identified by the community, along with information and advice on community development, piloting new learning methods, and managing projects and programmes.

The programmes were funded by the Ministry of Education till 1 July 2004, when the Tertiary Education Commission took over funding the adult and community education sector.

The ministry continues to fund the early childhood, primary and secondary education sectors.

9.5 Maori education

Ensuring Maori participate and achieve in the education system involves:

  • Building strong early learning foundations for Maori through participation in quality early childhood education services.

  • Supporting the provision of strong Maori language education options such as kωhanga reo, kura kaupapa Maori and bilingual education.

  • Raising the success of Maori in mainstream education.

  • Building Maori involvement and authority in education through partnerships with Maori organisations and iwi.

  • Recognising the important role that parents and whanau play in supporting their children's education.

The majority of Maori students are in mainstream education, although there has been a steady increase in the number of Maori participating in kaupapa Maori education. Kωhanga reo, kura kaupapa Maori, wharekura and wananga have all grown from Maori initiatives and their success and growth is in part due to the fact that they are designed and delivered to meet Maori needs.

The number of Maori enrolled in kura kaupapa Maori increased steadily between 1999 and 2002, as did the number of kura.

Maori participation in tertiary education has also increased significantly in recent years, the greatest growth being at Te Wananga o Aotearoa.

Maori achievement has also increased across the New Zealand education system in recent years. There remain concerns, however, that there is a widening gap between low and high achievers.

Working with teachers, whanau, education providers and Maori/iwi communities to support the educational achievement of Maori is a priority, to ensure that many more Maori succeed in education and enjoy long-term independence and well-being.

Maori Education Trust

The purpose of the Maori Education Trust Te Tari O Te Kaitiaki Mo Nga Take Matauranga Maori is to promote and encourage the better education of Maori and to provide financial assistance for that purpose.

These aims were reconfirmed in October 1993 when the Maori Education Foundation formally became the Maori Education Trust. The trust was set up to assist all Maori, regardless of age, gender, tribal affiliations or geographic location and this is still its kaupapa.

Trust income comes from two dairy farms, from investment interest and from contracts for services (scholarship administration) through the Tertiary Education Commission and the Ministry of Education. The trust administers and co-sponsors 30 scholarships, bursaries and grants for Maori attending secondary, tertiary and postgraduate courses, both in New Zealand and overseas.

The trust is the major sponsor of the Nga Manu Korero national Maori speech competitions held annually for secondary school students. These competitions allow Maori students to participate in either te reo Maori or English. Taonga awarded give both successful students and their schools considerable mana.

The trust distributes approximately $6.3 million for Maori education annually and had assets of $13 million at 31 December 2002.

The Maori Education Trust website is www.maorieducation.org.nz

9.6 Early childhood education

Early childhood education refers to the non-compulsory provision of education and care for infants, toddlers and young children before they begin school.

Early childhood education is available in New Zealand to children under six years through a wide range of services, many of which are administered by voluntary agencies with government assistance.

Many early childhood services have evolved from individual and community initiatives, resulting in a diverse system of education, with a high degree of autonomy. Early childhood education programmes are based on a wide range of philosophies framed by the early childhood education curriculum document Te Whariki.

All early childhood services wishing to receive government funding must be licensed and chartered. Licensing ensures that minimum standards of quality are maintained. A charter contains both mandatory and optional objectives and practices related to the provision of learning opportunities. Chartered groups receive funding direct from the government in the form of a bulk grant.

The main licensed providers of early childhood education are education and care services, kindergartens, te kωhanga reo and playcentres. Licensed centres and home-based care networks (excluding kωhanga reo and playcentres) are required to have a coordinator or a person responsible with a Diploma of Teaching (ECE).

Figure 9.01. Early childhood education
Children attending 1 July 2002

Early childhood educationChildren attending 1 July 2002

The main licence-exempt, Early Childhood Development-funded providers are playgroups and Pacific peoples early childhood groups.

Figure 9.01 shows the percentage of children enrolled in each early childhood education provider.

Kindergartens. Kindergartens are the predominant provider of early childhood education for children between the ages of three and five. At 1 July 2002, 45,169 children were enrolled in kindergartens, 61 percent of them aged four. In general, younger children at kindergarten attend afternoon sessions for three afternoons a week, while the older group attends five mornings a week. Mobile kindergarten services are available in some rural areas. All teachers in kindergartens are trained to diploma level and parent participation is encouraged. Each kindergarten has its own parent committee, but management responsibility lies with regional kindergarten associations. These may be linked to one of two national bodies, 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. At 1 July 2002, 14,879 children were enrolled in licensed playcentres, with more two-year-olds enrolled than any other age group. A trained supervisor, or a group of parent supervisors, takes overall responsibility for the playcentre programme. Playcentres are administered through parent management committees at local and regional levels and these are linked to the New Zealand Playcentre Federation at a national level. Training and parent education programmes are developed by the national playcentre body and implemented through centre-based programmes.

Kωhanga reo. Kωhanga reo (language nests) are sessional or all-day Maori language immersion early childhood institutions. Their prime aim is the maintenance of the Maori language. The wider focus of kωhanga reo is whanau development. Kωhanga reo are community based and are administered by local management groups affiliated to Te Kωhanga Reo National Trust. The trust receives government funding and allocates it to individual kωhanga reo. The trust has delegated responsibility for developing and approving charters for kωhanga reo, based on government guidelines. All kωhanga reo use the early childhood Maori language immersion curriculum document Te Korowai in their planning and delivery of programmes. At 1 July 2002, there were 10,389 children enrolled in licensed kωhanga reo, with three-year-olds the biggest age group.

Parents as First Teachers (PAFT). Based on programmes developed in the United States by the Missouri State Department of Education, PAFT programmes provide a series of regular home visits by early childhood educators to parents with children from birth to three years. The programmes were developed in the belief that parents are their children's first and most important teachers, and that by empowering them in their parenting role, parents will become more confident, and participate more effectively, in the development and education of their children. Core elements of the programme provide individualised support through a structured learning series on child development and the fostering of early learning. Programmes are funded directly by the government and cover most regions of the country, involving around 8,000 families. Maori and Pacific peoples organisations are included in those contracted to provide PAFT programmes.

Pacific Early Childhood Education Services. Pacific Early Childhood Education Services offer programmes based on the values and languages of Pacific cultures. The services cover Samoan, Cook Islands Maori, Niuean, Tongan, Tokelauan, Tuvaluan and Fijian nationalities. Services range from licence-exempt groups, meeting once or twice a week, to licensed and chartered centres. Programmes have high parental involvement and emphasise language development, both in Pacific languages and English, and increased parental knowledge in early childhood care and education. At 1 July 2002, there were 2,914 children enrolled in Pacific peoples early childhood groups.

All teachers in kindergartens have to be trained to diploma level.

Anau Ako Pasifika. The ministry 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 communities 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. 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 have a mixture of trained and untrained personnel. A number of education and care centres are community based, with a high degree of parent involvement, or are based on a parent cooperative model. At 1 July 2002, 76,246 children were enrolled at licensed education and care services, with three-year-olds the largest group (22,705) represented.

Home-based services. Home-based care (family day care) 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 provision of early childhood education and care, and provide regular playgroups or workshop meetings for parents and caregivers. Enrolments with licensed home-based services at 1 July 2002 totalled 8,591, with half of the children aged one and two.

Playgroups. Playgroups are licence-exempt, community-based, non-profit 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. Active participation of parents is required at all sessions. Many licence-exempt groups work with Early Childhood Development in the Ministry of Education. There were 15,002 children enrolled in playgroups at 1 July 2002.

9.7 Compulsory education

Compulsory education in New Zealand is divided into primary, intermediate and secondary schooling.

Primary schools are the first level. They cater for children from the age of five (Year 0) to the end of Year 6.

Children in Years 7 and 8 may either go to a separate intermediate school, or to part of a primary, secondary or composite/area school.

Secondary schools usually provide for students from Year 9 until the end of Year 13. Adult students who return to school enter in the year of the majority of their subjects. Table 9.04 shows years in attendance of 2002 secondary school leavers.

Composite/area schools, usually based in rural areas, combine primary, intermediate and secondary schooling at one location.

A child aged between five and six, starting primary school for the first time between July (when the school roll is counted) and the end of that school year, is classed as Year 0.

Children who begin school for the first time between 1 January and before the July roll count, are classed as Year 1.

If children start school for the first time after the age of six, they are placed in the same year as other children of the same age.

Primary schools are required to be open for at least 394 half days each year and secondary schools for at least 380 half days. The New Zealand school year is divided into four terms of approximately even length.

Table 9.04. Secondary school leavers during 2002 By year of schooling, gender and ethnicity

Years in attendanceNZ European/European/PakehaMaoriPacific peoplesAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale

- nil or zero

Source: Ministry of Education

Year 91810221431--3-462874
Year 10341175216142261996105602347949
Year 112,5151,5431,101974249163686940203,9732,7696,742
Year 124,9564,1671,4861,55750939333627499957,3866,48613,872
Year 139,45310,6761,6082,0279611,0781,5971,51129326313,91215,55529,467
Year 1429336113313111112076386106196601,279
Year 154346161715793-18374157
                Total17,61916,9784,5824,8621,8741,7812,0951,90445139426,62125,91952,540

Table 9.05. Secondary school leavers in 2002 By level of highest attainment, gender and ethnic identification

Highest attainmentNZ European/European/PakehaMaoriPacific peoplesAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale

1National Certificate of Educational Achievement (NC) is a New Zealand Qualifications Framework level.

2Minimum of three Cs in University Bursary examinations.

3One or more subjects irrespective of grade awarded.

- nil or zero

Source: Ministry of Education

National Certificate of Educational Achievement (NC)1 L4 311      145
A or B Bursary or NC L33,2744,3891412247182849803101774,4365,57510,011
Entrance qualification2 or 42 or more credits at NC L3 or above, or ACE or overseas award at Y13 level1,3871,729140217669320622833431,8322,3104,142
Higher School Certificate or 14-41 credits at NC L3 or above1,9492,09732749823935829725352742,8643,2806,144
NC L2 or 1-13 credits at L3 or above60055816018071125293511168719141,785
Forty-two or more credits at NC L2 or above, or ACE or overseas award at Y12 level55672125102612422100124224
Sixth form certificate33,9283,62582091843138434631585765,6105,31810,928
NC L1 or 1-13 credits at L2 or above7125062392331297333231161,1248411,965
Forty-two or more credits at NC LI or above, or ACE or overseas award at Y11 level40931312611246251417716024681,070
School Certificate or 14-41 credits at NC L1 or above2,4341,7808549062482151006833283,6692,9976,666
One to 13 credits at NC LI or no formal attainment2,8711,9111,7531,548563400209158116715,5124,0889,600
                Total17,61916,9784,5824,8621,8741,7812,0951,90445139426,62125,91952,540

Table 9.05 shows the level of highest achievement by secondary school leavers in 2002.

Choices in schooling

While most students in New Zealand attend state-funded schools, parents or caregivers and students have the choice of a number of schooling options.

State schools. State schools are co-educational (mixed sexes) at primary and intermediate level, but some offer single-sex education at secondary level. Lessons are based on the New Zealand curriculum. Some state schools offer special programmes for adult students or run community education classes.

Integrated schools. Integrated schools are those that used to be private and have now become part of the state system. They teach the New Zealand curriculum, but keep their own special character (usually a philosophical or religious belief) as part of their school programme. Integrated schools receive the same government funding for each student as state schools, but as their buildings and land are privately owned, they charge attendance dues to meet property costs.

Kura kaupapa Maori. Kura kaupapa Maori are state schools where teaching is in the Maori language (te reo Maori) and is based on Maori culture and values. The curriculum is the same as at other state schools. Kura kaupapa cater for students from Years 1-8 or Years 1-13. The schools build on köhanga reo (Maori language early childhood education centres). A key goal of kura kaupapa is to produce students who are equally skilled in both Maori and English.

Independent schools. Independent (or private) schools are governed by their own independent boards, but must meet certain standards in order to be registered. Independent schools may be either coeducational or single-sex. They charge fees, but also receive government funding.

Boarding schools. Boarding schools may either be independent or part of a state-funded school. All charge boarding fees.

The Correspondence School Te Kura a Tuhi. The Correspondence School is a national state school funded by the Ministry of Education and administered by a board of trustees, which includes ministerial appointments and parent, staff and student representatives. The 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, 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 ‘second chance’ education to adult students wanting to improve their qualifications. In addition, the school 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. The school offers a full range of courses, including practical subjects such as art, computing and science. The school roll of20,177 at December 2003 was made up of 1,006 early childhood pupils, 1,939 students attending other primary schools, 7,636 students attending other secondary schools, 873 full-time primary, 2,280 full-time secondary, 553 fee-paying and 5,890 adult students. The 630 staff employed by the school consist of 29 early childhood teachers, 101 primary teachers, 282 secondary teachers and 218 people who provide operational and strategic support. The Correspondence School's website is www.correspondence.school.nz

Home-based schooling. Home-based schooling is an alternative available for parents and caregivers who want to educate their children at home. Parents and caregivers need approval from the Ministry of Education and must educate their children at least as regularly and as well as at a registered school. Home-based schooling parents and caregivers are given an annual grant to help with the cost of learning materials and can choose to purchase teaching services from The Correspondence School. Though numbers of home-schooled children in New Zealand have grown considerably in recent years, they account for only 1 percent of total school enrolments.

Designated character schools. Designated character schools are state schools that teach the New Zealand curriculum, but have been allowed to develop their own set of aims, purposes and objectives to reflect their own particular values.

Special schools. Special schools are state schools that provide education for students with special education needs. The curriculum is the same as at other state schools. There are eight residential special schools.

Assessment of students

Assessment information gathered about students' progress and achievement is used to improve the quality of teaching programmes.

Students' strengths and weaknesses identified as a result of assessment are shared with students and parents.

Most assessment information comes from ongoing classroom assessment. Schools provide parents with written reports about their children's achievements and parents are also entitled to ask for meetings with teachers to talk about their child's progress.

Student achievement for primary students across New Zealand is monitored on a four-year rolling cycle by assessing around three percent of eight and 12-year-olds. The National Education Monitoring Project covers the whole New Zealand curriculum. At secondary school level, results from the National Certificate of Educational Achievement (NCEA) are used to provide national information about student achievement. A sample of New Zealand students also participate in international assessment studies to measure their achievement levels against those of other Organisation for Economic Co-operation and Development countries.

Table 9.06 shows grades earned by students, by subject, in the year ending 31 December 2003.

Table 9.06. University Entrance, Bursary, Scholarship grades By subject Year ending 31 December 2003

SubjectTotal resultsGrade AGrade BGrade CGrade DGrade E
  Percent
Accounting3,515182734174
Agriculture and horticulture72961639309
Biology8,192152335215
Chemistry6,732212834143
Chinese (second language)40610374274
Classical studies4,964142436215
Design2,136121840274
Economics6,838142434236
English13,861122834224
French (second language)708273327112
Geography7,385112137257
German (second language)330342329122
Graphics1,78882336276
History (including English)3,108152437195
History (including New Zealand)1,990122831227
History of art2,399152337205
Indonesian1233332580
Japanese (second language)844252631145
Latin4538312740
Mathematics with calculus9,925192435175
Mathematics with statistics13,056152635196
Music817162136215
Painting2,230102233305
Photography2,04692341235
Physical education3,96781739297
Physics7,581192538126
Printmaking271152730254
Science1,496112037266
Sculpture301151639274
Spanish (second language)247252828154
Te Reo Rangatira583142535215

Note:Percentages may not total 100 because of rounding.

Source: New Zealand Qualifications Authority

Figure 9.02. Tertiary attendance 2002

Tertiary attendance 2002

9.8 Tertiary education

After finishing compulsory schooling, many New Zealanders continue their education at tertiary level.

Ministry of Education figures for 2002 showed around 400,000 New Zealanders participating in tertiary education, an increase of 30 percent since 1999. The tertiary sector now encompasses adult and community education, industry training, foundation education (basic skills usually acquired at school), study at tertiary institutions such as universities, colleges of education, polytechnics and wananga and at private training establishments. Figure 9.02 shows attendance at tertiary institutions in 2002.

Qualifications gained are part of the 10-level National Qualifications Framework, whose building-block approach to learning enables students to continue to build their skills over a lifetime using a range of delivery options. Tertiary education has a crucial role in providing high quality teaching, research and learning opportunities to meet economic and social development needs. In April 2000, a Tertiary Education Advisory Commission (TEAC) was established to develop a new strategic direction to focus the tertiary education system more effectively on meeting these needs.

In May 2002, the commission finalised Tertiary Education Strategy 2002-2007, which sets a new direction in tertiary education, explicitly linking learning and research with New Zealand's economic and social development goals and priorities.

A Tertiary Education Commission (TEC) was established in July 2002 under the provisions of the Education (Tertiary Reform) Amendment Act 2002. It is responsible for funding all post-compulsory education and training offered by universities, polytechnics, colleges of education, wananga, private training establishments, foundation education agencies, industry training organisations and adult and community education providers.

The commission's key role is to oversee implementation of the six strategies outlined in the tertiary education strategy:

  • Strengthen system capability and quality.

  • Contribute to the achievement of Maori development aspirations.

  • Raise foundation skills so that all people can participate in the knowledge society.

  • Develop the skills New Zealanders need for the knowledge society.

  • Educate for Pacific peoples' development and success.

  • Strengthen research, knowledge creation and uptake for the knowledge society.

New initiatives to improve student access to tertiary education include a fee stabilisation package for tertiary providers to prevent increases in course fees, a full interest write-off on student loans for full-time, full-year students and low income students, and additional funding to assist public tertiary education providers to adapt to the changing tertiary environment ahead of implementation of new funding and regulatory systems. Improvements in collaboration and coordination of public tertiary education institutions to offer more effective and diverse education services include mergers between tertiary education institutions, and accords and working alliances between education institutions and industry bodies.

The Tertiary Education Commission's website is www.tec.govt.nz

Universities

There are eight universities in New Zealand: 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.

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 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 the community. The council is also responsible for approving course regulations and for maintaining the equivalences of courses for degrees and other qualifications. Figure 9.03 illustrates the number of bachelors degrees by field of study completed in 2002.

Figure 9.03. Sex ratio of bachelor degrees1Selected degrees, by field of study, completed in 2002

Sex ratio of bachelor degrees1Selected degrees, by field of study, completed in 2002

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 20 polytechnics in New Zealand. They are Northland Polytechnic, UNITEC-lnstitute of Technology, Manukau Institute of Technology, Waikato Polytechnic, Bay of Plenty Polytechnic, Waiariki Institute of Technology, Tairawhiti Polytechnic, Eastern Institute of Technology, Western Institute of Technology, Universal College of Learning (UCOL), Whitireia Polytechnic, The Open Polytechnic of New Zealand, Wellington Institute of Technology, Nelson Marlborough Institute of Technology, Tai Poutini Polytechnic, Christchurch Polytechnic Institute of Technology, Aoraki Polytechnic, Otago Polytechnic, Telford Polytechnic and Southland Institute of Technology.

Wananga

Wananga (Maori tertiary institutions) provide tertiary education and training while assisting the application of knowledge regarding ahuatanga Maori (Maori tradition) in accordance with tikanga Maori (Maori custom). Te Wananga o Aotearoa in Te Awamutu, Te Wananga o Raukawa in Otaki and Te Wananga o Awanuiarangi in Whakatane are governed in the same way as other tertiary institutions.

The Open Polytechnic of New Zealand

The Open Polytechnic of New Zealand is the only broad-based national polytechnic and the specialist tertiary institution in open and distance learning. In 2003, it had 526 on-campus staff, a total staff of 843 and 36,963 enrolled students. Nearly all students are part-time learners.

The Open Polytechnic is a major educator of people in the workforce. A large percentage of its students are adult learners in paid employment who study in their own time to enhance their career opportunities.

The Schools of Accounting, Finance and Law; Information Science and Humanities; Management; and Workplace Learning and Development are integrated within a single faculty at its Lower Hutt campus. There are business centres in Auckland, Wellington and Christchurch.

New Zealand's 20 polytechnics provide a diverse range of vocational programmes.

The Open Polytechnic offers more than 1,300 courses and 150 programmes, ranging from national certificate to diploma and degree level. It consults closely with industry and other stakeholders to ensure 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.

As well as supporting individual learners, the Open Polytechnic offers a range of flexible learning design services for public and private sector organisations and industry. It also works in a variety of partnership arrangements with other tertiary providers. The Open Polytechnic's website is www.openpolytechnic.ac.nz

Private training establishments

There are large numbers of private training establishments (PTEs) in New Zealand, of which about 900 are registered with the New Zealand Qualifications Authority (NZQA).

PTEs which enrol foreign students are required by law to have course approval and accreditation from NZQA and to have course approvals for courses of more than three months duration. 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 student places, PTEs operating in provincial towns offer improved access to tertiary education, rather than actual competition for the state tertiary institutions. PTE courses that receive state funding are subject to similar standards of accountability as state-funded courses at universities, polytechnics and colleges of education.

Tables 9.07, 9.08 and 9.09 show the number of enrolments at tertiary institutions and the qualifications obtained by students in 2002.

Table 9.07. Enrolments at tertiary institutionsBy field of study At 31 July 2002

Field of studyEnrolment levelTotal by genderGrand total
Post-graduateDegreeDiplomaCertificate
FemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMale
Source: Ministry of Education
Natural and physical sciences1,3661,4566,1527,2561811619145468,6139,41918,032
Information technology1823061,0743,1331,0382,70610,0746,50712,36812,65225,020
Engineering and related technologies1294891,4564,7743223,2761,16810,3073,07518,84621,921
Architecture and building29561,3541,4583591,1728972,4262,6395,1127,751
Agriculture and environmental studies3152895658114775961,7884,0543,1455,7508,895
Health2,1217219,5632,4162,7294572,43662316,8494,21721,066
Education1,5464459,6492,3415,0808222,85088919,1254,49723,622
Management and commerce3,0272,92715,61513,8938.8065,24514,498746541,94629,53071,476
Society and culture3,9021,97920,92811,20411,0535,84810,8556,34746,73825,37872,116
Creative Arts4132834,1722,3462,4401,3951,9171,7408,9425,76414,706
Food, hospitality and personal services--80386562434,5351,7795,2712,0607,331
Mixed field programmes1,8731,9622,4571,56127023321,29312,82825,89316,58442,477
                Total enrolments14,90310,91373,06551,23133,41122,15473,22555,511194,604139,809334,413
Adjustment for multiple enrolments2431792,2421,53313479334,8653,1858,6975,83014,527
                Total students14,66010,73470,82349,69832,06421,22168,36052,326185,907133,979319,886

Table 9.08. Qualification completions in 2002By award level, sector and gender

Award levelPolytechnicsColleges of EducationUniversitiesWanangaTotal genderGrand total
FemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMale

- nil or zero

Source: Ministry of Education

Doctorate----247274--247274521
Masters/honours85362832,6612,018252,7762,0624,838
Post-graduate diploma/certificate83313492,3831,645332,5031,6884,191
Bachelors/advanced diploma2,4681,0112,16860910,8777,815913315,6049,46825,072
Diploma3,1061,8416471501,3048522,9011,2607,9584,10312,061
Certificate14,25910,001305533,5242,4533,9961,10222,08413,60935,693
                Total qualifications completed20,00112,9203,18282420,99615,0576,9932,40351,17231,20482,376
Adjustment for multiple completions662590106411,2108323331552,3111,6183,929
                Total students19,33912,3303,07678319,78614,2256,6602,24848,86129,58678,447

Table 9.09. Qualification completions in 2002By field of study, award level and gender

Field of studyAward levelTotal genderGrand total
DoctorateMasters/HonoursPost graduate diploma/CertificateBachelors/Advanced diplomaDiplomaCertificate
FemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMale

- nil or zero

Source: Ministry of Education

Natural and physical sciences-34804161512331,3211,3054445152832,1482,0854,233
Information technology--112130591994541884011,3491,1381,7772,0733,850
Engineering and related technologies-1641671326324836543023961,9138513,2454,096
Architecture and building--1419-12372884585769563721,3491,721
Agriculture and environmental studies--5942697069177971703487716421,2301,872
Health26239688123042,347511395595,5961,7229,3912,67012,061
Education53187373881303,5129441,366329564946,0221,5377,559
Management and commerce--4995896055892,7432,5331,4006252,7399307,9865,26613,252
Society and culture-11,0856102181253,8491,9173,3941,5472,9261,80911,4726,00917,481
Creative arts1-1348949318844746503787795682,4971,5404,037
Food, hospitality and personal services------8-163591,8391,0102,0101,0693,079
Mixed field programmes23926044168120111291621035,3202,6156,0043,1319,135
                Total qualifications completed2472742,7762,0622,5031,68815,6049,4687,9584,10322,08413,60951,17231,20482,376
Adjustment for multiple completions6115391141836784663502419837362,3111,6183,929
                Total students2412732,6231,9712,3621,60514,9269,0027,6083,86221,10112,87348,86129,58678,447

Vocational qualifications

New Zealand Certificates in Engineering (NZCE). NZCEs are in the process of being phased out and have been replaced by National Diplomas. No new enrolments are being accepted for NZCE, but existing candidates can complete their qualification at some accredited tertiary education providers on a full or part-time basis. Distance learning courses may also be available. New Zealand Certificates require students to complete three years suitable work experience. The New Zealand Qualifications Authority is responsible for prescriptions for NZCE subjects, for maintenance of the national database of results and for certification of the qualification.

New Zealand Certificates. A number of other New Zealand Certificates have now been replaced by National Diplomas. Courses for these qualifications are no longer available, but subjects may be completed through processes such as recognition of prior learning. A diploma may still be awarded when a student completes the requirements for the qualification - usually the work experience requirement. However, there is a final date when each of these diplomas can be awarded.

New Zealand Diploma in Business (NZDipBus). NZDipBus is a generic business qualification, endorsed by a number of industries such as accounting, marketing, tourism, banking, and management. Courses for the qualification are available at a number of accredited tertiary education providers. Most papers are of one semester (half year) duration and may be completed through full or part-time study. The New Zealand Qualifications Authority is the owner of NZDipBus and is responsible for establishing and maintaining regulations for the qualification; maintaining a national database of results and issuing results notices; maintaining national records; development and maintenance of prescriptions; management of the national external moderation system; and certification of the qualification. Accredited training providers may award the New Zealand Diploma in Business in conjunction with the New Zealand Qualifications Authority.

National Certificates and National Diplomas. National Certificates and National Diplomas are standard-based qualifications registered on the National Qualifications Framework (NQF). Generally, National Certificates are registered at Levels 1-4 of the NQF and National Diplomas are registered at Levels 5 or 6. National Certificates and National Diplomas are developed by Industry Training Organisations or other approved national industry bodies. Training for these qualifications occurs on-job, off-job or in a mixture of these depending on the qualification. National Certificates (and in a few cases National Diplomas) have replaced Trade Certificates and Advanced Trade Certificates in nearly every industry.

Other qualifications. A wide range of other vocational qualifications are available, including qualifications developed and administered by polytechnics and other tertiary training providers, national bodies such as the New Zealand Institute of Management and the Royal New Zealand Air Force, and private training providers. Responsibility for all aspects of these qualifications lies with the appropriate body.

9.9 International students

Overseas students who want to study in New Zealand can get information about courses of study, academic entry requirements and fees by visiting www.mynzed.com, a New Zealand Government office in the student's home country, or by writing directly to the education institution they wish to attend. A student visa is required for any course of study longer than three months. International students wishing to enrol with a tertiary institution (including a private training establishment) should check that the course they intend to enrol in is an approved course and that the institution has accreditation to deliver that course. This information is available from the New Zealand Qualifications Authority at www.nzqa.govt.nz. Any New Zealand education institution enrolling international students must be a signatory to the Code of Practice for the Pastoral Care of International Students. The code requires education institutions to have measures in place to promote the welfare and safety of international students. For example, the code sets minimum standards in areas such as recruitment and enrolment, medical and travel insurance, support services, accommodation and grievance procedures. Further information on the code is available from the Ministry of Education at www.minedu.govt.nz/goto/international. Individual institutions set their own academic entrance requirements and fees. Some allow payment of annual fees by instalment. Student visas and permits are issued for the period for which fees have been paid. International students are not entitled to student loans or student allowances. As Table 9.10 shows, the number of students coming to study in New Zealand increased 36.6 percent in the year ending 31 March 2003.

A mathematics lecture for university students.

Table 9.1. International students studying in New Zealand1,2

Category19992000200120022003

1All figures independently rounded.

2Regardless of length of stay.

3Ministry of Education, as at 1 July.

4Ministry of Education, as at 31 July.

5Survey of English Language Providers, Statistics New Zealand; year ending 30 June for 1999 and 2000, year ending 31 March from 2001.

Note:Figures may not add to stated totals due to rounding.

Sources: Ministry of Education Statistics New Zealand

Primary and secondary students35,7008,8007,90011,1008,500
Tertiary students47,90010,50010,40016,40018,700
Students at English language providers5 and on study tours21,00023,40031,50047,00074,800
                Total34,60042,70049,80074,600101,900

9.10 Sector statistics

Table 9.11. Full-time equivalent teaching staff at educational institutions At 1 July

Institution19981999200020012002

- not available

Source: Ministry of Education

Licensed early childhood services     
    Kindergartens1,6071,6251,6171,6431,644
    Playcentres (includes unpaid adults on duty)1,3361,3141,2511,1821,174
    Education and care services - regular and casual6,8417,3447,8548,2128,734
    Home-based services - coordinators236242271258265
    Correspondence School2424202529
    Te kohanga reo..........
Primary schools     
    State22,68122,74022,95723,36223,358
    Private438397401452465
Composite schools     
    State1,1581,3111,4061,4851,572
    Private9209819379591,016
Secondary schools     
    State14,66314,84215,0831,537415,596
    Private565482512596615
Special schools     
    State491556663743764
    Private11........
Correspondence School     
    Primary and secondary413357299318290
Tertiary education providers - academic staff     
Public tertiary education institutions     
    Polytechnics4,8494,9324,0353,9994,323
    Colleges of education481497505475485
    Universities4,9735,0085,9366,1036,365
    Wananga107109156237526
Private tertiary education providers2,8162,8363,2903,7534,119

Table 9.12. Formal education institutions and students enrolled At 1 July

Institutions19981999200020012002
NumberStudentsNumberStudentsNumberStudentsNumberStudentsNumberStudent

1Early Childhood Development.

2Included in playgroups before 2001.

3Student numbers estimated for 1998 and 1999.

4Figures may not add to stated totals due to rounding.

5In 2000, Wellington Polytechnic became part of Massey University and Auckland Institute of Technology changed from polytechnic to university status.

6Institution numbers count only those institutions that have formal students enrolled.

not applicable

Source: Ministry of Education

Licensed early childhood services          
    Kindergartens59646,30759845,99360045,86960345,43960645,169
    Playcentres53716,78752316,26151715,80850314,78649214,879
    Education and care services1,33265,2051,40368,1321,47671,2311,55873,1921,61276,246
    Casual education and care (no regular roll)44..44..45..39..38..
    Homebased services1508,3001718,4981808,9371848,5461948,591
    Te kohanga reo61311,68960011,85958311,1385629,59454510,389
    Correspondence School11,04411,097198419471913
3,273149,3323,340151,8403,402153,9673,450152,5043,488156,187 
License-exempt early childhood education services          
ECD1 funded playgroups55717,63059616,62959216,94956115,45754115,002
ECD1 funded nga puna kohungahunga2      2020924351
ECD1 funded Pacific peoples language groups1703,5991382,9481272,5761272,5451332,914
ECD1 funded playcentres2643324388253723140428371
Te kohanga reo3336150524293812421414138
 78622,02380820,48977320,27876318,82974018,776
        EARLY CHILDHOOD TOTAL4,059171,3554,148172,3294,175174,2454,213171,3334,228174,963
Primary schools          
    State full primary1,211166,4811,205168,3971,189170,0701,186169,6541,177171,121
    State contributing879219,138864216,723854215,509843213,213833212,291
    State intermediate13656,18013357,08613358,85213260,38213063,507
    Private primary and intermediate566,286515,634445,773486,242486,327
 2,282448,0852,253447,8402,220450,2042,209449,4912,188453,246
Composite schools          
    State composite6317,6236919,5947821,0848221,8618522,534
    State correspondence110,91419,55618,11918,83919,135
    Private composite3711,8124312,5474111,7344312,0044612,767
 10140,34911341,69712040,93712642,70413244,436
Secondary schools          
    State Year 9-15237189,930233190,160232189,979232191,983229198,725
    State Year 7-158337,5488739,4238839,8718739,9978640,770
    Private Year 7-15 and Year 9-15236,696156,280166,585177,501178,498
 343234,174335235,863336236,435336239,481332247,993
Special schools          
    State431,759431.855452,010462,215462,379
    Private14200000000
    Other Vote: Education417031413103133130
 481,971461,996482,113472,248472,409
        SCHOOL TOTAL2,774724,5792,747727,3962,724729,6892,718733,9242,699748,084
        HOME SCHOOLING..5,274..5,451..5,877..5,976..6,173
Tertiary education providers3          
    Public tertiary education institutions4          
    Polytechnics525101,40025100,0002387,4362287,9652095,782
    Universities57108,0007106,0008122,7278125,6688132,396
    Colleges of education411,800412,800412,045410,884410,788
    Wananga31,20031,90032,972311,278327,535
 39222,30039220,70038225,18037235,79535266,501
Private tertiary education providers645728,70044133,10045239,17345551,66650653,385
        TERTIARY TOTAL496251,000480253,800490264,353492287,461541319,886

Table 9.13. Education 1875-2002

Year1Early childhood educationPrimarySecondaryUniversity studentsPolytechnic students7College of education studentsWananga studentsPrivate training establishment students
Providers2StudentsSchools3,4StudentsSchools5,6Students

1Year ending 31 December until 1925. thereafter as at 1 July. Figures from 1994 on have been revised and are not comparable with previous years.

2Early childhood figures include only playcentres and kindergartens until 1990, after which they also include childcare, kohanga reo and Pacific peoples language groups.

3Primary includes Year 1-8 students at all schools.

4Includes full primary, contributing, intermediate and special schools.

5Secondary includes Year 9-15 students at all schools.

6Includes secondary and composite schools.

7Prior to 1990. polytechnic figures included all students attending polytechnic. From 1990, they include only those attending on 31 July.

.. not available

... not applicable

Source: Ministry of Education

  (000) (000) (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......
19851,38960.72,641452.4403230.959,12376,0542,703......
19902,890118.42,460420.4400230.278,91956,7715,766......
19953,824159.42,368448.2430236.6104,38995,66410,156726...
20004,175174.22,268484.2456245.5122,72787,43612,0452,97239,173
20014,213171.32,256451.7462282.2125,66887,96510,88411,27851,666
20024,228175.02,235455.7464292.4132,39695,78210,78827,53553,385

Contributors

9.1 Ministry of Education.

9.2 Ministry of Education; New Zealand Qualifications Authority.

9.3 Ministry of Education; New Zealand Qualifications Authority; Education Review Office; Learning Media Ltd; New Zealand Teachers' Council.

9.4 Ministry of Education; Ministry of Social Development; Statistics New Zealand; Tertiary Education Commission.

9.5 Ministry of Education; Maori Education Trust.

9.6 Ministry of Education.

9.7 Ministry of Education; Correspondence School; New Zealand Qualifications Authority.

9.8 Ministry of Education; The Open Polytechnic; New Zealand Qualifications Authority; Tertiary Education Commission.

9.9 Ministry of Education.

9.10 Ministry of Education.

Websites

www.careers.govt.nz - Career Services

www.correspondence.school.nz

- The Correspondence School

www.ero.govt.nz

- Education Review Office

www.learningmedia.co.nz - Learning Media Ltd

www.maorieducation.org.nz - Maori Education Trust

www.minedu.govt.nz - Ministry of Education www.msd.govt.nz

- Ministry of Social Development www.nrc.org.nz

- National Resource Centre for Adult

Education and Community Learning

www.nzcer.org.nz

- New Zealand Council for Educational Research

www.nzqa.govt.nz

- New Zealand Qualifications Authority

www.teacherscouncil.govt.nz

- New Zealand Teachers' Council

www.studylink.govt.nz - StudyLink

www.tec.govt.nz

- Tertiary Education Commission

www.winz.govt.nz - Work and Income

Chapter 10. Justice and Law

The new Supreme Court of New Zealand will eventually be located in the remodelled former Wellington High Court building.

10.1 Legal system

The fundamental tenet of the New Zealand system of government - based on the Westminster model - is that the judiciary, the executive and the legislature must be kept separate from each other to provide checks and balances within the system and to ensure that accountability and impartiality are maintained.

Judges, appointed by the governor-general, make decisions by interpreting laws passed by parliament. Parliament passes laws which reflect the intention or interests of citizens collectively and these are enforced by the judiciary as the formal expression of society's standards.

Should a series of judicial decisions manifest an interpretation of legislation which the executive (cabinet ministers and government departments) considers does not reflect the intention of parliament, the executive may initiate changes to the legislation, but may not direct or request the judiciary to revise or reconsider a decision.

Similarly, the judiciary is not expected to comment publicly on whether a policy is good or bad, or to have a view on what policies should be amended or written into legislation.

High court judges, which include court of appeal and supreme court judges, can be removed from office only by the Sovereign or the governor-general acting upon an address of the House of Representatives on the 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. In practice, those appointed to the judiciary have practised law for longer than 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 or over when reappointed. In the supreme court, an acting judge can be appointed for a term of up to two years as long as that judge has not reached the age of 75.

Ministry of Justice Te Manatu Ture. The Ministry of Justice is unique in the New Zealand public sector in that as part of the executive it provides services to the independent arm of government, the judiciary. As well as providing advice on appointments to the judiciary, the ministry provides leadership across the whole of the justice sector; research, evaluation and advice on justice-related matters for ministers and other departments; and negotiates and advises on settlement of Treaty of Waitangi claims. Through the Chief Electoral Office, the ministry is responsible for the conduct of parliamentary elections and referenda. The ministry provides advice to the attorney-general on consistency between proposed legislation and the New Zealand Bill of Rights Act 1990. The ministry also monitors and provides advice (including advice on appointments) to the Minister of Justice on Crown entities and other bodies funded through Vote: Justice. The ministry's website is www.justice.govt.nz

Hierarchy of courts

The Supreme Court of New Zealand, established from 1 January 2004, heads the hierarchy of New Zealand courts. Below the supreme court is the New Zealand Court of Appeal, the New Zealand High Court and district courts, being the main courts that exercise general criminal and civil jurisdiction. There are also a number of courts and tribunals that have jurisdiction over specific areas of law, with rights of appeal to one or more of the four main courts.

The Judicial Committee of the Privy Council. The right to appeal from New Zealand-based courts to the United Kingdom-based Judicial Committee of the Privy Council was abolished on 1 January 2004 with establishment of the Supreme Court of New Zealand. However, under the Supreme Court Act 2003, certain appeals can continue to be determined by the privy council. These are:

  • Appeals made to the privy council before 1 January 2004.

  • Appeals arising out of successful applications made before 1 January 2004 to New Zealand courts for leave to appeal to the privy council.

  • Appeals arising out of successful applications made before 1 January 2004 to the privy council for special leave to appeal to it.

  • Appeals arising out of successful applications to the privy council for special leave to appeal to it made after a New Zealand court has, before 1 January 2004, refused leave to appeal.

In these cases, parties to an appeal can waive their appeal to the privy council if the privy council has not begun hearing the appeal and the parties agree in writing that an application should be made to the Supreme Court of New Zealand for leave to appeal to the supreme court against the decision concerned.

The New Zealand Court of Appeal. As New Zealand's principal intermediate appellate court, the New Zealand Court of Appeal has existed as an independent court since 1862 and is constituted by the Judicature Act 1908. Until 1957, it was composed of judges of the supreme court (as the high court was known then) sitting periodically in panels. In 1957, the court was reconstituted as a permanent, separate court.

The primary function of the court is to determine civil and criminal appeals from the high court and from indictable criminal proceedings in district courts, and appeals on questions of law from the employment court. As well, matters appealed to the high court from a district court can be taken to the court of appeal with leave if they are considered to be of sufficient significance to warrant a second appeal. The court also has some original jurisdiction.

The full-time working membership of the court consists of 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 high court judges, except the chief justice, or the judges of the Supreme Court of New Zealand. 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.

New Zealand High Court. The New Zealand High Court was first established (as the New Zealand 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's jurisdiction includes the most serious types of crimes, admiralty proceedings, important civil claims, appeals from lower courts and tribunals, and reviews of administrative actions. The high court also has inherent power to punish for contempt of court.

It consists of the chief justice and 43 other judges (including the judges of the supreme court and court of appeal), 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.

Judges of the high court are stationed in Auckland, Wellington and Christchurch, but also travel on circuit to Whangarei, Hamilton, 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.

Table 10.01 lists judges of the supreme court and court of appeal, and judges and masters of the high court at 31 March 2004.

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 establishment of this list at the office of the New Zealand 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.

Table 10.01. Judges of the supreme court and court of appeal, and judges and masters of the high court1

1At 31 March 2004.

Source: Ministry of Justice

Judges of the Supreme Court

Rt Hon Dame Sian Elias. Chief Justice of New Zealand

Rt Hon Justice Gault

Rt Hon Sir Kenneth Keith

Rt Hon Justice Blanchard

Rt Hon Justice Tipping

Judges of the Court of Appeal

Hon Justice Anderson (President)

Hon Justice McGrath

Hon Justice Glazebrook

Hon Justice Hammond

Hon Justice William Young

Hon Justice Chambers

Hon Justice O'Regan

Judges of the High Court

Wellington

Rt Hon Dame Sian Elias, Chief Justice of New Zealand

Hon Justice Robertson (Law Commission)

Hon Justice Goddard

Hon Justice Gendall

Hon Justice Wild

Hon Justice Durie

Hon Justice Ronald Young (Executive judge)

Hon Justice France

Hon Justice MacKenzie

Hon Justice Miller

Hon Justice Doogue (Acting judge)

Hon Justice Neazor (Acting judge)

Hon Justice McGechan (Acting judge)

Masters of the High Court

Master D I Gendall

Master J C A Thomson (Temporary master)

Judges of the High Court

Auckland

Hon Justice Williams

Hon Justice Baragwanath

Hon Justice Salmon

Hon Justice Paterson

Hon Justice Potter

Hon Justice Laurenson

Hon Justice Randerson (Executive judge)

Hon Justice Nicholson

Hon Justice Rodney Hansen,

Hon Justice Priestley (Liaison judge, Waikato)

Hon Justice Harrison

Hon Justice Heath

Hon Justice Venning

Hon Justice Frater

Hon Justice Keane

Hon Justice Cooper

Masters of the High Court

Master J A Faire

Master G L Lang

Master H Sargisson

Judges of the High Court

Christchurch

Hon Justice John Hansen

Hon Justice Panckhurst (Executive judge)

Hon Justice Chisholm

Hon Justice Fogarty

Master of the High CourtMaster A P Christiansen

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 judgments, specified land transfer matters, assessment of damages where liability has been determined, and trials where only the amount of the debt or damages is in dispute. There were five permanent masters and one temporary master at 31 March 2004.

District courts. Unlike the New Zealand High Court, which is one court for New Zealand, district courts are established as separate entities in various localities. District courts are constituted under the District Courts Act 1947, which limits the number of district court judges to 123. District court judges are appointed by the governor-general, who also appoints a Chief District Court Judge. The Chief District Court Judge is responsible for ensuring the orderly and expeditious discharge of the business of district courts throughout New Zealand and also sits in court. District courts have extensive civil and criminal jurisdiction. A number of district court judges are specially warranted to preside over jury trials of criminal cases. Community Magistrates and Justices of the Peace can also sit to hear a limited number of minor criminal and traffic charges, and can conduct preliminary hearings.

Specialist courts

New Zealand has a number of courts with specialist functions.

Employment court. The Employment court is constituted under the Employment Relations Act 2000. It consists 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. Employment courts are located in Auckland, Wellington and Christchurch, although they can travel to other locations.

Broadly speaking, the court has jurisdiction to deal with matters in the employment relations field. These include hearing and determining challenges to determinations of the Employment Relations Authority, hearing and determining any questions of law referred to it by the authority, hearing and determining penalties in relation to strikes and lockouts, and issuing compliance orders on specified matters.

Family courts. Family courts have been established in New Zealand since 1980 as divisions of district courts. The governor-general appoints family court judges - who are district court judges -and a Principal Family Court Judge. Family courts have jurisdiction to deal with dissolution of marriages, adoption, guardianship applications, domestic violence matters, relationship 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. Youth courts are divisions of district courts and are established under the Children, Young Persons and Their Families Act 1989. Every district court has a youth court. Jurisdiction of youth courts is exercised by youth court judges, who are specially-designated district court judges. The governor-general appoints a Principal Youth Court Judge. Youth courts deal with all offending committed by young people (aged 14-16), except murder, manslaughter and minor traffic offences. Youth courts do not hear matters relating to the care or protection of children and young people, which are dealt with in family courts.

Maori Land Court and Maori Appellate Court. These courts are constituted under the Te Ture Whenua Maori Act 1993 and have jurisdiction to hear matters relating to Maori land. The governor-general may from time to time appoint a chief judge and other judges of the court as required. Judges of the Maori Land Court are also judges of the Maori Appellate Court. Three or more of the judges have power to act as the Maori Appellate Court. The Maori Land Court or the Maori Appellate Court may state a case for the opinion of the high court on any point of law arising in proceedings before it. The decision of the high court is subject to an appeal to the court of appeal. The decision of the high court or court of appeal on any case stated is binding on the Maori Land Court and the Maori Appellate Court.

Environment court. The Environment court is constituted under the Resource Management Act 1991. It consists of not more than eight environment judges at any one time. Environment commissioners are appointed by the governor-general on the recommendation of the Minister of Justice, after consultation with the Minister for the Environment and the Minister of Maori Affairs.

As currently constituted, the court has seven judges, four alternate judges, 13 commissioners and three deputy commissioners. One judge holds office as the Principal Environment Judge. The environment court is a court of record and is required to act in a judicial way. It is also accepted as an expert tribunal, which is reflected in the multi-disciplinary expertise of its members. The environment court is a people's court, with people presenting their own cases or represented as they choose. Cases can be conducted without formality as long as they are conducted fairly and efficiently. The court recognises tikanga Maori when appropriate and holds sittings as close to the location of the subject matter as convenient. The use of mediation and negotiation to settle disputes is encouraged and many cases are resolved promptly and inexpensively by these methods. The act provides for environment commissioners to conduct mediation, conciliation or other procedures designed to facilitate the resolution of any matter before the court.

The environment court, among other things, determines appeals against grants of resource consents or the conditions set for their operation, hears submissions on local and regional government authority resource management plans, makes recommendations on water conservation order applications, and makes declarations about the application and interpretation of resource management law.

Coroner's court. Coroners are judicial officers appointed under the Coroners' Act 1988. Their role is to establish, so far as is possible, the cause and circumstances of death in cases of sudden or unexplained deaths and deaths in other special circumstances. Coroners may authorise post-mortem examinations and hold inquests into deaths. The Ministry of Justice is responsible for the provision of coroner-directed post-mortem services, including payment of pathologists and contracting with service providers (hospital mortuaries).

Tribunals

More than 100 tribunals, authorities, boards, committees or related bodies exist in New Zealand to deal with disputes, largely between individuals, on matters such as environmental planning; economic issues; scientific and technical matters; censorship; welfare and benefits; taxation; occupational licensing and discipline; activity licensing, eg shop trading hours; and company registration.

Disputes tribunals. Disputes tribunals, previously known as small claims tribunals, are divisions of district courts with jurisdiction to determine disputes up to $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. Every district court, apart from the five courts with police registrars, has a disputes tribunal and 58 part-time referees service the 66 tribunals.

Human Rights Review Tribunal. The role of the Human Rights Review Tribunal is to deal with complaints of discrimination, breaches of privacy and breaches of patient codes of rights which have not been settled by either the human rights commissioner, the privacy commissioner, or the health and disability commissioner. The tribunal has powers similar to a district court. It hears the complaint, makes a decision and can award damages or order other remedies. Each sitting of the tribunal is chaired by a barrister or solicitor with two other appointees with experience in the area.

Tenancy Tribunal. The Tenancy Tribunal was set up under the Residential Tenancies Act 1986 to determine disputes between landlords and tenants to which the act applies. The tribunal is set up on similar lines to disputes tribunals. Hearings take place in district court premises under the authority of part-time adjudicators.

Waitangi Tribunal. The Waitangi Tribunal was established under the Treaty of Waitangi Act 1975 to consider claims by Maori 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.

The Law Commission

The Law Commission Te Aka Matua o te Ture, established by the Law Commission Act 1985, is an independent, government-funded organisation, which reviews areas of the law that need updating, reforming or developing. The commission helps ensure that laws provide effectively for the current and future needs of New Zealand's changing society. Its goal is to achieve law that is just, principled, accessible and reflects the heritage and aspirations of the people of New Zealand. The commission is funded through Vote: Justice. There are six commissioners, and it employs legal researchers and support staff. It has a substantial, fully-staffed law library. The commission's recent publications, and information on its current work programme, are available on its website, www.lawcom.govt.nz

Legal Services Agency

The Legal Services Agency is a Crown entity established by the Legal Services Act 2000. The agency replaced the Legal Services Board and its task is to promote access to justice for those who have the greatest need and least capacity to pay for legal services. It does this by administering, funding or sponsoring a range of legal services including:

  • Legal advice and representation, through legal aid, duty solicitor and police detention legal assistance schemes.

  • Community legal services, such as those provided by community law centres.

  • Production of information and education resources, prioritising those with unmet legal needs.

  • Research into the unmet legal needs of communities and how those needs may be met.

The agency is assisted by a public advisory committee, which advises on community concerns about legal aid, legal aid access, unmet legal needs, community law centre funding, legal information and law-related education needs and areas in need of research. Decisions on legal aid made by the agency may be referred back to the agency for reconsideration, or to an independent legal aid review panel.

Criminal legal aid. People charged with criminal offences may apply for legal aid. Not all criminal matters qualify for legal aid, as some are not considered serious enough (such as some driving offences) because they do not have serious or long-lasting consequences for defendants. People may be asked to contribute towards their legal aid, depending on their financial circumstances.

Duty solicitors. The duty solicitor scheme ensures solicitors are available at every district court to help people charged with an offence who do not have a solicitor. The service is free. The duty solicitor ensures the person charged understands basic court procedures. They also make sure the case is dealt with satisfactorily. They give advice on pleas, bail and sentencing options available to the court. They also advise on how to arrange private legal representation or legal aid.

Police Detention Legal Assistance. This scheme enables any person being questioned or detained by the police to obtain advice or assistance by telephone or in person from a lawyer. The service is free. The scheme ensures the New Zealand Bill of Rights Act 1990 is given practical effect, so those who are detained for questioning are able to obtain legal advice without delay.

Civil legal aid. Civil legal aid applies to all family matters, and to civil matters encompassing the Waitangi Tribunal and other civil proceedings, including immigration and employment. People may be asked to contribute to the cost of their legal aid, depending on their financial circumstances.

Finance. In the 2002/03 financial year, 60,815 legal aid grants were made and legal aid payments totalled $82 million (excluding GST). Payments made can relate to grants approved in previous years. Of these payments, $27 million went on family law cases, $35 million on criminal cases, $7 million on civil actions and $7 million on Waitangi Tribunal matters. A further $5 million was spent on the duty solicitor scheme and $1 million on the Police Detention Legal Assistance Scheme. Legal aid recovered from imposed contributions in the year was $7 million. Legal aid is demand driven.

Once an entitlement to assistance is established, aid must be provided. No direct control can be exercised over the number of applications submitted.

Community law centres. Community law centres (CLCs) provide legal services to those in communities with unmet legal needs, particularly those who cannot afford to pay for legal services. The number of centres in 2003 was 24, plus a pilot service in the Hutt Valley, Wellington. The centres provide free legal advice and sometimes representation, law-related education and legal information, and may work on law reform.

CLCs are funded mostly from a special fund (administered by the New Zealand Law Society) which earns revenue derived from interest income from nominated lawyers' trust accounts, plus some government funding.

Public Advisory Committee. The Legal Services Agency's Public Advisory Committee represents a range of groups, including women, Maori, Pacific peoples, young people, older people, people with disabilities, consumers, community law centres and the legal profession.

The committee provides advice to the agency on a number of matters including feedback and concerns about legal aid schemes and other services funded or delivered by the agency, unmet legal needs, funding of community law centres, research and law-related education.

Jury service

Every person registered on the electoral roll is eligible for jury service, subject to some exceptions. Members of parliament, members of the judiciary, those involved in certain justice-related occupations and people who have been sentenced to certain prison sentences are not eligible to serve on a jury. A person may be excused from jury service if attendance would cause serious inconvenience or hardship.

Crown Law Office

The Crown Law Office is a government department which provides legal advice and representation services to the Crown in matters affecting the executive government, particularly in the areas of criminal, public and administrative law.

The office has two primary purposes in providing these services:

  • To ensure that the operations and responsibilities of the executive government are conducted lawfully.

  • To ensure that the government is not prevented, through legal process, from lawfully implementing its policies and discharging its governmental responsibilities.

The solicitor-general is chief executive of the Crown Law Office and is the chief legal adviser to the government, subject to any views expressed by the attorney-general. In this capacity, the solicitor-general is the government's chief advocate in the courts. In addition, the solicitor-general is responsible for conducting the prosecution of indictable crime, and also has a number of specific statutory duties and functions to perform.

The Crown Law Office is organised into three practice groups, which bring together specialist teams enabling clients to address key issues in the areas of:

  • Constitutional advice and litigation, including Treaty of Waitangi work, advice on international human rights obligations, bill of rights, and constitutional conventions.

  • The conduct of Crown prosecutions and criminal appeals.

  • Public law, arising, for example, out of the exercise and control of governmental power and public sector governance.

Each practice group is led by a deputy solicitor-general responsible for professional leadership and management of the client service teams within the group. A Crown counsel, in the role of team leader, has responsibility for the development and management of staff in each team and is also the principal contact point for clients. Each team is staffed with further Crown counsel, associate Crown counsel, assistant Crown counsel, and litigation and secretarial support staff.

The practice groups and their teams are:

  • Public Law Group - the Governmental Business Team, the Tax and Public Revenue Team and the Land and Resource Management Team.

  • Constitutional Law Group - the Law Officer Team, the Treaty Issues and International Law Team, the Human Rights Team and the Employment Team.

  • Criminal Process Group - the Criminal Process Team.

The Criminal Process Group also has responsibility for supervision and conduct of the nationwide network of Crown solicitors. Crown solicitors, private legal practitioners in the main centres of New Zealand, conduct prosecutions for indictable crime on behalf of the Crown in all high court districts.

Crown solicitors are appointed by the governor-general, on the recommendation of the attorney-general, and the Crown Solicitors Regulations 1994 provide the basis for their remuneration.

The Crown Law Office website is www.crownlaw.govt.nz

10.2 Criminal justice

The more serious crimes in New Zealand 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.

Convictions

A conviction is the most frequent outcome of a prosecution. In the five years to 2002, two-thirds of all prosecutions resulted in a conviction. The proportion has slowly declined from 73 percent in 1993. Figure 10.01 shows the proportion of convictions accounted for by each offence type from 1997 to 2002.

Offences11878-20032
Calendar yearRecordedResolvedPercent resolved

1Figures before 1995 may not be comparable because they represent all offences, including traffic.

2Figures from 2000 are for years ending 30 June.

.. figures not available

Source: New Zealand Police

187814,157....
188017,83716,72393.8
188518,95517,72393.5
189013,11512,17792.8
189514,01012,43588.8
190018,35817,13193.3
190520,24919,25195.1
191025,10623,94995.4
191528,41227,09695.4
192026,10624,71894.7
192530,47028,66894.1
193037.21433,69090.5
193533,16830,60192.3
194045,00941,61992.5
194534,00027,96582.3
195035,383....
195563,550....
1960102,79266,85765.0
1965132,31173,29455.4
1970165,85994,78557.1
1975233,644115,67149.5
1980349,193166,53547.7
1985435,640182,84942.0
1990488,886201,94241.3
1995506,359211,95641.9
20002432,354174,61140.4
2001424,286182,13742.9
2002436,315182,46841.8
2003447,146195,50243.7

Figure 10.01. Convictions by offence type

Convictions by offence type

Total convictions. The annual number of convictions has been lower since 1997, partly due to the offence of failing to register a dog becoming an infringement offence. In 1996, there were 6,269 convictions for this offence, but in 2002 there were only 93. Table 10.02 shows annual convictions by type of offence from 1993 to 2002.

Table 10.02. Convictions By type of offence

Offence type1993199419951996199719981999200020012002

Source: Ministry of Justice

Violent13,09515,84516,71416,49715,68316,13115,28714,57714,69314,537
Other against persons3,1853,4113,7083,7853,4963,7063,6863,6823,7023,783
Property57,28257,43856,97256,70253,67453,29551,17849,63548,71547,690
Drug13,23914,19711,79211,59412,99714,16814.02113,64912,55512,295
Against justice12,26313,02213,52113,90214,81915,68515,30615,46515,01714,997
Against good order7,4438,3589,2849,7329,92710,55211,06211,58612,40012,860
Traffic62,17859,50864,02463,18360,50262,20158,78557,01856,57354,603
Miscellaneous19,46018,76716,39317,0019,70610,1019,4377,6639,29610,234
            Total188,145190,546192,408192,396180,804185,839178,762173,275172,951170,999

Robbery. The number of convictions for robbery showed an increasing trend between 1993 and 1998, but has dropped significantly in more recent years, almost back to the level seen at the start of the decade. The number of convictions for aggravated robbery decreased in the five years to 2002 after showing an increasing trend between 1993 and 1997. The 2002 figure of 359 was the lowest recorded in the decade.

Non-sexual assaults. The number of convictions for non-sexual assaults increased significantly between 1993 and 1995, but has generally shown a slowly decreasing trend since then. A large part of the increase in the early to mid-1990s occurred for the offence of‘male assaults female’ under section 194(b) of the Crimes Act 1961, most of which were domestic-related assaults. Statistics New Zealand suggested in a 1996 report that the increase might 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 treated such incidents as family violence complaints and, barring exceptional circumstances, arrested (and prosecuted) the offender. The number of ‘male assaults female’ convictions decreased from 4,157 in 1994 to 2,630 in 2002.

Violent offences. The number of convictions for violent offences has shown a slowly decreasing trend since 1995, after a rapid increase between 1993 and 1995. In the nine years to 2002, violent offences accounted for between 8 and 9 percent of all convictions.

Violent sex offences. The total number of convictions for violent sex offences (rape, unlawful sexual connection, attempted sexual violation and indecent assault) peaked at 2,084 in 1996, but has averaged approximately 1,500 annually since then. In 2002, there were 1,562 convictions for violent sex offences. There were 185 convictions for rape in 2002, more than in the previous year. The number of convictions for indecent assault has decreased in the latter part of the decade, although there were 972 convictions for indecent assault in 2002, more than in the previous year. Table 10.03 shows the number of convictions for violent offences, including violent sex offences, from 1993 to 2002.

Table 10.03. Convictions for violent offences

Offence type1993199419951996199719981999200020012002

1Includes convictions for manslaughter involving 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 includes 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 five years imprisonment.

4Mostly common assault under the Crimes Act 1961, but also includes assault with intent to injure, injuring by unlawful act, and aggravated assault.

5Offences under section 194(b) of the Crimes Act 1961.

6Assault on a child under the age of 14 under section 194(a) of the Crimes Act 1961.

7Offences under section 195 of the Crimes Act 1961.

Source: Ministry of Justice

Murder25253427392425311933
Manslaughter138233836284528233231
Attempted murder513613195691117
Kidnapping/abduction728111214211214981107114126
Rape238247327302210253207131169185
Unlawful sexual connection411370380410279349361310384365
Attempted sexual violation85747382585658425940
Indecent assault1,0991,1501,1121,2909471,054968794818972
Aggravated burglary507596741028377717669
Aggravated robbery411422479456582555523423363359
Robbery2159162204213258278233171155174
Grievous assault37489881,1571,2221,2091.3351,2581,3201,3031,302
Serious assault42,0242,5862,9932,9643,0313,2393,0903,2473,3643,345
Male assaults female52,9434,1574,0913,7533,3353,1453,0432,9162,9162,630
Assault on a child6212299302326298294304280294292
Minor assault4,0364,5424,6884,4624,4324,5164,2453,9593,8483,767
Threaten to kill/do grievous bodily harm413518511585602633641628626699
Cruelty to a child739222417171740212319
Other violence8791871231251019994119112
            Total13,09515,84516,71416,49715,68316,13115,28714,57714,69314,537

Assaults on children. Convictions for assaults on children aged less than 14 years (under section 194(a) of the Crimes Act 1961) have been stable since 1994, at approximately 300 convictions annually.

Assault. The number of convictions in the most serious category of assault - grievous - increased markedly between 1993 and 1998, but levelled off after that. Serious assaults generally showed an increasing trend during the decade, although the 2002 figure was slightly lower than the previous year's figure. Convictions for minor assault peaked in 1995 and have generally decreased since then.

Other convictions. Convictions for threatening to kill or do grievous bodily harm showed a strong upward trend between 1993 and 2002. The number of convictions in 2002 (699) was 69 percent higher than the number in 1993. Convictions for other offences against the person have been relatively stable since 1995, at around 3,500-3,700 convictions annually (see Table 10.04).

Table 10.04. Convictions for other offences against the person

Offence type1993199419951996199719981999200020012002

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

Incest4744461412103126
Other sex1402427363416332294244293413447
Obstruct/resist22,0952,2292,4122,4712,2692,4932,4052,3792,2892.382
Threats/intimidation3277343440412466477549561618654
Other146170242264182244258252380294
            Total2,9673,2133,5033,5773,2613,5183,4593,4923,7023,783

Property. Property offences comprise the second largest group of offences resulting in conviction. In 2002, 28 percent of all convictions were for offences against property. The number of convictions for property offences remained reasonably stable between 1993 and 1996, at around 57,000 convictions annually (see Table 10.05), but decreased significantly in the last six years of the decade. The 2002 figure of 47,690 was the lowest recorded in the decade. Most of the decrease in property offences was due to a decrease in the number of convictions for fraud. Between 1994 and 1996, there were between 21,000 and 22,000 convictions for fraud each year, but by 2002 the number had dropped to 12,846. This was the lowest number of convictions for fraud recorded in the decade. The decrease needs to be treated with caution, however. Many offenders convicted of fraud face a large number of charges, so the total number of fraud charges could change significantly without the number of people being convicted of fraud necessarily changing much. In fact, the number of cases where the most serious offence was fraud was only about 420 fewer in 2002 than in 1996.

Table 10.05. Convictions for property offences

Offence type1993199419951996199719981999200020012002

1Includes fraud, false pretences, and forgery.

2Mostly unlawfully interfering with or getting into/onto a motor vehicle or motorcycle, unlawfully taking a bicycle, entering with intent, possessing instruments for burglary or conversion, providing misleading information to obtain a benefit, or misleading a social welfare officer.

Source: Ministry of Justice

Burglary7,3586,8936,7126,6846,7196,3745,9386,3395,5025,733
Theft15,41513,61112,78013,33213,20813,79313,72013,24614,14513,946
Receiving stolen goods4,1093,4793.1183,1483.0843.3743,0003,0102,8272,442
Motor vehicle conversion2,5532,6592,8102,8312,7932,5382,4312,1732,0532,096
Fraud119,48021,70821,96021,33618,66117,12415,07814,39414,22012,846
Arson188191191165198313209170198213
Wilful damage4,1044,8815,1774,8384,8005,0875,1565,2325,0655,109
Other24,0754,0164,2244,3684,2114,6925,6465,0714,7055,305
            Total57,28257,43856,97256,70253,67453,29551,17849,63548,71547,690

Motor vehicle conversion. The number of convictions for motor vehicle conversion averaged about 2,730 between 1993 and 1997, before dropping in the next five years to 2,053 in 2001. The 2002 figure (2,096) was marginally higher.

Drug offences. Eighty-four percent of drug convictions in 2002 involved cannabis. As Table 10.06 shows, annual convictions for drug offences fluctuate between about 11,000 and 14,000, with 2002 having the lowest number of convictions since 1996. Seven percent of all convictions in 2002 were for drug offences.

Table 10.06. Convictions for drug offences

Offence type1993199419951996199719981999200020012002

1Mostly offences relating to the possession of pipes, needles, syringes or other drug-related utensils. The category also includes offences where the offender permitted his or her premises or motor vehicle to be used for a drug offence, or where the offender made a false statement in relation to the Misuse of Drugs Act.

Source: Ministry of Justice

Use cannabis7,4177,3885,9265,6526,4596,9706,7616,1315,5414,990
Deal in cannabis3,4894,2193,4373,4593,7083,9773,9163,8843,5893,307
Other cannabis11,4781,7301,4691,4771,7302,1722,2552,1862,1832,076
Use other drug336334389350444412493676544668
Deal in other drug355379380497496415405459403784
Other drug1164147191159160222191313295470
            Total13,23914,19711,79211,59412,99714,16814,02113,64912,55512,295

Driving convictions. Convictions for driving offences resulting in the death or injury of another person decreased since 1998 to the lowest level recorded in the decade to 2002. Convictions for driving with excess alcohol averaged 24,500 each year between 1993 and 1998, but have generally shown a decreasing trend since then, to a decade low of 20,827 in 2002. Convictions for driving while disqualified decreased considerably from 10,451 in 1999 to 6,870 in 2002. Prior to 1999, there had been an average of nearly 11,000 convictions for this offence each year. It is likely the roadside impoundment of vehicles driven by disqualified drivers from May 1999 had an impact on the number of convictions for driving while disqualified. Convictions for reckless or dangerous driving showed a generally increasing trend across the decade, from 2,109 in 1993 to 3,019 in 2002. There was a general downward trend during the decade in the number of careless driving convictions, with the 2002 figure being 27 percent lower than the 1993 figure.

Traffic offences. From 1993 to 1998, traffic offence convictions averaged about 62,000 a year, but dropped to just under 55,000 in 2002, the lowest number of traffic convictions recorded in the decade (see Table 10.07). Despite the decrease in convictions, traffic offences still comprise the largest group of offences resulting in conviction (32 percent of all convictions in 2002).

Table 10.07. Convictions for traffic offences

Offence type1993199419951996199719981999200020012002

1Charges involving driving with excess alcohol, reckless/dangerous driving, or careless driving where death or injury occurred. It is no longer possible to distinguish in the data between charges resulting in injury and charges resulting in death. A small number of people who kill a person while driving a motor vehicle are charged with manslaughter rather than driving causing death.

2Mostly charges where the person was driving with excess alcohol, but also includes charges where the offender refused to supply a blood specimen, or was convicted for driving under the influence of drink or drugs. Charges where a person was driving with excess alcohol and caused death or injury are included in the first category in this table.

Source: Ministry of Justice

Driving causing death or injury11,5611,6201,7391,6541,5561,6791,5751,4461,4221,406
Driving with excess alcohol224,07922,65225,45625,42724,67224,81923,10121,60122.36320,827
Driving while disqualified11,05610,69510,45110,94810,74611,60510,4517,8627,3996,870
Reckless/dangerous driving2,1092,1362,4432,5212,6112,8812,9392,6912,7733,019
Careless driving11,32411,31912,34511,1399,63910,2489,1778,4177,9618,262
Other traffic12,04911,08611,59011,49411,27810,96911,54215,0011 4,65514,219
            Total62,17859,50864,02463,18360,50262,20158,78557,01856,57354,603

Offences against the administration of justice. As shown in Table 10.08, the number of convictions for offences against the administration of justice increased considerably between 1993 and 1998. Figures levelled off between 1999 and 2001, with a slight decrease in 2002. Offences against the administration of justice accounted for 9 percent of all convictions in 2002, compared with 7 percent in 1993.

Table 10.08. Convictions for offences against the administration of justice

Offence type1993199419951996199719981999200020012002

1A dash (-) indicates that the offence was not legislated for in that particular time period.

2Community work is a new sentence introduced on 30 June 2002 by the Sentencing Act 2002.

3The sentence of periodic detention was abolished by the Sentencing Act 2002 on 30 June 2002.

4Failure, without reasonable excuse, to comply with any condition of release from prison.

5The sentence of community service was abolished by the Sentencing Act 2002 on 30 June 2002.

6Failure by a person on bail to appear in court at a specified time and place.

7Non-molestation orders were replaced by protection orders under the Domestic Violence Act 1995.

8Mostly escaping from custody in a penal institution, or escaping from police custody. Also includes a small number of charges of escaping from another type of institution such as a psychiatric hospital.

Source: Ministry of Justice

Breach community work1,2--------528 
Breach periodic detention36,6437,1017,3027,5527,3187,5327,0116,6236,2575,553
Breach supervision595714678558634601553502577500
Breach parole4469321194208180202199235267310
Breach community service5454418403335326282220246219277
Failure to answer bail62,6682,8983,3803,6223,9594,0134,1244,2854,3074,395
Breach non-molestation/protection order73794374214961,2231,8812,1172,2572,3602,038
Escape custody8319351424387380424406372292285
Obstruct/pervert course of justice9311788122155152132143115128
Other643665631622644598544802623983
            Total12,26313,02213,52113,90214,81915,68515,30615,46515,01714,997

Protection orders. The number of breaches of protection orders increased dramatically between 1996 and 2001, although the rate of increase has slowed in recent years. The 2002 figure (2,038) was slightly less than the 2001 figure (2,360). The 2,038 convictions for breaches of protection orders in 2002 was more than five times the 379 breaches of non-molestation orders in 1993.

Offences against good order. Offences against good order have increased since 1993 (see Table 10.09), with the number of convictions in 2002 the highest recorded in the decade. Convictions for disorderly behaviour more than doubled during the decade, from 3,099 in 1993 to 7,160 in 2002. Convictions for trespassing offences also showed an increasing trend during the decade. Police indicate that increases in drug and anti-social offences reflect an increase by police in enforcement and street policing.

Table 10.09. Convictions for offences against good order

Offence type1993199419951996199719981999200020012002

1Mostly behaving in a disorderly or offensive manner (s.4 Summary Offences Act 1981), disorderly or threatening behaviour (s.3 Summary Offences Act 1981), and fighting in a public place (s. 7 Summary Offences Act 1981).

Source: Ministry of Justice

Riot307872523156
Unlawful assembly30446433694021231730
Possessing offensive weapon1,1771,2451,1971,2571,2591,4171,4171,3101,4441,540
Offensive language641693675663598650699681645583
Disorderly behaviour13,0993,6724,2844,6124,6615,1305,6456,1496,9337,160
Trespassing2,2022,3972,7372,8592,9973,0283,0063,1353,0923,292
Other291307320300336285269265254249
            Total7,4438,3589,2849,7329,92710,55211,06211,58612,40012,860

Miscellaneous convictions. The wide variety of offences included in this category makes it difficult to explain total annual fluctuations in the number of convictions for these offences. Legislative amendments to the Dog Control Act 1996 and the Sale of Liquor Act 1989 led to large decreases in the number of convictions under these acts, as shown in Table 10.10.

Table 10.1. Convictions for miscellaneous offences

Offence type1993199419951996199719981999200020012002

1Excludes a small number of offences prosecuted under this act which were categorised as violent offences against the person.

2The Dog Control Act 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.

4Includes convictions under the Sale of Liquor Act 1962 and the Sale of Liquor Act 1989 (from 1 April 1990).

5This category comprises convictions under the Fisheries Act 1983 and related regulations, eg commercial fishing regulations and freshwater fisheries regulations.

6Includes a wide variety of offences such as breaches under the Health and Safety in Employment Act 1992; the Insolvency Act 1967; the Resource Management Act 1991; the Films, Videos, and Publications Classification Act 1993; the Building Act 1991, the Telecommunications Act 1987; the Medicines Act 1981; and the Conservation Act 1987.

Source: Ministry of Justice

Arms Act11,029934826866880952921857705739
Dog Control Act26,7147,7236,8287,4401,641885592432491346
Tax acts36,8145,0964,3893,7102,4712,4642,1052,2693,7734,196
Liquor-related49751,1639409289571,2001,181223190251
Fisheries Act59831,247453310319714455750762721
Other62,9452,6042,9573,7473,4383,8864,1833,1323,3753,981
            Total19,46018,76716,39317,0019,70610,1019,4377,6639,29610,234

Characteristics of convicted offenders. Male offenders accounted for 83 percent of all cases that resulted in conviction in 2002 for which the gender of the offender was known. Forty-eight percent of all convicted cases in 2002 for which the ethnicity of the offender was known involved Europeans, 41 percent involved Maori, 8 percent involved Pacific peoples and 3 percent involved offenders of some other ethnicity. Twenty percent of all cases that resulted in conviction in 2002 and for which the age of the offender was known, involved teenage offenders, 38 percent involved offenders in their 20s, 24 percent involved offenders in their 30s and 19 percent involved offenders aged 40 and over.

Sentencing for all offences

Throughout the decade ending 2002, 7 to 9 percent of people convicted each year received a custodial sentence, with the proportion being marginally higher since 1997 than in the earlier years of the decade. In 2002, 7,996 cases resulted in a custodial sentence.

The number of imprisonment sentences imposed of more than one year increased through the decade, while the number of imprisonment sentences imposed of one year or less decreased. As a result, the average custodial sentence length imposed (including preventive detention) increased during the decade, from 11.2 months in 1993 to 15.4 months in 2002.

Only 8 percent of cases resulting in custodial sentences in 2002 involved female offenders.

In cases where the ethnicity of offenders was available, Maori accounted for just over half (51 percent) of the cases resulting in imprisonment in 2002, while 40 percent involved Europeans and 7 percent involved Pacific peoples.

Cases involving offenders in their 20s accounted for 40 percent of custodial sentences in 2002, with 12 percent of cases involving teenagers (almost all being aged 17 to 19). Only 18 percent of offenders given a custodial sentence in 2002 were aged 40 or more.

Between 29 percent and 36 percent of all convictions in each year of the decade resulted in the imposition of community-based sentences. This percentage has shown a decreasing trend since 1999, with the 2002 figure (29 percent) being the lowest of the decade.

The use of monetary penalties (in particular, fines) as the most serious sentence fluctuated between 48 percent and 53 percent of all cases during the decade. Part of the fluctuation was due to legislative changes affecting the number of non-imprisonable offences resulting in conviction and a fine.

Figure 10.02 shows sentence types imposed for all offences, while Table 10.11 lists the number of sentences imposed for each sentence type from 1993 to 2002.

Figure 10.02. Sentences for all offences

Sentences for all offences

Table 10.11. Sentencing for all offences1

Sentence type1993199419951996199719981999200020012002

1Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

2A dash (-) indicates that the sentence type was not legislated for in that particular time period.

3Community work was introduced from 30 June 2002 by the Sentencing Act 2002.

4Sentence abolished from 30 June 2002 by the Sentencing Act 2002.

5Community care was renamed ‘community programme’ by the Criminal Justice Amendment Act 1993.

6Supervision was modified to include the ‘care’ aspect of community programme from 30 June 2002 by the Sentencing Act 2002.

7Monetary penalties are fines and reparation.

8To come up for sentence if called upon or a suspended prison sentence. Suspended prison sentences were abolished from 30 June 2002 by the Sentencing Act 2002.

9Mainly cases that resulted in disqualification from driving, or an order under s.118 of the Criminal Justice Act 1985 for treatment of the offender in a psychiatric hospital. Deportation orders are also included in this category.

10Conviction and discharge under section 20 of the Criminal Justice Act 1985, or section 108 of the Sentencing Act 2002.

Source: Ministry of Justice

Custodial7,9897,3617,2467,7878,1028,2558,1777,8867,8057,996
Community work2,3---------12,743
Periodic detention422,06520,77719,43719,11619,51021,34020,48118,39518,4618,777
Community programme4,51,05889988070343037928720320653
Community service49,7319,4068,6258,0307,8128,5258,2267,1246,7643,075
Supervision63,9394,9775,1665,1665,0375,0044,5504,0243,3672,321
Monetary749,73852,17654,71554,93147,51547,16547,32647,21548,02848,643
Deferment83,7793,5303,1463,4993,2333,5603,5023,5903,6063,633
Other98697858057898089831,1161,1251,1361,226
Conviction and discharge104,1954,7844,9024,6564,0684,9944,9825,9456,2346,133
            Total103,363104,695104,922104,67796,515100,20598,64795,50795,60794,600

Victim Support

Victim Support is a community, not-for-profit organisation providing a 24-hour, seven-day-a-week support service for victims of crime, accident and emergency.

Of those receiving support, 90 percent are victims of crime. Other victims include families and survivors where there has been a serious transport accident, sudden death, a suicide attempt or completion, or a natural disaster.

A range of support services based on the victim's needs are provided by trained volunteer workers. These include crisis intervention at the time of an incident, where practical and emotional support is offered; advice on other services and agencies available to the victim; provision of information about police investigations and judicial processes; and ongoing support as needed, particularly throughout the criminal justice process. This latter support includes assisting the victim to prepare a victim impact statement, attending court with the victim, and supporting victims who have agreed to participate in a restorative justice conference.

Other services available to victims and managed by Victim Support include free counselling for families and close friends of victims of a homicide; financial assistance for victims who wish to travel to a high court trial or to present a submission to a parole hearing; and advice on and assistance with improving home security for low-income people who have been victims of repeat burglaries.

Funding for Victim Support comes from four main sources:

  • Government contracts for services.

  • Grants from the Community Organisation Grants Scheme, the lottery board and philanthropic trusts.

  • Local fund raising.

  • Donations.

A significant recent change for Victim Support has been the transfer of contract for services from the Community Funding Agency to the Ministry of Justice.

Victim Support works closely with the police, who provide office accommodation and facilities. A memorandum of understanding formalises the relationship between the two organisations.

Victim Support groups are affiliated to the New Zealand Council of Victim Support Groups Incorporated. A key role of the council is to advocate for victims' rights. Recent government initiatives have resulted in Victim Support providing comment on the Victims' Rights Bill, the Injury Prevention and Rehabilitation Bill, court-ordered restorative justice conference pilots and a review of youth justice.

Table 10.12. Victim Support Operations and funding Years ending 30 June

Category200120022003

Source: New Zealand Council of Victim Support Groups

Victim Support groups666767
Staff employed (full-time equivalent)535353
Contacts made with victims212,443140,659187,211
Volunteer workers1,3261,3111,304
Hours of service given by volunteers134,70073,28480,137
Ministry of Justice funding (including GST)$1.2 million$1.7 million$1.9 million
Funding for victim assistance schemes (including GST)$583,000$653,000$653,000

Table 10.12 provides details of Victim Support activities for the years ending 30 June 2001-2003.

Rape Crisis

Rape Crisis and related groups offer a variety of services, which may include support for survivors of rape and/or sexual abuse (women and children), 24-hour rape/sexual abuse hot lines, and training and educational presentations to schools, community and parent groups, the law enforcement community and businesses.

Some groups are affiliated to a national collective which lobbies for legal reform, and liaises with government departments, the media, other non-government organisations and the funding community.

Rape Awareness Week is an annual initiative during which pamphlets, posters and tip cards are distributed, and various educational and informational programmes are held.

10.3 Corrections system

The core responsibility of the Department of Corrections is management of the New Zealand corrections system. The purpose of the corrections system is to contribute to the maintenance of a safe and just society.

As part of this responsibility, the department ensures that custodial sentences (imprisonment) and non-custodial sentences and orders (home detention, supervision, community work, release on conditions, and parole) imposed by the courts and the New Zealand Parole Board are administered in a safe, secure, humane and effective way.

The department aims to contribute to the maintenance of a safe and just society by reducing the level of re-offending through the delivery of targeted and appropriate rehabilitative and re-integrative interventions.

The department also provides information on offenders to the courts and the New Zealand Parole Board to assist them in their decision making.

The department operates 17 public prisons, 12 Community Probation Service area offices (with staff at 143 locations nationwide), eight Psychological Service offices, 11 prison-based special treatment units (three drug and alcohol units, two sex offender units, five Maori focus units and one violence prevention unit) and the department's head office in Wellington.

The Department of Corrections is made up of six groups and services headed by a chief executive, who has overall responsibility for the department.

The chief executive is responsible to the Minister of Corrections for the broad direction of the department's work, for goal and objective setting, policy advice formulation, effective implementation of major policy decisions, determining the department's priorities, and effective administration of the organisation.

The six groups and services that make up the Department of Corrections are: finance, strategic services, corporate management, policy development, Public Prisons Service, and Probation and Offender Services.

Contracted facilities and services

Auckland Central Remand Prison. The Department of Corrections signed a $102 million, five-year contract with Australasian Correctional Management Pty Ltd (ACM) in July 1999 to run New Zealand's first contract-managed prison. Management of the prison reverted to the department in 2004.

The Auckland Central Remand Prison began operating on 13 July 2000 and received its first inmates on 20 July 2000. The agreed operating capacity for the prison is 272, which includes up to 22 special needs inmates (inmates who have been identified as at risk of self-harm). Included in the 272 are 32 sentenced inmates who work in internal services such as the kitchen and laundry.

Prisoner escort and courtroom custodial services. The Department of Corrections signed a contract with Chubb New Zealand Ltd in October 1998 to supply prisoner escort and courtroom custodial services in the Northland and Auckland regions. This included escorting prisoners between penal institutions, courts and forensic psychiatric units, and court custody of prisoners appearing for judicial purposes, work previously undertaken by police and Public Prisons Service officers.

Crime reduction

The government agreed in 2001 to the development of a Crime Reduction Strategy (CRS) to replace the 1994 New Zealand Crime Prevention Strategy. The purpose of the CRS is to establish priorities for preventing and reducing crime. The CRS targets the following areas:

  • Family violence, including child abuse.

  • Other violence, including sexual abuse.

  • Burglary.

  • Theft of and from cars.

  • Organised criminal activity.

  • Serious traffic offending.

  • Youth offending and re-offending.

The CRS emphasises a partnership approach between government agencies, local government and communities. Target groups include victims, particularly repeat victims, Maori, Pacific peoples, at-risk families and those affected by drugs, alcohol or gambling. An action plan to reduce community and sexual violence was launched in June 2004 by the Ministry of Justice's Crime Prevention Unit (CPU). The CPU has also implemented changes to the funding of local government community crime prevention activities. From 1 July 2004, funding is being provided to local authorities on criteria determined by their crime prevention needs, including the size of population and crime rates. Metropolitan and provincial authorities are being funded directly on the basis of a crime prevention plan designed to meet local needs. Smaller and rural authorities are being funded on the basis of approved crime prevention projects. The CPU has crime prevention partnership agreements in place with four iwi and also funds crime prevention projects and programmes directly through individual contracts. The biggest contracted programmes are community-managed restorative justice programmes, community youth programmes run in conjunction with the New Zealand Police and neighbourhood-based safety programmes. The appropriation for community crime reduction and prevention initiatives in the 2004/05 financial year was $7,822 million, compared with $5,912 million in the previous financial year.

Probation and Offender Services

Probation and Offender Services comprises the service delivery arms of the Department of Correction responsible for the Community Probation Service, Psychological Service and Intervention Services. The latter is a new service operational from July 2004. The Community Probation Service (CPS) undertakes non-custodial sentences and orders. These include supervision, community work, parole orders, home detention, and release from prison on conditions. The service manages approximately 38,000 community-based sentences and orders each year, and provides information and reports to judges to assist them in making sentences and release decisions. As part of managing these sentences, CPS provides responsive and rehabilitative programmes to help address the needs that contribute to offending. Table 10.13 shows the number and type of community-based sentences from 1997 to 2003.

The Psychological Service provides specialist clinical assessment and treatment to offenders. The service also develops and delivers rehabilitative programmes for three special treatment units: two for male sex offenders who have offended against children, and one for violent offenders. In addition the service undertakes psychological research that helps to improve risk assessment, targeting and treatment effectiveness for both the service and the department.

Table 10.13. Community-based sentences1

Sentence1997199819992000200120022003

1Numbers commencing sentences in years ending 30 June.

2Introduced by the Sentencing Act 2002, with effect from 1 July 2002.

3Introduced by amendments to the Criminal Justice Act 1985, with effect from 1 October 1999.

4Introduced by the Parole Act 2002, with effect from 1 July 2002.

5Abolished by the Sentencing Act 2002, with effect from 1 July 2002.

... not applicable

Source: Department of Corrections

Community work2..................27,936
Supervision10,0789,9249,9458,9038,3186,7965,059
Parole2,0922,2452,3682,3112,4382,3931,923
Home detention3.........3027728611,575
Post release conditions4..................1,461
Periodic detention522,60923,93424,86120,01220,43320,404...
Community service511,61310,67010,9348,7508,3877,557...
Community programme5584418365240230180...

Community work. Community work is a community-based sentence that requires offenders to do unpaid work in the community. The aim of community work is for offenders to pay something back to the community for the offence they have committed. It also gives offenders an opportunity to take responsibility for their offending and learn new skills and work habits.

People sentenced to community work report to a probation officer at a Community Probation Service centre. In order to establish how the offender will complete a sentence, the probation officer takes into account the offence the person has committed, personal circumstances and needs and skills. Community work can be either in a group supervised by the Community Probation Service, or on an individual and/or group basis with an agency. The act specifies who can be an agency for community work. Community work projects include those sponsored by local councils, government agencies, voluntary organisations, marae organisations, sports groups and other community groups. If the work is supervised by an agency, probation officers check that the offender has completed the right number of hours and completed the work to the required standard.

Offenders can be required to do between 40 and 400 hours of community work. If offenders are sentenced to more than 200 hours of work, the hours need to be completed within two years. Sentences of 200 hours or less need to be completed within one year. Offenders can, in most cases, continue with their regular jobs while serving community work sentences. Some offenders may be given a sentence of supervision as well as community work. In these cases, as well as doing work in the community, offenders may also have to report regularly to a probation officer and attend programmes aimed at addressing their offending. If offenders on community work do not meet the conditions of their sentence, they may be returned to court. If an offender is convicted of breaching or not meeting requirements, the court may impose up to three months imprisonment or a $1,000 fine.

Supervision. Supervision is a rehabilitative community-based sentence, which requires offenders to address the causes of their offending. Offenders can be sentenced to supervision for at least six months and for a maximum of two years. When an offender has been convicted of an offence and is waiting to be sentenced, probation officers assess the person's offending and the most suitable form of sentence and programme. If the offender is sentenced to supervision, the information gained from the assessment may be included in the conditions of the supervision sentence. An offender will have standard conditions as part of the sentence and the judge may also impose special conditions to address the offender's needs.

Standard conditions include reporting to the Community Probation Service and restrictions on living and working arrangements and associating with people. Special conditions include participation in treatment, personal development or rehabilitative programmes and addressing any other issues which reduce the person's risk of re-offending. Probation officers work with offenders to address the causes of their offending. As part of rehabilitation, offenders may have to attend rehabilitative programmes. Probation officers may also work with family, friends and colleagues of the offender. In addition to a sentence of supervision, the court may also order the offender to pay a fine, pay reparation to victims, or do unpaid work in the form of community work. Probation officers ensure that offenders on supervision complete all the conditions of their sentence. If offenders do not meet the requirements of their sentences, they are returned to court. If an offender is convicted of breaching or not meeting the requirements of the sentence, the court may impose up to three months imprisonment or a $1,000 fine.

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 conditions imposed as part of parole. In the year ending 30 June 2003, the Community Probation Service supervised 3,453 offenders on parole.

Home detention. Home detention is a community-based option granted by the New Zealand Parole Board that allows offenders to serve part of their prison sentences at home or at an approved place of residence. Offenders live at home under electronic surveillance and receive intensive supervision by a probation officer.

Home detention allows offenders to maintain family relationships, keep working or actively look for work, and attend rehabilitative programmes designed to address causes of their offending. Offenders who are subject to short-term prison sentences of two years or less can, if the sentencing judge allows, apply to the New Zealand Parole Board to serve their sentences on home detention. Offenders sentenced to long-term prison sentences can also apply to be released on home detention three months prior to their parole eligibility date.

Home detention is available in most parts of New Zealand. Once an application for home detention is made, the Community Probation Service prepares a report for the parole board on the offender's suitability and how he or she will be managed while on home detention. This report examines the offender's risk to the public, motivation to change behaviour, risk of re-offending, suitability of the proposed residence and any comments from victims. The probation officer discusses home detention with the family or other residents who live at the address. The probation officer will inform the residents of the offender's past and present convictions and seek their consent before an offender is released to home detention. The probation officer will also investigate what employment and rehabilitative programmes are available for the offender. Approved offenders sentenced to less than two years are released from home detention automatically after half of their sentence. If the offender fails to meet the conditions of home detention, the probation officer may make a recall application to the parole board to have the offender sent to prison. Offenders on home detention wear an anklet that continuously emits a signal to a monitor while they are at home. If the offender tries to remove the anklet or leaves the property without permission, an alarm is triggered and a security guard is dispatched to the house.

While on home detention, offenders are subject to intensive supervision by a probation officer, which includes a minimum of three visits a week for the first half of the home detention order. Offenders may have set conditions as part of their release on home detention. These may cover where the offenders can work, with whom they can associate and may also cover the rehabilitative activities or programmes offenders have to attend. Offenders can work while on home detention, but only as authorised by the probation officer. Offenders who are not working can apply for the appropriate benefit and may be expected to actively seek employment.

There were an average 5,882 prison inmates in New Zealand in the six months ending 30 June 2003, compared with an average 5,738 a year earlier.

Public Prisons Service

The Public Prisons Service is responsible for running all of New Zealand's 18 prisons. It is responsible for providing prison services that are safe, secure, humane and which contribute to reducing re offending. The service is also responsible for managing the sentence needs of each offender, including rehabilitation and reintegration.

The service manages inmates' security, with two key priorities. The first focuses on community safety, ensuring inmates are securely contained in prison for the duration of their sentence. The second concentrates on encouraging inmates to address the things that drive their criminal lifestyle and take steps to change their offending behaviour.

Figure 10.03 shows the number of inmates in prison in New Zealand per 10,000 population.

Figure 10.03. Prison inmatesPer 10,000 mean population Years ending 31 December

Prison inmatesPer 10,000 mean population Years ending 31 December

Table 10.14. Penal institutions At 31 July 2003

InstitutionCapacity

Source: Department of Corrections

Male prisons 
Waikeria877
Christchurch704
Rimutaka666
Auckland645
Hawke's Bay Regional568
Tongariro/Rangipo442
Mt Eden421
Wanganui370
Rolleston320
Manawatu278
Auckland Central Remand Prison272
Invercargill172
Wellington120
New Plymouth109
Ohura98
Dunedin59
Female prisons 
Arohata128
Christchurch Women's98
Mt Eden (women's division)54

The 18 Public Prisons Service prisons are operated within five regions, with a national office in Wellington. The national office is responsible for supporting the regions and for providing advice on policy development.

The service's prisons are listed in Table 10.14.

Inmates with different security classifications are held at each institution. Fourteen prisons receive remand inmates as well as sentenced inmates.

In the year ending 30 June 2003, the average cost of keeping a person in prison was $57,017, compared with $51,036 five years earlier.

Proceeds of crime

Apart from his role in company liquidations and bankruptcies, 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 assets are not depleted or destroyed while a criminal trial is pending, or a further application under the act is to be heard.

If the court orders forfeiture of a criminal's property, or that restrained property be sold to satisfy a pecuniary penalty, the Official Assignee takes the necessary steps to realise those assets and transfer proceeds to the Crown.

In the year ending 30 June 2003, the Official Assignee, in relation to proceeds of crime matters, returned $3,666,267 to the Crown, compared with $505,250 in the 2002 year and $325,000 in 2001.

Detention in a penal institution

Two new pieces of legislation, the Sentencing Act 2002 and the Parole Act 2002, came into effect on 30 June 2002 and largely replaced the Criminal Justice Act 1985. The result of a government commitment to review sentencing and parole regimes, the new acts seek to provide greater clarity, consistency and transparency in sentencing and improve the parole decision-making structure.

The Public Prisons Service administers and manages custodial sentences imposed on offenders sentenced to penal institutions. The service also manages remand offenders pending court appearances or sentencing.

At the time of sentencing, a judge may impose release conditions (both standard and special) on offenders sentenced to terms of imprisonment of 12 months or less, and must impose standard conditions on those sentenced to more than 12 months, but not more than 24 months. The courts may also impose special conditions on these offenders.

Under the new legislation, courts may defer the start of a person's prison sentence for up to two months, instead of one month as had previously been the case. Courts can also impose a minimum non-parole period of imprisonment on any offender sentenced to more than 24 months, if they are satisfied that the circumstances of the offence are sufficiently serious. This period can be up to two-thirds of the sentence, or 10 years, whichever is the lesser. If sentenced to 24 months or less, offenders are released after serving half their sentence.

Offenders sentenced to more than 24 months imprisonment can be released before their sentence end date only by the parole board. Offenders are eligible to be seen by the parole board after serving one-third of their sentence, unless the judge imposes a minimum non-parole period greater than one-third. Offenders not released by the parole board on parole are released on their statutory release date, which is the last possible date they can be held. The board must impose standard conditions on offenders at their statutory release date to take effect for six months beyond that date. The board may also impose special conditions to apply for the same length of time.

Murder. A sentence of life imprisonment is no longer automatically imposed for murder. The law now states that the court must impose life imprisonment unless it is satisfied that this would be ‘manifestly unjust’. If the court chooses not to impose life imprisonment, it must give it reasons in writing. Ten years is the minimum non-parole period for anyone sentenced to life imprisonment for murder. The court must impose a minimum non-parole period of at least 17 years (unless it would be ‘manifestly unjust’) when the murder involves certain circumstances, including ‘if the deceased was a member of the police or a prison officer acting in the course of his or her duty’ or ‘if the deceased was particularly vulnerable because of his or her age, health, or because of any other factor’.

Preventive detention. Under the Sentencing Act 2002, the age limit for eligibility for preventive detention was lowered to 18. The range of offences to which preventive detention applies was also increased. A minimum non-parole period must be ordered by the court in each instance, but cannot be less than five years.

Victims. Victims of certain offences can apply under the Victims' Rights Act 2002 to receive specified information about offenders serving a sentence of imprisonment, either in prison or by way of home detention, or who have been released on parole. The New Zealand Police verifies all applications and sends them to the government agency responsible for notification. The Department of Corrections notifies registered victims of information such as the escape or death in custody of offenders, release to work, temporary releases and impending release dates. The New Zealand Parole Board (NZPB) is responsible under the Parole Act 2002 for notifying registered victims of impending parole hearings and the victim's right to make submissions to the board. Victims are also entitled to information about an inmate's sentence (including any programmes they have undertaken and completed and their security classification) to help them prepare their submission. The NZPB also notifies registered victims of the outcome of board hearings and, if the offender is released, any conditions on release that specifically relate to the registered victim or to submissions they have made to the board.

Parole eligibility and final release

Determinate sentences. An inmate serving a finite term of imprisonment of 24 months or less is not eligible for parole, but is automatically released after serving one-half of his or her sentence. An inmate serving a finite term of imprisonment of more than 24 months is eligible for parole after serving one-third of his or her sentence, unless the court has imposed a minimum non-parole period of longer than this. A non-parole period can be for 10 years or two-thirds of the total sentence, whichever is the lesser. When the offender is eligible for parole, his or her suitability for parole will be considered once a year, although further hearings can be postponed for up to two years. The inmate must be released on his or her statutory release date, if not granted parole before then.

Indeterminate sentences. An inmate sentenced to preventive detention is subject to a minimum period of imprisonment specified by the court, which must be for a term of at least five years. When the offender is eligible for parole, his or her suitability for parole will be considered once a year, although further parole hearings can be postponed for up to three years. An inmate serving a life sentence for murder is normally eligible for parole after serving 10 years of his or her sentence, unless the court has imposed a minimum period of imprisonment of longer than this. However, where there are unusual mitigating factors, the court may decide to impose a determinate sentence. Where there are one or more specified aggravating factors, the court must, unless it would be ‘manifestly unjust’, impose a minimum period of imprisonment of at least 17 years. When the offender is eligible for parole, his or her suitability for parole will be considered once a year, although further parole hearings can be postponed for up to three years.

New Zealand Parole Board. The New Zealand Parole Board, an independent statutory authority, hears all applications for parole. The board is made up of full-time and part-time members appointed from the community and the judiciary. The board operates in panels of three, with a district court judge convening each panel. The board's chairperson, who has oversight of all decisions, is a high court or former high court judge.

When making decisions relating to the release of an offender, the paramount consideration for the board is the safety of the community. Part of the focus of legislation is to give full consideration to the rights of victims, particularly their rights to provide input into parole hearings and home detention hearings.

Prison inmates

Inmate numbers. The number of inmates in New Zealand prisons has remained relatively stable since 2000. In the year ending 30 June 2003, there was an average daily muster of 5,826 inmates (5,552 males and 274 females). This was made up of a daily average of 4,846 sentenced inmates and 980 inmates remanded in custody. For the year ending 30 June 2001, there was a daily average of 5,855 inmates (4,957 sentenced and 898 on remand).

Census of prison inmates. There were 4,918 sentenced inmates in New Zealand when a census of inmates was carried out on 15 November 2001. This was 47 fewer than the 18 November 1999 census figure. In 2001, 4,716 of the sentenced inmates were males (4,759 in 1999), while 202 (206 in 1997) were females.

In addition, there were 862 remand inmates within prisons in 2001 (657 in 1999), of whom 830 were males (633) and 32 females (24).

In 2001, 174 offenders (130 males and 44 women) were held on home detention, making a grand total of 5,954 sentenced inmates (5,647 in 1999).

Unless specified, the following figures refer to sentenced inmates on the day of the 2001 census:

Age and ethnicity - Just under half of inmates were under 30 years of age (see Table 10.15). The highest proportion of both male (19.8 percent) and female (22.7 percent) inmates were in the 20-24 year bracket. Twenty-four percent of males and 19 percent of females were at least 40 years old.

For male sentenced inmates using a single ethnicity grouping, 53 percent identified themselves as Maori, 29 percent identified themselves as European and 11 percent identified as Pacific peoples. Corresponding figures for females were 55 percent Maori, 29 percent European and 11 percent Pacific peoples.

Table 10.15. Age distribution of inmates1At 15 November 2001 Census

AgeFemaleMaleTotal1
NumberPercentNumberPercentNumberPercent

1Excludes 26 female and 311 male inmates where age was not available.

... not applicable

Source: Department of Corrections

14-16......120.3120.3
17-1995.12716.22806.1
20-244022.787119.891119.9
25-292815.982518.785318.6
30-343318.879318.082618.0
35-393318.858713.362013.5
40-492614.866515.169115.1
50-5963.42696.12756.0
60+10.51122.51132.5
            Total176100.04,405100.04,581100.0

Major offence - As Table 10.16 shows, 62 percent of male inmates were imprisoned for violence (including sexual violence) offences. The next largest group of male inmates were those imprisoned for property offences (22 percent), followed by drug offenders (8 percent) and traffic offenders (6 percent). Female inmates were most likely to be imprisoned for violence offences (46 percent) or property offences (27 percent). Thirteen percent of female inmates were drug offenders and 9 percent traffic offenders. Of those imprisoned for violence, more than 34 percent, irrespective of gender, were in prison for robbery. The proportion of females in prison for homicide (38 percent) was considerably higher than for males (22 percent).

Sentence length - Males tended to have longer sentences than females (see Table 10.17). Twenty-eight percent of males were serving determinate sentences of more than five years, compared with 12 percent of females. However, 8 percent of female inmates were serving life sentences, compared with 6 percent of males.

Table 10.16. Major offence of sentenced inmates At 15 November 2001 Census

Major offenceFemaleMaleTotal1
NumberPercentNumberPercentNumberPercent

1Excludes eight female and 120 male inmates where major offence was not available.

Source: Department of Corrections

Violence8443.31,81039.41,89439.6
Sexual violence63.11,07223.31,07822.5
Against property5327.399121.61,04421.8
Involving drugs2512.93607.83858.0
Traffic189.32645.72825.9
Miscellaneous84.1992.21072.2
            Total194100.04,596100.04,790100.0

Table 10.17. Sentence length imposed At 15 November 2001 Census

Sentence lengthFemaleMaleTotal1
NumberPercentNumberPercentNumberPercent

1Excludes eight female and 120 male inmates where sentence length was not available.

- nil or zero

Source: Department of Corrections

Under 3 months73.6801.7871.8
3 months and under 6 months136.71954.22084.3
6 months and under 1 year2311.84519.84749.9
1 and under 2 years5126.381017.686118.0
2 and under 3 years2311.966214.468514.3
3 and under 5 years3719.179917.483617.5
5 and under 7 years157.74559.94709.8
7 and under 10 years52.649510.850010.4
10 years and over42.12254.92294.8
Life168.22966.53126.5
Preventive detention--1282.81282.7
            Total194100.04,596100.04,790100.0

Offending history - As shown in Table 10.18, female inmates on average had fewer previous convictions than their male counterparts. Of female sentenced inmates, 35 percent had no previous record, 39 percent had at least six previous convictions and 8 percent had more than 20. Of male sentenced inmates, 21 percent had no previous convictions, 42 percent had at least six and 9 percent had more than 20.

Table 10.18. Time in prison on previous occasions At 15 November 2001 Census

Time in prisonFemaleMale
NumberPercentNumberPercent

Source: Department of Corrections

No previous incarcerations12260.31,88840.0
Under 6 months146.94479.5
6 months and under 1 year146.92946.2
1 and under 2 years2311.44509.5
2 and under 3 years105.03527.5
3 and under 5 years94.54158.8
5 and under 7 years31.53116.6
7 and under 10 years31.52495.3
10 years and over42.03106.6
                Total202100.04,716100.0

Classification status - Males tended to have a higher security status than females. For male sentenced inmates, 44 percent were minimum security, 49 percent were medium security and 4 percent were maximum security. For female sentenced inmates, 54 percent were minimum security, 40 percent were medium security and 0.5 percent were maximum security. The rest were unclassified.

Earnings. Modest earnings are paid to inmates who work or are involved in reintegrative programmes. Amounts vary depending on the nature of the work or activity and the standard of performance. The money is banked in a personal trust account and inmates can spend it on personal items through a weekly shopping system. Any person who has been in custody for more than 31 days is eligible on release for the Steps to Freedom grant administered by the Ministry of Social Development. The grant is for up to $350, but the amount of any money in an inmate's trust account upon final release is deducted from the grant.

Punishment. An inmate charged with an offence against discipline appears before a prison superintendent, an authorised staff member or a visiting justice. If the inmate is found guilty, a penalty may be imposed. 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, including fines and reparation, and family expenses.

10.4 Police

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. New Zealand is divided into 12 police districts, each managed by a district commander. The Office of the Commissioner in Wellington provides policy advice and support to the government, the commissioner and districts. A number of service centres throughout New Zealand provide administrative support to districts.

Police have responsibility for enforcement of the criminal law, principally through the Crimes Act and the Summary Offences Act, but also through various other statutes such as the Arms Act, the Sale of Liquor Act, the Gambling Act, the Misuse of Drugs Act, Children, Young Persons and Their Families Act, the Police Act and the Transport Act.

Trained police prosecutors undertake summary prosecution in district courts of criminal offences investigated by the police. In some country districts, police hold additional appointments, such as registrars and bailiffs at district courts, and honorary fisheries officers.

The effective strength of the police at 30 June 2003 was 7,576 sworn personnel (248 more than at 30 June 2001), giving a full-time equivalent (FTE) of 7,257 sworn officers (an increase of 211). Approximately 16 percent of sworn officers in 2003 were women. Figure 10.04 shows the New Zealand population per sworn officer from 1878 to 2003. There were also 2,176 non-sworn full-time equivalent personnel (up 373 on the 2001 figure).

Figure 10.04. Population per sworn police officer1

Population per sworn police officer1

Police operations

Armed offenders squads. Police maintain 17 squads of specially trained and equipped officers throughout New Zealand. During the year ending 30 June 2003, armed offenders squads were deployed 534 times (562 in 2002). The squads work with police negotiators and other specialist police support staff.

Special Tactics Group. The Special Tactics Group consists 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.

Search and rescue. There were 1,080 police-controlled search and rescue operations during the year ending 30 June 2003 which searched for and/or rescued 1,483 people. The comparable activity in 2001/02 was 1,120 searches and 1,453 people.

National Drug Intelligence Bureau. As shown in Table 10.19, crime figures for the year ending 30 June 2003 show 23,714 cannabis and non-cannabis drug offences, representing 5.3 percent of total recorded crime. This figure compares with 23,839 offences in the previous financial year. While there was a small decrease in cannabis offences detected, there was a 14 percent increase in non-cannabis offences. Drug seizure figures are recorded on a calendar year basis. The number of cannabis plants seized declined from 90,857 in 2001 to 74,324 in 2002. Likewise, there was a drop in cannabis plant material seized, from 1,847 kilograms in 2001 to 593 kilograms in 2002. On the other hand, there were increased seizures of synthetic drugs and party drugs, including MDMA (ecstasy) and amphetamines. The first seizures of GHB (fantasy) were recorded. Police now record the number of clandestine drug laboratories located. These rose from nine in 2000, to 41 in 2001 and to 147 in 2002. Related to the emergence of clandestine drug laboratories in New Zealand have been seizures of precursor chemicals used in the manufacture of synthetic drugs, particularly methamphetamine. The increase in seizures of pseudoephedrine and ephedrine are shown in Table 10.20. Powers of search without warrant were used 4,911 times in 2002, compared with 3,940 in 2001.

Reported assaults on policeYears ending 30 June
YearTotalInvolving weapons (firearms)

Source: New Zealand Police

19931,50166 (29)
19941,924100 (26)
19952,10182 (34)
19962,06786 (23)
19971,91197 (36)
19981,92471 (23)
19991,87857 (13)
20001,96559 (19)
20011,99766 (18)
20022,15092 (30)
20032,06884 (27)

Table 10.19. Drug offences Year ending 30 June

Offence classRecorded 2000/01Recorded 2001/02Recorded 2002/03Variance over two years

Source: New Zealand Police

    Percent
Drugs (not cannabis)2,0242,7083,088+53
Drugs (cannabis)22,39521,13120,626-8
                Total24,41923,83923,714 

Table 10.2. Drug seizures By substance Years ending 31 December

Substance200020012002

1Seizures of MDMA powder have been converted to tablet equivalent.

- nil or zero

... not applicable

Source: New Zealand Police

Amphetamine (grams)12,1891,5391,037
Amphetamine (tablets)--480
Cannabis leaf (kgs)2,4671,847593
Cannabis oil (grams)9,5003,1471,342
Cannabis plants (number)105,13190,85774,324
Cannabis resin (grams)-435482
Cocaine (grams)8958267
Cocaine (coca leaf, grams)-4,25313
Ecstasy (cases)112123143
Ecstasy (tablets)19,35283,449256,350
Fantasy (millilitres)......5,170
Heroin (grams)0.555,536809
Ketamine (millilitres)--0.25
LSD (trips)19,3311,057431
LSD (grams)--13
Methamphetamine (grams)1,3702,6326,402
Morphine (grams)-954887
Morphine (millilitres)497--
Morphine (tablets)4181,285370
Psilocybine (grams)-4831,192
Psilocybine (mushrooms)-1,29587
Pseudoephedrine and ephedrine (tablets)10,30832,653254,987

Police Infringement Bureau. The Police Infringement Bureau administers the speed camera programme, the community road watch programme, and is the national processing centre for police-issued infringement offence notices. The bureau also carries out an adjudication function in connection with infringement notices. Police began speed camera operations in 1993 and from 1994 onward have delivered 74,000 hours of speed camera activity a year. Camera sites are selected by road safety and community groups who, together with police, identify areas with a history of speed-related accidents. ‘Anywhere/anytime’ cameras were introduced as part of the government's Road Safety to 2010 package introduced in December 2003. From April 2004, signage indicating speed camera zones were removed to encourage drivers to remain within the speed limits over the whole journey.

Criminal Investigation Branch. The Criminal Investigation Branch (CIB) is dedicated to investigating and solving serious crime, and targeting organised crime and recidivist criminals. The job of the branch is to investigate serious crimes such as homicides, aggravated violence, sexual offending, drug offences, crimes against society and fraud. Law enforcement teams in each police district target crime ‘hot spots’. Modern policing tools assist most complex crime enquiries. A criminal investigation database is used to record and organise information gathered during serious crime investigations. Intelligence-led policing and analytical computer tools are increasingly used to help police detect and suppress crime. Crime mapping is a tool that presents police with information on where certain crimes are being committed, while link charting enables detectives to plot the relationship between criminals and their activities.

More than 7,500 offenders were identified by their fingerprints in the year ending 30 June 2003.

Police dogs. A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ending 30 June 2003, police dogs were deployed to 44,751 incidents. As at 30 June 2003, there were 113 general-purpose dog teams.

The service operated 10 narcotic detector dog teams, three explosive detector dog teams and two firearm detector dog teams. Operations involving police dogs led to the apprehension of 6,835 suspects, clearance of 10,110 offences and the recovery of $606,709 in property, excluding motor vehicles, in the June 2003 year.

Youth Education Service. The Youth Education Service (YES) is the New Zealand Police's national strategy to deliver crime prevention programmes to schools and school communities. The mission of YES is to promote individual safety with school students and school communities and to reduce the level at which these groups become either the perpetrators or the victims of road crashes, crime and anti-social behaviour.

YES promotes a curriculum for schools that has four themes:

  • Crime prevention and social responsibility.

  • Drug Abuse Resistance Education (DARE).

  • School road safety education, eg the Road Sense strategy and school patrols.

  • Violence prevention, eg Keeping Ourselves Safe (personal safety) and Kia Kaha (bullying).

A team of 125 police education officers delivered 61,671 classroom sessions in schools during the year ending 30 June 2003.

Community constables. Nearly 200 community constables provide a more personal style of policing service in their areas, based on consulting and remaining in touch with their community so they know what their policing needs are.

Specific duties include identifying and assisting in solving local crime and disorder problems; providing crime prevention advice; maintaining a high profile and being approachable to the community and community representatives, including schools and children; and assisting and providing information to community groups and organisations such as Neighbourhood Support, Victim Support and community patrols. Community constables are fully trained uniformed officers who also perform general and road policing duties.

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. There were about 170 youth-aid staff throughout New Zealand at 30 June 2003.

Youth Development Programme workers from the Rahui Pokeka Matua Whangai Trust clear a Waikato River track near Huntly.

Community support groups. The involvement of communities in setting policing priorities is fundamental to the consultative community policing style of the New Zealand Police. Police work closely in a partnership relationship providing and receiving information from independent groups interested in crime prevention such as Neighbourhood Support New Zealand and Community Patrols of New Zealand. Police also work closely with Victim Support, Women's Refuge and other violence intervention, road safety, youth development and health groups interested in reducing crime and victimisation and making communities safer.

Contributors

10.1 Ministry of Justice; Department of Labour; Law Commission; Legal Services Agency; Crown Law Office.

10.2 Ministry of Justice; New Zealand Council of Victim Support Groups.

10.3 Ministry of Justice.

10.4 New Zealand Police.

Websites

www.justice.govt.nz - Crime Prevention Unit

www.crownlaw.govt.nz - Crown Law Office

www.courts.govt.nz - Department for Courts

www.corrections.govt.nz - Department of Corrections

www.dol.govt.nz - Department of Labour

www.dpmc.govt.nz - Department of Prime Minister and Cabinet

www.lawcom.govt.nz - Law Commission

www.lsa.govt.nz - Legal Services Agency

www.justice.govt.nz - Ministry of Justice

www.police.govt.nz - New Zealand Police

www.pco.parliament.govt.nz - Parliamentary Counsel Office

www.jpfed.org.nz - Royal Federation of New Zealand Justices' Association

www.stats.govt.nz - Statistics New Zealand

Chapter 11. Communications

A newspaper photographer uses digital camera, laptop computer and cellphone to download photographic images to his newsroom.

11.1 Overview

Rapid expansion in the use of computers, the internet, and mobile and digital technology has blurred the traditional distinction between communications - telephone, television, radio, broadcasting, facsimile and film - and information processing and storage.

Consequently, information and communications technologies (ICTs) have transcended their infrastructural role and have emerged as facilitators and enablers for complementary innovations. As such, they function primarily as ‘general purpose technologies’ and have a key role in both enhancing the lives of individuals and communities and accelerating economic growth.

The rapid expansion of the internet has probably caused more social and economic change than any other aspect of ICT. The internet gives individuals, communities, businesses and governments the ability to communicate with millions of others almost instantaneously and at low cost. However, as full participation by local, national and international communities becomes increasingly predicated upon both access to ICTs and the skills to use them, the need to ensure ‘digital inclusion’ is a constant challenge. New technologies also bring new problems, and concerns about cultural colonialism through globalisation, copyright, privacy, security, the spread of pornography and spam need to be addressed.

New Zealand's small size, geographic isolation and technologically-aware population have all contributed to the widespread and rapid uptake of ICTs. Electronic activities such as eftpos transactions, automatic teller machines and internet banking, digital photography, mobile phone texting and email are now well established in the economic and social lives of most New Zealanders.

New Zealand's relatively cheap dial up internet access facilitated the rapid adoption and diffusion of internet use. However, it may also have been responsible for a slower uptake of broadband services, since the expense of the latter is still comparatively high and the telecommunications companies provide few opportunities for uncapped data options. Nationwide availability of broadband throughout New Zealand was expected to be achieved by the end of 2004 as a result of a joint government and private sector initiative, Project PROBE.

New Zealand's light-handed regulatory approach means there are no specific licensing requirements to commence business as a telecommunications carrier, and no foreign ownership restrictions. This has allowed telecommunications companies to offer the whole range of ICT services, including television, telephony and internet access.

Competition has flourished and at the beginning of 2004, 16 companies were offering telecommunication services and there were 168 Internet Service Providers. In addition, internet cafes were common throughout the country, providing an hour's internet access for as little as $4.00.

Internet use. 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 Internet NZ (formerly the Internet Society of New Zealand). The Maori Internet Society, established with help from the Maori Language Commission among others, promotes a strong Maori presence on the internet and has successfully established the .maori.nz internet domain name. In general, there are minimal restrictions on New Zealand organisations registering a domain name in the .nz domain. At 30 December 2003, there were 142,468 registrations in the .nz domain, 310 in the .maori.nz domain and 59 in the .iwi.nz domain. In a 2003 e-government survey, more than 75 percent of New Zealanders had used the internet in the previous month, a higher proportion than in any other country. In the 10 years to 2004, the number of homes with a computer more than doubled, with 52 percent having at least one. While it is true that there is a strong relationship between internet usage and income, New Zealanders have a high level of accessing the internet on computers other than their own.

Figure 11.01 shows the growth in internet access since 1996, while figure 11.02 shows the most popular internet activities in the quarter ending 31 December 2003.

Figure 11.01. Growth in internet access
Proportion of New Zealanders with internet access at any location Years ending 30 September

Growth in internet accessProportion of New Zealanders with internet access at any location Years ending 30 September

E-government. The government has been quick to take advantage of the opportunities offered by information and communication technologies to drive its e-government vision of New Zealanders being able to access ‘government information and services, and participate in our democracy, using the internet, telephones and other technologies as they emerge’.

A four-phase strategy for the integration of information, service delivery and government processes from a single point by 2010 is being implemented.

Already, access to most government agencies is available online, through the ‘all of government’ web portal.

Indications are that e-government is welcomed by New Zealanders, with ACNielsen research showing that New Zealand government websites as a whole group (.govt.nz) are in the top five accessed by New Zealanders.

E-commerce. Information and communications technologies (ICTs) have created new opportunities for basic business activities to be web-enabled and/or conducted electronically, and indications are that New Zealand companies have responded well to the digital economy.

Business surveys show that 88 percent of New Zealand businesses use computers for an increasing variety of e-business activity, including electronic financial transactions, recruitment, purchasing, delivery coordination and training.

The government's original Electronic Commerce Strategy was focussed on establishing a regulatory, business and social environment supportive of e-commerce. An electronic commerce action team worked between 2001 and 2003 to help drive the uptake of e-commerce by New Zealand businesses, the success of which was reflected in rapid expansion of e-business capability.

As part of the government's Growth and Innovation Framework (GIF) 2002, ICT was targeted as one of three significant high-growth, high-value areas.

An ICT taskforce was set up charged with setting a vision for ICT development and cross-sector enablement. A number of initiatives followed the taskforce's report, aimed at increasing expertise in the ICT area, raising awareness of ICT and improving business capability in the ICT sector.

HiGrowth, a joint industry/government initiative, is strongly focussed on increasing the capability of the ICT sector.

Figure 11.02. Internet activities 2003
Measured over last four weeks of quarter ending 31 December

Internet activities 2003Measured over last four weeks of quarter ending 31 December

Seventy-nine percent of New Zealand businesses have internet access, which is higher than averages found in comparable Organisation for Economic Co-operation and Development countries such as Australia and Canada.

Eighty-seven percent of large businesses operate a website, though this figure drops to 44 percent for the smallest companies, which comprise the bulk of New Zealand businesses.

Employment in IT industries (excluding telecommunications services) reached 36,440 in 2002, more than double the 1988 figure.

New Zealand has a highly competitive IT market, with a range of equipment and software companies supplying both the domestic market and niche export markets overseas.

The total value of the New Zealand IT industry, excluding communications services, in the 2002 financial year was estimated at $7,055 million, up 1 percent on the previous year. This figure includes an unidentified amount of double counting of retail and wholesale sales.

Table 11.01 shows the growth in end-user IT sales between 1997 and 2002.

TUANZ. The Telecommunications Users' Association of New Zealand (TUANZ) recognises the value of effective and efficient use of information technology in business and is committed to leading the innovative use of e-commerce in New Zealand. The purpose of TUANZ is to lead informed and sophisticated usage of technology-based communications by New Zealand businesses. TUANZ has an interactive group involved in raising awareness of, and developing, interactive multimedia, an education group working with the teaching fraternity and a contact centre group, which works to raise the standard and develop the potential of the contact centre industry in New Zealand.

Table 11.01. Percentage changes in end-user IT sales

 199719981999200020012002

1The 2002 figure was an estimate so no percentage change is shown.

Source: Ministry of Economic Development

Single user computer systems-12.43.55.4-11.211.322.8
Multi-user computer systems-5.8-0.2-2.5-10.9-2.016.0
Peripheral computer equipment-5.711.614.3-9.33.217.5
Communications hardware and cables15.9-7.8-19.839.126.3-12.1
Software sales-13.927.724.3-15.927.03.0
Computer services4.513.717.215.92.7-3.4
Training and education in IT12.4-1.341.153.511.3-
                Total New Zealand end-user IT sales6.27.99.16.28.60.7

11.2 Broadcasting

Broadcasting policy

In 1988, the government embarked upon a series of legislative, regulatory and institutional changes intended to improve economic efficiency in the broadcasting sector.

The Broadcasting Corporation of New Zealand (BCNZ) was restructured as two separate state-owned enterprises - Television New Zealand (TVNZ) and Radio New Zealand (RNZ) - which were required to return a profit. Transmission assets were passed to Broadcast Communications Ltd (BCL), incorporated in 1989. Deregulatory measures to promote competition across the sector and reduce restrictions on foreign ownership were also adopted. A regime to maintain broadcasting standards was established and a set of local content objectives adopted and supported by contestable funding distributed via NZ On Air and, since 1993, Te Mangai Paho.

In 1995, the Radio New Zealand Act changed the status of RNZ from a state-owned enterprise to a Crown company with its own charter.

After a decade in which the direction and development of broadcasting has largely been driven by the commercial priorities introduced by the restructuring of the late 1980s, the current government has re-claimed a significant role in broadcasting. It has given a renewed priority to the role of broadcasting in contributing to the nation's culture and identity, and in the promotion of a well-informed participatory democracy, including encouragement of a diversity of sources of information. A number of significant changes have occurred, rebalancing within the mixed broadcasting economy the place of public broadcasting principles, objectives and institutions.

In July 2000, the government formulated a set of objectives to ensure that desired kinds of broadcast content were available to the New Zealand public. The objectives guided subsequent decisions, such as reorientation of the direction of TVNZ, and the allocation of non-commercial spectrum. These objectives are:

  • Ensuring that all New Zealanders have reasonable and regular access to broadcasting representing the uniqueness and diversity of New Zealand life, recognising that the histories and stories of whanau, hapu and iwi are integral to any description of that life.

  • Meeting the information and entertainment needs of as many interests as reasonably possible, including those that cannot be met by commercial broadcasting.

  • Contributing to public awareness of, and participation in, the political and social debates of the day.

  • Providing for minority interests and increased choice.

  • Encouraging innovation and creativity in broadcasting, while aiming to continually increase audience satisfaction with the quality of content.

One of the most significant changes resulting from these objectives was the Television New Zealand Act 2003, which transformed TVNZ from a state-owned enterprise into a Crown company. Its charter set out in broad terms the kind of programming it was to provide. The act requires TVNZ to keep a balance between giving effect to the public broadcasting objectives embodied in the charter and maintaining its commercial performance. In 2003/04, the government granted direct funding to TVNZ for charter purposes of $15 million.

Broadcasting Commission (NZ On Air). The Broadcasting Commission's role is to promote in broadcasting cultural and social objectives and such other activities seen as unlikely to receive sufficient commercial provision. Members of the Broadcasting Commission, which operates as NZ On Air, are appointed by the governor-general on the recommendation of the Minister of Broadcasting.

The statutory objectives of NZ On Air are to:

  • Reflect and develop New Zealand identity and culture by promoting programmes about New Zealand interests and by promoting Maori language and culture.

  • Maintain and, where considered appropriate, extend television and radio coverage to New Zealand communities that otherwise would not receive a commercially-viable signal.

  • Ensure programmes are available to provide for the interests of women, youth, children, people with disabilities and minorities in the community, including ethnic minorities, and encourage broadcasts that reflect the diverse religious and ethical beliefs of New Zealanders.

  • Encourage the archiving of programmes likely to be of historical interest to New Zealand.

NZ On Air fulfils these objectives by providing funds for the broadcasting, production and archiving of programmes. When allocating funds 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. Funding of NZ On Air's activities is a charge against Vote: Culture and Heritage. In the 2002/03 financial year, NZ On Air spent $58.9 million on the production of television programmes and $22.2 million on National Radio and Concert FM. It also spent $1.1 million on remote television and radio coverage, $3.7 million on New Zealand music projects, $1.1 million on broadcasting archives and $632,000 on a variety of programmes for commercial radio.

The NZ On Air website is www.nzonair.govt.nz

NZ On Air spent $58.9 million on the production of television programmes in its 2002/03 financial year.

Broadcasting standards. The Broadcasting Standards Authority is a Crown entity set up by the Broadcasting Act 1989, reporting to parliament through the Minister of Broadcasting. The authority's mission is to encourage broadcasters to develop and maintain programme standards which respect human dignity, reflect current social values and acknowledge research findings, while providing a process for the consideration of complaints from the public about broadcasting standards. The authority does not deal with complaints about advertisements except for party-political and parliamentary candidate advertising on radio and television during the lead-up to an election. The authority consists of four members, one of whom is appointed after consultation with broadcasters and another after consultation with public interest groups. Of the 182 complaints determined by the authority in the year ending 30 June 2003, 32 were upheld in total or in part, 139 were not upheld and 11 were interlocutory decisions. Of the complaints upheld, 44 percent related to matters of good taste and decency (including language) and 37 percent related to balance, fairness and accuracy. Nine complaints were upheld against Television New Zealand broadcasts, three against TV3 Network Services, none against Sky Network Television and one against Radio New Zealand. Nineteen complaints (59 percent) were upheld against other radio and television broadcasters.

The authority's website is www.bsa.govt.nz

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.

Maori broadcasting. Under the Radio Communications Act 1989, frequencies suitable for radio and television were reserved throughout New Zealand for the promotion of Maori language and culture, and there were 21 iwi-based radio stations at the beginning of 2004. Since 1989, NZ On Air has provided public funding for the operating and capital costs of Maori radio stations and for the production of Maori programmes broadcast on network television. The Broadcasting Amendment Act 1993 established a new Maori broadcasting funding agency, Te Reo Whakapuaki Irirangi (now known as Te Mangai Paho). On 1 January 1995, Te Mangai Pho assumed primary responsibility for allocation of public funding for Maori broadcasting. This includes purchase of Maori language programming broadcast on national television and iwi radio, and some Maori radio programming produced by national providers and available to iwi stations through a radio programme distribution service. In 2001, the government confirmed the establishment of a Maori television channel, which began transmissions on 28 March, 2004. The principal function of the service is to promote te reo Maori me nga tikanga Maori through the provision of a high-quality, cost-effective Maori television service, in both Maori and English, which informs, educates and entertains, and in doing so, enriches New Zealand's society, culture and heritage.

11.3 Telecommunications

The telecommunications market in New Zealand was fully opened to competition on 1 April 1989. Telecom New Zealand Ltd was established as a state-owned enterprise on 1 April 1987 following the breakup of the New Zealand Post Office and is the provider of the most extensive range of telecommunication services throughout the country. Other companies offering telecommunication services at January 2004 included TelstraClear, Vodafone, WorldxChange, TeamTalk, Compass, Call Plus and Ihug. The main competitive telecommunication services are international, national and cellular telephone calls.

There is competition in the supply of local telephone and data services to businesses in central business districts. The number of areas where there is residential telephone service competition is increasing, with TelstraClear initially offering fixed line telephone services in Wellington and Christchurch. Woosh Wireless and Counties Power are deploying wireless solutions for fixed line access to offer competitive telephone and data access services.

A particular feature of New Zealand's residential toll service market are calls up to a set duration that have a capped charge applied, such as $3 capped national calls, $4 capped calls to Australia and $8 capped calls to the United States and Canada and the United Kingdom and Ireland. A $5 capped call option for national peak calls is also available to residential users.

A Telecommunications Commissioner within the Commerce Commission administers regulated telecommunication services that include network interconnection, telephone number portability and wholesale telecommunication services. The commissioner's key functions are to resolve disputes over regulated services, to report to the Minister of Communications on the desirability of regulating additional services, and to calculate and allocate the net cost of telecommunication service obligations. Telephone density is high in New Zealand, with more than 96 percent of households having access to a telephone. The number of mobile phones has increased in recent years and at the beginning of 2004, more than 67 percent of the population had a mobile phone. Fifty-eight percent of all homes had mobile phones. Telecom and Vodafone provide cellular mobile phone services, with their networks giving extensive coverage of New Zealand.

Telecom Corporation of New Zealand Ltd (Telecom). Telecom is New Zealand's leading supplier of telecommunication services. Telecom provides a full range of telecommunication and online services to residential and business customers in New Zealand, and in Australia through its voice and data business, AAPT. Telecom has New Zealand's most extensive telecommunications network, which stretches from Kaitaia to Bluff. Telecom invested $3.3 billion in maintaining and upgrading its network in the five years to 2004. Telecom has 1.792 million fixed line residential and business customers in New Zealand. Of these, 1.2 million have access to fast internet. 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. Today, about 20 percent of Telecom's shareholding is held locally. In May 1996, Telecom launched XTRA - an internet access, navigation and content service, which today has approximately 432,000 active customers. Through Telecom's ongoing investments, its customers are able to access the latest ways of keeping in touch, doing business and being entertained. The Telecom website is www.telecom.co.nz and the XTRA website is www.xtra.co.nz

At the beginning of 2004, there were mobile phones in 58 percent of New Zealand homes.

Broadband. Broadband (high speed internet) data services share the characteristics of high speed and being ‘always on’ (ie it is unnecessary for users to establish specific connections to a service provider). Definitions of ‘high speed’ vary, but a generally-accepted definition is a minimum of 256,000 bits of data per second (256 Kbps), both upstream (from the user) and downstream (to the user). Almost nationwide coverage is available through mobile and satellite technologies and digital subscriber line (DSL) offers 85 percent coverage. Low levels of residential uptake are mainly responsible for New Zealand's slow broadband uptake, primarily because the price of dial-up has been kept low. Business penetration of broadband technology is comparatively high, however, with 8 percent of New Zealand's significant businesses using it, compared with 3.5 percent in the United Kingdom and 3 percent in Australia. By far the most common broadband access is via the telephone copper network using asymmetric data subscriber line (ADSL). At the beginning of 2004, there were more than 50,000 subscribers to Telecom's Jetstream service, although that figure included a large number of Jetstart subscribers who use 128 Kbps rather than 256 Kbps. There were also 4,500 subscribers to TelstraClear's cable service, limited to the Wellington, Hutt Valley and Kapiti Coast areas. In addition, a small but rapidly-growing number of users subscribe to wireless services offered by provides such as Woosh Wireless (Auckland, Wellington, Christchurch, Southland) and Counties Power (South Auckland and North Waikato). Broadcast Communications Limited (BCL) also offers commercial services on a national basis through extend wireless broadband (EWB).

A number of relatively small, localised, wireless operators have entered the telecommunications market offering broadband wireless services using general user radio licence spectrum (2.4 and 5 GHz bands), including Cafenet in Wellington, Hawke's Bay Internet, The Pacific.Net (Tasman and Buller districts) and South Waikato Networks Limited. In addition, there are many private or semi-private networks using general user licence spectrum. Since operators are not required to obtain permits or to register services, the number of such networks is not known.

Identification of the potential exclusion of the rural community because of the commercial non-viability of providing high speed internet access resulted in a joint government and private sector initiative in 2002, Project PROBE, to roll out high speed internet access to all schools and provincial communities by the end of 2004. The project was expected to provide broadband coverage for about 95-97 percent of New Zealand by that date. A secondary objective is to encourage competition in the telecommunications market outside of the larger metropolitan centres. The government's initiative has already brought about substantial change in the telecommunications scene in New Zealand. In the 12 months to December 2003, broadband coverage increased from 68 percent to 91 percent of all schools, including 53 percent of schools identified in PROBE tendering documents as requiring access.

Telecommunications relay service. The government is establishing a telecommunications relay service (TRS) to help ensure that the telephone communication needs of deaf, hearing-impaired and speech-impaired New Zealanders are met. Provision of the TRS was tendered late in 2003 and it was expected that the service would commence in 2004.

11.4 Convergent broadcasting

TelstraClear Limited. TelstraClear Limited is New Zealand's second largest full service communications company, providing innovative, market-leading products and services to the business, government, wholesale and residential sectors. TelstraClear provides a choice in the New Zealand communications market and seamless services to trans-Tasman customers. TelstraClear serves more than 300,000 business and residential customers in every central business district and in more than 30 regional centres. This represents more than 13 percent of the New Zealand market through a full voice, data, internet protocol and cable television product range. TelstraClear Limited is wholly owned by Telstra Corporation Limited, Australia's largest telecommunications company. The TelstraClear website is www.telstraclear.co.nz

11.5 Television broadcasting

Television New Zealand Ltd (TVNZ). TVNZ operates two national television channels, TV ONE and TV2, and has several subsidiary companies. TVNZ's local and international activities include programme production, an internet portal, outside broadcasting services, multi-media development, merchandising, teletext, signal distribution and programming supply.

Government redesignation of TVNZ from a state-owned enterprise (SOE) to a Crown-owned company (CROC) has meant separation of television and transmission services. The transmission business became an SOE from 1 January 2004.

As a CROC, the primary purpose of the television business is to meet its charter objectives, which are to inform, educate and entertain all New Zealanders, reflecting and fostering New Zealand's identity and culture. Both TV ONE and TV2 broadcast 24 hours a day, seven days a week. In 2003, 88 of the 100 most-watched programmes in New Zealand were broadcast by either TV ONE or TV2. TV ONE presents New Zealand and overseas drama, news, sport and information programming. TV2's mix of comedy, drama, children's, movie and entertainment programming is aimed at a younger audience. Imported programming for both channels is sourced mainly from the United Kingdom, the United States and Australia. TVNZ group revenue for the financial year ending 30 June 2003 was $492.lm, compared with $477.3 million in the previous financial year. Net surplus after taxation was $29.1 million, compared with $19.3 million in the 2002 financial year

The TVNZ website is www.tvnz.co.nz

TV3 Network Services Ltd. 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, Hamilton, Christchurch and Dunedin. TV3 is 100 percent owned by CanWest Global Communications Corporation, a Canadian communications company, and reaches 98 percent of New Zealand's population. The network, a broad-based entertainment channel, 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 national and international awards. Internationally-sourced programmes come primarily from the United States. TV3 has exclusive agreements with FOX and Universal, as well as the ability to source drama and comedy from many other international distributors. In June 1997, TV3 launched a second free-to-air channel on VHF frequency, TV4. TV4 was relaunched as the free-to-air music channel C4 in October 2003. Targeting young, urban Kiwis aged 15-29, C4 runs daily from 4pm to midnight and to lam on Fridays and Saturdays. Twenty-five percent of videos played on C4 are local. C4 operates from TV3 studios in Auckland.

Table 11.02 shows local content programming by the free-to-air television networks from 1990 to 2002.

Table 11.02. Hours of local content on network television

YearTV OneTV2TV3Total

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

19902,4747721,0034,249
19911,8111,0161,2124,039
19922,5261,2271,9625,715
199312,0051,0421,7414,788
19942,2101,0411,7184,969
19952,5321,1131,3735,018
19962,4071,2551,4045,066
19972,6381,3241,6395,601
19983,5031,3071,4876,297
19993,5161,3341,2926,142
20003,5441,1581,4846,186
20013,5871,2981,3056,190
20024,0031,7581,4397,200

Prime Television. In 1997, Prime Television acquired 34 UHF licences covering all major cities and towns in New Zealand and commenced broadcasting in August 1998. Prime Television is a free-to-air terrestrial broadcaster with its main office in Albany, Auckland, and regional sales offices in Hamilton, Tauranga, Wellington, Christchurch and Dunedin. An initial potential reach of 65 percent of the population had been expanded to 71 percent (2.1 million) by the end of 2001 and to more than 90 percent by November 2003. In March 2002, Prime Television began broadcasting an entertainment-based programme schedule following a joint venture agreement with the Nine Network of Australia, departing from its initial British programming line-up.

SKY Network Television Ltd. SKY Network Television Ltd is a pay television company which began broadcasting in May 1990 using scrambled UHF channels. At 31 December 2003, SKY had 548,041 residential and 7,898 commercial subscribers. SKY's UHF signal reaches more than 80 per cent of New Zealand households. In December 1998, SKY launched its digital direct broadcast satellite service, which reaches all of New Zealand's estimated 1.4 million television households. SKY broadcasts more than 70 entertainment channels on its digital satellite platform and five on its UHF terrestrial platform. SKY owns and operates seven of its channels, including SKY Sports channels, SKY 1, the Rugby Channel and SKY Movie channels.

Regional and local television services. A number of small regional television services operate throughout New Zealand, providing programmes ranging from music television services to mixed local and international news and entertainment services. Other services provide information about local events and attractions, targeted primarily at tourists. Local television services operating at 31 December 2003 included: Family Television Network (Warkworth), Triangle Television (Auckland), Big TV (Hamilton), Geyser Television (Rotorua), Eastland Television (Gisborne), Channel 61 (Taupo), Channel 51 (Hawke's Bay), Taranaki Community Television Trust (Taranaki), Mainland Television (Nelson), CTV (Christchurch), Channel 9 (Dunedin) and Mercury Television (Invercargill).

Trackside. Trackside broadcasts live racing, race results and programmes about racing on a nationwide basis, using UHF and satellite frequencies. It is owned by the New Zealand Racing Board.

Non-commercial television. The government has reserved UHF frequencies nationwide for the provision of non-commercial (community access) television services.

Since 1998, the Ministry of Economic Development, latterly on the recommendation of the Ministry for Culture and Heritage, has offered licences for non-commercial use to broadcasters in the Far North, Auckland, Waikato, Bay of Plenty, Taranaki, Wellington, Nelson/Marlborough, Christchurch and Oamaru regions. Triangle Television has been broadcasting in Auckland since July 1998 and Taranaki Community Television Trust Inc started broadcasting in December 1999. Channel 7 broadcast in Wellington from June 1999 until October 2003 when its licence was revoked.

11.6 Radio broadcasting

The radio broadcasting sector consists of the public radio service, RNZ; two major private owners of radio networks; other private stations; a publicly-funded pilot Pacific radio service, Niu FM; a series of non-profit community stations; student radio stations; and a network of 21 iwi radio stations throughout the country.

In November 2001, the government gave priority to reserving frequencies for:

  • National Radio to be broadcast on FM. National Radio now simulcasts on reserved FM frequencies.

  • Concert FM to migrate to a designated group of frequencies in the upper FM band. Following a decision that Concert FM will not now make use of these frequencies, they remain in reserve pending future decisions on the nature of youth radio services.

  • Maori radio to enable establishment of a national service for the promotion of Maori language and culture. Further decisions on the use of these frequencies are pending.

  • Pacific Island radio to enable establishment of a national service for Pacific peoples in New Zealand. The National Pacific Radio Trust has been established and government funding provided for a pilot Pacific radio network, Niu FM.

Radiocommunications. The radio spectrum is an important resource managed by the Crown, through the Ministry of Economic Development, on behalf of the people of New Zealand. The efficient use of this resource to provide telecommunications and broadcasting services is essential to the functioning of a modern economy.

The main legislative vehicle for managing the radio spectrum in New Zealand is the Radiocommunications Act 1989, which provides for a market-based system of spectrum management, with up to 20-year tradeable spectrum access rights. The Radiocommunications Amendment Act 2000 allows greater flexibility in the Crown's management of the radio spectrum.

Allocation by tender/auction. The Radiocommunications Act 1989 heralded a new era for radio spectrum management, enabling the use of market-driven allocation mechanisms for the distribution of spectrum rights.

Radio spectrum was initially sold in 1989 and 1990 using a second-price tender system, then later by first-price tenders. In 1996 an internet-based computer system was developed for the sale of spectrum by auction.

There were six rounds of tenders and six auctions between 1989 and 2003. Frequencies auctioned included bands suitable for UHF television, AM and FM radio broadcasting, mobile telephony (including 3G), and fixed wireless telecommunications. Once spectrum rights have been sold by the Crown, the purchaser has the right to resell and transfer these rights to other parties.

Other allocation methods. The administrative licensing regime that existed prior to 1989 still exists in many bands. These bands are planned for various services, and licences are available on application by persons wishing to utilise these frequencies in accordance with these plans. Examples include land mobile and various public safety and civil aviation agencies.

While bands allocated to broadcasting are no longer managed under the administrative licensing regime, not all of the corresponding licences are allocated through a market process. Most broadcasters who were operating in 1989 received licences for a fee determined by a legislated formula. Some frequencies have also been reserved for public broadcasting, non-commercial broadcasting, and for the promotion of Maori language and culture.

From 2010, spectrum rights will begin to expire, and in 2003 the government agreed on a policy regarding the renewal of commercial rights. The policy creates a presumption that current rightholders will receive an offer for the renewal of their rights for a further 20 years at a price to be determined by a price-setting formula being developed by the Ministry of Economic Development.

Finally, not all use of the spectrum is on an individually-licensed basis. There are also spectrum ‘public parks’, which anyone may use in accordance with the terms of the corresponding general user licence. These are often used for consumer devices such as garage door openers.

Public radio. Radio New Zealand was incorporated as a Crown-owned company under the Radio New Zealand Act 1995. This act established the Radio New Zealand Charter, which set out the company's broadcasting functions.

In 2000, parliament's commerce select committee undertook the first five-yearly review of the charter. Following the committee's recommendations, the government introduced the RNZ Amendment Bill, which proposed minor changes to enhance charter requirements on reporting and public consultation, and recognition of the importance of Radio New Zealand International as a component of RNZ.

In 2000, National Radio and Concert FM also began to be carried by Sky Network Television's digital satellite.

RNZ receives annual funding of about $28 million (including GST) from NZ On Air to maintain and enhance its services and to fund the migration of National Radio to FM.

Funding for Radio New Zealand International, which broadcasts to the Pacific region, has been transferred from the Ministry of Foreign Affairs and Trade to the Ministry for Culture and Heritage.

Radio New Zealand. Radio New Zealand Ltd 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/Nga Taonga Korero.

National Radio and Concert FM are funded through New Zealand On Air.

  • National Radio focuses primarily on news and information, with a mix of features, drama and entertainment programmes. News bulletins are on the hour, every hour and Morning Report is regarded as the country's most authoritative news programme. Broadcasting 24 hours a day, the network reaches most New Zealanders on the AM band and FM in all main metropolitan centres and several provincial areas.

  • 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. Both Concert FM and National Radio are also available through the SKY Television network. 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 out.

  • Radio New Zealand International is the country's international shortwave service, providing news and information programmes to listeners in the Pacific 24 hours a day. Radio New Zealand 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 Nga Taonga Korero is a subsidiary of Radio New Zealand 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 enabled Sound Archives Nga Taonga Korero 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.

The Radio Network of New Zealand Ltd. The Radio Network became a private radio broadcaster on 1 August 1996 when a consortium comprising Australian Provincial Newspapers Holdings Ltd (a radio, newspaper and outdoor advertising group) and Clear Channel Communications Incorporated (the United States' largest radio, television and outdoor advertising operator) purchased the assets of Radio New Zealand Commercial from the New Zealand Government.

The Radio Network operates 94 wholly-owned radio stations throughout New Zealand with the following programme brands: Newstalk ZB (22 stations), Classic Hits (25 stations), Radio Sport (18 stations), ZM (12 stations), Radio Hauraki (10 stations), Easy 1 (4 stations) and three single format stations - Cool Blue, The Coast and The Planet.

According to Research International RADIOS National Database 2003, the Radio Network reaches a listening audience of approximately 1.3 million New Zealanders aged 10 and over on a weekly basis, 54 percent of whom are aged 25-54 and 48 percent of whom are the main household shopper.

Non-commercial radio broadcasting. The Crown has reserved AM and FM radio frequencies throughout New Zealand 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, who are responsible for ensuring that all interested groups have access to airtime on the frequencies.

Access radio stations operating on reserved frequencies provide airtime on a non-profit basis to a range of minority groups in the community. In 2002/03, there were 11 access radio stations in New Zealand. All were assisted by NZ On Air, whose funding for access radio in 2002/03 was $1.6 million. Applications for frequencies are received by the Ministry of Economic Development and allocated on the advice of the Ministry for Culture and Heritage.

11.7 Newspapers and magazines

New Zealand has a high number of daily newspapers in relation to its population. There are 24 daily newspapers, of which 16 are afternoon papers published in provincial towns and cities.

The Auckland-based New Zealand Herald had the largest 2003 audited net circulation of 210,910 copies daily. The biggest provincial paper in 2003 was Hamilton's Waikato Times, with an audited net circulation of 40,970. Other daily newspapers have circulations ranging from about 2,000 to more than 100,000.

Figure 11.03. Total newspaper circulation
Daily and Sunday papers Years ending 31 March

Total newspaper circulationDaily and Sunday papers Years ending 31 March

Table 11.03 shows newspaper circulation figures for 2001-03. Figure 11.03 shows the impact internet usage had on newspaper circulations in the decade to 2003.

Table 11.03. Newspaper circulation At 31 March

Paper (date founded)200120022003

1Formed from integration of The Evening Post (1865) and The Dominion (1907).

2Formed from integration of Hawke's Bay Herald Tribune - Hastings (1857) and Daily Telegraph - Napier (1871).

3Latest audit.

Source: Audit Bureau of Circulations

The New Zealand Herald - Auckland (1863)209,898210,841210,910
The Dominion Post1 - Wellington (2002)-99,089101,511
The Press - Christchurch (1869)91,00392,71391,111
Otago Daily Times - Dunedin (1861)43,35044,35244,546
Waikato Times - Hamilton (1872)40,42741,12140,970
Hawke's Bay Today2 - Hastings (1998)31,78731,66530,079
The Southland Times - Invercargill (1862)30,92230,84029,928
The Daily News - New Plymouth (1857)26,57926,78426,687
Bay of Plenty Times - Tauranga (1872)22,45022,72623,285
The Manawatu Evening Standard - Palmerston North (1880)20,86120,84020,357
The Nelson Mail (1866)18,10218,27418,312
The Northern Advocate - Whangarei (1877)15,04215,31915,112
The Timaru Herald (1864)14,00414,30814,360
Wanganui Chronicle (1856)13,77214,05914,075
The Daily Post - Rotorua (1885)11,86611,95511,979
The Marlborough Express - Blenheim (1866)10,32610,11310,173
The Gisborne Herald (1874)8,6698,6238,573
Wairarapa Times-Age - Masterton (1878)8,0617,7137,585
Ashburton Guardian (1879)5,6105,4975,554
The Greymouth Evening Star (1866)4,6064,2664,219
Horowhenua-Kapiti Chronicle - Levin (1893)3,6633,78953,789
The Oamaru Mail (1876)3,7283,6443,464
Evening News - Dannevirke (1909)2,2732,2212,174
The Westport News (1872)2,1672,01032,010

The majority of daily papers are owned by two major publishing groups, Fairfax New Zealand Ltd and APN New Zealand Ltd. Between them, these groups account for just over 90 percent of New Zealand's aggregate daily newspaper circulation of about 740,000. The previously dominant pattern of single family, or partnership, newspaper ownership survives only in some centres.

Daily newspapers are widely read. On a typical day, more than 1.7 million New Zealanders aged 15 and over read a newspaper, and New Zealanders spend approximately $2.5 million a week on daily and Sunday newspapers.

At 30 June 2004, there were two Sunday newspapers, Sunday Star-Times and Sunday News, both published by Fairfax New Zealand Ltd and distributed nationwide. The Sunday Star-Times circulates around 204,000 copies every Sunday.

There are also approximately 120 community newspapers in New Zealand, the great majority of which are tabloid in format. Many of these are owned by the two big newspaper publishing groups, or by publishers of other newspapers outside the groups. Some are owned by individuals or small companies.

There are more than 6,000 magazines available in New Zealand on a regular basis, 650 of which are published in New Zealand. Table 11.04 shows the most popular magazines for the years 2001-2003.

Through international agreements with Reuters, Australian Associated Press and other news organisations, the cooperatively-owned New Zealand Press Association (NZPA) provides an international and domestic news service to all daily and Sunday newspapers.

The New Zealand Press Council. The press council is a self-regulatory body founded in 1972 with the primary function of investigating and adjudicating on complaints against newspapers and other publications.

Its constituent members are the Newspaper Publishers Association (NPA) and the New Zealand Engineering, Printing and Manufacturing Union (EPMU). The council consists of an independent chairman, five members representing the public and five representing the industry. Two of the five industry representatives are nominated by the NPA, two are nominated by the EPMU and one by magazine publishers. A panel including the Chief Ombudsman appoints public members.

A public library user browses an overseas newspaper online.

Table 11.04. Magazine circulation1

PublicationCirculation
200120022003

1Audit period: January - June

Source: Audit Bureau of Circulations

AA Directions (quarterly)566,750542,219540,395
Sky Watch (monthly)342,064358,589390,571
TV Guide (weekly)229,126225,648222,931
New Zealand Woman's Day (weekly)147,124141,781146,237
New Zealand Woman's Weekly (weekly)95,91897,013101,397
Australian Woman's Weekly NZ (monthly)82,76492,62798,888
Reader's Digest NZ (monthly)105,000101,75692,258
Rural News (fortnightly)83,22284,60786,134
Agtrader (monthly)78,79077,72385,241
Straight Furrow (monthly)79,89580,00685,231
NZ House & Garden (monthly)75,55680,66979,299
Cuisine (alternative months)60,06179,76076,977
New Zealand Listener (weekly)81,76176,84476,171
Next (monthly)61,26763,07067,471
New Idea (weekly)55,28354,42757,408
Your Home & Garden (monthly)41,98850,38250,073
That's Life (weekly)41,63644,36645,640
New Zealand Gardener (monthly)54,75650,61945,094
Little Treasures (alternative months)49,70046,18443,974
Family Times (quarterly)40,14841,55841,996

The principal objects of the press council are to:

  • Consider complaints against the editorial content of newspapers and other publications. (A separate body deals with complaints against advertising). The council may also consider complaints about the conduct of people and organisations towards the press.

  • Promote freedom of speech and freedom of the press in New Zealand.

  • Maintain the New Zealand press in accordance with the highest professional standards.

The council does not set standards for newspapers, but from time to time it issues recommendations to editors in general terms.

The council's Statement of Principles sets out a guide for complainants and the publishing industry.

To make a complaint to the council, complainants are first required to complain in writing to the editor of the publication concerned. This allows the editor the opportunity of righting a possible wrong.

If complainants are still not satisfied, they can then approach the council. There is no charge for the council's service.

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 is funded entirely by the industry. The Press Council website is www.presscouncil.org.nz

Table 11.05 shows a breakdown of Press Council complaints for 2001-03.

Table 11.05. New Zealand Press Council statistics Years ending 31 December

 200120022003

Source: New Zealand Press Council

Adjudications issued 45 47 48
    Upheld9 1 8 
    Part upheld9 3 2 
    Not upheld with dissent- - 1 
    Not Upheld27 43 36 
Declined- - 1 
Not adjudicated 31 59 39
    Mediated/resolved- 1 3 
Withdrawn- 3 1 
Withdrawn at late stage8 2 1 
Not followed through13 18 16 
Out of time1 5 2 
Not accepted1 4 3 
Outside jurisdiction1 9 3 
In action at end of year7 17 10 
        Total complaints 76 106 87

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 through training, communications and advocacy.

11.8 Advertising

Advertising industry. Approximately 1,000 people are employed in New Zealand 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 beginning of 2003, there were approximately 180 advertising agencies, most of them New Zealand-owned, but with 25 (mostly larger agencies) affiliated to multinationals by total or partial ownership. Mainstream media advertising for the year ending 31 December 2002 was approximately $1,565 billion. Substantial additional money was spent on advertising using direct mail, telemarketing and display material, brochures and the like. Although accurate figures are not available, expenditure in these categories is estimated to exceed $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, 80 percent in magazines, 30 percent on radio, 30 percent in newspapers and 20 percent of advertising through other media. Table 11.06 shows the value of advertising spending in various media, while Table 11.07 shows advertising expenditure by consumer sector.

Table 11.06. Advertising expenditure in media1
Years ending 31 December

Medium1999200020012002
ExpenditureShareExpenditureShareExpenditureShareExpenditureShare

1All cash advertising revenue, plus agency commission where applicable.

2Includes daily and community newspapers.

3Separated from outdoor medium 2001.

Source: Advertising Standards Authority

 $(million)Percent$(million)Percent$(million)Percent$(million)Percent
Newspapers256639.859640.160640.762840.1
Television48734.350133.747932.251633.0
Radio17812.619012.819613.220313.0
Magazines15911.215710.616611.117311.0
Outdoor and cinema302.1412.8322.2372.4
Cinema3    90.680.5
                Total1,420100.01,485100.01,488100.01,565100.0

Table 11.07. Advertising expenditure By consumer sector Year ending 31 December 2003

SectionTotal media

Source: ACNielsen

 $000
Foodstuffs288,444
Leisure, entertainment275,718
Retail212,680
Automotive164,032
Toiletries/cosmetics141,507
Government departments, services and community133,085
Beverages130,384
Investment, finance, banking124,629
Home improvements91,609
Telecommunication90,322
Travel88,417
Pharmaceuticals, health80,210
Household electrical products69,001
Household furnishings64,534
Computers57,088
Clothing39,582
Insurance27,973
Agricultural26,592
Household cleaning products22,814
Business services21,813
                Total2,150,434

Industry organisations and self-regulation. The Communication Agencies Association of New Zealand (CAANZ) is an incorporated body representing the interests of members on issues affecting the advertising industry and agencies. There are 86 member agencies, who collectively represent between 85 and 90 percent of agency billings in New Zealand, with combined turnover of about $900 million. The Association of New Zealand Advertisers (ANZA) represents the interests of advertisers and has 90 members. ANZA administers two pre-placement vetting systems - one for liquor advertising and one for therapeutic advertising. The advertising 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. In the year ending 31 December 2003, the board received 382 complaints, upholding 101 of them and not withholding 117. Of the remainder, 142 were not accepted for adjudication.

The ASA website is www.asa.co.nz

11.9 Postal services

The Postal Services Act 1998 permitted full competition in all areas of the postal services market. All mail must carry a mark to identify the postal operator that carried it.

Postal operators have the right to open mail in certain circumstances (for example, so it can be returned to the sender when an address is illegible). They also have the right to erect letterboxes.

To carry out a business involving carriage of letters, a person or company must be registered as a postal operator with the Ministry of Economic Development. At 1 January 2004, 31 operators were registered.

Under a deed of understanding with the government, New Zealand Post Ltd 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 reintroducing the rural delivery fee abolished in 1995, and providing competitors with access to its network on terms and conditions no less favourable than terms and conditions offered to equivalent customers.

New Zealand Post Ltd is currently the sole operator designated as New Zealand's ‘postal administration’ to the Universal Postal Union (UPU) and therefore has the exclusive right to issue ‘official’ UPU-stamps. The government has the power to designate additional operators to fulfil New Zealand's international postal obligations.

New Zealand Post Ltd is a state-owned enterprise which has been operating in a completely deregulated postal environment since 1998. The Postal Services Act of that year removed New Zealand Post's monopoly on the standard letter, allowing full competition in postal services. The price of standard letter postage was reduced from 45 cents to 40 cents on 2 October 1995 and was maintained at that level till 5 April 2004, when it returned to 45 cents. By comparison, Australia's basic postage price is the equivalent of 57 cents, Canada's 55 cents, the United Kingdom's 76 cents, Ireland's 90 cents, Germany's $1, Japan's $1.15 and Norway's $1.30. New Zealand Post says that in the developed world, only Hong Kong and the Czech Republic offer cheaper standard postal rates than New Zealand. New Zealand Post's FastPost service also increased in price from 5 April 2004, from 80 cents to 90 cents.

New Zealand Post handled nearly 1.7 million articles of mail in the year ending 30 June 2003.

New Zealand Post's service delivery - the independent measure of mail delivered on time - was 95.6 percent for the year to 30 June 2003, putting its service standards among the best in the world.

While it continues the tradition of carrying and delivering letters and parcels, New Zealand Post has responded to customers' growing communications needs by providing electronic solutions to residential, business and international markets.

Its business activities include letters, courier services, financial transactions, mail and stamp production, as well as data processing and electronic billing, commerce and messaging.

New Zealand Post's website is www.nzpost.com

Inland postal services. FastPost or standard post can be used to send letters up to 20mm thick and up to 1 kg in weight. 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.

For parcels, PacketPost is used to send parcels up to 1.5kg and can be sent either FastPost or standard post, and ParcelPost is used for parcels up to 25kg, targeting next working day for delivery across town and two to three working days delivery nationwide.

Other services include BoxLink, Volume Post, Registered Post and Postage Included Envelopes.

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.

Table 11.08 shows the number of articles posted from 1997 to 2003.

Table 11.08. Articles posted

AddressYears ending
31 March 1997-200030 June 2001-2003
1997199819992000200120022003

Source: New Zealand Post

    Number   
Residential1,105,8241,155,1531,181,1411,240,2631,283,2611,253,6931,243,613
Business53,48453,46551,59054,75056,04557,31459,508
Private box and bag169,484174,219174,074204,942188,044181,999189,244
Rural delivery146,266150,655162,347168,096175,127177,727180,495
Other25,26222,38713,91510,82522,39223,83725,096
                Total1,500,3201,555,8791,583,0671,678,8761,724,8691,694,5701,697,956

Overseas mail services. New Zealand Post International operates several overseas mail services. International Express is a track and trace courier service to more than 220 countries, with next-morning delivery to Australian centres and targeting delivery within days to the rest of the world, including built-in insurance cover and additional cover options.

International Air offers delivery in approximately one to two weeks, with built-in insurance cover and the option of additional cover and/or track and trace facilities to selected countries. International Economy offers cost-effective delivery to anywhere in the world within approximately three to five weeks.

Table 11.09 shows changes in the cost of sending one page of material from New Zealand to London.

Table 11.09. Cost of sending one page of material from New Zealand to London1938, 2000 and 2003 Real (inflation adjusted) costs

Cost (1999 dollars) for 300 words193820002003

1Telegraph service no longer available in 2000.

2Standard envelope. 28 grams, by sea or economy airmail.

3Cost of a five-minute call in peak hours inclusive of GST.

4Based on one minute of transmission time in peak hours.

5Marginal costing only. Does not include cost of a personal computer and assumes fiat rate charges from domestic site. figures not available not applicable

Source: New Zealand Post Telecom

 $$$
Telegraph11,315.00....
Letter post20.881.802.00
Telephone3438.002.953.25
Fascimile4...0.590.65
Email (internet)5...<0.01<0.02

Stamp issues. New Zealand Post's stamp unit produces around 12 commemorative stamp issues each year and one to three definitive stamp issues.

Table 11.10 lists stamps issued from 1 January 2001 to 5 November 2003.

A variety of products, including commemorative coins on behalf of the Reserve Bank of New Zealand, are sold by mail order through the Philatelic Bureau at Wanganui, at stamp sales centres, through PostShops and from the stamps website www.stamps.co.nz

Table 11.1. 2001-2003 Stamp issues

Date of issueIssue nameDenominations

Source: New Zealand Post

2001  
1 January100 Years of Moving the Mail40c x 10
1 FebruaryMarine Reptiles - Year of the Snake40c, 80c, 90c, $1.30, $1.50, $2.00
7 MarchGarden Flowers40c, 80c, 90c, $1.30, $1.50, $2.00
4 AprilArt from Nature40c, 80c, 90c, $1.30, $1.50, $2.00
2 MayAircraft40c, 80c, 90c, $1.30, $1.50, $2.00
6 JuneGreetings40c x 5, 90c x 5
4 JulyScenic 100 Years of Tourism40c, 80c, 90c, $1.30, $1.50, $2.00
1 AugustChildren's Health - Cycling40c x 2, 90c
5 SeptemberChristmas 200140c, 80c, 90c, $1.30, $1.50, $2.00
3 OctoberQueen Elizabeth II40c, 80c, 90c, $1.30, $1.50, $2.00
7 NovemberRoss Dependency - Penguins40c, 80c, 90c, $1.30, $1.50, $2.00
7 NovemberPenguins40c, 80c, 90c, $1.30, $1.50, $2.00
4 DecemberThe Lord of the Rings: The Fellowship of the Ring40c, 80c, 90c, $1.30, $1.50, $2.00
2002  
7 FebruaryGroup One Winners - Year of the Horse40c, 80c, 90c, $1.30, $1.50, $2.00
6 MarchNative Fungi40c, 80c, 90c, $1.30, $1.50, $2.00
3 AprilArchitectural Heritage40c, 80c, 90c, $1.30, $1.50, $2.00
2 MayArt Meets Craft40c, 80c, 90c, $1.30, $1.50, $2.00
5 JuneNew Zealand Post Children's Book Festival40c x 10
5 JuneBronze Round Kiwi$1.50
5 JuneHM Queen Elizabeth The Queen Mother$2.00
3 JulyScenic Coastlines40c, 80c, 90c, $1.30, $1.50, $2.00
7 AugustChildren's Health - Healthy Living40c x 2, 90c
4 SeptemberChristmas 200240c, 80c, 90c, $1.30, $1.50, $2.00
2 OctoberLeading the Waves40c, 80c, 90c, $1.30, $1.50, $2.00
2 OctoberAmerica's Cup$1.30, $1.50, $2.00
6 NovemberHoliday Hideaways40c x 6
21 NovemberVatican City Joint Issue$1.50
4 DecemberThe Lord of the Rings: The Two Towers40c, 80c, 90c, $1.30, $1.50, $2.00
2003  
8 JanuaryTeam NZ - The Defence40c, 80c, 90c
5 FebruaryYear of the Sheep40c, 90c, $1.30, $1.50, $2.00
5 MarchRoyal New Zealand Ballet 50th Anniversary40c, 90c, $1.30, $1.50, $2.00
2 AprilMilitary Uniforms40c x 20
2 MayScenic Definitives50c, $1.00, $1.50, $2.00, $5.00
29 MayConquest of Everest40c x 2
4 JuneQueen Elizabeth 11 - 50th Anniversary of the Coronation40c, 90c, $1.30, $1.50, $2.00
2 July100 Years of New Zealand Test Rugby40c, 90c, $1.30, $1.50 × 2, $2.00
6 AugustChildren's Health - Playgrounds40c x 2, 90c
6 AugustScenic Waterways40c, 90c, $1.30, $1.50, $2.00
3 SeptemberVeteran Vehicles40c, 90c, $1.30, $1.50, $2.00
1 OctoberRoss Dependency - Marine Life40c, 90c, $1.30, $1.50, $2.00
1 OctoberChristmas 200340c, 90c, $1.30, $1.50, $2.00
5 NovemberThe Lord of the Rings: The Return of the King40c, 80c, 90c, $1.30, $1.50, $2.00

Recent performances. New Zealand Post reported a profit of $27.1 million after tax for the 2002/03 financial year, compared with $21.9 in 2001/02 and $21.0m in 2000/01.

Retail network. At 30 June, 2003, New Zealand Post's retail network consisted of 143 company-owned PostShops, 137 franchised PostShops and 35 Books & More stores, with postal services available at a further 697 Post Centres.

Stamps were available at a further 2,735 retailers.

Financial transaction services, including motor registration, ticketing for certain events and bill payment services are available at all PostShops and Books & More stores through the PostLink computer system.

Table 11.11 shows New Zealand Post outlets for the years 1998-2003.

Table 11.11. Postal outlets Years ending 30 June1

Year199819992000200120022003

1 1998-2000 figures for years ending 31 March.

Source: New Zealand Post

Post Shops (including franchises)308314315314313315
Post Centres717719714705699697
Stamp resellers2,9453,1412,9942,9402,8772,735
                Total3,9704,1744,0233,9593,8893,747

Contributors

11.1 Ministry of Economic Development; Telecommunications Users Association of New Zealand Inc.

11.2 NZ On Air; Broadcasting Standards Authority; Electoral Commission; Te Mangai Paho; Ministry for Culture and Heritage

11.3 Ministry of Economic Development; Telecom Corporation of New Zealand Limited.

11.4 TelstraClear.

11.5 Television New Zealand; TV3 Network Services Limited; Sky Network Television Ltd; Prime Television; Ministry for Culture and Heritage.

11.6 Ministry for Culture and Heritage; Radio New Zealand Limited; The Radio Network; NZ On Air; Ministry of Economic Development.

11.7 New Zealand Audit Bureau of Circulations; Freedom House; New Zealand Press Council, Newspaper Publishers Association.

11.8 Communications Agencies Association of New Zealand (CAANZ); ACNielsen.

11.9 Ministry of Economic Development, New Zealand Post Limited.

Websites

www.acnielsen.co.nz - ACNielsen

www.asa.co.nz - Advertising Standards Authority

www.abc.org.nz - Audit Bureau of Circulations

www.bsa.govt.nz - Broadcasting Standards Authority

www.caanz.co.nz - Communication Agencies Association NZ (CAANZ)

www.elections.org.nz - Electoral Commission

www.ecommerce.govt.nz - Electronic Commerce

www.knowledge.gen.nz - Knowledge Economy

www.maoritelevision.com - Maori Television

www.mch.govt.nz - Ministry for Culture and Heritage

www.med.govt.nz - Ministry of Economic Development

www.med.govt.nz/consumer/elcon/ecommerce - Ministry of Economic Development IT Policy Group

www.presscouncil.org.nz - New Zealand Press Council

www.npa.co.nz - Newspaper Publishers Association

www.nzonair.govt.nz - New Zealand on Air

www.presscouncil.org.nz - New Zealand Press Council

www.nzpost.co.nz - New Zealand Post Ltd

www.primetv.co.nz - Prime Television

www.rnzi.com - Radion New Zealand International

www.radio.nz.co.nz - Radio New Zealand Ltd

www.skytv.co.nz - Sky Television

www.soundarchives.co.nz - Sound Archives

www.telecom.co.nz - Telecom Corporation of New Zealand

www.tvnz.co.nz - Television New Zealand Ltd

www.telstraclear.co.nz - TelstraClear Ltd

www.tmp.govt.nz - Te Mangai Paho

www.tuanz.org.nz - Telecommunications Users Association of New Zealand (TUANZ)

www.tv3.co.nz - TV3 Network Ltd

Chapter 12. Arts and Cultural Heritage

The ballroom scene from the Royal New Zealand Ballet's production of Romeo and Juliet.

There has been an increasing recognition by governments in recent years of the strategic and intrinsic importance of arts, culture and heritage activities. This has been reflected in the increased resources the government has invested in these activities, notably the Cultural Recovery Package of May 2000.

The findings of the joint Ministry for Culture and Heritage and Statistics New Zealand report A Measure of Culture: Cultural experiences and cultural spending in New Zealand confirm that New Zealanders have a high level of engagement with arts, culture and heritage, and that activity in these areas forms a significant part of the New Zealand economy, accounting for 4 percent of domestic spending.

There are three commonly-cited purposes for government involvement in arts, culture and heritage:

  • Arts, culture and heritage should be valued for their intrinsic benefits; for what they have to contribute to our individual well-being and to our understanding of who we are as New Zealanders in a world context.

  • Given New Zealand's large pool of talented people, the creative sector has the potential to make an even larger contribution to the economy. Worldwide, the creative, cultural and heritage sectors are among the key growth industries for the 21 st century.

  • Arts and culture help define New Zealand as a unique, dynamic and creative nation. As the globalising trends of current times continue, it is all the more important that we vigorously assert the value of our own culture and heritage, and support their development and protection.

12.1 Taonga tuku iho

Taonga tuku iho describes the maintenance and communication of those aspects of New Zealand culture that are uniquely Maori. It is taonga tuku iho that makes New Zealand culture unique, and because of this governments have tended to make special provision for its support.

The government provides support for taonga tuku iho through a range of measures. It created and funds the Museum of New Zealand Te Papa Tongarewa, which has a statutory responsibility to express the significance of Maori cultural heritage through its collections and programmes; the New Zealand Historic Places Trust, whose responsibility for Maori sites and structures is primarily executed through its Maori Heritage Council; Creative New Zealand, which delivers support for specifically Maori art across the range of genres through Te Waka Toi, the Maori Arts Board; the Maori Arts and Crafts Institute, which works to maintain traditional skills in areas such as carving and weaving; the Maori Language Commission Te Taura Whiri i te Reo Maori, which promotes the use of the Maori language; and Te Mangai Paho and the Maori Television Service, which support Maori language and culture through Maori broadcasting.

A welcome to the marae at Whakarewarewa, Rotorua.

The government also provides direct support to the Aotearoa Traditional Maori Performing Arts Society, which has an emphasis on maintaining traditional Maori performing arts expertise. From time to time it provides capital funding to regional museums which have nationally significant collections, including collections of Maori taonga.

Other government interventions supporting taonga tuku iho are the New Zealand Lottery Grants Board, which allocates profits to a wide range of community enterprises, including restoration of marae; and the Antiquities Act 1975, which regulates the export of antiquities, including taonga, and which provides for the protection of newly-discovered artifacts.

12.2 Heritage

Museum of New Zealand Te Papa Tongarewa

The Museum of New Zealand Te Papa Tongarewa is New Zealand's national museum. Since opening on the Wellington waterfront in February 1998, it has established a national and international reputation as New Zealand's ‘must-see’ visitor attraction.

Te Papa's founding concept was developed through an extensive national consultative process and was adopted by the government in 1990. It introduced the concepts of unified collections, the narratives of culture and place, the idea of forum, the bicultural partnership between tangata whenua and tangata tiriti, and a multidisciplinary approach to delivering a national museum for diverse audiences. Its mission, to be a forum for the nation to explore and preserve its unique cultural and natural heritage, is underpinned by the principles of the bicultural partnership; being a waharoa or entryway to exploring and reflecting on cultural identity, acknowledging and recognising the role of communities in the care, management and understanding of taonga and collections; speaking with authority; being committed to providing excellent services; and being commercially positive.

The museum contains 21 major constructed exhibitions and features a programme of innovative and exciting exhibitions that both draw on the richness of its collections and bring to New Zealand the best of the rest of the world.

Permanent exhibitions include Bush City, an outdoor space that re-creates distinctive aspects of the New Zealand landform and its associated plant life, and The Time Warp, a dynamic interactive zone that uses motion-simulator technology and cinema effects to project visitors into New Zealand's distant past and near future. Te Papa is the only museum in the world with its own living, functioning marae.

Central to Te Papa's existence are its collections. The museum has particularly rich holdings of New Zealand plants and animals, taonga Maori and Pacific collections. Te Papa continues to develop its collection of art.

In its capacity as the national museum, Te Papa operates a number of services for customers outside its premises and a substantial national services programme that aims to work with other museums, iwi and related organisations on projects to build capacity and enhance the sustainability of the services they provide in their local communities. The focus of national services is on training and skill development; standards implementation; kaupapa Maori iwi development; and strategic regional and community development initiatives. Other services include Te Papa Press, touring exhibitions, a collections loans service, a programme of iwi partnership projects, and the Te Papa website, www.tepapa.govt.nz

Te Papa achieved overwhelming success in its first five years of operation, with more than seven million people visiting the museum and many more benefiting from its extension and national services programmes.

There is increasing evidence that the existence of Te Papa has changed national and international tourism patterns. More than 40 percent of domestic visitors to Te Papa in the 2002/03 financial year came from outside the Wellington region and more than 40 percent were from overseas.

Te Papa's audience closely approximates the New Zealand population at large. For example, the proportion of Maori visitors equates roughly with the percentage of people identifying themselves as Maori in the 2001 Census. A similar pattern has emerged for Pacific peoples and other ethnicities.

Art galleries and museums

There are about 600 public museums and art galleries in New Zealand. These range from small, local museums housing collections of local importance, to larger institutions housing collections of national and regional significance. The larger museums, of which there are many, carry out research, print catalogues and research papers, and provide educational programmes.

Many museums and art galleries are funded by local government. Funding for capital works may be provided by the lottery grants board, community trusts, electricity trusts or other funding bodies.

New Zealand Historic Places Trust Pouhere Taonga

The New Zealand Historic Places Trust, a statutory, non Crown-owned entity, is responsible nationally for 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 (sites of special significance to Maori). The trust's Maori name, Pouhere Taonga, means ‘pillar that binds all treasures.’

One of the trust's key tasks is to assess registration proposals for the national register of heritage places established by the Historic Places Act 1993. Another important aspect is liaising with territorial authorities to ensure 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 as either Category I (places of special or outstanding historical or cultural heritage, significance or value) or Category II (places of historical or cultural significance or value). Historic areas and wahi tapu 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 1991.

The trust owns or manages 58 properties throughout New Zealand, including 32 Crown properties, mostly reserves, which have either been vested in it or which it has been appointed to control and manage. Properties the trust manages range from the Kerikeri Mission House (Kemp House), 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 Totara Estate, south of Oamaru, the birthplace of the New Zealand meat industry, underwent a major redevelopment during 2001-2003 and was reopened to the public in 2003.

Staff of the trust, including heritage property staff, are supported by about 24,000 members and 23 branch committees throughout New Zealand. In 1999/2000, the trust established a new regional structure, establishing new staff teams in Kerikeri, Auckland, Tauranga, Wellington, Christchurch and Dunedin.

Protection of antiquities and archaeological and traditional sites. New Zealand has 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 Maori artefacts in New Zealand. Artefacts found after 1976 are deemed to be Crown property. There are export controls on a range of items of cultural significance: Maori artefacts; chattels relating to 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.

Antrim House, Wellington, head office of the New Zealand Historic Places Trust.

Archives New Zealand

An exhibition at the New Zealand Cartoon Archive, Wellington.

Archives New Zealand has two roles: to preserve and provide access to the records of government, and to ensure government records are created and maintained. The department achieves the first of these by taking in government records which are no longer required for administration, arranging and describing them, and making them available through reading rooms in Dunedin, Christchurch, Wellington and Auckland. It achieves the second by providing advice about good record-keeping practices to government agencies.

Archives are the raw material for the history of New Zealand. A reliable record of government actions enables citizens to hold the government to account. In addition, a verifiable record provides the government with the protection that comes from its citizens trusting it to be truthful and accountable in its dealings. Records available at Archives New Zealand include those of government departments such as education, railways, health, justice, works, police, post office, lands and survey, internal affairs, Maori affairs, parliament, the armed forces, the courts and commissions of inquiry.

The Constitution Room at Archives New Zealand's Wellington headquarters displays some of New Zealand's most significant documents, providing a walk-through history of New Zealand. Signed sheets of the original Treaty of Waitangi and the Women's Suffrage Petition are the central focus of this exhibition room. Both documents are noted in the United Nations Educational, Scientific and Cultural Organisation's World Heritage Register as being of international significance.

Archives New Zealand 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.

New Zealand Cartoon Archive

Newspaper and magazine cartoons are important historical records because they capture the values and attitudes of the day, providing an extra dimension to our understanding of past events. The New Zealand Cartoon Archive, founded by Ian F Grant as a result of researching his cartoon history of New Zealand, The Unauthorized Version, was launched on April Fool's Day 1992. The archive's purpose is to collect historical and contemporary New Zealand editorial cartoons and to promote the collection to the New Zealand public.

The New Zealand Cartoon Archive has become New Zealand's principal cartoon collection and research institution. More than 25,000 cartoons - originals and copies - have been bequeathed to the archive by cartoonists and their relatives, collectors, politicians and organisations. Since 1992, the archive has received, by arrangement, copies and some originals of cartoons that appear in New Zealand newspapers and periodical press.

The collection includes the work of more than 60 New Zealand and expatriate New Zealand cartoonists. To date, nearly 10,000 cartoons have been indexed and are available on the National Library's TAPUHI internet system and more than 1,100 cartoons and caricatures can be viewed on the library's Timeframes website. The archive has curated 12 cartoon exhibitions, several touring to a number of New Zealand centres, and has published three books.

The archive is a self-supporting organisation relying on income raised by the New Zealand Cartoon Archive Trust through sponsorship, donations, membership and other events. It is established within the Alexander Turnbull Library, National Library of New Zealand, Wellington.

12.3 Library services

National Library of New Zealand Te Puna Matauranga o Aotearoa

The National Library of New Zealand was established in 1965 by an act of parliament, which also incorporated the Alexander Turnbull Library into the National Library. The National Library of New Zealand (Te Puna Matauranga o Aotearoa) Act 2003 replaced the earlier act, and confirmed the Crown's undertaking to preserve, protect, develop and make accessible the collections of the Alexander Turnbull Library forever. The 2003 act also created an independent advisory body to the government, the Library and Information Advisory Commission.

The National Library is a key adviser to the government on library and information issues. The National Library holds in its general collections 890,347 books; 5,324 periodical titles; 10 main microfilm collections; 7,878 audiobook titles; and 518,746 items in the schools collections. Family history, music and children's literature are strengths within the collections. In addition, the Alexander Turnbull Library holds 354,000 volumes, including 44,000 rare books, chiefly in English literature; special collections including New Zealand and Oceania, Milton, Katherine Mansfield, and oral history; 8,000 linear metres of manuscripts; 78,000 drawings, paintings and prints; 2.6 million photographic prints, negatives and albums; 54,000 maps; 40,379 sound recordings; 2,678 videos; 579 computer files; and 140,000 items of ephemera, including 17,000 posters.

The National Library provides access to its general collections on site and by lending to other libraries through the interloans system. The collections of the Alexander Turnbull Library are not available for borrowing, but material can be selected from them and used in special areas of the library. Copies of some items, such as microform copies of serials, newspapers, books, manuscripts, some oral history interviews and other unpublished sound recordings, may be available through inter-library lending. Access to the records of most collections is available through the internet. The National Library gallery, through a programme of exhibitions and public events, provides access to, and interpretation of, the heritage collections held by the Alexander Turnbull Library. The National Library's website is www.natlib.govt.nz

Services available from the National Library include:

  • Collection and Reference Services - Under the National Library Act 2003, publishers are required to deposit copies of every publication produced in New Zealand, including electronic published material. The library lists these publications on the New Zealand National Bibliography, which is published monthly and often used by buyers to order new titles. The general collection includes the family history area, where people trace their family tree using books, CD-ROMs and microfiche information from New Zealand and overseas.

  • Te Puna - This is the web-based gateway to the library's on-line collections, catalogues and directories.

  • School Services - Located in 13 centres around the country, this service is available to all New Zealand schools. School Services provides advisory support on school library management and development, through a programme of courses, seminars and consultancy services. Curriculum Information Service provides reference services and loans of curriculum-related resources to teachers and home-schoolers from the schools collection and a developing range of online information resources.

  • Services to Maori - A Services to Maori unit helps Maori gain optimum use of the library's resources and services.

  • National Preservation Office - The National Library and National Archives established New Zealand's National Preservation Office Te Tari Tohu Taonga in 1997. This provides a national advisory service, including training in preservation management and conservation assessments.

  • Print Disabilities Service - This service provides audio books (cassettes and CDs) to people with print disabilities who cannot independently obtain access to information in a print form.

The Alexander Turnbull Library. Part of the National Library of New Zealand, the Turnball holds collections of books, photos, manuscripts and archives, letters, drawings and prints, music, newspapers, maps and sound recordings that document the history of New Zealand and the Pacific. Other significant holdings are the major research collection on John Milton and his times, a selection of illuminated manuscripts, and New Zealand's largest collection of early printed books and fine printing. The library was started by Alexander Horsburgh Turnbull, a wealthy Wellington merchant who died in 1918 and bequeathed to the nation 55,000 volumes, as well as manuscripts, photographs, paintings and sketches collected during his lifetime.

Oral History Centre. The many different voices of New Zealanders are recorded by the Turnbull 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 provide valuable information about language, accent, inflection, emphasis and tone. The centre preserves and provides access to the oral history collection, as well as recording interviews for the library's oral history projects and carrying out commissioned projects for other organisations. As part of one of its contemporary oral history projects, the centre conducts weekly or monthly interviews with people such as leading politicians or the long-term unemployed. With more than 12,000 hours of spoken recording on discs, reels and cassette tape, the Alexander Turnbull Library has the most extensive collection of oral history recordings in the country. 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 include the life histories of 23 centenarians recorded in 1985, interviews with more than 80 veterans of World War I, the experiences of immigrant groups and ethnic minorities and interviews with winners of the Golden Shears shearing competition.

Parliamentary Library

The Parliamentary Library provides information, research and reference services for parliament as required by the Parliamentary Service Act 2000. The library provides Members of Parliament with desktop access to electronic resources such as legislative, statistical, legal and news databases.

The library's print collection of more than 500,000 volumes is strongest in economics, politics, public administration, law, social sciences and New Zealand serials and newspapers. International documents include government and parliamentary publications from a wide range of countries, with Australia, Canada, the United Kingdom and the United States particularly well covered. Publications from many inter-government agencies such as the United Nations, the Organisation for Economic Cooperation and Development and the World Bank are also available. The international documents collection is available for public use, as is the Parliamentary Information Service, which responds to enquires on all aspects of the New Zealand Parliament.

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 to 1996.

Hocken Library

Founded in 1910 through a gift from Dr T M Hocken, Dunedin physician, bibliographer and collector, the Hocken Library contains major research collections of New Zealand, Pacific and early Australia. Administered in trust by the University of Otago, the library includes more than 197,000 books, newspapers and periodicals; 11,400 sound recordings; 1,800 pieces of sheet music; 300 videos; 15,900 microforms; 10,000 maps; 1,010,700 photographs; 16,700 posters; 12,700 paintings, including modern works of art; and manuscripts, particularly of early missionaries and literary figures. The library's archives and manuscripts total 7,300 linear metres and are rich in Otago sources - business, local government, education, health, sport, community organisations, the churches and the University of Otago.

Public libraries

The library needs of the majority of New Zealanders are met through public libraries provided by local authorities. Since local authority amalgamation, most 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. At the end of 2003, there were more than 400 libraries in New Zealand covering public, specialist, government and educational needs with a stock of more than 12 million volumes.

Other libraries

There are more than 50 libraries in tertiary education institutions, including specialist department libraries within universities, all of which have major collections. There is provision for a library or library room in every school. New Zealand universities finance their libraries largely from government funding. They have developed research collections and some share an on-line public access catalogue system.

Developments in information technology, including easy access to the internet, have enabled much more intensive use of remote electronic databases and sourcing of material from external databases and collections.

More than 200 specialist libraries and information centres serve government departments, businesses and other organisations. A cooperative inter-library lending system allows resource sharing among the libraries.

12.4 Literature

New Zealand Society of Authors

The New Zealand Society of Authors (PEN NZ Inc) is the principal advocate for the professional interests of writers. It has more than 900 members from all genres and from beginning writers to senior literary icons. Society membership is open to anyone interested in writers and writing.

As well as providing a range of professional development and communications services to members, the society advocates for writers with industry partners in publishing, bookselling and audience development, and with Creative New Zealand and government departments.

New Zealand was one of the first English-speaking countries to set up a public lending right to compensate writers for lost royalties on books held in public libraries, and the society continues to be involved with issues surrounding this fund.

The society's mentor and manuscript assessment programmes provide beginning writers with feedback on their writing and have been successful in bringing new authors closer to publication.

The society maintains a connection with International PEN, which works on behalf of writers whose lives and freedoms are endangered.

The society is represented on the New Zealand Book Council, the Robert Burns Fellowship selection committee and Copyright Licensing Ltd, which distributes fees to authors and publishers for institutional photocopying of their work.

New Zealand Authors' Fund

Administered by Creative New Zealand, the New Zealand Authors' Fund compensates authors for loss of earnings when their books are borrowed from public libraries. In 2003, $1.5 million was distributed among 1,409 New Zealand writers.

Booksellers New Zealand

Book marketing in the form of national promotions is undertaken by Booksellers New Zealand, an organisation representing booksellers and publishers. Booksellers New Zealand organises The Montana New Zealand Book Awards, Montana Poetry Day, and The New Zealand Post Book Awards and Festival. Detailed information on these activities is available on the Booksellers New Zealand website, www.booksellers.co.nz The Book Publishers' Association of New Zealand's annual book design awards (sponsored by Spectrum Print) recognise excellence in book design and aim to increase public awareness of the quality of New Zealand books. Publishers have mounted collective stands at two major international book fairs since 2001. Attendance at the Frankfurt Book Fair is facilitated by the New Zealand Publishers' Export Joint Action Group and attendance at the London Book Fair is facilitated by Booksellers New Zealand.

Former All Black Christian Cullen promotes his book.

Book publishing

Research commissioned by the Ministry for Culture and Heritage indicates there were at least 600 book publishers in New Zealand in 2002. Most publishing firms were New Zealand owned and employed one or two people. The same study estimated there were more than 3,600 titles published in New Zealand in 2002. Total turnover was estimated at $204 million, with $117 million generated by exports. However, 5 percent of publishers produced nearly 90 percent of the total turnover, while 74 percent of publishers produced only 2 percent of turnover. Educational books made up 56 percent of all titles published and 66 percent of exported titles. Total book spending in New Zealand schools and spending per student remained about the same in 2002 as in 2000. In primary schools, $32.12 was spent per student; in secondary schools $49.29. Buying books was the most popular activity surveyed in the 2002 Cultural Experiences Survey conducted by Statistics New Zealand and the Ministry for Culture and Heritage, with 1.2 million people, or 44 percent of New Zealand adults, buying at least one book during the four-week reference period. In the 2000/01 financial year, the survey estimated that household spending on books totalled nearly $4.7 million a week.

12.5 Performing arts

New Zealand Music Industry Commission

The New Zealand Music Industry Commission was established in June 2000 as a government-funded charitable trust to facilitate growth in the New Zealand music industry through specific projects, such as New Zealand Music Month. One of its main functions is to help the information flow among different facets of the industry, which it does through its website (www.nzmusic.org.nz), where music companies can register, gain information about projects, and get advice on matters such as tours, media and taxation.

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra (NZSO) entered its 58th year in 2004. Numbering 95 players and supported by an administrative staff of 25, the NZSO is an orchestra of international standing that attracts prominent international artists and conductors. James Judd, director of the Florida Philharmonic, was appointed the orchestra's first Music Director in 1999 and is based in New Zealand for 12 weeks every year. Vesa-Matti Leppanen was appointed Concertmaster of the NZSO in October 2003, the sixth concertmaster in the orchestra's history. The NZSO is based in Wellington and performs regularly throughout New Zealand, travelling more than 50,000km each year, making it one of the world's most travelled orchestras.

Both the NZSO and the NZSO Chamber Orchestra (founded in 1987) perform works from the major symphonic and chamber repertoire, playing around 100 concerts a year. The chamber orchestra includes leading members of the NZSO. It generally performs without a conductor and is directed from the first violin chair by Music Director Donald Armstrong. The NZSO's initiation of an education programme in 2000, establishment of audience development programmes, highly successful concerts at non-subscription centres and a fresher, more ‘funky’ image have broadened its market appeal. As well as presenting a subscription series, the NZSO performs light music, family concerts, educational programmes, operas and ballets. The NZSO is also committed to commissioning, performing and recording works by New Zealand composers, and runs a composition competition for the Douglas Lilburn Prize in partnership with radio's Concert FM. In 2003, the NZSO commissioned New Zealand composer David Farquhar, in recognition of his 70th birthday.

The NZSO has made six overseas visits, to Australia in 1974, to Hong Kong in 1980 and, in 1992, to Expo92 in Seville, where 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.

In September 2000, it performed at the Sydney Opera House, in a collaboration with performers from the Tainui iwi, as part of the Sydney Olympic Arts Festival.

In 2003, the orchestra travelled to Osaka, Japan, for one concert as part of the Asian Orchestra Week.

The NZSO Foundation Charitable Trust was established in 1996 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.

The orchestra's website is www.nzso.co.nz

The NZSO National Youth Orchestra brings together about 100 young instrumental musicians each year for an intensive week of rehearsal, culminating in a public concert. In 2001, due to increased sponsorship, the youth orchestra was able to perform for the first time in Wellington and Auckland and in 2004 also travelled to Christchurch. Selected from nationwide auditions, the young players (aged 13-25) receive coaching from NZSO principals, while gaining experience of professional symphony orchestra conditions. Many become NZSO and regional orchestra players. The youth orchestra is administered and funded by the NZSO.

Chamber Music New Zealand

Chamber Music New Zealand is the major presenter of chamber music concerts in New Zealand. International and New Zealand artists perform in celebrity season concerts in nine centres, with additional concerts in 26 smaller cities and towns.

There were more than 140 concerts and events in 2003. With more than 50 years experience, Chamber Music New Zealand has strong ties with artist management and concert presenters worldwide. This offers the opportunity of touring the best of both established and emerging international ensembles.

Chamber Music New Zealand also has a strong commitment to the development of New Zealand musicians and composers.

Chamber Music New Zealand established the New Zealand String Quartet in 1987, a professional, full-time quartet which has developed an international reputation.

Chamber Music New Zealand has organised contests for secondary school students in both instrumental performance and composition categories for nearly 40 years. Many contestants have become New Zealand's finest musicians and enjoyed distinguished international careers. The 2003 contest attracted 494 group entries, representing 1,800 young musicians from throughout New Zealand.

Ticket sales are the major source of Chamber Music New Zealand's funding, with the rest coming from grants from Creative New Zealand and sponsorship.

The Chamber Music New Zealand website is www.chambermusic.co.nz

New Zealand Choral Federation

The New Zealand Choral Federation Te Kotahitanga Manu Reo o Aotearoa (NZCF) is an incorporated society representing the interests of its 390 member choirs. It is served by a national executive of 16 members and maintains a full-time staffed national office in Auckland.

The NZCF, whose Maori 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 Maori, Polynesian and western music.

Formed in 1985, NZCF provides advisory and information services on all group singing matters, and is the link to the International Federation for Choral Music. The NZCF's income is derived from membership fees, event management, sponsorship and Creative New Zealand.

The NZCF has developed a family of national events to promote group singing and to raise its profile. These showcase events encourage participation and promote excellence in group singing from an early age with The Kids Sing - NZCF Young Voices Group Singing Awards and The Big Sing - NZCF Secondary Schools Choral Festivals. In 2003, a record 202 choirs from 127 schools entered this festival, which culminated in 19 schools being selected to attend The Big Sing National Finale in Wellington.

In 2002 The Classic Sing - NZCF Community Group Singing Awards was introduced with four regional festivals staged. From these events, 11 choirs were selected to compete at the inaugural The Classic Sing Grand Prix in Rotorua in 2003.

The NZCF holds the Sing Aotearoa Festival every three years, a multi-cultural, multi-art festival first held in 1990 to commemorate the 150th anniversary of the signing of the Treaty of Waitangi. Sing Aotearoa brings together singers, writers, composers and dancers from all over New Zealand for an intensive weekend of workshops, performances, forums and cultural exchange.

Royal New Zealand Ballet

The Royal New Zealand Ballet is one of New Zealand's largest performing arts organisations, comprising 32 dancers and 25 staff in artistic support, production, marketing and management. Established in 1953, it is the oldest professional ballet company in Australasia. With a strong classical base, and a healthy attitude towards innovation, the company regularly presents an eclectic repertoire of choreographic styles - from 19th century classics to 21st century contemporary works. The dancers of the Royal New Zealand Ballet possess a unique physical strength and versatility, and a well-developed sense of individuality. New international and New Zealand choreography expresses these qualities and features prominently in the company's repertoire. The Royal New Zealand Ballet tours New Zealand more extensively and more frequently than any other major performing arts organisation. In 2003, more than 100,000 people attended performances in 50 centres across the country. 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 ballet to the United States, Europe, Asia and Australia. The Royal New Zealand Ballet website is www.nzballet.org.nz

New Zealand School of Dance

The New Zealand School of Dance trains about 60 students a year, offering a two-year National Certificate and a three-year National Diploma in Dance Performance. Students come mostly from New Zealand, but also from overseas. The school, founded in 1967, has a close relationship with the Royal New Zealand Ballet, and students are often seconded to the company for performances. The school offers its students the opportunity to work each year with a number of artists in residence. The school also offers a junior associate programme for aspiring young dancers. The New Zealand School of Dance is principally funded by the Ministry of Education, tuition fees, sponsorships and grants. Fees for dance courses in 2004 were $3,750 (inc GST). The School of Dance website is www.tewhaea.org.nz

New Zealand Drama School

More than 350 actors, entertainment technology production specialists and directors have graduated from Te Kura Toi Whakaari O Aotearoa New Zealand Drama School since its establishment in 1970. The school offers a three-year Bachelor of Performing Arts (Acting), a two-year diploma in entertainment technology, a one-year advanced diploma in entertainment technology, a two-year Master of Theatre Arts (Directing) offered jointly with Victoria University and a four-year Bachelor of Performance Design offered jointly with Massey University. The school is principally funded by the Ministry of Education, tuition fees, sponsorship and grants. In 2004, annual fees for the diploma courses and the Bachelor of Performing Arts (Acting) were $4,500 (inc GST) and for the Bachelor of Performance Design approximately $3,500 (inc GST). Papers for the applied Master of Theatre Arts (Directing) started at $43 per point of the paper's worth. The drama school website is www.tewhaea.org.nz

New Zealand Opera Company

The NBR New Zealand Opera Company was formed in 2000 by the combination of the National Opera of Wellington and Auckland's Opera New Zealand. The aim of the fusion was to widen the reach and to raise the standard of opera production in New Zealand. In its first four years, the company grew its audience by more than 30 percent and won critical acclaim for its world-class productions. In 2004 the company staged The Elixir of Love, Rigoletto, Cosi Fan Tutte and Carmen.

The company does not confine itself to staging productions, however. Through the PricewaterhouseCoopers Dame Malvina Major Emerging Artists Programme, talented young singers receive practical assistance and experience. Development training is focused on voice and performance, with regular tuition by Dame Malvina Major. Opera Outreach is an initiative designed to make opera and the performing arts accessible to young people. This is achieved by hosting creative workshops that give school students the chance to create and perform in their own opera or musical drama; by having school children attend final dress rehearsals of operas; and by providing educational tours.

12.6 Film and video

New Zealand Film Commission

The New Zealand Film Commission (NZFC) finances distinctly New Zealand films with the aims of reaching significant New Zealand audiences and producing high returns on investment, both in cultural and financial terms.

More than 175 feature films have been made in New Zealand since the film commission was established in 1978. Eighty of these features have had NZFC finance and three have also had finance from the New Zealand Film Fund. A further 28 features from offshore were shot on New Zealand locations.

The functions, powers and duties of the NZFC are defined in the New Zealand Film Commission Act 1978. The commission receives funding from central government and the Lottery Grants Board.

The NZFC budget for the 2003/04 financial year was $13.8 million, of which 70 percent came from the Lottery Grants Board, 17 percent from the government, and the remainder from film investments and sales. The budget varies from year to year according to public funding and returns on film investments.

In the 2002/03 year, the commission committed $6.8 million for the production or post-production of 11 feature films, and $1.6 million for feature film scripts and project development. It also committed $770,000 on the production of nine short films and $1.1 million on the promotion and marketing of features and shorts.

Figure 12.01. Cinema admissionsYears ending 31 December

Cinema admissionsYears ending 31 December

Distribution and exhibition

Film-going peaked at 40.6 million admissions in 1960-61, but declined dramatically after the introduction in 1961 of television and, later, home videos. However, as figure 12.01 shows, cinema admissions have shown a steady growth trend in recent years, from 6.1 million in 1991 to more than 18.3 million in 2003. According to Motion Picture Distributors' Association figures, box office takings in 2003 were $156.1 million, compared with $142.7 million in 2002 and $124.6 million in 2001.

New Zealand Film Archive

The New Zealand Film Archive Nga Kaitiaki O Nga Taonga Whitiahua has three principal functions - to collect, protect and project New Zealand's moving image heritage.

Established in 1981, the archive's collections reflect the breadth of New Zealand's moving image history, from the earliest days of cinema to contemporary film, video and digital productions.

The film and video collection includes features and short films, newsreels, documentaries, home movies, music videos, broadcast programmes, commercials and video art.

The archive also maintains the national television collection on behalf of NZ on Air. This collection represents a diverse range of broadcasters and programming, including television news, dramas, documentaries, games shows, music videos, infomercials, youth programming and sport.

The documentation collection includes promotional, critical and historical materials from 1896 to the present. The collection includes stills, posters, scripts, clippings, programmes, publicity material, production records and files, personal records, storyboards, props and costumes, animation cels, taped interviews and equipment.

Based in central Wellington, the archive has a national focus. In addition to screenings and exhibitions in Wellington, the archive has an Auckland branch and video access sites in art galleries and museums in Dunedin, Christchurch, Palmerston North, New Plymouth and Whangarei. The archive website is www.filmarchive.org.nz

12.7 Censorship

The Films, Videos and Publications Classification Act 1993, which covers a range of mediums, defines a ‘publication’ as:

  • Any film, book, sound recording, picture, newspaper, photograph, photographic negative, photographic plate or photographic slide.

  • Any print or writing

  • Any print or other thing

(i) that has printed on it, or otherwise shown upon it, any word, statement, sign or representation

(ii) 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 Films, Videos and Publications Classification Act 1993 established the following bodies:

  • Office of Film and Literature Classification - 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 likely to be restricted or objectionable. The chief censor and deputy chief censor are 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 Film and Video Labelling Body - An industry-based body responsible for rating unrestricted films and videos and issuing labels. It bases many of its ratings for New Zealand consumers on the ratings and 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 of Film and Literature Classification. The body is responsible for the labelling of films, and submits publications to the Office of Film and Literature Classification for classification on behalf of distributors.

  • Film and Literature Board of Review - The board comprises 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 provides for 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. The board conducts the review by way of re-examination without regard to the decision of the Office of Film and Literature Classification. The president of the board also has the power to make a decision on any application for an interim restriction order in respect of any publication referred or submitted to the board. An interim restriction order prevents a publication being made available to the public prior to the board issuing its decision. The board is an independent statutory body and is serviced by the Department of Internal Affairs.

Classification. The Films, Videos and Publications Classification Act 1993 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 might be appropriate.

Apart from the Film and Video Labelling Body, publications can also be submitted to the Office of Film and Literature Classification by the Secretary for Internal Affairs, the Chief Executive Officer of the New Zealand Customs Service, or by any other person with leave of the chief censor. The chief censor can also ‘call in’ publications where deemed necessary.

The Office of Film and Literature Classification can classify a publication as 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 people aged 16 and over, or 18 and over.

Following classification, films are issued labels by the Film and Video Labelling Body. Films rated G (suitable for general audiences) are issued with green labels. Yellow labels (PG and M) are issued for unrestricted films recommended for a certain age or group. A PG rating means that younger persons may require parental guidance. An M rating means that a film is recommended for mature audiences. Red labels signify a restricted film.

Computer games fall under the definition of films, and the act requires that films intended for supply to the public must be labelled. However, section 8(1)(q) of the act exempts games from labelling unless they are likely to be restricted. Restricted computer games must also carry a red label.

Publications other than films are not required to be labelled before being supplied to the public. However, distributors or publishers can request leave from the chief censor to submit publications such as magazines and books for classification. If the chief censor grants leave the Office of Film and Literature Classification will classify such material as unrestricted, restricted, or objectionable. In addition, display conditions may be imposed and the publication may be required to be labelled.

Classifications assigned are legally enforceable. Under the act, it is illegal to make an objectionable publication, or to supply such a publication to any other person. The act also makes possession of objectionable publications illegal. This applies whether or not the publication has been classified.

The Office of Film and Literature Classification website is www.censorship.govt.nz

Enforcement. The Censorship Compliance Unit of the Department of Internal Affairs enforces the Films, Videos and Publications Classification Act 1993. The department's objective is to increase compliance with New Zealand's censorship laws. The department's main intervention in support of this outcome is ensuring that the film and video industry, magazine distributors and shops adhere to the decisions of the Office of Film and Literature Classification. This is done via an inspection programme that checks compliance with the legislation, ensuring that restricted material is correctly labelled and displayed and that objectionable material is not made available to the public. The department also inspects New Zealand websites to ensure they comply with the legislation. The department is also the primary agency responsible for monitoring, investigating and prosecuting offences involving objectionable material across all publication formats. The department has a particular focus on investigating the making and distribution of child pornography via the Internet. The department has strong links with overseas law enforcement agencies and regularly exchanges intelligence on offenders with those agencies. The censorship compliance unit's website is www.censorship.dia.govt.nz

The New Zealand Customs Service is responsible for ensuring that material imported into New Zealand complies with the law. The service can prosecute offenders who import objectionable publications across the border, either by physical or electronic means. Material seized by customs may be referred to the Office of Film and Literature Classification by Customs or, if prosecution action is taken, through the court. The New Zealand Customs Service's website is www.customs.govt.nz

12.8 Copyright

Copyright in New Zealand is based on the Copyright Act 1994, administered by the regulatory and competition policy branch of 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 creation 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 the lifetime of the author, plus 50 years after the end of the calendar year in which the author dies. For sound recordings and films, copyright generally continues for 50 years from the end of the calendar year in which they were made or made available (whichever is later). 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 were first published. Shorter periods of protection apply to works that are industrially applied.

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 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 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. Ownership of 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 1994. 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, computer programs and sound recordings; perform, play or show the work in public; broadcast the work or include the work in a cable programme service; and make an adaptation of the work. Copyright infringement occurs when a person undertakes a restricted act without the permission of, or a licence from, the copyright owner.

Permitted acts and exceptions - There are a number of exceptions to these exclusive rights that allow copyright works to be used without the permission of the copyright owner. These ‘permitted acts’ include fair dealing for criticism review and news reporting, fair dealing for research and private study, time shifting of broadcasts or cable programmes (that is, copying them to listen to or watch them at a more convenient time), taking photographs of certain artistic works displayed in public places and backing up computer programs. There are also specific exceptions for libraries, archives and educational institutions.

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. Action for copyright infringement in New Zealand is generally by way of civil action by the copyright owner. Remedies from civil action include damages, injunctions, or an order for delivery up. Criminal offences apply to certain commercial activities concerning infringing copies and can result in fines up to $150,000, or three months imprisonment.

Copyright Tribunal. The role of the Copyright Tribunal is to resolve disputes regarding licences or proposed licences for the copying, performing or broadcasting of copyright works.

Protection overseas. Copyright protection given in New Zealand generally also extends to works originating from countries 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 agreements. Conversely, countries party to either convention or the WTO agreement must give works originating from New Zealand the same protection they give works produced by their nationals.

12.9 Administration

Ministry for Culture and Heritage

The Ministry for Culture and Heritage assists the government in the provision and management of cultural resources for the benefit of all New Zealanders, and provides advice and undertakes activities that support and promote the history and heritage of New Zealand. The ministry is responsible to the Minister for Arts, Culture and Heritage and also provides advice and services to the Minister of Broadcasting and the Minister for Sport and Recreation.

The work of the ministry in the 2003/04 financial year was budgeted to cost $8.196 million (excluding GST). Of this, $7.598 million was made available through Vote: Arts, Culture and Heritage. Vote: Sport and Recreation provided $98,000, and $500,000 was contributed by third parties (eg from the writing of commissioned histories).

The ministry administers government funding to these statutory bodies in the cultural sector and manages the Crown's relationship with them: Creative New Zealand, New Zealand Film Commission, New Zealand Historic Places Trust, New Zealand Symphony Orchestra and the Museum of New Zealand Te Papa Tongarewa, which are responsible to the Minister for Arts, Culture and Heritage; the Broadcasting Standards Authority, NZ On Air, Radio New Zealand International and the National Pacific Radio Trust, which are responsible to the Minister of Broadcasting; and Sport and Recreation New Zealand and the New Zealand Sports Drug Agency, which are responsible to the Minister for Sport and Recreation.

The ministry also manages the Crown's relationship with the following cultural agencies, which receive ongoing government funding in return for the provision of services, but which have not been established by statute and are not owned by the Crown: Antarctic Heritage Trust, Aotearoa Traditional Maori Performing Arts Society, the New Zealand Film Archive, the New Zealand Sports Hall of Fame and the Royal New Zealand Ballet.

The ministry maintains a monitoring role with regard to the New Zealand Music Industry Commission which received one-off funding in 2000 to develop the popular music industry; and the Sir Edmund Hillary Trust, which received one-off funding in 2001/02.

The ministry manages, or assists in the management of, the Crown's relationship with other organisations, including the National War Memorial Advisory Council, which advises the Minister for Arts, Culture and Heritage on all matters pertaining to the memorial; the Te Maori Manaaki Taonga Trust, which supports the training of Maori in the care and display of taonga Maori, using funds ensuing from the Te Maori exhibition of the 1980s; the Pukaki Trust, established by the government in 2001 to ensure the care of its taonga; the Advertising Standards Authority and the Waitangi National Trust.

The ministry's other responsibilities include:

  • Provision of services and policy advice on arts, culture, heritage and broadcasting issues.

  • Researching, writing and publishing New Zealand history and major reference works, and the provision of advice about New Zealand history.

  • Management of national monuments, war graves and historic graves, and administration of legislation relating to the symbols and emblems of New Zealand.

The ministry's statement of intent for the five years from 2004 includes implementation of a programme that supports improved governance of major cultural agencies, and building stronger connections to ensure access to good intelligence on issues and developments in culture and heritage. The ministry also plans to construct a Tomb of the Unknown Warrior at the site of the National War Memorial in Wellington to commemorate all New Zealanders who lost their lives serving overseas.

Table 12.01 shows government and Lottery Grants Board funding to the arts and cultural sector for the 2003/04 financial year.

Table 12.01. Funding to the arts and cultural heritage sector Year ending 30 June 2004

GroupGovernment funding1Lottery grant

1 Vote: Arts, Culture and Heritage; Archives New Zealand; and National Library; Includes GST.

Source: Ministry for Culture and Heritage National Library of New Zealand Archives New Zealand Lottery Grants Board

 $(000)
Te Papa20,506n/a
Te Papa capital contribution9,000n/a
Creative New Zealand15,32618,553
New Zealand Film Commission2,2328,634
New Zealand Film Archive324594
New Zealand Historic Places Trust6,547n/a
Lottery community facilities (II: Cultural facilities)n/a587
Lottery environment and heritage (III: Cultural heritage)n/a3,079
New Zealand Symphony Orchestra11,390n/a
Ministry for Culture and Heritage9,111n/a
National Library51,916n/a
Archives New Zealand21,773n/a
Aotearoa Traditional Maori Performing Arts Society1,103n/a
Royal New Zealand Ballet3,695n/a
New Zealand On Air101,855n/a

Creative New Zealand

Creative New Zealand is the main arts development organisation in New Zealand, established as a crown entity under the Arts Council of New Zealand Toi Aotearoa Act 1994. Its work is diverse, ranging from grassroots projects through to support for professional artists and arts organisations.

Creative New Zealand achieves its goals and objectives through its work in arts advocacy, special initiatives and a range of funding programmes. It works in partnership with the arts sector, central and local government, the business sector and communities to enhance its resources and to achieve its vision of the arts at the centre of a creative society.

Its governing body is the Arts Council and its decision-making bodies are the Arts Board, Te Waka Toi and the Pacific Arts Committee. Members are appointed by the Minister for Arts, Culture and Heritage. Staff in Wellington, Christchurch and Auckland offer specialist artform and funding advice, arts advocacy, evaluation and corporate services.

Creative New Zealand's funding comes from the government through Vote: Arts, Culture and Heritage and from the New Zealand Lottery Grants Board. For 2003/04, it received $15.3 million from the government and $18.5 million from the lottery grants board. Creative New Zealand's website is www.creativenz.govt.nz

Advocacy. Advocating for New Zealand arts and artists underpins all of Creative New Zealand's work. In promoting the role and value of the arts to society, it works in partnership with many other organisations. Much of its advocacy work in 2003 focussed on cultural tourism, cultural diplomacy and arts employment.

Creative New Zealand supports several awards to acknowledge the contribution of other sectors to the arts. For instance, the annual Creative Places Award recognises local government innovation and investment in the arts. The 2003 Creative Places Award was won by the New Plymouth District Council for Puke Ariki, the region's new museum, library and visitor information centre. The organisation sponsored a new award in the 2003 Montana World of Wearable Arts Awards, the Creative New Zealand Artistic Excellence Award, to support innovation in the arts and provide an opportunity for senior artists to showcase their work on a high-profile platform. The inaugural award was won by Nelson designer Letty MacPhedran.

Creative New Zealand produces a number of regular and one-off publications. Along with its magazine, On Arts, in 2003 it published posters and postcards aimed at profiling Pacific arts to the international market; the calendar Te Maramataka a Te Waka Toi; and a publication showcasing the work of 11 artists who are licensed users of toi iho, a registered trademark denoting the authenticity and quality of Maori arts. Among its other publications in 2003 were two practical guides for the arts sector, Smart Arts/Toi huatau, a guide to marketing arts events in New Zealand, and The Touring Manual, a guide to touring the performing arts in New Zealand.

Arts development. Creative New Zealand achieves its arts development goals through its funding programmes and special initiatives. It receives more than 1,600 applications for grants each year and is able to support approximately 600 of these through its three funding bodies, the Arts Board, Te Waka Toi and the Pacific Arts Committee.

Professional development, the creation of new work and the presentation of work are supported by funding, as are artist-in-residence programmes, scholarships and bursaries, and international opportunities such as the New Zealand exhibition at the Prague Quadrennial in June 2003; participation of Qwik n Ezy in the world breakdancing championships in Germany; and the Pasifika divas' performance at a festival in Berlin. Through its project funding rounds in 2003, Creative New Zealand also supported the Asia Society in New York with grants totalling $190,000 to mount Paradise Now?, the first major presentation of contemporary art from both New Zealand and other Pacific nations in a United States museum. The exhibition opened in February 2004.

Creative New Zealand also funds 38 professional arts organisations on an annual or three-year basis. These organisations include the New Zealand String Quartet; Toi Maori Aotearoa; several national advocacy and service organisations such as Dance Aotearoa New Zealand and the New Zealand Book Council; regional theatre companies and orchestras; galleries and opera companies. These organisations received a total of $11.5 million in the 2003 calendar year.

Special initiatives. Creative New Zealand identifies opportunities and areas of concern in the arts sector and responds by developing appropriate initiatives. These include awards to artists (eg the Arts Pasifika Awards), fellowships (eg the inaugural 2003 Creative New Zealand Choreographic Fellowship) and initiatives supporting its international strategy (eg the New Zealand exhibition at the 50th Venice Biennale of Art). New Zealand participated in the Venice biennale with the work of artist Michael Stevenson. His multi-layered installation, This is the Trekka, featured in the 18th century church La Maddalena and had been seen by more than 58,000 people by the time the exhibition closed. Time magazine's Michael Fitzgerald said the exhibition “cleverly concocts a time capsule of New Zealand before globalisation”. Creative New Zealand presented the exhibition in partnership with the City Gallery, Wellington.

The registered trademark toi iho, denoting authenticity and quality of Maori arts, was launched in February 2002, and there are now more than 100 Maori artists and 14 stockists licensed to use toi iho. This initiative was developed by Creative New Zealand through Te Waka Toi, and the organisation's ongoing marketing continues to build on the demand for toi iho.

In May 2002, the government announced an additional $1 million (including GST) a year to the literary sector. Representatives from the literary sector, Creative New Zealand and the Ministry for Culture and Heritage consulted on the best use of the additional funding and, as a result, the annual Prime Minister's Awards for Literary Achievement were announced. Recipients of the $60,000 awards in 2003 were Janet Frame (fiction), Hone Tuwhare (poetry) and Michael King (non-fiction). Also announced was the annual $100,000 Creative New Zealand Writers' Fellowship, awarded in 2003 to Owen Marshall.

International residencies announced in 2003 included the Kunstlerhaus Bethanien in Berlin, awarded to Ronnie van Haut; the International Studio and Curatorial Program in New York, awarded to Chris Braddock; the Creative New Zealand Berlin Writer's Residency, awarded to Philip Temple; and the Cook Islands Artist's Residency, awarded to Sylvia Marsters.

Research. Creative New Zealand carries out research to inform its strategic planning and policy development, to support its advocacy work and to provide information of value to the wider arts sector. In late 2003, Creative New Zealand published a research report entitled Portrait of the artist/Te hakaahua o te tangata pukenga. This was based on findings from a survey of 1,010 professional practising artists across a range of artforms, exploring the working life and career path of being an artist in New Zealand.

Regional and local arts development. Creative New Zealand's support for regional and local arts development throughout New Zealand is delivered through a range of programmes and initiatives.

Twelve regions throughout New Zealand have benefited from Creative New Zealand's Regional Strengths strategy, aimed at developing major arts initiatives reflecting each region's unique cultural development. The initiatives range from art guides and websites through to databases, economic impact studies, and new organisations to strengthen regional arts infrastructure. The strategy was developed and implemented as a result of additional government funding to Creative New Zealand in May 2000. During the three-year life of the strategy, Creative New Zealand invested $960,000, which was enhanced by significant funding from other sources.

Creative New Zealand supports local arts activities through the Creative Communities Scheme. Established in 1995, the scheme involves all 74 local authorities as administrative partners, with Creative New Zealand as the funding partner. In 2002/03, this funding support amounted to $2.65 million, disbursed by assessment committees made up of representatives from iwi and the local arts sector, including community arts councils, and local government. More than 2,600 community arts projects are supported each year through the Creative Communities Scheme.

Contributors

Introduction Ministry for Culture and Heritage

12.1 Statistics New Zealand; Ministry for Culture and Heritage.

12.2 Museum of New Zealand Te Papa Tongarewa; Statistics New Zealand; New Zealand Historic Places Trust; Archives New Zealand; New Zealand Cartoon Archive; Ministry for Culture and Heritage.

12.3 National Library of New Zealand; Parliamentary Library; Hocken Library; New Zealand Library and Information Association of New Zealand (LIANZA); Alexander Turnbull Library.

12.4 New Zealand Society of Authors; Creative New Zealand; Booksellers New Zealand, Book Publishers' Association of New Zealand.

12.5 New Zealand Symphony Orchestra; Royal New Zealand Ballet; Chamber Music New Zealand; New Zealand School of Dance/School of Drama; New Zealand Choral Federation.

12.6 New Zealand Film Archive; New Zealand Film Commission, Motion Picture Distributors Association; Office of Film and Literature Classification.

12.7 Office of Film and Literature Classification.

12.8 Ministry of Economic Development.

12.9 Ministry for Culture and Heritage; Creative New Zealand.

Websites

www.apra.com.au - Australasian Performing Right Association

www.archives.govt.nz - Archives New Zealand

www.bpanz.org.nz - Book Publishers Association of New Zealand

www.chambermusic.co.nz - Chamber Music New Zealand

www.copyright.org.nz - Copyright Council of New Zealand

www.creativenz.govt.nz - Creative New Zealand

www.dia.govt.nz - Department of Internal Affairs

www.otago.ac.nz - Hocken Library

www.dia.govt.nz - Lottery Grants Board

www.itanz.org.nz - Information Technology Association of New Zealand

www.mch.govt.nz - Ministry for Culture and Heritage

www.med.govt.nz - Ministry of Economic Development

www.tepapa.govt.nz - Museum of New Zealand Te Papa Tongarewa

www.natlib.govt.nz - National Library of New Zealand

www.nzfa.org.nz - New Zealand Film Archive

www.nzfilm.co.nz - New Zealand Film Commission

www.historic.org.nz - New Zealand Historic Places Trust

www.nzipp.org.nz - New Zealand Institute of Professional Photographers

www.nzopera.com - New Zealand Opera Company

www.tewhaea.org.nz - New Zealand School of Dance

www.arachna.co.nz/nzsa - New Zealand Society of Authors

www.nztvarchive.co.nz - New Zealand Television Archive

www.nzso.co.nz - New Zealand Symphony Orchestra

www.censorship.govt.nz - Office of Film and Literature Classification

www.nzballet.org.nz - Royal New Zealand Ballet

www.rianz.org.nz - Recording Industry Association of New Zealand

www.screen.org - Screenrights

www.spada.co.nz - Screen Producers & Directors Association

www.stats.govt.nz - Statistics New Zealand

www.vuw.ac.nz - Victoria University of Wellington

Chapter 13. Leisure and Tourism

New Zealand athletes model clothing manufactured by the supplier of uniforms for the 2004 Olympic Games in Athens.

As well as investing in sports programmes and physical recreation, SPARC has a public policy and research role. It gives effect to government policy aimed at promoting a healthier and more active nation.

With a staff of around 60, SPARC works to ensure that all New Zealanders recognise the value of, and have access to, an active lifestyle that will lead to a healthier and more socially cohesive nation.

Sport and physical activity rates

The National Sport and Physical Activity Survey conducted by SPARC has been running in its current form since 1997.

The surveys have now interviewed 16,500 New Zealanders - 12,500 adults (people aged 18 and over) and 4,000 young people (5-17 year olds) - about their participation in physical activity and sport.

Some of the findings:

  • Sixty-eight percent of 5-17 year olds and adults are active, which means they do at least 2.5 hours or more of sport and active leisure a week.

  • Thirty-two percent of young people and 32 percent of adults are inactive, which means they either do no physical activity, or fewer than 2.5 hours a week.

  • More girls (36 percent) are inactive than boys (27 percent), and more women (34 percent) are inactive than men (31 percent).

  • More adults were active in 2000/01 than they were in 1997/98, which meant around 150,000 more adults became active.

  • Indications are that activity levels for young people may have declined, from 69 percent in 1997/98 to 66 percent in 2000/01, especially for boys, Maori, young Pacific peoples and young people aged 5-8 and 13-15.

  • More young people are sedentary (doing no activity), up from 8 percent in 1997/98 to 13 percent in 2000/01.

Ninety-eight percent of all New Zealand adults enjoy some sport and active leisure during the year. Participation rates over a year in sport and active leisure are equally high for all New Zealanders, including Maori, European, Pacific peoples and people from other ethnic groups.

Around 2.27 million adults (83 percent) took part in a sporting activity, excluding walking and gardening, during the survey year. Men, Maori and adults aged 49 and under (in particular those aged 18-24) are more likely to participate in a sport than women, adults from other ethnic groups and older adults (those aged 50 and over).

The popularity of sports and activities varies for men and women, and for people of different ages and cultures. Popular sports include golf, tennis and touch rugby for both men and women. Women also enjoy netball and horse riding, whereas men participate more in cricket and rugby union.

Golf is the main sport for New Zealand adults. For Maori, touch rugby is the favourite. Volleyball is the sport most Pacific adults participate in, and for adults from other ethnic groups it is badminton. Netball and basketball are also popular with both Maori and Pacific adults, as are rugby union and rugby league.

Walking and gardening are the two main physical activities men and women do in their leisure time. Other popular physical activities include swimming, fishing, and exercising at home or at the gym.

Thirty-six percent of New Zealand adults surveyed who had participated in a sport or physical activity in the previous four weeks were active members of a club or gym. Men were more likely to have been club members than women (41 percent and 31 percent respectively).

New Zealand Academy of Sport

The New Zealand Academy of Sport is SPARC's high performance network, providing a comprehensive network of world-class expertise, services and facilities for New Zealand's best athletes, its promising young athletes and their coaches.

Nationally, the academy provides technical support and targeted financial resources for sporting organisations' high performance programmes. It also provides a range of support services in sports science, sports medicine and athlete and career education to carded national sports organisations, athletes and coaches.

With its head office in Wellington, the academy services high performance athletes, national organisations and coaches through regional operations in Auckland, Wellington and Dunedin.

Sports science services include nutritional advice, fitness testing, mental skills training, biomechanical analysis, physiological monitoring, strength and conditioning, and body composition assessment. Sports medicine services include medical and physical screening, sports vision, podiatry, physiotherapy, injury prevention programmes and diagnosis.

Trained career and educational advisors coordinate career, education and professional development advice to assist athletes to better manage their personal, study and sporting commitments, and to prepare them for life after sport. Athletes and coaches are able to access career training, professional development and education scholarships through this programme.

Specific services provided by the academy are determined by agreements between national sporting organisations and the academy. These agreements are sport-specific and are integrated into the individual sport's high performance plan. To access services, athletes are recognised at one of four levels - world, international, development and junior. Athletes receive a card, which recognises them as being an athlete at one of these levels and which entitles them to access services from the academy in accordance with their sport's service agreement. In 2002, there were approximately 1,000 carded athletes in New Zealand, representing 21 sports.

A young athlete in training at the New Zealand Academy of Sport, Wellington.

The academy programme is funded through a trust set up by the government in 2000 for the development of high performance sport over four years.

A separate Prime Minister's Scholarship fund provides athletes with scholarships for tuition fees and living expenses. The fund provided $1 million in 2001, which increased to $3 million in 2002 and $5 million in 2003. The Prime Minister's Scholarship fund also provided more than $1 million for professional development for coaches in 2002.

Young people

Young people are a major priority for SPARC. Sport improves the health and fitness of young people and makes them more confident and better prepared for life.

Sport teaches leadership, teamwork, discipline and how to respect others - skills that can be used in all aspects of life.

Schools, clubs and community groups need to work together to provide opportunities that meet the needs of all young people.

It needs parents, coaches, managers and officials to organise and present sport in the right way. And all this needs to be coordinated, if young people are to get the best out of sport.

  • Moving Through Sport is a national policy that provides a framework and guidelines for delivering sport for young New Zealanders. The policy was developed by the former Hillary Commission after consultation with national sporting organisations and various sport and education agencies. It is currently being reviewed by SPARC.

  • KiwiSport is SPARC's programme for primary and intermediate schools and sports clubs. Launched in 1988, KiwiSport was initially about adapting adult sports to make them suitable for children. While modified sports remain an important part of today's programme, KiwiSport now is also about providing quality sport and physical activity for young people. It helps schools, clubs and all those involved in junior sport. It also promotes positive competition and fair play. More than 90 percent of New Zealand's primary and intermediate schools deliver KiwiSport to their students.

  • Sportfit creates sport and fitness opportunities for young people in secondary schools. SPARC funds and works with schools to help provide high-quality sporting experiences and sports education for students. The Sportfit Strategy 2000-2005 aims to support secondary school sport and help schools reach important national goals for young people.

  • SportSCID2003 is a personal computer database that teachers can download free to assist their schools with day-to-day running of sports programmes.

  • Sports Choice is an interactive computer package that enables young people to match their physical attributes and preferences with potential sporting suitability. It also provides an indicator of fitness and skill and a method of identifying sport suitability. Sports Choice provides descriptions, information and contact details for sports in New Zealand, including sporting organisations for people with disabilities. The programme includes information about more than 100 sports and how to pursue different sporting options in the community. It can also create a personalised fitness and skill profile to match a user with the sports best suited to them physically.

  • Sport Shed sets out activities based on sports study, physical activity and outdoor education that can be incorporated into health and physical education teaching and learning programmes. Sport Shed also provides a planning resource that teachers can use on-line, or cut and paste into their own teaching materials.

  • Active Living is a SPARC programme which includes the Push Play, Green Prescriptions and He Oranga Poutama initiatives to encourage New Zealanders to enjoy physical activity as part of their everyday lives.

Figure 13.01 shows proportions of 5-14 year olds participating in active leisure activities.

Green Prescriptions. A Green Prescription is a health professional's written advice to a patient to be physically active as part of the patient's health management. Ten area managers located within Regional Sports Trusts promote the scheme, whose key players are general practitioners, practice nurses, patients and activity providers. The Green Prescriptions programme is funded by Pharmac. Nearly 6,000 patients were given Green Prescriptions during 2003.

He Oranga Poutama. He Oranga Poutama aims to encourage healthier active lifestyles for Maori by enhancing their enthusiasm for sport, physical recreation and active leisure. A national network facilitates physical activity initiatives in the regions. The network includes regional sports trusts and iwi organisations that provide services encouraging Maori to be active in sport, physical recreation and active leisure.

Sport development. SPARC works across the sport and recreation sector to increase the number of people involved in organised sport, encouraging them to move from active sports people to coaches or administrators.

Coaching. Coaching is vital to the development of any athlete and SPARC is committed to supporting and developing New Zealand's coaches at a national, regional and local level. Through its high performance network, the New Zealand Academy of Sport, SPARC administers the annual Prime Minister's Coach Scholarships, which recognise future national coaches and give them an incentive and the financial support to move to the next level. The aim is to increase the depth of knowledge of coaches and the standard of high performance coaching.

No Exceptions. No Exceptions is SPARC's strategic plan for New Zealanders with disabilities. Implemented in partnership with the Halberg Trust, it enables people with disabilities to access quality sports experiences and provides common goals. It is based on the belief that sport and physical activity, when properly presented and adapted, can make a significant contribution to the lives of both the individual and New Zealand society. No Exceptions refers to people who have traditionally faced barriers that made it difficult for them to take part in the sport or active leisure of their choice. This includes - but is not restricted to - people with physical, intellectual and sensory disabilities and any condition that disadvantages individuals among their able bodied peers.

Other central government bodies. Various government departments, ministries and Crown entities are involved in sport and physical recreation. SPARC has close relationships with the Ministry of Health and the Ministry of Education who share the objectives of helping New Zealand to be a healthy, physically-active nation.

Local government. Provision of sport and leisure facilities such as community centres, parks and playing fields has long been accepted as part of the responsibilities of local and regional authorities. SPARC's Active Communities initiative is making $10 million available to territorial authorities over three years to increase New Zealanders' physical activity levels. Three pilot initiatives covering six territorial authorities are underway in Gore, Southland, Invercargill, Hutt City, Upper Hutt and Christchurch. SPARC is also committed to investing in strategic planning with territorial authorities and other stakeholders via involvement in regional and community sport and physical activity plans.

The leisure industry

For many New Zealanders, the successful 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 the 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.

Figure 13.01. Participation in active leisure1
By 5-14 year olds

Participation in active leisure1By 5-14 year olds

Figure 13.02. Top 10 sports for women
Annual participation rates 1997-2001

Top 10 sports for womenAnnual participation rates 1997-2001

Figure 13.03. Top 10 sports for men
Annual participation rates 1997-2001

Top 10 sports for menAnnual participation rates 1997-2001

Figure 13.04. Participation in active leisure1
By adults

Participation in active leisure1By adults

Traditionally, New Zealanders have excelled in rugby union, which has been regarded as the national sport, and, from time to time, in track and field athletics and equestrian events.

However, Sir Edmund Hillary, who with Sherpa Tensing Norgay in 1953 was the first to climb Mt Everest, probably remains New Zealand's best internationally known sportsman.

In more recent years, New Zealanders have had international success in rowing, rugby league, netball (including winning the world championship in 2003), squash, softball (retaining the world championship in 2004), cricket, yachting, cycling and other disciplines.

Figures 13.02 and 13.03 show the 10 most popular sports, by participation rate, for New Zealand women and men, averaged from a number of monthly surveys between 1997 and 2001.

Participation rate is the percentage of those surveyed who recorded any participation in the sport in the previous 12 months.

Outdoor leisure activities

Physical activity reduces the risk of developing, or dying from, many serious diseases.

Physical inactivity contributes to 2,600 deaths a year in New Zealand, and is second only to smoking as a negative health behaviour.

A Ministry of Health study on the cost-effectiveness of physical activity conservatively estimated that a 5 percent increase in physical activity could result in savings of $25 million a year in direct health costs.

Figure 13.04 shows adult rates of participation in active leisure activities.

Push Play. The Push Play programme aims to get more people, more active, more often by teaching New Zealanders how to build exercise into their daily lives. The Push Play brand is widely used by sports trusts, community groups and local authorities, and a review of New Zealanders' self-reported levels of physical activity in 2002 found that 39 percent of adults said they were active for 30 minutes a day on five or more days a week.

Fishing. A wide variety of fish abound in bays and harbours around New Zealand's coast. Rainbow and brown trout are found in lakes and rivers of the North Island and in South Island lakes. The South Island also has sea-run brown trout in western coast rivers, sea-run quinnat salmon in eastern coast rivers and land-locked salmon. Average sizes of trout vary from district to district depending on environment, climate, food and the number 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 Fish and Game New Zealand. This organisation was established in 1990 to manage sportsfish and gamebirds, replacing acclimatisation societies. The Fish and Game New Zealand website is www.fishandgame.org.nz

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 tiger shark, hammerhead shark, mako shark, thresher shark, kingfish (yellow tail) and tuna. Best catches are usually made in February, but fishing is good from December to April.

Shooting and hunting. New Zealand's principal game birds are duck, swan, pheasant, quail, geese and chukor. The sport is limited, the season usually extending for about six to eight weeks depending on the region. By tradition, the season starts on the first weekend of May. A licence is required to hunt game birds and numbers taken are limited. There are few restrictions on big-game hunting. Generally speaking, there is no limit on the number of big-game animals that can be taken, there are no licence requirements 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 service of an experienced guide is recommended.

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 have snow-making equipment to ensure reliable snow depth and quality. New Zealand has 13 commercial ski areas, 11 club ski fields and one commercial cross-country ski area. In the North Island, the main snow sports centre is Mt Ruapehu, in the Tongariro National Park. There are two commercial ski areas, Whakapapa and Turoa, and one club field, Tukino. The Maunganui Ski Club operates on Mt Taranaki or Egmont. In the South Island, the commercial ski areas are Coronet Peak, The Remarkables, Cardrona, Treble Cone, The Snow Park (Queenstown/Wanaka); Ohau, Mt Dobson and Round Hill (Aorangi); Porter Heights, Mt Hutt and Mt Lyford (Canterbury). There are nine club fields in the South Island. The Snow Farm on the Pisa Range near Queenstown/Wanaka offers 50 kilometres of cross-country skiing. Glacier skiing on the Tasman and Fox Glaciers, with access via ski-planes/helicopters, is also available, while guided heli-skiing and ski touring gives access to the Ben Ohau Ranges, the Harris Mountains, the Two Thumbs Range, the Aoraki/Mt Cook//Tasman Glacier area, Mt Hutt and Queenstown in the South Island. The International Ski Federation (FIS) has sanctioned the holding of annual international snow sports competitions at Mt Hutt, Whakapapa, Coronet Peak, Cardrona and Turoa.

Mountaineering and tramping. The closeness 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, in 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 many 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 increasingly popular, with many opportunities throughout New Zealand. Information on mountaineering and tramping is available through commercial guiding companies or the Department of Conservation.

Walking. New Zealand's walkways system offers walking opportunities over primarily private land and is a complementary system to the network of back-country tramping tracks. Walkways vary from half-hour walks to four or five days for the St James Walkway in North Canterbury. In addition to walkways, government agencies and local authorities develop and maintain public walking tracks throughout New Zealand. The Great Walks are New Zealand's most famous tracks, popular with both New Zealanders and overseas visitors. They include Lake Waikaremoana, Urewera National Park; Tongariro northern circuit, Tongariro National Park; Abel Tasman Coastal Track, Abel Tasman National Park; Heaphy Track, Kahurangi National Park; Routeburn Track, Mt Aspiring and Fiordland National Parks; and Milford Track, Kepler Track and 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, with about 30,000 overnight visitors a year.

Cycling. A new cycling organisation, Bike NZ Inc, was formed on 1 July 2003, representing and incorporating the interests of Cycling New Zealand, Mountain Bike NZ, BMX New Zealand, Cycling Advocates Network, the Masters Cycling Association and the Schools Cycling Association. Bike NZ Inc is affiliated to the international cycling body (UCI) and has an affiliated membership of approximately 5,000 athletes and officials. This figure does not include those competing in school competitions.

Racing and gaming

Table 13.01 shows expenditure on gaming, including racing, lotteries commission products, gaming machines and casinos, from 1980 to 2003.

Racing. There are 70 thoroughbred, 50 harness and 12 greyhound racing clubs in New Zealand. The number of meetings held by each club and the stakes they offer vary widely, particularly between large city clubs and small provincial clubs.

New Zealand also has a strong horse breeding sector. Export of thoroughbred horses is worth about $100 million a year, with Australia and Asian countries 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 New Zealand Racing Board is developing a long-term strategy to grow the racing industry, and is implementing initiatives to combat declining race attendance and increased competition for the leisure time of New Zealanders.

The export of thoroughbred horses is worth about $100 million a year to New Zealand.

New Zealand Racing Board. Betting in New Zealand on racing, on and off course, and on sports is conducted by the New Zealand Racing Board through its Totalisator Agency Board (TAB) outlets and agencies, telephone services and the internet.

Established in 1950, the TAB was the first in the world to facilitate off-course betting on a comprehensive national scale through a statutory body.

Under the Racing Act 2003, the TAB amalgamated with the Racing Industry Board to become the New Zealand Racing Board (NZRB) on 1 August 2003. The new organisation continues to run its services under the TAB brand.

The NZRB has three fundamental objectives:

  • To provide a safe and corruption-free mechanism for betting on horse racing (gallops and harness), greyhound racing and sport.

  • To support the racing industry by returning the profit it makes to racing clubs and the industry.

  • To be the leading provider of responsible gambling services, training its staff in problem gambling awareness, monitoring customers where necessary, and contributing significantly to the treatment of problem gambling.

There are more than 600 TAB outlets throughout New Zealand and in the 2002/03 racing year, turnover for off-course racing totalled $1,011.7 million, with a further $77.6 million bet on-course. Sports betting totalled $117.6 million.

The internet enables the NZRB to compete for a share of the international racing and sports betting market. The TAB website www.tab.co.nz has a customer base of bettors from more than 70 countries.

Lotteries and gaming. The Gaming and Lotteries Act 1977 was replaced by the Gambling Act on 19 September 2003. The new act includes the following key provisions:

  • The Department of Internal Affairs is responsible for tighter licensing, auditing, reporting and other controls on gaming machines in pubs and clubs to ensure that profits go to community groups.

  • Territorial authorities (ie city and district councils) have the power to reduce or cap the number of gaming machines in their area and to decide the location of venues.

  • Problem gambling is recognised as a public health issue and the sector is required to pay a levy for prevention and treatment programmes. The Ministry of Health is responsible for coordinating problem gambling services.

  • Gaming machine venues that had a licence on 17 October 2001 are allowed up to 18 machines, or the actual number they were lawfully operating on 22 September 2003, whichever is lower.

  • Gaming machine venues that did not have a licence on 17 October 2001 are allowed up to nine machines, or the actual number they were lawfully operating on 22 September 2003, whichever is lower.

  • Gaming machines can be licensed as a form of fund-raising for community groups only and cannot be used for commercial benefit.

  • All gaming machines must be connected to an electronic monitoring system to be set up the Department of Internal Affairs within three and-a-half years.

The new act disestablished the Casino Control Authority, with some of its functions going to the Department of Internal Affairs and others to a new Gambling Commission. The act prohibits any new casino licences being issued and prevents existing casinos from expanding their gambling operations.

The New Zealand Lotteries Commission (NZLC) is responsible under the Gambling Act 2003 for promoting and conducting New Zealand lotteries, including Lotto, Lotto Strike, Lotto Powerball, Keno and Instant Kiwi.

Net profits from NZLC games are distributed to arts, sports, charitable and community causes by the New Zealand Lottery Grants Board, In the 2002/03 financial year, NZLC transferred $107.8 million to the Lottery Grants Board, the equivalent of $2 million a week. In the 2000/01 financial year, $130 million was transferred.

For every dollar spent on lotteries, 55 cents is paid in prizes, 21 cents is transferred to the Lottery Grants Board, 10 cents is paid in taxes, 7 cents is paid in retail commission and 7 cents covers operating costs (expenses).

In the financial year ending 30 June 2003, sales were $539.9 million. Of this, $286.6 million became payable in prizes, $107.8 million was transferred to the Lottery Grants Board, tax paid was $56.1 million, and $37.8 million was paid in retail commission. After allowing for transfers to the Prize Reserve Fund, less other incidentals of $12.0 million, the operating expenses for the year totalled $40.0 million.

Betting on horse racing, greyhound racing and sports events is controlled under the Racing Act 1990.

The New Zealand Lottery Grants Board Te Puna Tahua is a Crown entity set up by parliament to distribute profits from state lotteries. The board is chaired by the Minister of Internal Affairs. It distributes lottery profits to the arts, to sports, for film, for health research, to individuals with disabilities and to community groups (environment and heritage, welfare, youth, seniors, marae heritage and facilities, and general). Funds are distributed by the board through Sport & Recreation New Zealand, Creative New Zealand, the New Zealand Film Commission and lottery distribution committees. The minister also has a discretionary fund for purposes not covered by the distribution committees. Table 13.02 shows the allocation of lottery profits from 1997 to 2003.

Table 13.2. Allocation of lottery profits
Years ending 30 June

Recipient1997199819992000200120022003

- nil or zero

... not applicable

Source: New Zealand Lottery Grants Board

   $(million)    
Distribution committees       
    Lottery Community Facilities12.1012.0011.4010.6210.259.444.49
    Lottery Environment and Heritage10.7110.429.939.389.096.635.49
    Lottery General19.6315.2613.3011.9811.7510.776.12
    Lottery Health Research4.003.503.453.223.112.311.91
    Lottery Marae Heritage and Facilities-6.006.006.005.794.994.14
    Lottery Seniors (Aged)3.703.403.603.123.123.122.96
    Lottery Science Research2.001.00-----
    Lottery Welfare14.4012.0011.9011.0811.0811.0810.51
Lottery Welfare-       
    Individuals with Disabilities3.203.203.203.203.203.203.03
    Lottery Youth6.805.005.605.225.225.224.95
    Minister of Internal Affairs0.280.280.280.280.350.100.08
Statutory bodies       
    Creative New Zealand20.2520.2520.2520.3120.3120.3118.55
    Arts Foundation of New Zealand--1.001.000.101.000.92
    Film Commission8.778.778.778.808.808.808.04
    Film Archive-----0.650.59
    Sport & Recreation New Zealand27.0027.0027.0027.0827.0827.0824.74
    Sports 2000/High Performance Sports Fund3.663.723.783.813.813.813.48
Other       
    Alcohol and drug1.201.000.700.40---
    Cultural Olympiad0.50............... 
    Millennium2.002.002.004.00.........
        Total140.20134.80132.16129.50123.06118.51100.00

Casino Control Authority. Established under the Casino Control Act 1990, the main functions of the Casino Control Authority were 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 issued six casino licences for casinos in Christchurch, Auckland, Dunedin, Queenstown (two) and Hamilton. The Gambling Act 2003 does not provide for the issue of any new casino licences and prohibits existing casinos from expanding their gambling operations. The act also disestablished the Casino Control Authority in 2004, with some of its functions going to the Department of Internal Affairs and others to a new Gambling Commission.

Problem gambling. Gambling-related harm has emerged worldwide as a social and health issue. In New Zealand, the last decade has been characterised by a growth in gambling opportunities and spending. This growth has been paralleled by an increased awareness of the risk of gambling-related harm to various population groups, such as Maori, Pacific peoples, Asians, women and older people. From 1 July 2004, the Ministry of Health took over the role of funding and coordinating services and activities relating to gambling-related harm. The ministry is in the process of designing a strategic plan to prevent and minimise gambling harm, and a range of primary and secondary prevention activities will be developed and funded to address the problem. These will include a number of existing problem gambling services.

13.2 Tourism

New Zealand is internationally renowned for its landscape, for its sense of adventure and for its distinctive culture and people. Traditionally, international tourists have been drawn to New Zealand to experience the unpolluted air and water, the open spaces and the unique flora and fauna. Today, as well as these traditional attractions, the international traveller is looking for adventure, sophistication and cultural activity. New Zealand's tourism product has developed to meet these needs. As a land at the edge of the Pacific, New Zealand's unique positioning is an attraction that has made tourism one of New Zealand's biggest foreign exchange earners.

Recognition of the fact that New Zealand is a small player in the global tourism market and the importance of sustainability, has resulted in a group consisting of the tourism industry, local and central government, Maori and conservation interests joining together to formulate the New Zealand Tourism Strategy 2010. This document will have far-reaching implications for the structure of the tourism industry and should ensure the sustainability of the industry into the future.

The tourism market

The term ‘New Zealand tourism’ describes a market that caters for international travellers and New Zealanders. The tourism industry meets their needs, providing, among other things, accommodation, food, tours, activities and transport. A tourist includes anyone travelling for pleasure, business or education. Tourism is an important source of income for New Zealand, so it is imperative the industry works together to provide a rewarding experience for travellers. New Zealand has two government-funded tourism organisations: The New Zealand Tourism Board (trading as Tourism New Zealand) and the Ministry of Tourism, which works with the industry to take a cohesive, coordinated approach to marketing New Zealand overseas.

Attractions. It is not only New Zealand's landscape, but its people, its culture and its sense of adventure that attracts overseas visitors. Visitors to New Zealand are discovering an island nation full of drama and discovery - a land of spiritual places where they can feel free. New Zealand's culture has come of age as a form of Pacifica, with a new wave of thinking reflecting this. This has become evident with New Zealand's culinary culture and sport, and its contemporary and wearable arts all taking a distinctly New Zealand flavour. New Zealanders themselves are also part of what makes up the attraction to New Zealand and completes the visitor experience. Ingenious, passionate, inspiring yet straightforward people, New Zealanders are famous for looking at things in new ways and doing things with an attitude and an eye for adventure. These adventures are world-renowned for being innovative and intense. With a breathtaking landscape and an adventurous soul, Kiwis have a love of exploring new ways to be touched by nature - inventing the ski plane and the jet boat and popularising activities such as bungy jumping.

Events. Sporting and cultural events such as wine, food, art and flower festivals, Maori cultural competitions, triathlons, fashion events and rugby matches put New Zealand in the international spotlight. Conferences and conventions also generate considerable business for many cities and towns. Hosting events such as the America's Cup, the Rally of New Zealand and multi-sport events offers unique opportunities to promote New Zealand as a destination.

Tourism earns New Zealand more than $6 billion a year in foreign exchange.

New Zealand Tourism Strategy 2010

In May 2001, the Tourism Strategy Group, made up of representatives from the tourism industry, local and central government, Maori and conservation interests, released the New Zealand Tourism Strategy 2010, a 10-year strategy for sustainable tourism development.

The strategy group consulted widely and sought to balance the demands of tourists, the needs of the industry, environmental management, the views of the general public and the role of the government.

Development of the document was driven by the strong growth in tourism in New Zealand in the preceding 10 years and the need to ensure that this growth continued without risking the integrity of communities, the environment, the economy or the cultures that exist within New Zealand.

The vision for tourism is that by 2010 visitors and their host communities understand and embrace the spirit of manaakitanga (hospitality), while New Zealanders' environment and culture is conserved and sustained in the spirit of kaitiakitanga (guardianship), recognising that tourism is a vibrant and significant contributor to the economic development of New Zealand.

Key objectives underpinning the strategy are:

  • To secure and conserve a long-term future - Conserve the natural, built, cultural and social environment with which tourism interacts and manage the core elements of Maori involvement in tourism.

  • To work smarter - Minimise duplication and maximise coordination and collaboration throughout the sector.

  • To market and manage a world class visitor experience - Develop and manage the New Zealand brand, attract higher-yield travellers and provide them with New Zealand products which meet their needs, as well as reasons to visit different parts of New Zealand at different times of the year.

  • To be financially and economically prosperous - Combine the three elements mentioned in a manner that provides viability and prosperity in the tourism sector over the longer term.

The strategy made 43 recommendations to both the public and private sectors.

A review of the strategy's implementation was undertaken by the Ministry of Tourism and other stakeholders two years after its inception. The review demonstrated areas in which progress had been made and highlighted challenges still to be faced. Significant advances made to date, include:

  • Structure and alignment - The Ministry of Tourism was formed from the Office of Tourism and Sport on 1 January 2002. Regional tourism organisations created Regional Tourism Organisations New Zealand to enhance collective activity, ensure consistency and raise capability among members. Several additional Maori Regional Tourism Groups have been formed since the strategy's release. There is greater alignment of agencies and goals, roles have been clarified, inter-agency communication has been enhanced and funding in a number of areas has been boosted.

  • Quality - Qualmark has been expanded and repositioned as New Zealand tourism's official quality mark. The visitor information network has been upgraded and rebranded as i-SITE. Toi Iho has been developed and strengthened as the trademark to promote authentic, quality Maori arts and crafts.

  • Marketing - Tourism New Zealand continues to promote New Zealand through its 100% Pure campaign and to conduct research into New Zealand's ideal traveller.

  • Sustainability and the environment - A study of tourism demands on, and financial contribution to, local water and sewerage infrastructure was conducted and is continuing. The Ministry of Tourism is working closely with the Ministry for the Environment, the Department of Conservation and other agencies on a number of environment-related issues.

  • Capability - The Tourism Industry Association of New Zealand (TIANZ) has made a substantial effort to support members in adopting business best practice across their operations. TIANZ is also working with training and educational agencies to ensure that New Zealand is able to produce the skills the tourism industry will need in the next decade. The Tourism Research Council New Zealand (TRCNZ) has cemented its position as the central point of access for quality information, research and forecasts. A website has been launched which provides comprehensive access to TRCNZ outputs.

The Ministry of Tourism, in partnership with other stakeholders, will continue to drive implementation of the strategy's recommendations.

Tourism organisations

Tourism New Zealand. Tourism New Zealand is responsible for the coordinated marketing and promotion overseas of New Zealand as a tourist destination. Tourism New Zealand's objective is to ensure that New Zealand is developed and marketed as a tourism destination to maximise the long-term benefits to New Zealand.

Tourism New Zealand's marketing campaign, introduced in 1999, works on the basis of a single, concise brand position across all its offshore markets - a truly global marketing campaign. Tourism New Zealand works with the tourism industry to develop quality systems, new tourism products and on international marketing to encourage international visitors to come now, do more and come back again.

Tourism New Zealand maintains a network of offices in Bangkok, Frankfurt, London, Los Angeles, Hong Kong, New York, Osaka, Singapore, Shanghai and Taipei and has general service agents in Bangkok, Seoul and Johannesburg.

Tourism Industry Association New Zealand (TIANZ). Established in 1953 as the New Zealand Travel and Holiday Association, the functions of TIANZ have evolved as the New Zealand tourism industry has increased in economic importance.

TIANZ represents more than 3,500 tourism operators and organisations, ranging from large corporate members and government agencies to one-person businesses. TIANZ is based on the principle that the tourism industry is influential if it speaks with one voice. TIANZ advocates on behalf of members and provides leadership, guidance and related services to help foster a viable and sustainable tourism industry for New Zealand.

TIANZ core business includes managing annually the New Zealand Tourism Conference, the New Zealand Tourism Awards, and Tourism Rendezvous New Zealand (TRENZ), New Zealand's largest tourism trade show. The TIANZ website is www.tianz.org.nz

Other agencies with tourism functions

Many other government agencies are involved in the tourism sector. For example, New Zealand Customs and the Ministry of Agriculture and Forestry'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. New Zealand Police investigate crimes committed by or against visitors and the Foundation for Research, Science and Technology allocates funds for tourism research.

International tourism

Tourism is an important industry throughout the world, with the World Tourism Organisation reporting that the total number of travellers exceeded 700 million for the first time in 2002.

The number of travellers declined in the first few months of 2003, due to the outbreak of war in Iraq, the severe acute respiratory syndrome (SARS) virus and a weak world economy. This proved to be a temporary decline and by the end of 2003 a visible upward trend in tourism numbers was recorded in spite of continued international uncertainity and no decrease in terrorist activity.

New Zealand hosts approximately 2 million international visitors annually and this number has been increasing each year.

Table 13.03 shows the number of international visitors to New Zealand, by purpose of visit, from 1986 to 2003.

Table 13.03. International visitors
By purpose of visit
Years ending 31 March

YearHolidayStay with friends and relativesBusinessOther1Total

1 Includes conferences and conventions, work and working holidays, 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
2000841,033431,312196,784179,8591,648,988
2001973,760482,268203,290189,1361,848,454
20021,009,814515,211206,465224,0481,955,538
20031,086,051521,956216,884236,2412,061,132

Tourism is an important foreign exchange earner for New Zealand, with international tourism revenue rising from $4.7 billion in 1999 to $6.2 billion in 2002.

The Tourism Satellite Account, compiled by Statistics New Zealand, measures the contribution of international and domestic tourism to the New Zealand economy. The account estimated that international tourism expenditure was $6,222 million (14.3 percent of total export earnings) for the year ending 31 March 2002. Direct tourism value added was $5.1 billion, or 4.5 percent of New Zealand's total industry contribution to gross domestic product.

An estimated 90,000 full-time equivalent employees were directly engaged in producing goods and services purchased by tourists in the year ending 31 March 2002. This is equal to 5.5 percent of total employment in New Zealand.

Total tourism expenditure in New Zealand increased from $12.1 billion in 1999 to $14.6 billion in 2002.

As well as being a popular holiday destination, New Zealand is also chosen by many overseas students as a place to study. International student expenditure added $600,000 to total international tourism expenditure in 2002.

Tourism New Zealand's website, www.purenz.com, is New Zealand's ‘voice’ on the world wide web and is of increasing importance to New Zealand's international marketing. As a comprehensive consumer website, the site features travel journals, planning tips, accommodation, activities and transport and gives potential visitors to New Zealand an insight into the country.

Tourism New Zealand also has a corporate website, www.tourisminfo.govt.nz, which contains helpful information for visitors, tourism research, data and publications.

The Tourism Research Council of New Zealand's website, www.trcnz.govt.nz, brings together tourism information and is a repository for tourism statistics collected from a number of sources.

Tourism Satellite Account figures and other tourism sector information is available on Statistics New Zealand's website, www.stats.govt.nz

International visitors

More than 2 million overseas visitors arrived in New Zealand in the year ending 31 March 2003, up six percent on the previous year. The number of countries from which overseas visitors originate has grown in recent years, with nearly 200 represented in 2003.

Table 13.04 shows international visitor spending in 2002 by country of origin, while Table 13.05 shows overseas visitor arrivals by country for the years ending 31 March 2001, 2002 and 2003.

Table 13.04. International visitor spending
Year ending 31 December 2002

Country of last permanent residenceTotal foreign exchange earnings (excluding international airfares)Average expenditure per person per visitAverage expenditure per person per day

Source: Ministry of Tourism

 $(million)$$
Japan7034,215296
United States7624,193268
Hong Kong1666,095256
Malaysia914,925252
Taiwan1443,726222
Singapore782,693222
Netherlands1365,309197
Canada1293,432155
Australia9341,786154
China4196,174154
United Kingdom9144,133141
Thailand1024,603141
Nordic countries893,695137
Germany1934,050130
South Korea2652,821127
Switzerland573,898104
Other Central Europe2364,395185
Other South-east Asia372,98871
Other countries6863,614143
            Total6,141  

Table 13.05. International visitors1
By country of last permanent residence Years ending 31 March

Country of last permanent residence200120022003

1Intended length of stay in New Zealand less than 12 months.

2Includes unspecified.

3Actual counts. These may differ from summed country data.

Source: Statistics New Zealand

Australia592,737633,846638,354
United Kingdom209,928226,637240,029
United States195,551196,121205,796
Japan157,509149,496172,716
Korea, Republic of70,65893,278115,317
China, People's Republic of39,15759,74879,766
Germany53,84249,28250,441
Canada35,39038,81139,670
Taiwan40,47436,04534,800
Singapore35,54332,70533,752
Netherlands25,40324,90727,085
Hong Kong30,40830,25026,658
Thailand26,08822,17724,315
Malaysia20,49321,02422,490
French Polynesia12,75216,92617,062
India9,20213,95116,956
Switzerland13,67614,10916,111
Fiji13,84816,35615,863
South Africa16,37817,35215,481
Ireland10,01212,08414,290
France10,00211,43714,087
Samoa14,86414,43713,672
Sweden11,05111,14612,966
Tonga8,9179,48910,074
Italy6,6836,3649,219
New Caledonia7,2357,9008,475
Denmark7,3787,7408,393
Indonesia8,5979,3988,227
Cook Islands6,8737,3717,932
Israel6,0787,7386,962
Brazil5,2405,6955,495
Spain4,2984,2305,252
Austria5,1764,5875,074
Philippines4,9925,0724,991
Norway3,8814,2114,225
Belgium3,7133,7084,059
Argentina5,0233,5322,089
Other2119,290125,671124,279
            Total31,848,3401,954,8312,062,423

Accommodation. A wide range of accommodation is available in New Zealand. Tourism New Zealand supports the work of Qualmark New Zealand Ltd, which has developed an independent rating system for assessing hotels, self contained and serviced accommodation, holiday parks and backpackers. Qualmark's website is www.qualmark.co.nz.

Statistics New Zealand's Accommodation Survey showed that in the month of November 2003, 36 percent of travellers stayed in hotels/resorts, 34 percent in motels/motor inns/apartments, 15 percent in caravan parks/camping grounds, 13 percent in backpackers/hostels and 2 percent in hosted accommodation.

Table 13.06 shows the use made of various accommodation types in recent years.

Table 13.06. Commercial accommodation use1,2
Month of December

Accommodation type2000200120022003

1Excludes establishments temporarily closed for more than 14 days during a month.

2Excludes establishments primarily offering accommodation for one month or more.

3Includes private hotels, guest houses, bed and breakfasts and farmstays.

4A number of establishments were removed from the survey in April 2003 because they did not meet survey criteria.

Note:Figures mat not add to stated totals due to rounding.

Source: Statistics New Zealand

Hotels/resorts    
Number of establishments568585575560
Capacity (stay unit nights) (000)813844857861
Guest nights (000)730763818847
Occupancy rate (percent)51.851.854.956.6
Motels/motor inns/apartments    
Number of establishments1,5691,5921,6151,628
Capacity (stay unit nights) (000)723737749768
Guest nights (000)814851880961
Occupancy rate (percent)51.252.453.856.6
Hosted accommodation1    
Number of establishments588622612560
Capacity (stay unit nights) (000)92969588
Guest nights (000)55525859
Occupancy rate (percent)32.830.132.835.7
Backpackers/hostels    
Number of establishments304316312334
Capacity (stay unit nights) (000)486524552580
Guest nights (000)292306344371
Occupancy rate (percent)54.251.056.957.2
Caravan parks/camping grounds    
Number of establishments424421419405
Capacity (stay unit nights) (000)1,7131,7021,6771,655
Guest nights (000)850901869894
Occupancy rate (percent)20.120.421.222.6
Totals    
Number of establishments3,4533,5363,5333,4874
Capacity (stay unit nights) (000)3,8273,9043,9303,952
Guest nights (000)2,7402,8722,9703,132
Occupancy rate (percent)37.337.640.142.0

Transport. In the year ending 31 December 2002, an estimated 38 percent of all international visitors aged 15 and over took a domestic air trip at some stage of their New Zealand visit, 33 percent took a coach tour, 33 percent used a rental car, 23 percent used a private car, 18 percent used a ferry, 7 percent used a scheduled bus and 7 percent used a train, with the remaining transport types (campervans, backpacker buses etc.) used by 4 percent or less.

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.

Local government plays several vital roles in developing sustainable tourism. It is responsible for enforcing laws and rules associated with managing the effects of tourism. It contributes to the marketing of the region as a tourist destination. It must also plan for, and in some cases fund, much of the infrastructure on which tourism depends, ensuring that the water supply and sewerage systems, roads and carparks can cope with the additional demand.

Many 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, including ski fields, scenic flights and guiding services, to complement those provided by the department. 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.

Contributors

  • 13.1 Sport & Recreation New Zealand; Statistics New Zealand; New Zealand Academy of Sport; Fish and Game New Zealand; New Zealand Snowsports Council; Department of Conservation; Cycling New Zealand Federation; Totalisator Agency Board; Department of Internal Affairs.

  • 13.2 Tourism New Zealand; Statistics New Zealand; Tourism Industry Association New Zealand.

Websites

www.cycling.org.nz - Bike New Zealand

www.doc.govt.nz - Department of Conservation

www.dia.govt.nz - Department of Internal Affairs

www.fishandgame.org.nz - Fish and Game New Zealand

www.med.govt.nz - Ministry of Economic Development

www.dia.govt.nz - New Zealand Lottery Grants Board

www.olympic.org.nz - New Zealand Olympic Committee

www.qualmark.co.nz - Qualmark New Zealand Ltd

www.nationaltrust.org.nz - Queen Elizabeth II National Trust

www.sparc.govt.nz - Sport & Recreation New Zealand

www.stats.govt.nz - Statistics New Zealand

www.tekapo.net.nz - Tekapo Tourism Ltd

www.tab.co.nz - Totalisator Agency Board

www.tianz.org.nz - Tourism Industry Association New Zealand

www.purenz.com - Tourism New Zealand

www.tourisminfo.govt.nz - Tourism New Zealand

www.trenz.govt.nz - Tourism Research Council of New Zealand

www.transit.govt.nz - Transit New Zealand

Chapter 14. Labour Market

Table of Contents

Wellington's Chocolate Fish Cafe was one of many to impose a surcharge in 2004 to help recover higher statutory holiday wage rates.

14.1 Labour relations

New Zealand has a range of legislation dealing with the employment relationships, with the main framework set out in the Employment Relations Act 2000. Other employment legislation sets out minimum statutory conditions of employment, including minimum entitlements to wages and leave. Legislation is administered by the Department of Labour.

Employment Relations Act 2000

The Employment Relations Act 2000 has good faith as its central principle, requiring employers, employees and unions to deal with each other honestly and openly. Specifically, the act:

  • Promotes good employment relations and mutual respect and confidence among employers, employees and unions.

  • Sets the environment for individual and collective employment relationships.

  • Sets out requirements for the negotiation of collective and individual employment agreements.

  • Provides prompt and flexible options for resolving problems in employment relationships.

The key provision of the Employment Relations Act 2000 is to build productive employment relationships through the promotion of mutual trust and confidence in all aspects of the employment environment and the employment relationship.

In particular, the act aims to promote productive employment relationships by:

  • Recognising that employment relationships must be built on good faith.

  • Acknowledging and addressing the inherent inequality of bargaining power in employment relationships.

  • Promoting collective bargaining.

  • Protecting the integrity of individual choice.

  • Promoting mediation as the primary problem-solving mechanism, reducing the need for judicial intervention.

The act also aims to promote observance in New Zealand of the principles underlying International Labour Organisation Convention 87 on Freedom of Association, and Convention 98 on the Right to Organise and Bargain Collectively.

The act affirms the right of employees to have the freedom to choose whether or not to form a union, or be a member of a union, for the purpose of advancing their collective employment interests.

Unions are legally recognised by the act, and collective agreements can be negotiated only between unions and employers.

In formally recognising the role of unions in promoting their members' collective employment interests, the act views unions as providing a counterbalance to power imbalances in direct bargaining between employees and employers.

Minimal barriers to the formation of unions allow employees to form their own unions to represent their collective interests when bargaining, and provide protection to union and non-union members.

No person may, in relation to an employment issue, give any preference or apply any undue influence on another because that person is or is not a member of a union.

Union representatives are entitled to enter a workplace, within certain limitations, for purposes related to the employment of union members or for purposes related to the union's business.

The act recognises that despite the requirement for all parties to an employment relationship to act in good faith, certain employment relationship problems will require specialised assistance and institutions to promote and restore productive employment relationships.

An underlying assumption of the Employment Relations Act 2000 is that if problems in employment relationships are to be resolved promptly, expert problem-solving support, information and assistance needs to be available at short notice. The act accordingly established the Mediation Service and the Employment Relations Authority, while maintaining the Employment Court.

Mediation Service. The Mediation Service is part of the Department of Labour and ensures that expert and flexible problem-solving assistance is available to assist parties at short notice. Mediation services are provided from offices in Auckland, Hamilton, Napier, Palmerston North, Wellington, Christchurch and Dunedin and staff involved can provide services in other locations. Mediation focuses on helping parties solve problems in a balanced and fair way. Once parties reach a settlement in mediation, they can agree to ask the mediator to sign it. Once signed, the settlement cannot be challenged and is enforceable in the Employment Relations Authority or the district court.

If the employer and employee cannot reach agreement in mediation, they can agree, in writing, to the mediator making a final and binding decision, which, likewise, is enforceable in the authority or the court. If either or both parties do not want the mediator to make a decision, the problem may be taken to the authority. Employees and employers can reach a settlement without using mediation, and make it binding by having the written settlement signed by a mediator. Once the settlement is certified, it is enforceable in the authority or the court.

In the year ending 30 June 2003, the mediation service received 9,256 new applications and 9,278 were disposed of. Settlements were achieved in 4,212 cases, while 1,155 were not settled. A further 1,195 recorded settlements were dealt with. Of the settlements achieved in mediation, 49 percent involved personal grievances alleging unjustified dismissal, while 19 percent involved personal grievances alleging disadvantage. Other personal grievances and recovery of wages were the next most common settlements achieved.

Employment Relations Authority. The Employment Relations Authority consists of the Chief of the Employment Relations Authority and 15 other members. The authority is established as an investigative body with the role of resolving employment relationship problems by establishing the facts and making a determination according to the substantial merits of the case, without regard to technicalities. The authority's jurisdiction includes:

  • Disputes about the interpretation, application or operation of an employment agreement.

  • Matters related to a breach of an employment agreement.

  • Making determinations of unresolved personal grievances.

  • Matters relating to the registration of unions, such as whether a person is entitled to be a member of a union, or whether the rules of a union or a prospective union comply with the provisions of the Employment Relations Act.

  • Any proceeding relating to a strike or lockout.

  • Any outstanding matters within the jurisdiction of the former Employment Tribunal established under the repealed Employment Contracts Act 1991.

The authority is supported by the Department of Labour and operates from offices in Auckland, Wellington and Christchurch, although it can travel to other locations. Challenges to authority determinations can be taken to the Employment Court. In the year ending 30 June 2003, the authority received 2,384 applications, of which 2,225 were disposed of, with the authority making 653 determinations. Forty-five percent of the determinations involved personal grievances alleging unjustified dismissal, while 20 percent involved applications for recovery of wages. Compliance orders made up another 7 percent of determinations.

Employment Relations Service. The Employment Relations Service is increasingly moving towards a responsive focus using targeted education in key areas such as conflict resolution, decision making and negotiation. These free training programmes endeavour to improve practices and systems within workplaces.

Minimum entitlements

Statutory minimum entitlements apply to all employees. These include:

  • An adult minimum wage for employees aged 18 and over and a youth minimum wage for people aged 16 and 17.

  • 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, paid parental leave and employment protection.

  • Equal pay for men and women doing substantially the same work.

Minimum wage. The Minimum Wage Act 1983 determines national minimum wages for adults and young people, below which wages cannot generally fall. The Minimum Wage Order 2004, effective from 1 April 2004, set the adult minimum wage for those aged 18 and over at $9.00 an hour, $72.00 for an eight-hour day and $360.00 for a 40-hour week. The youth minimum wage for people aged 16 and 17 is $7.20 an hour, $57.60 for an eight-hour day and $288.00 for a 40-hour week. Those not entitled to the minimum wage are those under the age of 16, those undergoing certain training in some professions, holders of minimum wage exemptions (issued by the Department of Labour to those with recognised disabilities who are incapable of earning the minimum wage) and employees with disabilities in sheltered workshops. People doing recognised industry training are paid the minimum training wage

Legislative changes. A review of the Holidays Act 1981 resulted in new legislation governing minimum entitlements to annual, sick and bereavement leave, arrangements for those who work on public holidays, and the calculation of holiday pay entitlements. The new legislation also introduced a minimum of four weeks annual leave for all employees, effective from 1 April 2007. A review of the Employment Relations Act's operation led to the Employment Relations Law Reform Bill, tabled in early December 2003. The bill aims to strengthen the act's key objectives of promoting good faith collective bargaining and effective resolution of employment relationship problems.

Hours of work. Hours of work are not directly governed by statute, but are negotiated into employment agreements.

Holidays

The Holidays Act 2003 contains minimum rights and obligations concerning annual leave, public holidays and special leave for sickness, domestic or bereavement reasons. These apply to employees whether they are full time, part time, permanent, casual or temporary. Employers and employees cannot contract out of the Holidays Act, but can agree to better terms and conditions.

All employees will be entitled to a minimum of four weeks annual leave from 1 April 2007.

Statutory minimum wage, leave and public holiday provisions apply to all employees in New Zealand.

Public holidays - Legislation ensures that all employees 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 the 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 be paid at time-and-a-half for the time they work, and to a paid day in lieu. In the case of the Christmas/New Year period falling on either a Saturday or Sunday, the holidays are transferred to a Monday or Tuesday. Table 14.01 lists the dates of New Zealand's movable public holidays for 2004-2006.

Table 14.01. Movable public holidays

Holiday200420052006

1The Queen's actual birth date was 21 April 1926.

Source: Department of Labour

Good Friday9 Apr25 Mar14 Apr
Easter Monday12 Apr28 Mar17 Apr
Queen's Birthday17 Jun6 Jun5 Jun
Labour Day25 Oct24 Oct23 Oct

Annual leave - After one year's continuous service with the same employer, an employee is entitled to three weeks paid annual leave. The employee must be given the opportunity to take at least two uninterrupted weeks holiday. Public holidays are additional to annual holidays. From 1 April 2007, employees will be entitled to four weeks paid annual leave.

Sick and bereavement leave - On completion of six months employment with an employer, an employee is entitled to five days sick leave on pay for each subsequent 12 months of employment. Sick leave that is unused can be carried over, to a maximum of 20 days. Sick leave can be taken if an employee is sick, or if an employee's spouse, dependent child, or dependent parent of an employee or an employee's spouse is sick. In addition, after six months employment, an employee is entitled to paid bereavement leave. On the death of an employee's spouse, parent, child, sibling, grandparent, father-in-law or mother-in-law, the employee is entitled to three days paid leave. The employee is also entitled to one day of paid leave on 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 having a child and to their partners. It is also available to employees, male or female, adopting a child under five years of age. A certificate of pregnancy may be required, or, in the case of adoption, a letter from the Department of Child, Youth and Family Services. To apply for parental leave under the act, an employee must have worked at least an average of 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. Employers may not unreasonably refuse a late application.

The government in 2002 introduced a scheme to provide 12 weeks tax-funded payment for parental leave. It later announced that it would amend legislation to extend the paid parental leave period for eligible parents to 13 weeks from 1 December 2004, and 14 weeks from 1 December 2005. The government also announced that a pregnant or adopting employee who had worked an average of 10 hours a week for the same employer for between 6-12 months would be entitled to take 13 weeks (increasing to 14 weeks from 1 December 2005) paid parental leave. Legislation to enact the announced changes was expected to be passed in 2004.

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 the adoption of a child under five years of age, or, if agreed by the employer, at any date before the birth or adoption.

  • Partner's/paternity leave - the woman's spouse is entitled to two weeks partner's/paternity leave about the time of the birth or adoption of a 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 a 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. Partner's/paternity leave is additional to the 12-month entitlement.

Any parental leave taken after the payment period is unpaid, as is special leave and partner's/paternity leave. The payment is available to a female employee (or adoptive parent nominated as the primarily eligible spouse) who is eligible for parental leave. All or part of the payment may be transferred to the employee's spouse (husband or de facto partner, including same-sex partner) if also eligible for parental leave. The payment replaces the employee's gross earnings up to a maximum of $334.75 a week (at 30 June 2004) and is taxable on the same basis as wages. The maximum payment is adjusted annually in accordance with any increase in average ordinary time weekly earnings as determined by the Quarterly Employment Survey published by Statistics New Zealand. Employees who are eligible for both paid parental leave and parental tax credit (a form of family assistance) may choose whichever is more beneficial to them.

Where employees take parental leave of four weeks or less, their jobs must be kept open. In most instances employees who are entitled to parental leave and take more than four weeks leave will also have job protection for up to the 12 months of entitlement. An employer may determine, however, that if the job is a key position and cannot be filled by a temporary replacement, the job will not be kept open. The employee has the right to challenge this decision.

If parental leave of more than four weeks is taken and the employee has accepted that the 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 that employee any available job substantially similar to the previous one. Employers may not dismiss an employee for being pregnant, or for applying for parental leave. Labour inspectors can enforce rights and benefits under the Parental Leave and Employment Protection Act, including assisting with disputes over eligibility or payment for parental leave.

Equal employment opportunities

An equal employment opportunities (EEO) environment helps ensure employers tap the full potential of a diverse workforce.

EEO principles are 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, an employer cannot discriminate in hiring or firing, training or promotion, because of an employee's 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 an employee's 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 Relations Act 2001.

Employees may make a complaint under the Human Rights Act, or may use personal grievance procedures under the Employment Relations Act, to enforce their rights in cases of alleged discrimination or sexual harassment. Where both procedures are available, the employee must choose one or the other. Table 14.02 shows EEO groups in both the public service and general labour force.

Table 14.02. Equal Employment Opportunities (EEO) groups represented in the public service and the employed labour force

EEO groups1  199819992000200120022003

1Representation is calculated as a proportion of known ethnicities, which is consistent with Statistics New Zealand practice.

2Public Service ethnicity data double counts people with more than one ethnicity, so that a person who is of Maori and Samoan ethnicity will be counted in both the Maori and Pacific peoples categories. The labour force figures shown, sourced from the Household Labour Force Survey, use a priority system that has the effect of slightly reducing the figure for Pacific peoples.

3Based on Statistics New Zealand 2001 Disability Survey.

.. figures not available

Source: State Services Commission

   Percent
Ethnicity2MaoriPublic service15.516.116.917.017.617.4
  Employed labour force8.17.68.98.89.59.4
 Pacific peoplesPublic service5.96.26.66.66.87.1
  Employed labour force3.64.04.04.04.54.5
People with disabilities3 Public service......18.5....
  Employed labour force......14.6....
Women Public service54.556.356.256.557.557.8
  Employed labour force44.945.445.145.745.445.5

New Zealand Council of Trade Unions (CTU)

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. The CTU website is ww.union.org.nz

Business New Zealand

Business New Zealand is New Zealand's largest business advocacy body, representing the combined members of five regional business organisations and more than 50 national business organisations. Business New Zealand promotes public policy that supports an open, competitive economy and private enterprise. Business New Zealand was the result of a merger between the New Zealand Employers' Federation and the New Zealand Manufacturers' Federation. The Business New Zealand website is www.business.nz.org.nz

Work stoppages

Work stoppage information is used as an indicator of the state of industrial relations in New Zealand. It focuses particularly on the economic impact of events such as strikes and lockouts, but does not cover forms of industrial unrest such as stopwork meetings, strike notices, protest marches and public rallies. Demarcation and coverage disputes are included only where the participants are on strike or locked out. 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.

Table 14.03 and figure 14.01 show that since 1986 the number of work stoppages has fallen to levels not recorded since the early 1930s. The Employment Contracts Act was introduced in 1991 and replaced by the Employment Relations Act in October 2000 during this period. There were 46 work stoppages in the year ending 31 December 2002, compared with 21 in 2000, 71 in 1991 and 215 in 1986 (pre-Employment Contracts Act). The number of employees involved in work stoppages has also decreased. In 2002, 23,309 people were involved, more than the 2,632 in 2000, but considerably lower than the hundreds of thousands involved in stoppages during the 1970s and 1980s.

The manufacturing industry accounted for around 30 percent of the 46 stoppages that occurred in 2002. However, the education industry had the greatest number of employees involved, 17,249 being nearly three quarters of the total. Education also had the greatest number of person-days of work lost - 25,490, or about 74 percent of all working days lost.

Table 14.03. Work stoppages
Years ending 31 December

YearStoppagesEmployees involvedPerson-days of work lostAverage person-days lost per employee involvedEstimated loss of wages and salaries

Source: Statistics New Zealand Department of Labour

  Number  $(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
19993210,74716,6741.63,343
2000212,63211,4954.42,272
20014222,02254,4402.57,682
20024623,30934,3981.54,979

Figure 14.01. Work stoppages
Years ending 31 December

Work stoppagesYears ending 31 December

14.2 Labour force

In general terms, the labour force includes people 15 years and over who are either employed or unemployed. Definitions of the labour force in the 1996 and 2001 Censuses of Population and Dwellings and in Statistics New Zealand's Household Labour Force Survey include all people who work for one hour or more a week for pay or profit (including unpaid family members working in a family enterprise), plus unemployed people who are available for and are actively seeking work. In addition, the Household Labour Force Survey counts as unemployed those who have a job to start within four weeks, regardless of whether they were actively looking for work.

Table 14.04 shows that between September 2000 and September 2003, the number of people in employment increased by 149,500.

At the same time, the number of people unemployed decreased by 21,200.

The total labour force grew by 128,300 (6.8 percent) in the three years to reach 2,014,600 in the September 2003 quarter.

The working age population (the usually resident non-institutionalised civilian population of New Zealand aged 15 and over) increased by 145,600 (5.0 percent) in the same period.

Table 14.04. Labour force1
September 2000-September 2003

QuarterEmployedUnemployedTotal labour forceNot in the labour forceWorking age population2Labour force participation rateUnemployment rate

1Unadjusted figures.

2The civilian, non-institutionalised, usually resident New Zealand population aged 15 and over.

Source: Statistics New Zealand

   (000)  PercentPercent
   Male    
2000 September967.962.21,030.0378.01,408.173.26.0
December991.460.51,051.9360.41,412.274.55.8
2001 March990.059.41,049.4365.41,414.774.25.7
June981.556.01,037.5379.11,416.673.25.4
September992.152.81,045.0375.81,420.773.65.1
December1,011.856.71,068.6359.81,428.374.85.3
2002 March1,027.358.41,085.7351.41,437.275.55.4
June1,017.351.91,069.3374.81,444.174.04.9
September1,017.556.91,074.3376.51,450.974.05.3
December1,038.351.01,089.4370.61,460.074.64.7
2003 March1,039.853.71,093.6376.71,470.374.44.9
June1,035.347.31,082.5395.91,478.473.24.4
September1,043.844.71,088.5396.71,485.273.34.1
   Female    
2000 September810.945.3856.3631.31,487.557.65.3
December827.044.8871.8619.91,491.758.45.1
2001 March816.449.7866.1628.21,494.358.05.7
June827.444.4871.8623.91,495.758.35.1
September825.544.3869.8629.81,499.658.05.1
December848.846.0894.8611.61,506.459.45.1
2002 March842.751.8894.5619.41,514.059.15.8
June847.348.1895.4624.01,519.458.95.4
September849.947.4897.3628.21,525.558.85.3
December866.844.3911.1622.71,533.859.44.9
2003 March858.451.7910.1632.51,542.659.05.7
June866.045.0911.1638.81,549.958.84.9
September884.541.6926.1630.01,556.159.54.5
   Total    
2000 September1,778.8107.51,886.31,009.32,895.665.15.7
December1,818.4105.31,923.7980.22,903.966.25.5
2001 March1,806.3109.11,915.4993.52,909.065.85.7
June1,808.9100.31,909.21,003.12,912.365.65.3
September1,817.697.11,914.71,005.52,920.365.65.1
December1,860.7102.71,963.4971.42,934.766.95.2
2002 March1,870.0110.21,980.2970.92,951.167.15.6
June1,864.6100.01,964.6998.92,963.566.35.1
September1,867.4104.21,971.61,004.82,976.466.25.3
December1,905.195.32,000.5993.32,993.866.84.8
2003 March1,898.3105.42,003.71,009.13,012.866.55.3
June1,901.392.31,993.61,034.73,028.365.84.6
September1,928.386.32,014.61,026.73,041.266.24.3

Table 14.05. Labour force participation rates
By sex and age group
Year ending 30 September 2003

Age group (in years)MaleFemaleTotal

Source: Statistics New Zealand

  Percent 
15—1953.652.353.0
20—2478.967.873.5
25—2989.170.279.5
30—3490.766.978.2
35—3991.573.782.2
40—4492.779.786.0
45—4991.982.787.2
50—5490.276.683.4
55—5984.666.775.6
60—6465.743.754.6
65 and over14.35.79.5
            All ages73.959.266.3

Between the September 2001 and September 2003 quarters, the male labour force increased by 5.7 percent, while the female labour force increased by 8.2 percent. During the first half of this period, unemployment rates for females were lower than for males, a trend which was reversed in the second half of the period.

Women in the labour force

While total labour force participation rates remained relatively steady in the three years ending 30 September 2003, there was a distinct difference between male and female rates. For the year ending 30 September 2003, the overall labour force participation rate for males was 73.9 percent and 59.2 percent for females. The difference in male and female labour force participation is particularly evident when participation rates are broken down by age group (Table 14.05). Female participation in the labour force is lower than male participation at every age group, most markedly in the 25-39 year group, which includes the main childbearing ages.

14.3 Employment

For the year ending 30 September 2003, 1,477,300 people in New Zealand were employed in full-time work and 431,000 in part-time work. Full-time work involves working 30 or more hours a week, with anything less counted as part time. Table 14.06 shows that between September 1991 and September 2003, part-time employment growth was stronger than full-time employment growth. Full-time employment increased by 27.2 percent and part-time employment increased by 40.9 percent. Women make up the bulk of part-time workers, 315,500 in 2003 compared with 115,500 males.

Table 14.06. Full and part-time employment
By sex
Quarterly average for year ending 30 September

YearEmployed full timeEmployed part timeTotal
MaleFemaleTotalMaleFemaleTotalMaleFemaleTotal

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  (000)  (000)  (000) 
1991746.2415.41,161.576.9229.0305.9823.1644.41,467.4
1996852.7485.21,337.997.4283.9381.3950.0769.11,719.1
2001875.1528.01,403.1113.6296.1409.7988.7824.11,812.8
2002900.2537.31,437.6118.3309.8428.11,018.5847.21,865.7
2003923.8553.51,477.3115.5315.5431.01,039.3868.91,908.2

Status in employment

Table 14.07 shows that the majority of employed people were employees (wage or salary earners) in their main job. In the year ending 30 September 2003, 80.8 percent of employed people were employees. The next largest category was the self-employed (and not employing others), accounting for 11.5 percent of the employed. While the number of employees are similar for males and females, males dominate the employer and self-employed categories, comprising 72.0 percent and 68.8 percent respectively for the year ending 30 September 2003. The unpaid relative assisting category is dominated by females, who made up 62.6 percent of this group.

Table 14.07. People employed in 1998 and 20031
By employment status

StatusMalesFemalesTotal
19982003Change19982003Change19952003Change

1 Quarterly averages for years ending 30 September.

figure too small to be expressed

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 (000)Percent(000)Percent(000)Percent
Employee711.0786.910.7668.1754.412.91,379.11,541.311.8
Employer95.096.61.735.937.54.5130.9134.12.4
Self employed140.3150.37.161.068.312.0201.3218.68.6
Unpaid relative assisting4.95.26.111.98.7-26.916.813.9-17.3
Not specified 
            Total951.31,039.39.3776.9868.911.81,728.11,908.210.4

There were a number of shifts in employment status between 1998 and 2003 when the total number of employed people increased by 180,100 (10.4 percent). The number of employees increased by 162.2 (11.8 percent) and the number of employers grew by 3,200 (2.4 percent). There was an increase of 17,300 (8.6 percent) in the number of self-employed (and not employing others), while the number of unpaid relatives assisting fell by 2,900 (17.3 percent).

Industry structure of the labour force

The changing New Zealand economy has resulted in more people being employed in the services sector (wholesale and retail trade, restaurants and hotels; business and financial services; and community, social and personal services) and fewer in manufacturing. Table 14.08 shows the average number of employed people by industry in the year ending 30 September 2003. The largest number of employed people worked in the community, social and personal services area (27.4 percent); followed by wholesale and retail trade, restaurants and hotels (22.9 percent); and manufacturing (14.7 percent). Divisions that employed the least number of people were mining; and electricity, gas and water supply; which each employed less than one percent of the total employed.

Male employment was highest in the wholesale and retail trade, restaurants and hotels (which employed 21.3 percent of males), followed by manufacturing (19.5 percent) and community, social and personal services (16.2 percent). Combined, they accounted for 57.0 percent of male employment. Females made up 45.5 percent of the total employed, with 40.7 percent of employed females in community, social and personal services and 24.8 percent in wholesale and retail trade, restaurants and hotels.

Table 14.08. People employed in 20031
By industry and sex

Industry groupNumberProportion of total workforce
MaleFemaleTotalMaleFemaleTotal

1Quarterly average for year ending 30 September.

estimated fewer than 1,000 and subject to sampling errors too great for most practical purposes

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  (000)  Percent 
Agriculture, forestry and fishing109.248.4157.610.55.68.3
Mining3.54.10.30.2
Manufacturing202.578.8281.319.59.114.7
Electricity, gas and water supply6.41.98.20.60.20.4
Construction118.715.4134.111.41.87.0
Wholesale and retail trade, restaurants and hotels221.6215.4437.021.324.822.9
Transport, storage and communications76.033.3109.27.33.85.7
Business and financial services131.1120.2251.212.613.813.2
Community, social and personal services168.5353.9522.416.240.727.4
Not specified1.91.23.10.20.10.2
            Total1,039.3868.91,908.2100100100

The trades workers' group, which consisted of 16.5 percent of all employed males, made up New Zealand's largest occupational group for males in 2003.

Occupational structure of the labour force

Statistics New Zealand classifies occupations into nine major groups for the purpose of statistical collection and reporting. Table 14.09 shows the spread of employed people across these groups. The proportions of people employed by occupation remained relatively constant in the decade to September 2003.

Table 14.09. People employed in 20031
By occupation and sex

OccupationNumberProportion of total workforce
MaleFemaleTotalMaleFemaleTotal

1Quarterly average for year ending 30 September.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  (000)  Percent 
Legislators, administrators, managers151.385.6236.814.69.812.4
Professionals131.4149.0280.312.617.114.7
Technicians and associate professionals101.5108.6210.19.812.511.0
Clerks54.8187.4242.25.321.612.7
Service and sales workers100.2203.3303.59.623.415.9
Agriculture and fishery workers114.444.6159.011.05.18.3
Trades workers171.211.1182.316.51.39.6
Plant and machine operators and assemblers134.832.1166.813.03.78.7
Elementary occupations78.346.1124.47.55.36.5
Not specified1.41.22.70.10.10.1
            Total1,039.3868.91,908.2100100100

The largest occupational groups at September 2003 were service and sales workers, and professionals. Together, these groups accounted for 30.6 percent of all employed people. The smallest occupational group was elementary occupations, accounting for only 6.5 percent of all employed people. The largest occupational group for males was trades workers, where 16.5 percent of males were employed. The largest group for women was service and sales workers, accounting for 23.4 percent of female employment. So-called 'male' and 'female' occupations continue to exist in the New Zealand labour force. Males are over-represented compared with females as agriculture and fishery workers; trades workers; plant and machine operators and assemblers; and legislators, administrators and managers. Women are over-represented in the service and sales; and clerk occupations.

14.4 Unemployment

The official measure of unemployment in New Zealand is derived from the Labour Force Survey, in which unemployed people are defined as all people in the working age population (15 years and over) who, during the reference week, were without a paid job, were available for work and had actively sought work in the past four weeks, or had a new job to start within four weeks. A person whose only job search method in the previous four weeks has been to look at job advertisements in newspapers is not considered to be actively seeking work. Figure 14.02 shows the unemployment rate in New Zealand from the December quarter of 1985 to the September quarter of 2003.

Figure 14.02. Unemployment rate
Quarterly 1985-2003

Unemployment rateQuarterly 1985-2003

Demographic and social characteristics of the unemployed

An average 94,800 people (4.7 percent of the labour force) were estimated to be unemployed in New Zealand in the year ending 30 September 2003.

The male unemployment rate was 4.5 percent and the female 5.0 percent.

Table 14.10 on page 264 shows the average number of unemployed in the year ending 30 September 2003 by educational attainment.

The unemployment rate is highest for those with no qualifications (7.4 percent) and lowest for those with post-school and school qualifications (3.3 percent).

The percentage of unemployed with no qualifications fell from 41.2 percent in 1991 to 29.2 percent in 2003.

Table 14.1. People unemployed in 20031
By educational attainment

Educational attainmentNumberUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Quarterly average for year ending 30 September.

estimated fewer than 1,000 and subject to sampling errors too great for most practical purposes

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  (000)  Percent 
No qualifications15.712.027.77.57.37.4
School qualification13.312.025.35.24.75.0
Post-school but no school qualification5.75.711.54.58.65.9
Post-school and school qualification14.315.629.92.93.73.3
Not specified
            Total49.245.694.84.55.04.7

Table 14.11 compares the number of unemployed people by qualification for the years ending 30 September 2002 and 2003 and for the three preceding census years (1991, 1996 and 2001).

Unemployment was highest in the younger age groups of the working age population.

Table 14.11. People unemployed 1991-20031
By educational attainment

YearNo qualificationSchool qualificationPost-school but no school qualificationPost-school and school qualificationNot specifiedTotal unemployed

1Years ending 30 September.

estimated fewer than 1,000 and subject to sampling errors too great for most practical purposes

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  (000)    
199165.740.716.934.31.5159.3
199643.828.411.328.7112.7
200133.628.010.031.2103.0
200232.727.113.030.9104.3
200327.725.311.529.994.8

Table 14.12 shows that the unemployment rate for the 15-19 year group was 14.6 percent, compared with the overall unemployment rate of 4.7 percent.

The lowest unemployment rate (2.1 percent) was for the 45-49 year group.

Table 14.12. People unemployed in 20031
By age

Age group (in years)NumberUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Quarterly average for year ending 30 September.

estimated fewer than 1,000 and subject to sampling errors too great for most practical purposes

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  (000)  Percent 
15-1911.810.722.514.714.614.6
20-248.06.614.67.17.37.2
25-295.44.610.05.05.25.1
30-345.15.010.14.25.04.6
35-394.25.09.23.34.53.8
40-444.34.48.73.13.53.3
45-492.32.74.91.82.32.1
50-543.12.75.82.92.82.9
55-592.12.84.92.44.13.2
60-642.61.13.74.82.94.0
65 and over
            Total49.245.694.84.55.04.7

Table 14.13 shows a trend in recent years for a higher proportion of unemployed to be in the 15-19 year group, with proportions lowering in the 20-24 and 30-34 year groups.

Table 14.13. Proportions of people unemployed 1991-20031
By age

Year15-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465 and over

1Years ending 30 September.

estimated fewer than 1,000 and subject to sampling errors too great for most practical purposes

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

      Percent     
199121.020.314.712.49.07.95.84.73.50.7
199621.917.412.110.810.29.37.65.23.71.5
200122.517.110.19.89.39.66.76.85.22.8
200222.616.511.010.19.79.36.76.53.93.1
200323.715.410.510.79.79.25.26.15.23.9

The unemployment rate for New Zealand Europeans is lower than that for all other ethnic groups. Table 14.14 shows the average unemployment rate for the year ending 30 September 2003 was 3.5 percent for New Zealand Europeans, 10.6 percent for Maori, 7.6 percent for Pacific peoples and 7.5 percent for other ethnic groups.

Table 14.14. People unemployed in 20031
By ethnicity2

EthnicityNumberUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Quarterly average for year ending 30 September.

2Ethnic origin is self-determined by respondents. They can choose up to three different ethnic origins, which are then prioritised.

estimated fewer than 1.000 and subject to sampling errors too great for most practical purposes Note: Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

  (000)  Percent 
New Zealand European28.825.954.63.43.73.5
Maori10.411.421.79.511.810.6
Pacific peoples4.13.07.17.97.27.6
Other5.95.211.17.47.57.5
Not specified
            Total49.245.694.84.55.04.7

14.5 Employment assistance

One of the roles of the Ministry of Social Development is to provide employment assistance to New Zealanders. These services are provided through the ministry's 170 Work and Income service centres throughout New Zealand.

Work and Income provides a range of services to assist job seekers into paid employment:

  • Information services, job search skills, work confidence programmes and Ministry of Youth Affairs development programmes - These programmes help with motivation and confidence when seeking paid work, and provide information on job search techniques and job search resources. In the year ending 30 June 2003, 47,184 people enrolled in these programmes.

  • Work experience - These programmes provide 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. In the year ending 30 June 2003, 3,980 people went on work experience programmes

  • Work transition grants - These grants help remove small financial barriers preventing job seekers from making the transition to unsubsidised employment. Grants were made to 35,579 applicants in the year ending 30 June 2003.

  • Wage subsidies - These subsidies acts as incentives for employers to provide work for job seekers. Subsidies were paid to 18,770 people in the year ending 30 June 2003.

  • Skills training - These programmes aim to improve job-related skills, increasing the client's chances of finding employment. In the year ending 30 June 2003,7,526 people started on these programmes.

  • Self-employment assistance - This programme provides financial help and advice for long-term unemployed people to move into self-employment. In the year ending 30 June 2003, 4,676 people took advantage of this programme.

  • New initiatives - These programmes have been developed by Work and Income to respond to local labour markets, to meet the emerging needs of job seekers, employers and communities, to trial new types of products and services, and to promote learning and awareness of best practice in the design and delivery of work services. In the year ending 30 June 2003, 21,059 people were assisted through these programmes.

Table 14.15. Average weekly earnings
Paid employees
By sex

Years ending 31 March

YearMalesFemalesTotal
Ordinary timeOver-timeTotalOrdinary timeOver-timeTotalOrdinary timeOver-timeTotal

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

     $    
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
2000725.1931.74756.93563.0511.03574.07649.4622.07671.53
2001751.7131.65783.36574.5710.82585.40667.9521.80689.75
2002776.5732.85809.42614.0910.78624.87700.8022.56723.36
2003802.9335.91838.84633.2011.16644.36722.6424.20746.84

Table 14.16. Median weekly earnings
Full-time wage and salary workers
By age and sex

Quarter ending 30 June 2003

Age group (in years)MalesFemalesDifference

Source: Statistics New Zealand

  $ 
15—1941437044
20—2456052733
25—2968065030
30—3476770067
35—39806643163
40—44800608192
45—49844652192
50—54810652158
55—59777585192
60—64729576153
65 and over59554055
            All ages61459519

Table 14.17. Median annual income
By region

RegionMedian

Source: Statistics New Zealand

 $
Wellington22,400
Auckland21,100
Waikato18,100
Southland17,800
Canterbury17,600
Taranaki17,300
Nelson17,100
Marlborough17,000
Bay of Plenty16,800
Hawke's Bay16,700
Manawatu-Wanganui16,300
Tasman16,100
Otago15,700
Gisborne15,300
Northland15,200
West Coast14,600

Job placements. Work and Income placed 83,040 people into work in the year ending 30 June 2003, compared with 97,203 people in the previous June year. The decrease in the number of placements reflects the lower number of job seekers registered during the year ending 30 June 2003.

14.6 Income

Income is a fundamental determinant of human welfare and life chances. It is central as a means of achieving many of the social and cultural objectives in people's lives. Information on trends in the sources and distribution of income, for both individuals and households, is vital in monitoring social change.

Personal income

Personal income is generally regarded as all receipts received regularly or of a recurring nature. Individuals can receive income from various sources such as wages and salaries, self-employment income, investment income, social welfare payments and other regular sources such as private superannuation.

Earnings

The major component of total income is what an individual earns from employment. Statistics New Zealand's Quarterly Employment Surveys showed that in the 10 years ending 31 March 2003, average weekly earnings grew by 30.5 percent, from $572.47 to $746.84 (Table 14.15). Male average weekly earnings increased 29.6 percent to $838.84, while female earnings rose 34.1 percent to $644.36. At 31 March 2003, female average weekly earnings were 76.8 percent of male average weekly earnings, compared with 74.2 percent in March 1993. In Table 14.16, data from the New Zealand Income Survey compares median male and female earnings for full-time wage and salary workers, and shows the median is higher for males than females across all age groups.

Income by region

Table 14.17 shows that according to the 2001 Census of Population and Dwellings, people in the Wellington region had the highest median annual income at $22,400, followed by the Auckland ($21,100) and Waikato ($18,100) regions. The Wellington region also had the highest proportion of people (1 in 25) earning annual incomes of more than $100,000.

Household income

It is commonly assumed that income is shared within households. On this basis, it can be argued that income and income inequality is best analysed at a household level as opposed to an individual level.

Tables 14.18 and 14.19 use data from the Household Economic Survey to analyse income at a household level. Table 14.18 shows the proportion of gross income received and tax paid by each household gross income decile. This shows that the top 10 percent of households receive 30.2 percent of total gross income and pay 39.7 percent of personal income tax. Table 14.19 shows that while more males live in higher income households than females, this difference is not large. In 2000/01, the latest year for which Statistics New Zealand has this information, 40 percent of males lived in households that received $62,300 or more, compared with 36 percent of females.

Table 14.18. Proportions of gross income received and tax paid
By household gross income decile
Year ending 30 June 2001

DecileGross incomeTax paid1

1Includes personal income tax, family support and rebates.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 Percent
1 (under $14,500)1.70.7
2 ($14,500-$18,799)3.11.1
3 ($18,800-$24,199)4.12.1
4 ($24,200-$31,499)5.33.3
5 ($31,500-$39,999)6.85.2
6 ($40,000-$50,699)8.67.3
7 ($50,700-$61,699)10.710.0
8 ($61,700-$76,599)13.013.0
9 ($76,600-$101,099)16.617.6
10 ($101,100 and over)30.239.7

Table 14.19. Annual household income deciles
By sex
Year ending 30 June 2001

DecileMalesFemalesMalesFemales

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 (000)Percent
1 (under $14,900)67.4103.15.07.2
2 ($14,900-$20,699)58.0123.44.38.6
3 ($20,700-$25,899)111.2129.38.39.0
4 ($25,900-$32,399)117.2126.68.78.8
5 ($32,400-$40,599)135.6132.110.19.2
6 ($40,600-$51,099)153.8150.211.510.5
7 ($51,100-$62,299)164.9148.312.310.3
8 ($62,300-$76,699)162.7161.312.111.2
9 ($76,700-$101,099)171.8180.412.812.6
10 ($101,100 or more)199.3181.514.812.6
11 All income groups1,342.11,436.1100.0100.0

Salary and wage rates

Surveyed salary and wage rates (including overtime) for the June 2003 quarter were 2.3 percent higher than a year earlier, as shown in Table 14.20. This followed an annual increase of the same size in the March 2003 quarter, which was the highest annual increase since the September 1997 quarter rise of 2.4 percent. Pay rates for the private sector for the same period increased by 2.2 percent, while those for the public sector increased by 2.6 percent.

For all sectors combined, 46 percent of surveyed salary and wage rates did not increase from the June 2002 quarter to the June 2003 quarter. This proportion has shown a downward trend since June 1999, when it was 58 percent.

Table 14.2. Salary and wage rates index1,2
By sector

QuarterLocal government sectorCentral government sectorTotal public sectorPrivate sectorAll sectors combined

1Base: December 1992 quarter (=1000).

2Includes overtime.

Source: Statistics New Zealand.

2001 September10101005100610061006
December 10181012101310111011 
2002 March10251018101910161016
June10261022102310211021
September10361030103110271028
December10431038103910321033
2003 March10471044104510381039
June10501050105010431044
 Percentage change
from same quarter of previous year
2001 September2.01.81.92.02.0
December2.42.22.22.12.1
2002 March2.82.22.32.12.0
June2.62.22.32.12.1
September2.62.52.52.12.2
December2.52.62.62.02.1
2003 March2.12.62.62.22.3
June2.32.72.62.22.3

Labour costs

Labour costs increased overall by 2.2 percent from the June 2002 quarter to the June 2003 quarter.

This increase was due to increases in salary and wage rates (including overtime) of 2.3 percent and in non-wage labour costs of 1.3 percent, as shown in Table 14.21.

Non-wage labour costs increases were largely due to increases in annual leave and statutory holiday costs, superannuation and medical insurance. The main factor that contributed to the June 2003 annual rise of 1.7 percent in employers' superannuation costs was the increase in salary and ordinary time wage rates. The cost to employers of annual leave and statutory holidays rose by 2.4 percent from the June 2002 quarter to the June 2003 quarter. In the same period, salary and wage rates (including overtime) increased by 2.3 percent. Workplace accident insurance costs rose only 0.2 percent from the June 2002 quarter to the June 2003 quarter. Other surveyed non-wage costs, including motor vehicles available for private use and low interest loans, fell by 4.8 percent from the June 2002 quarter to the June 2003 quarter.

Table 14.21. Labour cost rates index1
By type of cost

June quarterSalary and ordinary time wage ratesOvertime wage rates2All salary and wage rates1All non-wage labour costs4All labour costs5

1Base: June 2001 quarter (=1000).

2Measures changes in rates paid for actual hours worked as overtime in the base period. Some of these pay rates have fallen to ordinary time levels in subsequent quarters.

3Including overtime.

4Measures changes in all surveyed non-wage labour costs (ie annual leave and statutory holidays, superannuation, Accident Compensation Corporation employer premiums, medical insurance, motor vehicles available for private use and low interest loans).

5Measures changes in all surveyed labour costs (ie all salary and wage rates and all non-wage labour costs).

Source: Statistics New Zealand

1999966974967964967
2000983983983979983
200110001000100010001000
200210211023102110041018
200310441048104410171040
Percentage change
from June quarter of previous year
19991.50.11.4-4.10.5
20001.80.91.62.61.6
20011.71.71.82.21.8
20022.12.32.10.41.8
20032.32.42.31.32.2

Contributors

  • 14.1 Department of Labour; Equal Employment Opportunities Trust; New Zealand Council of Trade Unions; Business New Zealand; Statistics New Zealand.

  • 14.2-14.4 Statistics New Zealand.

  • 14.5 Tertiary Education Commission; Career Services Rapuara; Ministry of Social Development; Department of Labour.

  • 14.6 Statistics New Zealand.

Websites

www.businessnz.org.nz - Business New Zealand

www.careers.govt.nz - Career Services

www.dol.govt.nz - Department of Labour

www.ers.dol.govt.nz - Employment Relations Service

www.eeotrust.org.nz - Equal Employment Opportunities Trust

www.Impg.govt.nz - Labour Market Policy Group

www.msd.govt.nz - Ministry of Social Development

www.ssc.govt.nz - State Services Commission

www.stats.govt.nz - Statistics New Zealand

www.sjs.co.nz - Student Job Search

www.tec.govt.nz - Tertiary Education Commission

www.union.org.nz - New Zealand Council of Trade Unions

www.workandincome.govt.nz - Work and Income

www.worksite.govt.nz - WorkSite

Chapter 15. Science and Technology

Table of Contents

An Industrial Research scientist with a model of the molecular structure of ceramic materials.

15.1 Organisation of science

New Zealand's science sector consists of many organisations with specialised roles. These include a policy agency, major research-funding agencies and a myriad of organisations carrying out research. These research organisations include universities and polytechnics, Crown Research Institutes, private companies and research associations.

Ministry of Research, Science and Technology (MoRST) Te Manatu Putaiao

The ministry is the main policy agency for research, science and technology in New Zealand. Its mission is 'to inspire and assist New Zealanders to create a better future through research and innovation'. The ministry's main roles are:

  • Providing policy advice to the government on research, science and technology, including investment priorities, science matters and international science issues.

  • Applying research, science and technology policies to grow New Zealand's economy.

  • Managing contracts on behalf of the Minister of Research, Science and Technology with agencies that directly invest in research, science and technology.

  • Raising the profile of research, science and technology with New Zealanders making career choices, and with the social, environmental and business sectors.

The ministry's website is www.morst.govt.nz

Growth and Innovation Advisory Board. The government signalled its commitment to innovation as a driver of economic growth with the release of Growing an Innovative New Zealand in February 2002. This document established a framework to enable New Zealand to create a more innovative, more confident, more flexible economy able to compete successfully on the international scene. To support the goals included in the framework, the government established the Growth and Innovation Advisory Board in May 2002. The board provides independent perspectives on how to advance the government's innovation and growth programme. It has been considering topics such as agribusiness, infrastructure, growth culture, people and skills, and global connectedness. The board is supported by a secretariat within the Ministry of Research, Science and Technology.

Crown Company Monitoring Advisory Unit (CCMAU)

The Crown Company Monitoring Advisory Unit (CCMAU) provides ownership monitoring advice to, and manages issues on behalf of, the shareholding ministers of Crown Research Institutes, state-owned enterprises and other Crown companies. In addition, the unit is responsible for ensuring the best qualified candidates are recommended to ministers for appointment as directors of these companies. The CCMAU website is www.ccmau.govt.nz

Figure 15.01. Government-funded research, science and technology

Government-funded research, science and technology

15.2 Investment in research, science and technology

Scientific and technological research in New Zealand is funded by the government, by universities and by the private sector. Total government funding of research and development (R&D) in 2002, including general university funds and local government, was $667 million, equivalent to 0.54 percent of gross domestic product. Government funds continue to be a major source of R&D financing, accounting for 46 percent of total R&D funding. Major government investments related to research, science and technology include Vote: Research, Science and Technology ($556.82 million in 2003/04); Vote; Crown Research Institutes ($1.18 million in 2003/04); and Vote: Education.

In the 2003 Budget, the government also made a one-off capital commitment of $70 million for the Venture Investment Fund (carried over from the 2002 Budget) and new capital expenditure of $12 million for the Equity Investment Fund.

Figure 15.01 illustrates government funding of scientific research.

Vote: Research, Science and Technology

Vote: Research, Science and Technology invests in four major goal areas: Economic (43 percent), knowledge (27 percent), environmental (16 percent) and social (9 percent). As figure 15.02 shows, a small proportion (5 percent) is also spent on managing contracts and policy advice - shaping the system.

Knowledge ($ 150.95m in the 2003/04 financial year). The goal is to accelerate knowledge creation and develop people, learning systems and networks to enhance New Zealand's capacity to innovate.

  • The Marsden Fund encourages excellence in the advancement of knowledge by supporting research exploring the frontiers of new knowledge. For example, it has funded research into the cells that comprise the walls of arteries, providing further basic understanding of the causes of atherosclerosis - the build up of cholesterol on artery walls. The Marsden Fund had a budget of $32.79m in the 2003/04 financial year.

  • The New Economy Research Fund develops research capability and knowledge in areas of science and technology where new industries and enterprises are emerging. For example, the fund has helped scientists develop interactive computer display surfaces, as large as office whiteboards, but without the need for extensive rear-projection space. The fund had a budget of $63.88m in the 2003/04 financial year.

  • Non-specific Output Funding helps Crown Research Institutes carry out research they identify as important. For example, funds have been allocated to scientists working on a new class of hybrid materials with the potential to act as semiconductors and superconductors. In the 2003/04 financial year, $28.53m was available for this type of funding.

  • Supporting Promising Individuals makes awards and fellowships available to people needed to sustain future development of the innovation system in New Zealand. For example, Stella August was supported by a Tuapapa Putaiao Maori Fellowship as she studied towards a Master of Science degree at the University of Waikato. Stella studied the migration trends and influences on glass eels as they return to rivers and streams from their oceanic spawning grounds. This research will help Maori, and other interested parties, to sustainably manage the eel fisheries. Awards and fellowships worth $ 14.55m were available in the 2003/04 financial year.

  • Promoting an Innovation Culture supports activities that strengthen and encourage the culture of innovation in New Zealand. This includes promoting positive attitudes to, and raising awareness of, science and technology, and engaging with New Zealanders over the issues associated with new and emerging scientific and technological developments. For example, this fund has enabled Career Services to pilot The Business of Science, a programme encouraging senior high school students to undertake further study in science subjects at a tertiary level, ensuring the next generation of business leaders has a sound understanding of science and technology concepts. Funds totalling $2.72m were available in the 2003/04 financial year.

  • Maori Knowledge and Development Research encourages excellence in the delivery of knowledge for Maori, builds the Maori research skill base and consolidates the Maori knowledge base. For example, researchers at the University of Auckland have been developing resources that will help Maori communities implement the processes involved in sustainable economic development. Funding of $5.48m was available in the 2003/04 financial year.

  • Developing International Linkages promotes and supports New Zealand research, science and technology internationally. This new output class, created in 2003, funds activities such as the science coordinator and travel programme which supports the New Zealand-Germany Scientific and Technological Cooperation Agreement. This agreement has resulted in active exchanges and collaboration at the researcher level and significant investment in scientific facilities by German research agencies. Funding of $3m was available in the 2003/04 financial year.

Economic ($238.95m in the 2003/04 financial year). The goal is to increase the contribution of knowledge and technology to the competitiveness of New Zealand enterprises.

Figure 15.02. Proportions of investment in research and development

Proportions of investment in research and development
  • Research for Industry provides research funds to increase the competitiveness of sectors such as the food and fibre industries, manufacturing and services industries and infrastructures such as communications, energy, water and waste. For example, a consortium involving the dairy, meat and deer industries, working together with Crown Research Institute AgResearch, is using biotechnology to speed the development of new and improved species of white clover to lift the productivity of the farming sector. Research for Industry had a budget of $185.04m in the 2003/04 financial year.

  • Technology New Zealand supports businesses by increasing their ability to adopt and learn to use new technology and innovation. For example, Antipodean Biotechnology Limited is leading a project involving seven of New Zealand's top biotechnology research organisations to develop the drug mitoquinone through to the point of commercialisation. Mitoquinone is a newly-discovered possible treatment for Friedreich's Ataxia and Huntington's disease. This will be the first time a drug discovered in New Zealand has been locally manufactured and tested for absorption, metabolism and safety before preceding to the first patient studies. Technology New Zealand had a budget of $44.06m in the 2003/04 financial year.

  • The Pre-seed Accelerator Fund aims to increase the rate of commercialisation of innovations from publicly-funded research by Crown-owned research providers. This new output class, created in 2003, assists Crown Research Institutes and tertiary education institutes to develop a discovery to the point where its commercial potential is apparent and private sector investors are willing to put in the further funds required for full commercialisation. The Pre-seed Accelerator Fund was $4.80m in the 2003/04 financial year.

  • National Measurement Standards funds the Measurement Standards Laboratory to provide specified national measurement standards and related services to satisfy the need for accurate measurement and the obligations of the Minister of Research, Science and Technology under the Measurement Standards Act 1992. There was $5.05m allocated to measurement standards in the 2003/04 financial year.

Environmental ($88.62m in the 2003/04 financial year). The goal is to increase knowledge of the environment and factors that affect it, and to establish and maintain a healthy environment.

  • Environmental Research builds understanding of the environment through public good research in areas such as New Zealand's ecosystems, its biophysical environment and the human environment, and in sustainable management of the environment by the production sector. For example, Landcare Research has developed a web-based system - BIOSECURE - to help biosecurity managers assess biosecurity risks and know where best to focus their efforts.

Social ($48.82m in the 2003/20 financial year). The goal is to increase knowledge of the determinants of well-being to build a society in which all New Zealanders enjoy health and independence, with a strong sense of belonging, identity and partnership.

  • Health Research supports public good research, science and technology to improve the health of New Zealanders. For example, an Otago University team working with others from London's Kings College and the University of Wisconsin has discovered a genetic variation that appears to predispose people to developing depression. Health Research funding of $42.23m was available in the 2003/04 financial year.

  • Social Research supports public good research, science and technology to improve social well-being. For example, a study at the Auckland University of Technology is determining the social, health and cultural factors that influence outcomes for Pacific children. Funds available under Social Research totalled $6.59m in the 2003/04 financial year.

Shaping the system. About five percent ($29.46m in the 2003/04 financial year) of the government's total investment is spent on ‘shaping the system’ - funding, among other things, research contract management undertaken by the Ministry of Research, Science and Technology and research purchase agents, and supporting the work of the Growth and Innovation Advisory Board.

Foundation for Research, Science and Technology Tuapapa Rangahau Putaiao

The Foundation for Research, Science and Technology Tuapapa Rangahau Putaiao is a Crown entity, with an independent board reporting to the Minister of Research, Science and Technology. It is responsible for investing in research, science and technology on behalf of the government so as to enhance the wealth and well-being of New Zealanders; for providing independent policy advice on science and technology to the government; for encouraging technological innovation through the Technology New Zealand scheme; and for administering various scholarship schemes. 'Investing in innovation for New Zealand's future' is the mission statement of the foundation, which considers innovation a key to a prosperous and productive future for New Zealand.

The foundation sees innovation as providing organisations and the nation with fundamental competitive advantages and considers innovation to be just as applicable in the social and environmental arenas as it is in the commercial world.

The foundation receives applications from Crown Research Institutes, research associations, government departments, incorporated societies, non-profit private trusts, private individuals, state-owned enterprises and universities to undertake agreed research programmes which contribute to the achievement of the government's science goals. The foundation's website is www.frst.govt.nz

Isotope analysis at Geological and Nuclear Sciences helps determine the health of coastal marine life.

Health Research Council

The Health Research Council (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 $49.48m in the 2003/04 financial year was provided from the government's direct research, science and technology investment.

The council's website is www.hrc.govt.nz

Royal Society of New Zealand

The Royal Society of New Zealand is an independent, statutory body incorporating the National Academy of Sciences and scientific and technological societies. It encourages professional development through research grants, fellowships, communications courses, awards and prizes. 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 educational resources.

Established in 1867 as the New Zealand Institute, the society is incorporated under The Royal Society of New Zealand Act 1997. It is charged with the statutory responsibility of fostering a culture supportive of science and technology in New Zealand and of initiating appropriate international linkages. It also provides expert advice on important public issues to the government and the community. Membership comprises elected fellows, regional branches, constituent scientific and technological societies and more than 15,000 professional people in New Zealand and overseas.

The Royal Society of New Zealand website is www.rsnz.govt.nz

New Zealand Venture Investment Fund

The New Zealand Venture Investment Fund (VIF) was established as part of the government's 2001 Budget and on 1 July 2002 it became a Crown-owned company, the New Zealand Venture Investment Fund Ltd. VIF is a $100m investment programme designed to accelerate development of a venture capital market in New Zealand.

VIF invests its capital, alongside private investors, in selected venture capital investment funds operated by professional venture capital fund managers. Each fund operates for 10 years, investing in a portfolio of high growth potential New Zealand companies, assisting those companies to build and develop successful commercialisation strategies. The VIF investment programme targets early stage venture capital investment. A buy-out option for investors is an integral aspect of the VIF programme.

The New Zealand Venture Investment Fund website is www.nzvif.com

University funding

In 2002, expenditure by New Zealand universities on research and development (R&D) was estimated at $435.8m, 33 percent of New Zealand's total expenditure on R&D. Of this, $102m was equivalent full-time student (EFTS) funding and $163m came from government research contracts - $121m from Vote: Research, Science and Technology. R&D expenditure totalling $113m originated from universities' own funds (which include student fees), while the remainder came from business, overseas and other sources. These figures are derived from Research and Development in New Zealand 2002, published by Statistics New Zealand and the Ministry of Research, Science and Technology.

15.3 Government research agencies

Crown Research Institutes

There are nine autonomous Crown Research Institutes (CRIs). Government-owned, they are collectively New Zealand's largest science enterprises. Each manages its own assets and has its own independent board of directors reporting to shareholding ministers.

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 CRIs employ more than 4,000 staff and directly generate revenues of more than $520 million, 10 percent of it from offshore. Additionally, their research and commercialisation activity underpins economic, environmental and social values being created by businesses, departments and central and local government agencies.

The nine CRIs returned an after-tax and non-operating items surplus of $11.6m for the year ending 30 June 2003, an increase of $1m on the previous year.

The Association of Crown Research Institutes (ACRI) coordinates policy and advocacy on matters of shared interest among members and other science enterprises such as businesses and universities.

The association's website is www.acri.cri.nz

Forest Research, as a CRI, operates as an autonomous organisation and since its formation in 1947 has attained a position of world leadership in plantation forestry and fibre processing research. Forest Research is a provider of technology solutions and research services to the forest and wood products sectors in New Zealand and internationally. It is one of the few forest research organisations in the world whose expertise spans the value chain, from seed to market. Forest Research has a staff of approximately 350 with a high level of skill in forestry and related disciplines. Its extensive and modern facilities include state-of-the-art analytical and scientific equipment. The company's head office and main campus is in Rotorua, with other operations in Christchurch and Australia. Forest Research has recently undertaken a pivotal change, extending its focus in areas of science discovery that underpin developments in the rapidly-emerging global biomaterials market. This move is designed to help industry seize opportunities in future markets where renewable and biodegradable plant-based products will be the norm. The Forest Research website is www.forestresearch.co.nz

AgResearch Ltd. The AgResearch Group is one of the largest life science companies in the Southern Hemisphere, focusing on the development and commercialisation of scientific discoveries. AgResearch science capabilities are aligned in five strategic areas: plant genes; animal genes; active metabolites; agri-technologies; and sustainable resource management. AgResearch's main subsidiary company, Celentis, works with companies in identifying business opportunities to ensure that scientific research leads to the development of products and companies in human and animal biotechnology. Celentis owns or jointly owns a range of subsidiary companies. AgResearch was established in 1992 as a government-owned company. The company has about 950 permanent staff members, nearly 300 of whom hold PhDs. AgResearch's corporate office is at Ruakura (Hamilton) and it has campuses at Invermay (Dunedin), Grasslands (Palmerston North), Lincoln (Christchurch) and Wallaceville (Upper Hutt). The Celentis office is in Auckland. The AgResearch website is www.agresearch.co.nz and the Celentis website is www.celentis.com

HortResearch. HortResearch (Horticulture and Food Research Institute of New Zealand Ltd) is New Zealand's largest horticulture and food research organisation, helping to grow exports and develop new markets. For growers to remain internationally competitive and profitable, vigorous research and development is vital. HortResearch scientists work alongside some of New Zealand's largest plant-based and food processing industries. Their research spans genomics, molecular biology, plant and tree breeding, crop production, food processing, fruit storage and transport, and evaluation of consumer preferences. New fruits developed from HortResearch's breeding programmes to meet consumer requirements include yellow-fleshed kiwifruit, the Pacific series of apples and blueberries with a longer fruiting season. HortResearch has 505 permanent science and support staff and up to 150 casual workers in 10 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.hortresearch.co.nz

Crop and Food Research Mana Kai Rangahau (New Zealand Institute for Crop and Food Research Ltd) is a New Zealand-based company providing fundamental and applied research to underpin innovative development in five broad areas: nutrition and health; food and biological products; biological pathways and metabolism; genetics; and production science. The institute has more than 340 staff in New Zealand and Australia with expertise in nutritional science, food biochemistry and processing, post-harvest technology, plant breeding and molecular biology, as well as sustainable crop management. The institute's aim is to develop and commercialise intellectual property with clients who range from corporations to grower groups and small businesses. Government investment in science encourages cooperation between science and industry, and institute business managers advise clients of ways they can benefit from various funding programmes. The institute carries out research for clients under a range of flexible agreements, including exclusive contracted research, collaborative research and development arrangements, and licensing and purchasing agreements. The Crop and Food Research website is www.crop.cri.nz

Landcare Research New Zealand Limited Manaaki Whenua has about 400 staff working on all aspects of resource management - sustainability of land-use practices; documenting indigenous biodiversity; enhancing natural habitats; urban ecology; restoration projects; managing weeds, pests and biosecurity risks; maintaining quality of soil, land, air and water resources; reducing pollution and mitigating contamination; minimising waste and using resources more efficiently; and reducing greenhouse gas emissions and enhancing carbon sinks. Attention is also given to the economic, social and cultural implications of environmental management. The company also develops innovative applications for technology (eg satellite imagery and remote sensing, radio telemetry equipment, and geographic information systems) to assist resource management. It maintains a wide range of analytical laboratories, including environmental health and toxicology services. Landcare Research is a strong proponent of collaboration with other Crown Research Institutes, universities, overseas research agencies and with end users. This approach enhances effectiveness and relevance of its research. Landcare Research works with New Zealand and overseas governments, local and regional authorities, corporates, private enterprises and industry, recreational land-users and land-owners. Its science programmes contribute to global research projects and it has a specialist consultancy team working on sustainable development and poverty alleviation in international aid projects. Landcare Research has an ISO 14001 certified environmental management system, is a member of the Equal Employment Opportunities Trust, and is a founding member of the New Zealand Business Council for Sustainable Development. Landcare Research's website is www.landcareresearch.co.nz

The Institute of Geological and 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 273 staff and its library, databases and fossil collections are of national importance. GNS has eight sections - hydrocarbons, geothermal and minerals, geological time, geohazards monitoring, geohazards solutions, earthquakes, volcanoes, tectonics and mapping. It has offices in 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. The GNS website is www.gns.cri.nz

Industrial Research Ltd's purpose is to create value for New Zealand through world-class science and technology. The company has 450 staff in Auckland, Wellington and Christchurch. Activities are focused in six technology areas - communication, information and electronics; intelligent devices and systems; advanced materials and performance; biochemical; sustainable and distributed energy; and complex measurement and analysis. Industrial Research Ltd's website is 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 employs around 630 staff and has revenue of more than $84 million. Its research base covers the following:

  • Atmosphere and climate - Research and consultancy services 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.

DNA sample preparation in Forest Research laboratories, Rotorua.

Spread throughout New Zealand, NIWA has its corporate headquarters in Auckland, main research campuses in Auckland, Hamilton, Wellington, Nelson, Christchurch and Lauder, and field offices in the smaller centres. Research vessels are maintained in Hamilton, Wellington and Christchurch. The company has subsidiaries in Australia and the United States and a vessel company which owns and operates the deep water research vessel Tangaroa and the coastal research vessel Kaharoa. NIWA's website is www.niwa.co.nz

The Institute of Environmental Science and Research Ltd (ESR) provides science-related research 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. ESR employs 250 staff who work from the Mt Albert Science Centre in Auckland, the Christchurch Science Centre, the Kenepuru Science Centre in Porirua and corporate headquarters at Kenepuru. Each science centre is equipped with advanced technologies and information systems to support teams of nationally and internationally recognised scientists. The institute's website is www.esr.cri.nz

Other research organisations

Carter Observatory. 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 Carter Observatory as the National Observatory of New Zealand. The Wellington-based observatory has a full-time permanent staff of eight, plus five permanent part-time and 11 casual staff. In addition, it can call upon specialist honorary consultants and honorary research associates. The observatory has four distinct functions: public astronomy, astronomical education, facilitating astronomical research and heritage preservation. Carter hosts about 50,000 visitors a year at its site in the Wellington Botanic Gardens. It manufactures its own planetarium programmes, audio-visual shows and displays and offers a public information service in astronomy. Carter Observatory offers National Certificate of Educational Achievement-accredited computer-based courses in astronomy. These augment on-site teaching programmes for class groups, which attract students from throughout New Zealand. As the national repository for astronomical heritage, the observatory has collections of instruments and archives relating to important New Zealand amateur and professional astronomers. The Carter Observatory website is www.carterobs.ac.nz.

Cawthron Institute. The Cawthron Institute, a private scientific research centre with 150 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 United States Food and Drug Agency for shellfish testing. The institute undertakes research into marine and freshwater microbiology and ecology. Most of this work is funded through government scientific research programmes. The institute 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 New Zealand clients. Research interests include aquaculture (particularly shellfish), shellfish breeding and husbandry, and seaweed. Biosecurity is another area of interest, with invasions by foreign marine organisms representing 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 National Institute of Water and Atmospheric Research multi sensor ultra violet array at Lauder, Central Otago.

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, involves natural products and pharmacology. Research on toxic algal blooms has resulted in a close relationship with researchers at Tohoku University, Japan; the Japan National Fisheries Agency in Sendai; the Monterey Bay Aquarium Research Institute, California; the Florida Marine Institute; the Cork Institute of Technology, Ireland; and the Irish Marine Institute, Dublin. The Cawthron Institute website is www.cawthron.org.nz

Government departments. Several government departments carry out research and development to support their own activities, including the development and implementation of policy. Departments with a substantial research interest include the Ministry of Fisheries, the Ministry of Social Development, the Department of Conservation, the Ministry of Agriculture and Forestry, the Ministry of Education and the Ministry of Health.

Universities and polytechnics. Universities and polytechnics offer a broad range of tertiary education services that include 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 have formal links with Crown Research Institutes. There are 20 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.

Centres of research excellence. The Centres of Research Excellence Fund was established by the government as part of its 2001/02 Budget and further funding was provided in the 2002/03 Budget. This initiative is to encourage world-class research by establishing centres of research excellence to contribute to New Zealand's development. As a tertiary education initiative, all the centres of research excellence are hosted by a university, with other tertiary education institutes and research providers as partners. They also have broad inter-institutional research networks. There are currently seven centres in operation covering fields as diverse as bioprotection, Maori development, nanotechnology and molecular ecology.

Whare wananga. There are three Crown-funded Maori tertiary education institutions called whare wananga. Their purpose is to create a significant entry point for Maori into tertiary education by providing education services and curriculum tailored toward Maori aspirations and needs. The whare wananga all enjoy key relationships with iwi, hapu and whanau and with other education and research providers, including universities.

Research associations. Research associations are non-government, industry-linked institutions. They provide capabilities in research and technology transfer which individual companies in the sector may not be able to justify. Major research associations include the Building Research Association of New Zealand, the Cement and Concrete Association of New Zealand, the Heavy Engineering Research Association, the New Zealand Fertiliser Manufacturers' Research Association, the New Zealand Leather and Shoe Research Association and the Wool Research Organisation of New Zealand. Social science research is carried out by universities, by research units in government departments and some local government authorities, by independent social research units such as the New Zealand Council for Educational Research and the New Zealand Institute for Economic Research Inc, by commercial market research firms, private research consultancies and research or analysis units within private enterprises, and by voluntary agencies.

15.4 Technology services

Patents, trademarks and designs

The Intellectual Property Office of New Zealand (IPONZ). IPONZ is a business unit of the Ministry of Economic Development and operates under the Patents Act 1953, the Trade Marks Act 1953 and the Designs Act 1953. These acts place statutory obligations on IPONZ and the Commissioner of Patents, Trade Marks and Designs in relation to the filing, examination, registration, grant and renewal of intellectual property rights. IPONZ also maintains registers of these rights and interests for searching by clients. IPONZ is a receiving office for applications filed under the Patent Cooperation Treaty (PCT), administered by the World Intellectual Property Organisation (WIPO).

Patents. The owner of an invention in any country may apply to the Intellectual Property Office of New Zealand (IPONZ) 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 Patents Act 1953 is currently under review. A new Patents Bill is in the process of being drafted to ensure that New Zealand's patent legislation reflects developments in international patent practice and continues to promote innovation and competition within New Zealand. The IPONZ Information Centre holds a comprehensive collection of patent specifications from a number of countries. It receives newly-published patents from New Zealand and other industrialised countries on CD-ROM, microfilm and microfiche. Available to the public, these patents describe the latest advances worldwide in every field of manufacture and have the potential to save New Zealand manufacturers substantial amounts of time and money in research and development. In the year ending 30 June 2003, letters patent were sealed on 6,632 applications. The IPONZ website is www.iponz.govt.nz

Trademarks. The owner of a trademark may apply to register it under the New Zealand Trade Marks Act 2002. Once the trademark 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 every 10 years. Anyone proposing to use a trademark in New Zealand may search the on-line trademark database at www.iponz.govt.nz. Anyone planning to apply to register a trademark may request IPONZ, for a fee, to conduct a search of its records and report if someone else has already registered a similar mark, or request an official opinion on whether the mark is eligible for registration. There were 21,256 trademarks registered in the year ending 30 June 2003.

Designs. The owner of an industrial design (a novel 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. The Intellectual Property Office of New Zealand (IPONZ) maintains a public register of designs, which anyone may search. There were 919 designs registered in the year ending 30 June 2003. Patents, trademarks and designs registered in recent years are shown in Table 15.01

Table 15.01. Patents, trademarks and designs registered
Years ending 30 June

YearPatentsTrademarksDesigns

Source: Intellectual Property Office of New Zealand

19975,23014,998903
19985,55715,529850
19995,72517,364887
20006,26922,771967
20016,62222,620886
20026,71819,173937
20036,63221,256919

Other intellectual property rights

Plant variety rights. Plant variety rights are intellectual property rights provided under the Plant Variety Rights Act 1987. A plant variety right gives the breeder of a new plant variety the exclusive right to sell seed or reproductive material of the variety. The Plant Variety Rights Office of the Ministry of Economic Development administers the act from Lincoln, Canterbury.

Copyright. Copyright is granted automatically upon the creation of any original literary, dramatic, musical or artistic work, sound recording, film, broadcast, cable programme or published edition. The Copyright Act 1994 is administered by the regulatory and competition policy 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 up to 15 years. The act is administered by the regulatory and competition policy branch of the Ministry of Economic Development.

Telarc Limited

Telarc Limited is a registered company owned by the Testing Laboratory Registration Council. Telarc provides recognition and assessment services for management systems and operates from Auckland, Hamilton, Tauranga, Wellington and Christchurch. Telarc Limited's website is www.telarc.co.nz

Recognition services. Telarc provides recognition of achievement of quality and environmental management systems to the following standards:

  • Quality management systems certification to ISO 9001 standard. 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 9001 standard, 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, in 1996, by JAS-ANZ to certify ISO 14001.

Assessments. Telarc provides assessment services for a wide range of management systems, including occupational health and safety, food safety, health and disability, and rail safety.

Training. Telarc works closely with the New Zealand Quality College to provide training courses to promote excellence in management system practices.

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. IANZ's functions include:

  • Laboratory accreditation - Assessing the technical competence of testing, measurement and calibration laboratories in all fields of science and technology, including biological, chemical, dairy, water, electrical, gas cylinder, mechanical, medical, physical and wool testing; and metrology and calibration. Accreditation is to the ISO/IEC 17025 standard.

  • Inspection body accreditation - Providing 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 the 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 the ISO/IEC 17025 standard.

  • Good laboratory practice - The government has designated IANZ as the compliance monitoring authority in New Zealand for the Organisation for Economic Co-operation and Development's 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 appointed IANZ as the designating authority for conformity assessment bodies approved as competent to undertake testing or inspection against European directives for CE product standard marking purposes. This appointment is under the New Zealand/ European Union Governmental Mutual Recognition Agreement.

  • Meat industry laboratory approval - IANZ has been appointed by the Ministry of Agriculture and Forestry's food assurance authority to assess meat industry laboratories under the MILAB laboratory approval scheme.

The IANZ website is www.ianz.govt.nz

International agreements. IANZ represents New Zealand at international conformity assessment gatherings and maintains links with similar national organisations. It has formal mutual recognition agreements with national accreditation authorities in Australia, Austria, Belgium, Brazil, Canada, Chinese Taipei, Czech Republic, Denmark, Finland, France, Germany, Hong Kong China, India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Lithuania, Malaysia, the Netherlands, Norway, People's Republic of China, Portugal, Singapore, Slovak Republic, South Africa, Spain, Sweden, Switzerland, Thailand, the United Kingdom, the United States and Vietnam.

Training. The New Zealand Quality College is the training division of IANZ and provides training in association with IANZ and Telarc Limited, together with 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 is the trading arm of the Standards Council, a Crown entity operating under the Standards Act 1988. The council, an appointed body with representatives from all sectors of the community, oversees the development and adoption of standards and standards-related products. Standards New Zealand has a full-time staff of 50 and is supported by more than 1,500 New Zealanders who voluntarily serve on boards and committees. Its revenue comes from contracts with industry and the government for the development and support of standards and from the sale of standards and standards-related publications. Standards New Zealand acts as the New Zealand enquiry point for the World Trade Organisation and supplies specialist advice on overseas standards, regulations, codes of practice and testing and approval procedures in foreign markets. Standards New Zealand is closely involved in the development and application of national, regional and international standards, many of which are developed in partnership with Australia. It represents New Zealand on the International Organisation for Standardisation (ISO) and on the International Electrotechnical Commission (IEC).

Standards New Zealand's website is www.standards.co.nz

Contributors

  • 15.1 Ministry of Research, Science and Technology; Crown Company Monitoring Advisory Unit.

  • 15.2 Ministry of Research, Science and Technology; Foundation for Research, Science and Technology; Health Research Council of New Zealand; Royal Society of New Zealand; New Zealand Venture Investment Fund; Statistics New Zealand.

  • 15.3 Association of Crown Research Institutes; Crown Research Institutes; Carter Observatory; Cawthron Institute; Ministry of Research, Science and Technology.

  • 15.4 Intellectual Property Office; Commissioner of Plant Varieties; Ministry of Economic Development; International Accreditation New Zealand; Standards New Zealand; Telarc Limited.

Websites

www.agresearch.co.nz - Agresearch

www.acri.cri.nz - Association of Crown Research Institutes

www.carterobs.ac.nz - Carter Observatory

www.cawthron.org.nz - Cawthron Institute

www.celentis.com - Celentis

www.crop.cri.nz - Crop and Food Research

www.ccmau.govt.nz - Crown Company Monitoring Advisory Unit

www.forestresearch.co.nz - Forest Research Institute Ltd

www.frst.govt.nz - Foundation for Research, Science and Technology

www.hrc.govt.nz - Health Research Council

www.hortresearch.co.nz - HortResearch

www.irl.cri.nz - Industrial Research Ltd

www.esr.cri.nz - Institute of Environmental Science and Research Ltd

www.gns.cri.nz - Institute of Geological and Nuclear Sciences

www.iponz.govt.nz - Intellectual Property Office of New Zealand

www.ianz.govt.nz - International Accreditation New Zealand

www.landcareresearch.co.nz - Landcare Research New Zealand Ltd

www.morst.govt.nz - Ministry of Research, Science and Technology

www.niwa.cri.nz - National Institute of Water and Atmospheric Research Ltd

www.nzvif.com - New Zealand Venture Investment Fund

www.rsnz.govt.nz - The Royal Society of New Zealand

www.standards.co.nz - Standards New Zealand

www.technz.co.nz - Technology New Zealand

www.telarc.co.nz - Telarc Limited

Chapter 16. Land and Environment

Table of Contents

A tramper at a stream in the Kaimai-Mamaku Forest Park, one of many administered by the Department of Conservation.

16.1 Protecting the environment

New Zealand has a unique environment, the health of which is dependent upon a balance between interacting systems of living and non-living parts. As the population grows and technology advances, the relationship between humans and the environment continually changes, and the potential exists for increased pressure to be placed on these systems and New Zealand's natural and physical resources.

Human settlement, with its consequent deforestation and introduction of exotic species, impacted greatly upon New Zealand's biodiversity and affected many aspects of the natural environment. Native forest covered 75 percent of New Zealand's land area prior to human arrival in the 11th century, but had been reduced to 53 percent by 1840. With the arrival of Europeans, the rate of deforestation increased as early settlers sought to re-create familiar European landscapes. By the mid-20th century, forest cover had dropped to less than 25 percent of New Zealand's land area, as productive and accessible land was sought for farming.

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 covered nearly 90 percent of cultivated land by the end of this period. Burgeoning pastures supported an equally rapid rise in livestock numbers. In 1886, about 16 million sheep grazed New Zealand pastures. Numbers increased rapidly in the 20th century, eventually peaking at more than 70 million in 1982. Cattle numbers increased from 853,000 to nearly 8 million during the same period.

By the 1930s, decades of overgrazing land and clearing forests caused large-scale erosion and degradation of soils, which hastened the demand for manufactured fertilisers. Concern about the decline in native forests grew, resulting in the formation of various lobby groups. Increasing pressure by the lobby groups eventually resulted in the decline in native deforestation and the establishment of a number of protected native forests.

Today, only 0.1 percent of New Zealand's total forest production is harvested from indigenous forests. Native and plantation forests now cover approximately 23 percent and 7 percent respectively of New Zealand's total land area (see figure 16.01).

Biodiversity

New Zealand has a unique biodiversity resulting from geographic isolation for more than 80 million years. All four frog species, 60 reptiles, two bats, more than 90 percent of insects and marine molluscs, approximately 80 percent of vascular plants, and a quarter of all bird species are found only in New Zealand.

Figure 16.01. Land use

Land use

Kakapo Suzanne with two foster chicks on Codfish/Whenua Hou Island.

With the exception of the two species of bat, New Zealand has no indigenous land mammals. As a result, many species developed without natural predators, and a number of birds became flightless, for example the kiwi, kakapo, takahe, weka and the now extinct moa.

The arrival of humans, and the introduction of exotic species of birds, mammals, plants and insects, both deliberately and accidentally, continues to disrupt New Zealand's biodiversity. New Zealand was one of the last countries in the world to become inhabited with humans, but has one of the worst records of indigenous biodiversity loss. Numerous species of birds, frogs and invertebrates, as well as various plants and reptiles, have become extinct in the past 700 to 800 years. Currently, 1,000 known species of animals, plants and fungi are classified as threatened.

A number of organisations are now working to protect New Zealand's biodiversity and to manage threats from introduced species. To help coordinate biodiversity management nationally, the government released the New Zealand Biodiversity Strategy in 2000.

New Zealand's conservation lands represent 30 percent of total land area and are managed by the Department of Conservation. As part of its core work, the department carries out animal pest and weed control to help manage the impact that introduced species such as possums, weasels, ferrets, stoats, feral cats, pigs, goats and a host of other species have on native plants and animals.

The department also carries out work to protect particular ecosystems and the species they support, both on the mainland and offshore. Indigenous forest cover was one of the classes mapped in the first land cover database, developed with the use of satellite imagery. The database will be updated every five years, with each new version allowing changes in indigenous forest cover to be tracked.

Many initiatives to help conserve indigenous biodiversity are undertaken on private land and the number of legally protected areas continues to increase through Queen Elizabeth II National Trust and Nga Whenua Rahui covenant schemes. Many private landowners also undertake pest and weed control and engage in preservation work such as fencing off native areas to stop livestock from grazing native plant communities.

Since implementation of the biodiversity strategy, Campbell Island has been declared pest free, two new marine reserves have been established and a joint-agency biodiversity website (www.biodiversity.govt.nz) has been launched.

Air quality

Compared with other countries, New Zealand has relatively good air quality because of its small population, its limited heavy industry, its distance from other countries and regular westerly winds in most places. Nevertheless, air pollution gets high enough to cause adverse health effects in many urban areas.

Common pollutants are particulate matter, sulphur dioxide, nitrogen oxides, carbon monoxide, benzene and polyaromatic hydrocarbons. Main contributors to air pollution in New Zealand are the transport industry, home heating fires and other energy sectors.

New Zealand has a small and dispersed population and therefore relies heavily on private transport.

Motor vehicle emissions are a significant source of air pollution, emitting pollutants such as carbon monoxide, dioxins, nitrogen oxides, volatile organic compounds and particulate matter. Increased vehicle numbers, larger average engine sizes, traffic congestion and lower proportions of vehicles using alternative energy supplies relative to previous years all contribute to increasing pressure on air quality. The number of vehicles on New Zealand roads continues to increase, with nearly 2.9 million vehicles licensed in New Zealand at 30 June 2002.

Home heating, particularly domestic fires, is a large contributor to air pollution in residential areas, particularly through the burning of coal and wood, which are major sources of particulate matter and sulphur dioxide. The number of households with open fires has decreased in recent years, while the proportion of homes with slow-combustion fires, such as woodburners, has increased.

All New Zealand's 16 regional councils undertake air quality monitoring. Typical air quality monitoring programmes monitor levels of pollutants, including particulate matter, carbon monoxide and sulphur dioxide. Complex and sophisticated meteorological systems complement the information supplied by air quality monitors, providing an overall increase in the quality of information available.

Smog persists in Christchurch despite frequent attempts to solve the problem.

Climate change

Global warming through the release of greenhouse gases is one of the most significant environmental issues facing New Zealand and the world. The greenhouse effect occurs when gases in the atmosphere, for example nitrous oxide, carbon dioxide and methane, trap solar radiation, warming the atmosphere. This process occurs naturally, but there is evidence that human activity has been a major cause of most of the warming of the past 50 years.

The global average temperature increased by approximately 0.6 degrees Celsius between 1861 and 2000, and sea levels rose 10 to 20 centimetres between 1900 and 2000.

Total greenhouse gas emissions in New Zealand in 1990 were equivalent to approximately 62 million tonnes of carbon dioxide. These increased to approximately 72 million tonnes of carbon dioxide equivalent in 2001. The increased emissions were largely due to a 28 percent increase in carbon dioxide emissions, primarily from the energy sector, and a 12 percent increase in agriculture sector emissions (methane and nitrous oxide). Waste sector emissions (mainly methane) decreased 20 percent in the same time period. Figure 16.02 illustrates the changes in greenhouse gas emissions by source category from 1990 to 2001.

The magnitude of climate changes in New Zealand is uncertain, but it is likely that drought problems may increase in already drought-prone eastern regions, while western regions may become even more vulnerable to flooding. Higher temperatures and fewer frosts could lead to increased pest problems, while industries based on snow and ice, such as skiing, may become increasingly vulnerable. However, climate change may also improve plant and crop growth, through rising temperature and carbon dioxide levels, but the overall effects on productivity and species composition are still uncertain.

Two major international agreements have been formulated to address climate change: the United Nations Framework Convention on Climate Change (UNFCCC) (adopted at the Rio Earth Summit in 1992) and the Kyoto Protocol, a further agreement negotiated in accordance with the UNFCCC and finalised in December 1997. Whereas the UNFCCC is an agreement on non-binding targets, the focus of the Kyoto Protocol is on legally-binding targets.

The Kyoto Protocol requires developed countries to reduce greenhouse gas emissions to specified targets by 2008-2012. New Zealand signed the agreement in 1998 and legislation (the Climate Change Response Act) ratified it in 2002. Ratification by at least 55 countries, including those responsible for at least 55 percent of developed country carbon dioxide emissions in 1990, is required before the Kyoto Protocol can be binding.

Ozone layer

Depletion of the ozone layer, caused primarily by the emission of chlorofluorocarbons (CFC), is of significant concern to New Zealand. The ozone layer is 15-30 kilometres above the Earth's surface and shields the Earth from the sun's ultraviolet radiation.

Figure 16.02. Greenhouse gas emissions
By source
Years ending 31 December

Greenhouse gas emissionsBy sourceYears ending 31 December

While global-average ozone over the period 1997-2001 was three percent below pre-1980 levels, the ozone layer above New Zealand has decreased by approximately six percent since 1980.

Figure 16.03 shows changes in the mean levels of ozone measured at Lauder, Central Otago.

Figure 16.03. Mean levels of ozone1
Measured at Lauder2

Mean levels of ozone1Measured at Lauder2

A declining ozone layer has serious implications for New Zealand, particularly in relation to human and animal health.

International efforts to halt the decline in ozone led to the formation of the Montreal Protocol in 1987 and it is now expected that the ozone layer will eventually be restored. However, the period over which full recovery will occur is still uncertain and it is possible that increased emissions of greenhouse gases could delay the recovery.

Water quality

Relative to other countries, New Zealand has abundant fresh water, with total annual rainfall varying between 300,000 million and 600,000 million cubic metres. Although well endowed with water, the availability of fresh water varies significantly among regions, with the amount of annual rainfall generally decreasing as one moves east.

While water in New Zealand has in the past been considered plentiful, rising demand and competing uses are increasingly placing pressure on both the availability and quality of the water resource. New Zealand is an agriculturally-based economy and the intensification of farming, particularly in the South Island, requires trade-offs to be made between ecological, recreational and economic values of the water resource.

The clearance of land and the rise of agriculture in New Zealand has resulted in a number of adverse environmental effects on water. These include more frequent flooding and increased sedimentation, nutrients and harmful micro-organisms in streams from erosion and farm run-off.

The need for enhanced soil quality for pasture production results in the application of fertilisers, with nitrogen sales more than trebling between 1990 and 1997. The environmental effects associated with fertiliser application can include soil acidification and eutrophication of waterbodies.

Coastal water quality. In general, New Zealand beaches are both clean and safe, but coastal water quality is still affected by some activities. The recreational and food-gathering value of the marine environment is affected by microbial water quality changes over time. Animal and human waste also impacts on coastal water quality, as it contains disease-causing bacteria that may survive in marine waters and pose a risk to human health and the coastal environment. The source of this waste includes sewage, stormwater and agricultural runoff. Between 1999 and 2002, more than 94 percent of the marine beaches monitored in New Zealand have been considered safe for swimming.

River water quality. When compared internationally, New Zealand's rivers have very high water quality because they contain lower concentrations of dissolved material and are low in nutrients, with the exception of rivers in some highly eroding areas such as the East Coast of the North Island. In general, the upper reaches of most rivers have high water quality, while the middle and lower reaches tend to have elevated turbidity and nutrient levels, especially in agricultural and large urban catchments. Contamination is usually from pasture runoff, but also occurs downstream of towns and industrial sites with sewage and stormwater discharges. Pollution discharges have reduced considerably in the past 10 years.

Marine environment

The marine environment within New Zealand's exclusive economic zone harbours a diverse range of ecosystems and covers an area approximately 15 times bigger than New Zealand. New Zealand has the eighth longest coastline of any nation in the world, the fourth largest area for fishing and its exclusive economic zone covers approximately 4 million square kilometres.

Most of New Zealand's population lives close to the coast. Construction, land reclamation, drainage, urban infrastructure and shoreline developments can affect the coastal environment through the alteration of physical characteristics of shorelines and the discharge of pollutants into the sea. Nevertheless, New Zealand's small population has meant that impacts on the marine environment have been minor compared with other developed countries.

Given that New Zealand is a trading nation, with much trading occurring via sea transport, New Zealand is vulnerable to the introduction of exotic species.

Fishing activities are widespread throughout New Zealand and affect virtually every habitat type except the deepest sea floors. Marine farming can also have important impacts on the coastal environment.

Because New Zealand is an island nation, there are many competing users of its marine environment and there is a need for effective environmental management. The fisheries sector is managed using the quota management system, whereby catch limits for each fish stock are set by the government and allocated to commercial fishers through individual quotas. The fisheries quota management system uses information provided by models to assess the maximum sustainable yield of a fishery

Commercial harvest, including wild stocks and aquaculture, is approximately 650,000 tonnes a year, with New Zealand contributing approximately one percent of global fish production. Increased use of sophisticated surveillance techniques enabling the monitoring of vessel movements and fishing activity is likely to improve fisheries management by reducing volumes of unauthorised takes.

Regional councils manage the discharge of contaminants into coastal marine areas using the Resource Management Act, and discharges and dumping from ships is controlled through Resource Management (Marine Pollution) Regulations. A committee of ministerial representatives is developing a comprehensive national oceans policy for management of the marine environment.

Marine models are able to represent the complex interactions that occur within the environment, enabling changes in physical and biogeochemical aspects of the marine environment to be predicted, thus providing early warning of potentially harmful ecological effects.

Good environmental management requires ecosystem science combined with management, decision making and planning. The Ministry for the Environment, recognising the need for the development of ecosystem classifications as a means of organising environmental data for good management, is supporting development of a marine environment classification system. This system, like those developed for land and rivers, will help resource managers analyse and sustainably manage natural and physical resources.

Energy

New Zealand has many energy sources, including fossil fuels, water, geothermal steam and wind. As technology has developed, alternative energy sources have been harnessed.

Coal is one of New Zealand's oldest sources of energy, with coal-produced electricity peaking in the 1920s and remaining high until the 1960s. With the introduction of vehicles and the development of technology, consumption of oil and hydroelectricity increased and from 1950 to 1980, oil and hydrogeneration became the dominant sources of energy.

In 2002, oil and gas were the major sources of New Zealand's energy, accounting for approximately 33 and 30 percent respectively of the total primary energy supply. Total primary energy is the amount of energy available for use in New Zealand for energy transformation and end use. Consumer energy is energy used by final consumers and excludes energy used or lost in transformation and in bringing the energy to the final consumers.

Figure 16.04 shows the proportions of consumer energy by fuel for 2002.

New Zealand's gas, which accounted for only 3.3 percent of total primary energy supply in 1974, is produced in Taranaki, with the primary natural gas field - offshore south-west of New Plymouth - supplying 75 percent of the country's natural gas requirements. However, the Maui field is in decline and is expected to become depleted around the end of this decade.

Although self-sufficient in electricity, gas and coal, New Zealand relies on imported oil to meet domestic oil demand. Oil comprises about 49 percent of total energy consumption.

The largest energy consumer is the domestic transport sector. Domestic transport is the dominant user of oil products, taking approximately 85 percent during the year ending 31 March 2003. This can largely be attributed to New Zealand's small and sparsely-distributed population and its remoteness from trading partners, which requires extensive use of shipping and air transport.

Renewable resources, such as hydro generation, geothermal, biomass, wind and sunlight, account for approximately 66 percent of electricity generation in New Zealand. Hydro generation is the major supplier of electricity, producing about 60 percent.

Figure 16.04. Energy used by consumers
Proportionately by fuel
Year ending 31 December 2002

Energy used by consumersProportionately by fuelYear ending 31 December 2002

Energy is an essential element of life, but its production and use have varying impacts on the environment. Growth in greenhouse gas emissions is largely attributable to the energy sector, in particular electrical generation from coal, and transport. Geothermal production has the potential to cause land subsidence and releases sulphur into the atmosphere, which leads to pollution and the creation of unpleasant odours. Construction of dams has a transforming and potentially detrimental effect on the landscape, and alters river systems and aquatic life. Environmental impacts from thermal, geothermal and hydroelectric generation set limits for future development.

Much potential for energy generation in the future lies in advanced and innovative renewable technologies and in energy sources that are still considered alternative, such as solar and wind generation. As technology develops, many of these alternative sources will become economically and commercially viable in New Zealand and more competitive with fossil fuels.

Minerals

New Zealand has a large variety of mineral deposits and is well known for its production of gold and coal. The mineral industry is a significant contributor to the New Zealand economy, not only in terms of export revenues, but also as substantial employers of a highly skilled work force. More than 4,000 staff are employed directly, with an another 12,000 jobs indirectly related to the mining and minerals industry.

Some minerals are also of cultural importance to New Zealanders. For example, the pounamu, or New Zealand greenstone, is of particular significance to Maori, specifically Ngai Tahu who have ownership of this resource.

Gold was first discovered in New Zealand in the 1850s and was retrieved either by washing alluvial gravels, silts and sands, by crushing gold-bearing veins of quartz, or by hydraulic sluicing. In 1881, the first dredge was used to work riverbeds to recover gold. Currently, there are two large open-cast goldmines in New Zealand, with a number of medium and small-sized mines. A third open cast mine is proposed at Reefton, on the West Coast of the South Island. Mining is subject to strict environmental standards.

Coal is New Zealand's largest energy resource, with recoverable reserves of approximately 8.6 billion tonnes. New Zealand coal is valued for its special qualities, particularly its low ash and phosphorus content, its suitability for steel making and high heating value. While coal has a long history of use in New Zealand, the quantities of coal exported have increased markedly in the past decade, with Japan, India, China and South Africa the main markets. The largest domestic users of coal are the electricity and steel production industries.

Aerial photography, photogrammetric mapping and use of GIS in digital terrain modelling, and 3D modelling of subsurface ore bodies, are now being used as tools for exploration, mine design and measurement. Remote sensing is being used to provide high-resolution images of the earth's crust, which, when combined with other information, can identify targets for detailed ground investigation. Advances in technology have meant that minerals once inaccessible now have the potential to be extracted.

Soil quality

Soil provides a wide range of services to the environment and humans, including the absorption of waste, the supply of nutrients to plants and regulation of water.

Erosion, although a natural process, has been accelerated by human activities, particularly by the clearance of land. It is estimated that approximately 10 million hectares are currently at risk from erosion in the North Island hill country, with each landslip requiring approximately 20 years to recover to within 70 to 80 percent of its original productivity level.

Land-based industries are a central part of New Zealand's economy and a major generator of export income. Soil erosion, therefore, has many implications for New Zealand, including loss of productive capacity, reduced fertility, loss of water-holding capacity and decreased water quality. To address soil quality problems, the government has encouraged the development of practical indicators of soil quality, as well as on-ground techniques and monitoring tools which farmers can use to improve sustainable management of soils. These tools are promoted through the New Zealand Landcare Trust, regional council land management officers, industry field officers and other advisers.

Advanced spatial analysis tools enable areas of high risk of soil degradation to be identified by considering soil properties, their susceptibility to degradation and the pressures from land use types and land use intensity. Results from these tools are being used to assist in decision making in terms of appropriateness of land use change and land use intensity. A New Zealand land cover database is being used for a range of purposes, including assessing the amount of carbon stored in indigenous forests, identifying change in areas at risk from soil erosion, assessing rural fire risks and monitoring general land use change.

Future issues

Sustainable development - New Zealand is in the process of developing headline indicators for measuring progress towards sustainable development. The government's Sustainable Development for New Zealand Programme of Action outlines issues identified for action because they touch on issues such as water quality and allocation, energy, sustainable cities, and child and youth development.

Partnerships across central and local government agencies are at the heart of New Zealand's sustainable development approach. In August 2002, Statistics New Zealand released Monitoring Progress Towards a Sustainable New Zealand. This report, produced in cooperation with a number of government departments, was the first attempt to bring information on sustainability together within New Zealand. Other environmental statistics that could be used for sustainability monitoring in future include environmental performance indicators developed by the Ministry for the Environment, and natural resource accounts being developed by Statistics New Zealand.

Tourism - New Zealand's tourism industry is an example of where integration of environmental, economic and social goals is essential to sustaining an industry. Tourism can place pressure on the natural environment through overloading the infrastructure and reducing the quality of relatively unspoiled natural environments. With visitor numbers to New Zealand continuing to rise, there is a need to ensure the quality of New Zealand's natural assets are maintained.

Environmental management - Maintaining and protecting New Zealand's biodiversity will be a continuing focus of environmental management in New Zealand, as will be the management of climate change, freshwater resources, energy, air quality, oceans, waste and pollution. Central to all environmental issues will be how to balance economic growth and social well-being with maintaining the quality of the natural environment.

Bioethics Council. In October 2001, the government established a Bioethics Council following recommendations from the Royal Commission of Inquiry into Genetic Modification. The goal of the 11-member council - established as a ministerial advisory committee - is to enhance New Zealand's understanding of the cultural, ethical and spiritual aspects of biotechnology and to ensure that the use of biotechnology has regard for the values held by New Zealanders. In this role, the council provides information, promotes and participates in public discussion and gives advice to the government.

16.2 Environmental and resource management

New Zealand occupies approximately 27.1 million hectares. It is predominantly mountainous and hilly and can be categorised in terms of slope and altitude. More than two-thirds (18.5 million hectares) of the land slopes at greater than 12 degrees and nearly half at greater than 28 degrees. Approximately three-fifths of the country (16 million hectares) is more than 300 metres above sea level, with one-fifth above 900 metres.

Extensive changes have occurred in New Zealand's land cover since human occupation. The cover of indigenous forest has declined to 29 percent of its former extent and scrub and tussock have nearly doubled in area. The greatest losses of land cover have occurred in warm, dry environments, particularly those with soils and landforms suited to intensive agriculture.

Table 16.01 shows the approximate distribution of land use in 2001.

Environmental coordination

Coordination of New Zealand's international response to environmental issues is carried out by the environment division of the Ministry of Foreign Affairs and Trade. The division manages New Zealand's participation in the work of a large number of international forums, including the Commission on Sustainable Development, the United Nations Environment Programme, the Global Environment Facility and the International Whaling Commission.

The division has responsibility for issues such as climate change, ozone depletion, natural resource management, biodiversity and endangered species, hazardous wastes, marine pollution, and a range of sustainable development issues. It provides support for New Zealand attendance at regional and international meetings on these and other topics and handles negotiations on related international legal instruments. The division works closely with other government departments, in particular the Ministry for the Environment, the Ministry for Economic Development, the Ministry of Agriculture and Forestry, the Ministry of Fisheries, the Environmental Risk Management Authority and the Department of Conservation. It also consults with Maori and a range of public interest groups, including non-government organisations and businesses.

Environmental planning framework

The Resource Management Act 1991 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 built environment, such as buildings, bridges and other structures in cities and towns.

The purpose of the act is to promote sustainable management of natural and physical resources. This means the environment is looked at as a whole when local authorities are planning and making decisions. The focus of the legislation is on the effects proposed activities will have on the environment.

Local authorities prepare plans to assist them to manage effects on natural and physical resources. Members of the community have the opportunity, during formulation of these plans and policies, to say what they want to happen in their communities.

Table 16.01. Land use1

Type of landApproximate areaProportion of total area

1As at 11 December 2001.

2National Exotic Forestry-Description information as at 1 April 2002.

Source: Ministry of Agriculture and Forestry

 Hectares (million)Percent
Total forested28.029.5
Pasture, tussock and arable13.951.3
Shrub and other5.219.2
        Total land area of New Zealand27.1100.0

National policies. In preparing plans to manage natural and physical resources, local authorities must recognise and provide for:

  • 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.

  • Protection of outstanding natural features and landscapes from inappropriate subdivision, use and development.

  • Protection of areas of significant indigenous vegetation and significant habitats of indigenous fauna.

  • Protection of historic heritage from inappropriate subdivision, use and development.

  • Maintenance and enhancement of public access to and along the coastal marine area, lakes and rivers.

  • The relationship of Maori and their culture and traditions with their ancestral lands, water, sites, waahi tapu and other taonga.

Those exercising functions and powers are required to have particular regard to kaitiakitanga; the ethic of stewardship; the efficient use and development of natural and physical resources; the maintenance and enhancement of amenity values; the intrinsic values of ecosystems; and the maintenance and enhancement of the quality of the environment.

Sustainable management. Under the Resource Management Act 1991, sustainable management means managing the use, development and protection of natural and physical resources in a way which enables people 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; and 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. Regions must prepare regional coastal plans and may prepare plans to manage other resources. Regional councils have 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.

District planning. District and city councils have primary responsibility for land use management. 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, including buildings, trees, bush, plants, landscapes, objects, and or areas of architectural, historical, scientific, wildlife, visual, or other interest. Each district and city council must prepare a district plan, which may include rules which prohibit, regulate or allow activities.

Resource consents. A resource consent gives a person or organisation permission to use or develop a natural or physical resource and/or carry out an activity that affects the environment in some way. Under the Resource Management Act 1991, there are five types of resource consent:

  • Land use consent (granted by district, and sometimes regional, councils).

  • Subdivision consent (district councils).

  • Water permit (regional councils).

  • Discharge permit (regional councils).

  • Coastal permit (regional councils).

Applicants for consents need to ascertain what type and category of consent is likely to be required. The applicant also needs to assess what impact 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 anyone who may be affected by the proposal. Some resource consent applications require public notification, which gives members of the community a chance to consider the application and make submissions if they wish.

Public involvement. The Resource Management Act 1991 provides for members of the community to take part in managing the resources of their area. Members of the community can have input into initial consultations by local authorities when they are preparing policy statements and plans, and can make submissions to local authorities after they have notified the public about policy statements or plans, plan changes and resource consents. A funding scheme was established in March 2001 to provide community, environmental and Maori groups with assistance to go to the Environment Court. Recognising the high cost of involvement in court cases, the environmental legal aid scheme exists to assist groups presenting a case of environmental public interest, but who are financially under resourced.

Use of land. The Resource Management Act 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, unless there is a rule in the plans that constrains that use. Constraints must be clearly identified in policy statements and plans.

An old Wellington water supply reservoir now supports Karori Wildlife Sanctuary's wetland environment.

Hazardous substances and new organisms. The Hazardous Substances and New Organisms Act 1996 reformed the law relating to the management of hazardous substances and new organisms. The Environmental Risk Management Authority (ERMA) was 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. There is a transitional period, which expires on 1 July 2006, during which controls on substances under the repealed Toxic Substances, Dangerous Goods, Explosives and Pesticides Act are retained. During this period, these substances will be progressively transferred to control under the new act.

Hazardous substances managed under the act are substances which are explosive, flammable, oxidising, corrosive, toxic and ecotoxic. Radioactive substances are managed under the Radiation Protection Act. Controls are contained in a set of regulations, which ERMA uses to set requirements for specific substances or groups of substances. The controls apply at all points in a hazardous substance's life cycle where the environment and the health and safety of New Zealanders may be at risk. The controls are designed to set consistent national minimum standards for resource consents that involve hazardous substances. In addition, the controls are designed to provide consistent standards in workplace and transport legislation relating to hazardous substances.

The act is also designed to work closely with regulations for specific use areas, for example when hazardous substances are also medicines, agricultural components or veterinary medicines.

The act covers the deliberate introduction of new species, such as for primary production or for biological control of pests, and the development of 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 aims to prevent the unintended introduction of unwanted species into the country.

The principles of the new legislation require that all hazardous substances and new organisms are assessed before their 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.

Mineral exploration and development

Exploration of Crown-owned minerals is governed by the Crown Minerals Act 1991, administered by the Ministry of Economic Development. 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 came into effect on 1 October 1996.

Using procedures established in the minerals programmes, the Minister of Energy issues permits allocating Crown-owned minerals, or the rights to search for them. Permits have conditions relating to 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.

The impact of prospecting, exploration and mining of minerals, whether Crown or private, is controlled through the Resource Management Act 1991 by local authorities. The act controls the environmental impact of all mining activities, including the rehabilitation of land.

Water and soil management

New Zealand's water and soil resources are administered in accordance with the Resource Management Act 1991, with the maintenance and construction of flood protection structures and soil conservation measures covered by the Soil Conservation and Rivers Control Act 1941. Both acts are administered by the Ministry for the Environment.

Under the Resource Management Act, regional councils are responsible for managing, monitoring and controlling wetlands and fresh water bodies, and the issuing of permits for abstraction, discharge and the damming of water. Regional councils also develop policies and plans which prevent erosion, landslip and flooding, and protect scenic and recreational waterways.

Water resources. It has been estimated that New Zealand's consumption of water approaches 2 billion cubic metres a year, with households using 210 million cubic metres, industry 260 million cubic metres, livestock 350 million cubic metres and irrigation 1,100 million cubic metres. About 87 percent of the population is supplied from public water supply systems, while the rest rely on independent domestic supplies, such as rainwater collection or aquifer bores. Industry obtains about 33 percent of its requirements from public supply systems and 66 percent from its own sources. These figures do not include water for hydroelectric generation, which exceeds 100 billion cubic metres a year. Water flowing through hydro station turbines can be used again. On the Waikato River, including its tributaries, 10 state-owned hydroelectric stations, and a number owned by local authorities, use and reuse a flow which, at Karapiro (the final station), is more than 7 billion cubic metres a year.

In terms of total water resources, New Zealand has an estimated 300 billion cubic metres a 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 more than 10,000 millimetres have been measured, while in others, such as Alexandra, as little as 340 millimetres may fall in a year.

In some parts of New Zealand, 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 for regional councils in these areas.

Water quality. Maintenance of water quality is the responsibility of regional councils under the Resource Management Act 1991. The act controls contamination of water (as well as discharges onto or into land and into the air) through resource consents. 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 and lakes. 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. The Ministry for the Environment helps regional councils manage water resources by producing guidelines for such things as river flows and water quality.

River control. River control projects carried out by local authorities are usually designed to prevent damage by erosion and protect property from flood damage. River training works are designed to give the river channel a stable alignment to prevent bank erosion. Stopbanks are constructed to provide flood protection to communities, infrastructure, and to low-lying and highly-productive agricultural lands. A catchment-wide approach to water and soil problems is encouraged. District councils, through their district plans, control subdivision and other urban development in designated flood hazard zones. 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 changed soil conditions over time. 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. 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 human activities. 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, open and close-tree planting and retirement.

Pollution and waste

Water pollution. Water pollution problems are addressed by regional councils under the Resource Management Act 1991. Pollution of rivers and lakes can be caused by soil erosion, farm run-off, industrial waste, domestic sewage or urban runoff. The Resource Management Act provides for the control of waste discharges through resource consents and rules in plans. These include conditions ensuring that the discharge is of a sufficient quality 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 from ships and offshore installations within the coastal marine area (12 nautical mile limit). Ballast water discharges are controlled by the Biosecurity Act 1993.

Waste and landfills. In partnership with Local Government New Zealand, the Ministry for the Environment published The New Zealand Waste Strategy in March 2002. The strategy includes targets for central government, local government and industry to reduce waste and improve waste management. The majority of solid waste in New Zealand is disposed of in landfills, historically poorly-managed ‘rubbish tips’. However, many of the substandard landfills of the past have now closed and there is a move towards appropriately-sited, designed and operated landfills. In many areas, regional landfills have been developed with a variety of ownership arrangements, ranging from full local authority ownership to fully commercial operations. In working to reduce waste, the Ministry for the Environment is working with producers and importers of used oil and tyres to identify appropriate solutions for the collection and management of these wastes; identifying and addressing barriers to the diversion of organic waste from landfill disposal; supporting business in implementing eco-efficiency concepts into everyday business; and funding specific waste minimisation projects for the construction and demolition and agricultural sectors.

Contaminated sites. According to national estimates, New Zealand has about 1,500 seriously contaminated sites and thousands more which have some level of contamination. Seriously contaminated land includes sites used for landfills, service stations, sawmills, timber treatment plants, railway yards, engine works, metal industries and chemical manufacture. The Ministry for the Environment is working with other departments, local government and industry to develop guidelines for managing and cleaning up contaminated sites. Guidelines have been produced covering chemicals found on sawmills and timber treatment sites, petrol stations and oil storage depots, and old gaswork sites. The ministry also provides guidance for local government on collecting and managing information on contaminated sites. A fund has been established by the government to assist regional councils investigate and clean up contaminated sites that pose a known or potential risk to human health and the environment within their regions. In the three years from 2004, $2 million will be spent each year to assist:

  • Tasman District Council clean up the former Fruitgrowers Chemical Company site at Mapua. The site is heavily contaminated with the organochlorine pesticides DDT and dieldrin and has adversely affected the marine environment nearby.

  • Environment Waikato to clean up the historical Tui mine site on Mt Te Aroha.

  • A number of other regional councils to undertake site investigation and clean-up projects on high-priority contaminated sites in their regions.

Global environmental issues

Some of the most pressing environmental problems extend beyond national borders. Two examples of these global environmental issues are 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.

The main method available under international law for countries to work together on global environmental issues is through Multilateral Environmental Agreements (MEAs). These are formal agreements among nation states. They may take the form of ‘soft law’, setting out non legally-binding principles that parties will regard when considering actions which affect particular environmental issues, or ‘hard law’, which specify legally-binding actions to be taken to work towards an environmental objective. As a signatory to many MEAs, New Zealand has made a strong commitment to these international environmental principles and objectives.

New Zealand's interest in international environmental work is wide ranging. Priority issues in recent years have included sustainable development, biodiversity, ocean management and the protection of marine mammals, South Pacific environmental issues and climate change and ozone depletion. New Zealand is also involved in the work of international environmental institutions such as the United Nations Environment Programme (UNEP), and environment issues are a consideration in our trade policy.

International environmental policy. International environmental policy development involves a wide range of government agencies. The environment division of the Ministry of Foreign Affairs and Trade advises the government on international aspects of global environmental issues. The Ministry for the Environment provides advice on domestic matters. A key partner is the Department of Conservation, the central government organisation charged with conserving the natural and historic heritage of New Zealand.

Sustainable development. Greater awareness of the importance of global action on environmental matters has led to increasing international activity. Much of the international debate involves striking the right balance between the imperatives of environmental protection, economic activity and social development 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, Our Common Future, was the theme for the United Nations Conference on Environment and Development (UNCED), or Earth Summit, in Rio de Janeiro, Brazil, in 1992. The UNCED brought together governments, business, non-government organisations, indigenous people, women and youth in unprecedented numbers and assembled the largest number of heads of government and state and senior politicians ever seen at a meeting of this kind. New Zealand entered into several important MEAs at the Earth Summit. It produced five key documents on sustainable development issues: two ‘hard law’ - the Convention on Biological Diversity, and the Framework Convention on Climate Change, and three ‘soft law’ - the Rio Declaration, Agenda 21 (an action plan setting benchmarks for behaviour and identifying directions in which the world community should move) and Forest Principles, which were adopted by consensus. The UNCED also established the Commission on Sustainable Development (CSD) to monitor progress with implementation of Agenda 21.

The World Summit on Sustainable Development (WSSD) was held in August 2002 to examine progress in implementing Agenda 21 in the 10 years following the Rio Earth Summit and to reinvigorate the global commitment to sustainable development. The major outcome from the WSSD was the Ministerial Declaration that focuses on actions for sustainable development over the next 10 years -referred to as the Johannesburg Programme of Implementation (JPOI). The Commission for Sustainable Development, which meets annually, is responsible for implementing the JPOI. National reporting is now required according to the recently developed two-year cycles of sustainable development issues.

The government's Sustainable Development Programme of Action released in 2003 was New Zealand's response to the JPOI. It builds on preparatory work for WSSD, providing a vision for New Zealand and a set of guiding principles for policy and decision-making across the government sector. These principles require the government to take account of the economic, social, environmental and cultural consequences of its decisions.

Climate change. The 1992 United Nations Framework Convention on Climate Change (UNFCCC) developed a global response to stabilising greenhouse gas concentrations in the atmosphere. New Zealand ratified the Framework Convention on Climate Change (UNFCCC) in 1993 and in December 2002 ratified the Kyoto Protocol, which builds on the concerns of the UNFCCC and makes new commitments that are stronger and more detailed.

Biodiversity. New Zealand ratified the Convention for Biological Diversity in 1994 and produced a National Biodiversity Strategy in 2000. New Zealand has also ratified several conventions that aim to protect specific animals, plants and ecosystems, including the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Ramsar Convention, and the Convention on the Conservation of Migratory Species of Wild Animals (CMS) signed by New Zealand in September 1999, with the Department of Conservation as the key implementing agency. New Zealand has included five sites on the Ramsar list of wetlands of international importance. New Zealand is a signatory to the Cartagena Protocol on Biosafety, which aims to protect biodiversity and human health from the potential risks arising from the import and export of living modified organisms developed by modern biotechnology. New Zealand has also ratified the Agreement on the Conservation of Albatrosses and Petrels, which came into force on 1 February 2004. This agreement focuses on the effects of incidental capture in fishing operations.

Ocean management. New Zealand participated actively in negotiations on amendments to the London Convention on the Prevention of Marine Pollution by Dumping of Wastes 1972, and ratified the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal in 1995. New Zealand was active in the United Nations Conference on Straddling Fish Stocks and Highly Migratory Fish Stocks, which, in 1995, resulted in agreement on a new convention to complement existing provisions of the United Nations Convention on the Law of the Sea. The convention contains innovative provisions on 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). The New Zealand commissioner to the IWC is Sir Geoffrey Palmer, a former Prime Minister, who took up the appointment in December 2002. The Ministry of Foreign Affairs and Trade cooperates closely with the Department of Conservation in developing policy on whale conservation. New Zealand played a major role in founding the United Nations Informal Consultative Process on Oceans and Law of the Sea, recognising that sustainable management of the oceans, in line with the objectives set out in the Agenda 21 and Rio Declaration, is vital to New Zealand and our neighbouring South Pacific countries. New Zealand is currently developing a comprehensive national oceans policy.

International environmental institutions. New Zealand participates in the governance and operation of several international environmental bodies. New Zealand is a member country of the United Nations Environment Programme (UNEP) and was a member of the governing council from 2000 to 2003. UNEP plays an important role in international negotiations on MEAs and is the secretariat to a number of them. A recent addition to its programme is the Global Ministerial Environmental Forum. Environment ministers from around the world meet at these events to discuss environmental issues of contemporary interest. New Zealand attended sessions in 2000, 2001 and 2002. The Global Environmental Facility (GEF) is an international body which provides finance to developing countries to help them address critical threats to the global environment. New Zealand is a donor country and a member of one of the constituencies of the GEF council. New Zealand has contributed about $20 million since 1994 and pledged another $12 million to the third replenishment of the facility. New Zealand currently shares a seat on the GEF council with Australia and the Republic of Korea. New Zealand is also involved in the South Pacific Regional Environment Programme (SPREP) and the Environment Policy Committee (EPOC) of the Organisation for Economic Co-operation and Development. The Ministry for Environment represents New Zealand on EPOC.

South Pacific environment issues. New Zealand recognises the special vulnerability of South Pacific countries to global environmental problems. New Zealand has sought to support Pacific Island countries and to ensure their concerns are heard through SPREP, the South Pacific Forum and other international environmental negotiations. This is exemplified by New Zealand's involvement in the Global Conference on the Sustainable Development of Small Island Developing States in Barbados in 1994, and in the 1999 United Nations special session to review the Barbados Programme of Action. In 1995, New Zealand signed the Waigani Convention to ban the importation into South Pacific Forum countries of hazardous and radioactive wastes and to control the transboundary movement and management of hazardous wastes within the South Pacific region.

Trade and the environment. The New Zealand Government has made it clear that there must be environmental and labour elements to all bilateral and regional trade agreements negotiated by New Zealand. The Ministry for the Environment has undertaken with the Ministry of Foreign Affairs and Trade to lead negotiations on the environmental provisions in these agreements. The World Trade Organisation's (WTO) Doha Development Agenda is the government's top trade priority. Environment issues were on the agenda for the first time at the fourth ministerial conference in Doha in November 2001 and some progress had been made with these before talks collapsed at the ministerial conference in Cancun in September 2003. The main environmental issues for New Zealand are:

  • The relative standing of WTO rules and potentially conflicting measures in MEAs that can be used to protect the environment by restricting trade in certain goods.

  • The use of labelling schemes for environmental purposes. Development of universal standards for labelling could yield benefits for New Zealand goods and services, particularly in niche markets such as organic produce, but there is a risk that labelling schemes can be used as technical barriers to trade.

  • The role of environmental aspects in negotiations on sustainable development.

The Ministry for the Environment has been actively involved with the Ministry of Foreign Affairs and Trade and the Ministry of Agriculture and Forestry to progress these issues, both domestically and at the WTO.

Domestic implications of the United Nations Framework Convention on Climate Change. Climate models indicate that because of past and present greenhouse gas emissions, some degree of climate change will occur in New Zealand, even if global greenhouse gas emissions are reduced under international frameworks. Having ratified the United Nations Framework Convention on Climate Change (UNFCCC) in September 1993 and the Kyoto Protocol in December 2002, New Zealand has an obligation to reduce its greenhouse gas emissions and to protect and enhance forest sinks. In October 2003, following extensive consultation, the government confirmed the policies that will assist New Zealand to achieve its obligations under the UNFCCC and the Kyoto Protocol. A greenhouse gas emissions charge (on carbon dioxide and fossil methane) will be introduced from 2007 to create an incentive to reduce emissions. However, firms and sectors that face significant risks to their international competitiveness as a result of the emissions charge are eligible to apply for Negotiated Greenhouse Agreements (NGAs). To date, one NGA has been concluded and the government has announced eligibility to negotiate with six other firms. In addition, a projects policy provides firms and other entities with incentives to initiate projects that will reduce emissions. To qualify, projects must be in addition to ‘business as usual’. Fifteen projects, including wind farms, hydroelectricity schemes and industrial heat plants, were awarded a total of four million emissions units of ‘carbon credits’ in December 2003.

There will be no charge placed on agricultural greenhouse gas emissions (methane and nitrous oxide) during the protocol's first commitment period (2008-2012) because there are limited means available of reducing these emissions without reducing output and competitiveness. However, the government and agricultural sector groups have signed a partnership agreement on voluntary research into agricultural greenhouse gas emissions.

Policies already in existence, such as the National Energy Efficiency and Conservation Strategy (to promote energy efficiency, energy conservation and renewable energy) and waste and transport strategies, also support the government's climate change objectives. The government, through the Ministry for the Environment's New Zealand Climate Change Office (NZCCO), launched a nationwide climate change public awareness campaign in December 2003.

16.3 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).

The valuer-general, whose office is established within LINZ, sets standards for rating valuations carried out by local authorities.

LINZ has two broad focuses: policy and regulatory responsibilities and standards for land-related and seabed information; and 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 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.

Acts administered by LINZ include 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 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 LINZ 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 tidal gauges and 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, Maori, leasehold and freehold tenures. Associated with and supporting these systems is a database of all land parcels, together with street address and place names. 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 and marine licences, locating utilities, engineering and construction, topographic mapping and hydrographic charting, scientific studies, location of marine and air navigation aids, both nationally and internationally, and 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 licensed cadastral 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.

LINZ has completed the conversion of its survey and title records and processes to a computerised system known as Landonline. The new system provides for the semi-automated processing of survey and title transactions for on-line access to survey and title records, and enables surveyors and conveyancers to lodge transactions with LINZ digitally. The LINZ website is www.linz.govt.nz

Aerial photography. Extensive use is made of aerial photography to support 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 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 the 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 has many uses, including planning, construction, development, environmental assessment, local government administration, emergency services, search and rescue and defence.

Hydrographic charts and publications must be carried by commercial ships navigating New Zealand waters. This is a statutory requirement contributing 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 LINZ 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 objectives of LINZ's title services are primarily to provide state-guaranteed certainty of title to land. 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 and 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.

Table 16.02 lists sales of freehold rural land for each half year from December 1993 to December 2002.

Table 16.02. Market sales of freehold rural land

Half year endedNumber of salesTotal sale priceIndex number1Percentage change from previous half year

1Base 1000 for half year ended December 1989.

Note:From June 2000 half year onwards, sales have been collated by sale date. Prior to that, sales were collated by the date the sale notice was received by Quotable Value.

Source: Quotable Value

  $(million)  
December 19931,510469.21696+5.9
June     19942,2161,018.61988+17.2
December 19941,393556.22073+4.3
June     19952,0131,094.12270+9.5
December 19951,153483.02295+1.1
June     19962,0061,133.92323+1.2
December 19961,121452.72334+0.5
June     19971,365635.02272-2.7
December 19971,023411.52270-0.1
June     19981,160559.22192-3.4
December 1998718299.02224+1.5
June     19991,347701.92243+0.9
December 1999952438.02256+0.6
June     20001,298720.42268+0.5
December 20001,192737.82369+4.5
June     20011,7121,179.42457+3.7
December 20011,5341,036.62641+7.5
June     20021,4841,118.72716+2.8
December 20021,235883.32825+4.0

Table 16.03. Land transfer documents processed
Years ending 30 June

YearInstruments receivedCertificates of titlePlans lodgedGuaranteed searchesTitle searchesDocument searches

Source: Land Information New Zealand

1994863,74342,94716,019137,7131,024,426282,013
1995873,88348,83917,726145,773982,846273,784
1996925,26350,66516,462182,3941,048,717287,394
1997859,16263,01218,995184,995948,565257,638
1998799,37056,64316,866183,275861,720226,624
1999777,23653,14313,610195,974862,449195,088
2000759,00352,98313,455195,125838,453197,993
2001662,94546,80311,700181,618824,708179,417
2002705,59041,89710,016215,337968,391194,737
2003818,22545,57110,836195,7911,317,569268,501

Table 16.03 shows the number of land transfer documents processed by LINZ from 1994 to 2003.

Acquisition of New Zealand land by overseas parties

The Overseas Investment Act 1973 and supporting regulations govern the acquisition of certain classes of New Zealand land by overseas parties. The 1995 regulations set criteria for consent to a transaction, either by a joint ministerial decision from the Minister of Finance and the Minister for Land Information, or by the Overseas Investment Commission under delegated authority.

Land transactions requiring consent under the legislation include:

  • Property worth more than $50 million.

  • Land exceeding five hectares in area and/or worth more than $10 million.

  • Any land forming part of an island.

  • Land exceeding 0.4 hectares on certain specified named off-shore islands.

  • Land that exceeds 0.4 hectares and which includes or adjoins certain sized lakes, or land provided as a reserve or for conservation purposes, or which is an historic place or heritage area.

  • Land exceeding 0.2 hectares in areas that include or adjoin the foreshore.

The regulations establish criteria applied to all land transactions, which include:

  • Applicants must show relevant business experience and acumen.

  • Applicants must demonstrate a financial commitment to the investment.

  • Whether the applicant wishes to reside permanently in New Zealand and whether the proposal is in the ‘national interest’.

National interest matters to be considered include whether the investment will:

  • Create new job opportunities or retain existing jobs that would otherwise be lost.

  • Introduce new technology or business skills.

  • Introduce additional investment capital for development purposes, added market competition or greater efficiency or productivity.

  • Develop new export markets or increase existing export market access.

  • Increase processing in New Zealand of the country's primary products.

The regulations place a different test on farmland transactions by requiring that the investment will or is likely to result in ‘substantial or identifiable benefits to New Zealand’ in the criteria listed. The regulations also provide for conditions to be imposed as part of a consent and for the commission to monitor the enforcement and application of those conditions. The commission administers the legislation, while Land Information New Zealand provides technical assistance and advice to the commission and ministers.

Maori land

Before European settlement, all land was held by various groups and tribes of Maori in accordance with traditional customs and usage. Land remaining in this tenure is termed ‘Maori customary land’. By the Treaty of Waitangi, the right to purchase land from Maori was reserved to the Crown. Almost all of what had been ‘Maori customary land’ was converted to other forms of title by one or other of the following processes:

  • Purchase or other acquisition by the Crown, from whom European settlers obtained land for farming etc.

  • Issue of a Crown grant to a Maori owner on the recommendation of the Maori Land Court.

  • Issue of a freehold order by the Maori Land Court in favour of the Maori individual found entitled upon investigation of title. This process was used instead of the second process after introduction of the land transfer system into New Zealand.

Land in the titles issued under the latter two processes became known as ‘Maori freehold land.’ Because Maori can buy or otherwise acquire land which is not ‘Maori freehold land,’ there is a considerable amount of general land owned by Maori, in addition to their holdings of ‘Maori freehold land.’

‘Maori freehold land’ is subject to the jurisdiction of the Maori Land Court, pursuant to the Te Ture Whenua Maori Act 1993. Some general land owned by Maori is also subject to certain provisions of that act.

Maori Land Court Te Kooti Whenua Maori. The purpose of the Maori Land Court (MLC) is to contribute to the administration of Maori land and the preservation of taonga Maori, and to promote the management of Maori land by its owners.

The court:

  • Maintains records of title and ownership of Maori land.

  • Provides accurate and accessible information from court and Crown records.

  • Provides support and services through its business unit within the Ministry of Justice.

The MLC simplified the processing of land applications in 1999 and created a computer database of Maori land for each title. This includes information on the block, ownership, management and memorial schedules, and a sophisticated search facility. The court has also completed the copying of most of the original record held by the court into electronic format to ensure its protection, preservation and improved accessibility.

One of the strategic goals of the MLC is to make its services, in particular the provision of title and ownership information, easily accessible to Maori. The court's website provides email access to all MLC offices, answers to frequently-asked questions about succession, trusts, Maori reservations and MLC processes. An online search tool, Maori Land On Line, provides title and ownership details. The Maori Land Court website is www.maorilandcourt.govt.nz

Table 16.04 lists the number of blocks administered by the Maori Land Court in each district.

Crown-owned land

Crown-owned land was administered before 1987 by various Crown agencies pursuant to the Public Works Act 1981, the Land Act 1948, the Reserves Act 1977, the National Parks Act 1980 and the Forests Act 1949. Significant reconstruction of the public sector began in 1987, including 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, and Land Information New Zealand in the case of residual Crown-owned land.

Land administered by Land Information New Zealand. Land Information New Zealand (LINZ) oversees the management and disposal of the Crown's interest in land and property outside the conservation estate. LINZ administers three million hectares of Crown land pursuant to:

  • The Land Act 1948 and various endowment acts, comprising unalienated Crown land (2,750 properties).

  • The Crown Pastoral Land Act 1998, comprising 2.1 million hectares of South Island high country Crown pastoral leasehold land (304 properties).

  • The Crown Forest Assets Act 1989, comprising Crown forest land over which Crown forestry licences have been issued (72 licences).

  • The 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 (200 properties).

  • The Railways Corporation Restructuring Act 1990, comprising land no longer required for railway operations (1,500 properties).

The department manages the process and policy for the review of South Island high country Crown pastoral leasehold land. This tenure review process provides opportunities for better land use and sustainable land management objectives.

All Crown forest land administered by the department is required to be held in Crown ownership pending the Crown's resolution of Maori land claims lodged pursuant to the Treaty of Waitangi Act 1975, or the completion of direct negotiations between the Crown and claimants. The department also administers an estimated 650 Crown land-related liabilities such as contaminated sites, subsidence areas and residual issues concerning Crown land. The department also controls pest plants and animals on its land and on Crown-owned river and lake beds.

Land administered by service delivery Crown agencies. A significant quantity of Crown-owned land is held by service delivery Crown agencies. This land is held for government works pursuant to the Public Works Act 1981 and other functional legislation, including education, defence and law and order.

Table 16.04. Land administered by Maori Land Court
By land court district
At 30 April 2004

DistrictBlocks administered

Source: Maori Land Court

Tai Tokerau5,339
Waikato/Maniapoto3,774
Waiariki5,220
Tai Rawhiti5,405
Takitimu1,341
Aotea3,939
Te Wai Pounamu1,877
        Total26,895

Land administered by the Department of Conservation. The Department of Conservation administers national and forest parks, world heritage areas, wilderness areas, marginal strips around lakes and rivers and more than 1,000 other reserves. It also protects privately-owned land under special arrangements with landowners. The department is responsible for conservation in New Zealand's sub-antarctic islands and the Ross Dependency in Antarctica.

Landcorp Farming Ltd (Landcorp) began business as a state-owned enterprise on 1 April 1987, primarily to handle the commercial farming and land management operations of the government previously undertaken by the Department of Lands and Survey.

Landcorp now operates completely in the private sector. It has one subsidiary, Landcorp Estates Ltd, which develops and sells land suitable for higher value use than farming.

Landcorp Farming is responsible for farming operations involving some 1.4 million stock units on 110 properties 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's head office is in Wellington and there are business centres in Rotorua and Christchurch. The Landcorp website is www.landcorp.co.nz

Valuation of land

Equitable land values are needed for levying rates by local authorities; for apportioning rating levies across contributing local authorities; for assessing stamp, estate and gift duties; and for fixing prices for transfers of land to or from the Crown.

Quotable Value (QV) 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 QV and other providers.

Valuers are required to determine the capital value of the whole property (land and buildings, plus improvements), the value of the land as if it were vacant, and the value of 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.

Valuation rolls. Valuation rolls are prepared for all districts over which a territorial local authority sets rates. The rolls shows the ownership, description and valuation of each property. 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. The Local Government (Rating) Act 2002 makes provision for real estate valuation as a basis for the equitable adjustment of rates and levies among 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 registration of valuers of land. The Valuers' Registration Board, chaired by the valuer-general, sets standards of education and practical experience required for registration. The board maintains a register of valuers who meet required standards and issues annual practising certificates to public valuers. In addition, the board exercises disciplinary power when a valuer is charged with incompetent or improper or unethical behaviour. In the year ending 31 December 2003, there were 33 complaints against valuers, which led to six inquiries. The outcomes of the inquiries were not available when this edition was published. Of the approximately 1,300 valuers registered at 31 December 2003, 867 held annual practising certificates.

16.4 National parks and reserves

The Department of Conservation administers the majority of publicly-owned land in New Zealand protected for scenic, scientific, historic and cultural reasons, or set aside for recreational purposes. More than 8 million hectares - nearly 30 percent of New Zealand's total area - are administered by the department. There are 14 national parks, covering more than 3 million hectares; nearly 170 forest and conservation parks, covering about 1.3 million hectares; and about 3,500 reserves, including marine reserves. Additionally, more than 61,000 hectares of protected private land and covenants have been set aside for scenic, scientific or ecological reasons.

The department also has responsibility for preservation and management of wildlife, and has a role in management of the coastal marine area.

National parks

The National Parks Act 1980 provides for the establishment of national parks 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 access to the parks, though this is subject to conditions and restrictions necessary for the preservation of native plants and animals, or for the welfare of the parks in general. Access to specially protected areas, which total 55,000 hectares, 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 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 parks are provided by the department, other government agencies, voluntary organisations and private enterprise. Some services within parks, such as guided walks and skiing instruction, are provided by private firms under concessions from the department.

Figure 16.05 shows parks and land administered by the Department of Conservation.

Figure 16.05. Parks of New Zealand

Parks of New Zealand

World heritage areas

New Zealand has three sites in the World Heritage List under the provisions of the United Nations Economic, Scientific and Cultural Organisation's World Heritage Convention. They are Te Wahipounamu (south-west New Zealand), Tongariro National Park and New Zealand's sub-antarctic islands. At the beginning of 2004, the World Heritage List contained 754 world heritage properties in the territories of 129 states. These properties have been recognised as the most outstanding natural and cultural places on earth.

Te Wahipounamu is one of the world's great forest and mountain wildernesses. It consists of 2.6m hectares (10 percent of the area of New Zealand) of the south-west of the South Island. It includes Fiordland, Mt Aspiring, Westland/Tai Poutini and Aoraki/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 contains some of the most continuously active stratovolcanoes in the world, and it was the first national park in the world to be freely gifted to the nation by an indigenous people, the Ngati Tuwharetoa, to whom the mountains are sacred.

The New Zealand sub-antarctic islands consist of five island groups (the Snares, Bounty Islands, Antipodes Islands, Auckland Islands and Campbell Island) in the Southern Ocean south-east of New Zealand. The islands have a high level of productivity, biodiversity, wildlife population densities and endemism among birds, plants and invertebrates. They are particularly notable for the large number and diversity of pelagic seabirds and penguins that nest there. There are 126 bird species in total, including 40 seabirds, of which five breed nowhere else in the world.

Forest parks

The Department of Conservation administers about 20 forest parks throughout New Zealand. The primary purpose of the parks, in most cases, is to protect catchments of forested mountain ranges, 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.

Forest parks include coastal areas, lakes, mountains, tablelands and tussock grasslands within an approximate total area of 1.8 million hectares.

Reserves

Reserve land includes scenic, nature, scientific, historic, national and recreational reserves, wildlife reserves, protected private land and land protected under various conservation and open space covenants.

Scenic reserves - About 382,000 hectares are classified scenic reserves. 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 - These reserves are established for 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 (109,400 hectares) in this category are on the mainland, but most are on offshore or outlying islands.

National reserves - National reserves protect areas of outstanding natural beauty or scientific or ecological importance. They are second only to national parks in the degree of protection they offer. The Snares Islands, Auckland Islands, Campbell Island, Antipodes Island and the Bounty Islands together form the Sub-antarctic Islands National Reserve of approximately 74,885 hectares. The islands 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 extinction of a vulnerable species. Total area of national reserves is 96,300 hectares.

Scientific reserves - These are generally smaller areas reserved to protect examples of rare or endangered plants, animals or unique geographical features for scientific research or education. Entry may be prohibited if this is considered necessary to prevent disturbance. Their total area is 15,200 hectares.

Historic reserves - These reserves include Maori rock drawings, sites of prehistoric fortifications, landing places of Captain Cook, 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 in the investigation and administration of reserve sites and buildings. There are 16,122 hectares of historic reserves.

Recreation reserves - These include public domains, camping grounds and other public recreational areas administered by the Department of Conservation. Their total area is 60,261 hectares.

Wildlife reserves - 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 just more than 19,000 hectares.

Whale sanctuaries

There are about 400 different fish in the waters around New Zealand, as well as various species of seals, cetaceans (whales and dolphins) and seabirds. More species of albatross breed in New Zealand than anywhere else in the world.

Thirty-five cetacean species have been recorded in New Zealand waters, and three of the largest whales (sperm, humpback and southern right whale) are regular visitors.

New Zealand has been actively promoting a South Pacific whale sanctuary to provide long-term protection for the breeding grounds of the region's great whales.

The proposal has regularly received the support of a significant majority of the members of the International Whaling Commission, but a 75 percent majority is required for the establishment of sanctuaries.

Two whale sanctuaries have been established by the IWC in the Southern Hemisphere, the Indian Ocean sanctuary (established in 1978), and the Southern Ocean sanctuary (1994). All New Zealand waters south of 40° are included within the latter.

New Zealand sponsored a regional workshop to progress a South Pacific whale sanctuary in Apia, Samoa, in April 2001, which was attended by 15 Pacific Island nations and territories. The meeting strongly endorsed the sanctuary proposal. Since then, approximately 11 million square kilometres of the South Pacific have been declared whale sanctuaries by the governments of French Polynesia, Cook Islands, Niue, Fiji, New Caledonia, Samoa and American Samoa.

Figure 16.06 shows the Indian Ocean and Southern Ocean sanctuaries.

Figure 16.06. Whale sanctuaries

Marine reserves and parks

New Zealand has 17 marine reserves, with the Kermadec Islands reserve the largest at 748,000 hectares.

The Cape Rodney-Okakari Point Marine Reserve (547 hectares) was the first gazetted, in 1975, followed by the Poor Knights Islands (1,990 hectares) in 1981.

All the remaining reserves have been gazetted since 1990: Wanganui-A-Hei (840 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 (215 hectares), Te Angiangi (446 hectares), Motu Manawa-Pollen Island (500 hectares), Long Bay-Okura (980 hectares) and Te Tapuwae o Rongokako (2,452 hectares).

The latest marine reserve, Auckland Islands (484,000 hectares), was gazetted in December 2003. Another marine reserve, Te Matuku Island-Waiheke Island (700 hectares) has been approved, but, as at 1 January 2004, had not been gazetted.

Several applications for new marine reserves are part way through the statutory process.

Marine parks can be established through a range of different statutory processes. New Zealand has four such marine parks protected and managed under different legislation, Mimiwhangata and Tawharanui, Sugar Loaf Islands and the Hauraki Gulf Marine Park.

New Zealand has two marine mammal sanctuaries, Auckland Islands and Banks Peninsula.

Fire control

The Department of Conservation is responsible for fire control in state areas, which include national parks and reserves, forest parks and unalienated Crown land, together with a 1 km fire safety margin adjoining all these lands.

Protected Natural Areas Programme

Preservation of all classes of natural ecosystems and landscapes which give New Zealand its natural character is required by the Reserves Act 1977, and the Protected Natural Areas Programme has been developed to help achieve this goal.

The programme operates in two phases: an ecological survey to identify unprotected areas that best represent a wider area (generally using the framework of ecological regions and districts), and negotiation with landowners of effective forms of protection for proposed representative areas.

Most programme surveys are carried out by the Department of Conservation or local government councils.

Forest funds

The Nature Heritage Fund and Nga Whenua Rahui were established as part of New Zealand's indigenous forest policy. Both funds aim to permanently protect conservation value forest on general and Maori land.

With the Nature Heritage Fund, this is achieved through gifting, covenanting and outright purchase.

The Nga Whenua Rahui fund uses a range of mechanisms to achieve protection, with covenanting being the most suitable. Iwi perceive covenants acceptable in lessening the sense of alienation from the land.

Both funds are contestable. Anyone can apply to the Forest Heritage Fund, but Nga Whenua Rahui is restricted to Maori landowning interests. Applications for funds are considered by the advisory committees of the funds, who make recommendations to the Minister of Conservation.

Statutory and associated committees

New Zealand Conservation Authority. The New Zealand Conservation Authority provides advice to the Minister of Conservation on departmental policy development, including customary Maori use, Treaty of Waitangi issues and other conservation matters of national importance. The authority, established in 1990 under the Conservation Act 1987, approves conservation management strategies and maintains close involvement in ecosystem protection, including animal and weed pests and the use of 1080 in animal control, and in the development of strategies and plans to protect New Zealand's biodiversity. 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 1980, the authority approves national park management plans and investigates new national parks and additions to existing parks.

Conservation boards. New Zealand has 14 conservation boards serviced by the Department of Conservation. Conservation boards are statutory bodies providing community advice on the conservation areas, policies, activities and responsibilities of the department. They ensure the community has a voice in conservation management and represent the long-term public interest in conservation.

New Zealand Fish and Game Council. The New Zealand Fish and Game 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 advises the minister and, together with regional fish and game councils, develops national policies for carrying out its functions. It oversees effective implementation of any general policies established by the minister. Other functions include an advocacy role in statutory planning processes and fair distribution of revenues among regional fish and game councils. The council's website is www.fishandgame.org.nz

Regional fish and game councils. There are 12 regional fish and game councils throughout New Zealand whose functions include assessing and monitoring fish and game, promotion and education, planning, representing the interests of anglers and hunters in planning processes, and issuing licences to fish or hunt.

Taupo Fishery Advisory Committee. The Taupo Fishery Advisory Committee advises the Department of Conservation and the minister on day-to-day management by the department of the Taupo Fishing District and on allocation and expenditure of funds.

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 an independent perpetual trustee. Covenant agreements specify how the area is to be managed and are registered against the land title. As at 30 June 2003, there were 1,752 registered covenants over 63,929 hectares of land throughout New Zealand, and 351 approved covenants covering 13,910 hectares. The trust also owns property, most of which has been gifted or bequeathed, encompassing a range of natural, cultural, scientific or aesthetic values. The trust received an operating grant of $1,851,555 from the government in 2003 and also generates funds from its own activities and investments. The trust's website is www.qe2.org.nz

New Zealand Historic Places Trust. The New Zealand Historic Places Trust is a non-profit organisation which exists to identify, record and preserve New Zealand's historic buildings, archaeological sites and wahi tapu, and to encourage public interest in the nation's past. The trust's website is www.historic.org.nz

Waitangi National Trust Board. The Waitangi National Trust Board administers the Waitangi National Reserve, which includes the Treaty House. The reserve was gifted to the nation in 1932 by then Governor-General Lord Bledisloe. The Minister of Conservation is administrator of the trust and is an ex officio member of the board. Other members of the board are the governor-general (chairman), the prime minister, the Minister of Maori Affairs and nine others representing those with a close association to the Treaty of Waitangi.

Boards with specific responsibilities. A number of other boards have been set up to help the government and the Department of Conservation administer specific responsibilities. These include the Lakes Rotoiti and Okataina Scenic Reserve Boards; Guardians of Lakes Manapouri, Monowai and Te Anau; Guardians of Lake Wanaka; Whitireia Park Board; Te Roaroa Waipoua Archaeological Advisory Committee; and the Nature Heritage Fund.

Non-government conservation organisations

New Zealand has many private organisations involved in conservation and environmental issues. These vary from local clubs concerned with protection or restoration of the local environment to national and international groups concerned about preserving the environment for its ecological, scientific, recreational or scenic value.

The Royal Forest and Bird Protection Society of New Zealand is the country's oldest environmental non-government organisation, founded in 1923. It has 56 branches throughout New Zealand, including a children's branch, the Kiwi Conservation Club, and has more than 40,000 members. The society's website is www.forestandbird.org.nz

Environment and Conservation Organisations of New Zealand is a network of about 70 organisations concerned about the environment. Members range from large international organisations such as Greenpeace to small local groups. The Environment and Conservation Organisations website is www.eco.org.nz

Federated Mountain Clubs is a national organisation of more than 100 tramping, mountaineering, skiing, mountain biking and deerstalking clubs. It has approximately 14,000 members and promotes rights of access, preservation and sound management of the back country. The federation's website is www.fmc.org.nz

Contributors

  • 16.1 Statistics New Zealand; Ministry of Economic Development; Bioethics Council; Ministry for the Environment; National Institute of Water and Atmospheric Research Ltd.

  • 16.2 Ministry for the Environment; Ministry of Agriculture and Forestry; Ministry of Economic Development; Ministry of Foreign Affairs and Trade.

  • 16.3 Land Information New Zealand; Quotable Value New Zealand; Ministry of Justice; Department of Conservation; Land Corporation Limited; Valuers' Registration Board.

  • 16.4 Department of Conservation; Queen Elizabeth II National Trust; Statistics New Zealand.

Websites

www.antarcticanz.govt.nz - Antarctica New Zealand

www.hortnet.co.nz - Crop and Food Research

www.doc.govt.nz - Department of Conservation

www.eco.org.nz - Environment and Conservation Organisations of New Zealand

www.ermanz.govt.nz - Environmental Risk Management Authority

www.fmc.org.nz - Federated Mountain Clubs

www.linz.govt.nz - Land Information New Zealand

www.landcorp.co.nz - Landcorp Farming Ltd

www.maorilandcourt.govt.nz - Maori Land Court

www.mfat.govt.nz - Ministry of Foreign Affairs & Trade

www.biodiversity.govt.nz - New Zealand Biodiversity

www.fishandgame.org.nz - New Zealand Fish and Game Council

www.historic.org.nz - New Zealand Historic Places Trust

www.qe2.org.nz - Queen Elizabeth II National Trust

www.forestandbird.org.nz - Royal Forest and Bird Protection Society of New Zealand

Chapter 17. National Economy

Table of Contents

Spending on household consumer items is boosted by higher levels of employment and higher earnings.

17.1 Overview

New Zealand has a mixed economy that operates on free market principles. It has a sizeable service sector, which complements a highly efficient agricultural sector and related manufacturing industries. The economy is strongly trade oriented, with exports of goods and services accounting for just over 30 percent of total output.

From around 1984 onwards, the direction of economic policy in New Zealand turned away from intervention toward the elimination of many forms of government assistance. On the macroeconomic level, new policies were aimed at achieving low inflation and a sound fiscal position, while microeconomic reforms were intended to open the economy to competitive pressures.

Reforms included floating of the exchange rate; abolition of controls on capital movements; ending of industry assistance; removal of price controls; deregulation across a number of sectors of the economy; corporatisation and privatisation of state-owned assets; and labour market legislation aimed at facilitating more flexible patterns of wage bargaining.

More recently, the reform process has changed from one of rapid change to one of fine tuning.

Adjustment to the new economic framework has taken time and is ongoing.

During the mid to late 1980s, the economy virtually stagnated and then entered recession in the early 1990s as necessary fiscal consolidation took place and a cyclical downturn occurred in key trading partners.

The mid-1990s, however, saw output recover strongly before a slowdown in the economies of key Asian trading partners during the latter part of 1997 and through 1998 took a toll on New Zealand's economic activity. In addition, a drought affected large parts of New Zealand in the summers of 1997/98 and 1998/99.

These shocks occurred when the economy was already in a slowing phase and the end result saw the New Zealand economy contract in the first half of 1998.

Since then the economy has seen a broad-based recovery, with the annual average gross domestic product (GDP) growth rate remaining between 2 percent and 5 percent over a five-year period, in spite of a global growth recession, weather-induced variability of production and other unexpected shocks.

Looking ahead to the medium term, the reforms of the past 20 years mean New Zealand should be on a growth track that is more sustainable than in the past.

Recent developments

New Zealand's economic growth rate was significantly faster than the Organisation for Economic Co-operation and Development average for 2003. Annual average GDP growth was 3.9 percent during the year ending 30 September 2003, after peaking at 4.5 percent in March.

In the first half of 2003, the economy was adversely affected by the reduction in international tourist traffic associated with the outbreak of Severe Acute Respiratory Syndrome in Asia, and by dry weather conditions at home.

The war between the United States and Iraq also dampened business and consumer confidence in Western industrialised economies, including New Zealand.

As the temporary effects of disease, war and climate wore off, more fundamental concerns about the global economy emerged. Significant excess capacity in the United States and developing Asian countries threatened to prolong a period of slow global GDP growth.

These concerns persisted in spite of policymakers in the United States, Europe and Japan all easing monetary and fiscal policy, sometimes dramatically.

By the second half of 2003, however, the United States was experiencing a return to strong quarterly economic growth rates, and the Japanese economy was also expanding unexpectedly fast.

The European economies were still growing slowly, but by this time there was a general expectation that a severe global recession would be averted. Indeed, GDP growth rates were expected to return to average relatively quickly.

In New Zealand, economic activity came to be increasingly dominated by consumer and business spending during 2003, while export earnings declined. Domestic demand was being stimulated by steady population growth, low interest rates, and cheap import prices. The housing sector was particularly active.

Meanwhile, weakness in the export sector came from the delayed effects of slower global economic growth, and a rising New Zealand dollar, which reduced both import and export prices.

The Trade Weighted Index of exchange rates rose from 60.6 to 63.9 during 2003. The overall increase comprised a substantial appreciation against the United States dollar, partly offset by a decline against the Australian dollar.

The Reserve Bank of New Zealand reduced the Official Cash Rate - the benchmark for retail mortgage and deposit interest rates - from 5.75 percent at the beginning of 2003 to 5.00 percent by July, in response to concerns about global economic growth at that time, and because the consumer price inflation rate was slowing.

But by the end of the year, with global prospects improving and domestic demand in New Zealand continuing to hold up, the bank was signalling the next interest rate change would probably be an increase, perhaps in the first half of 2004.

The annual inflation rate declined from 2.5 percent in March 2003 to 1.5 percent by September. The rising exchange rate reduced prices for goods with internationally-determined prices, offsetting rising prices for housing and household operation.

Strong consumer and business spending, without a corresponding increase in export revenue, meant that the current account balance deteriorated during 2003.

There was a deficit of $6 billion dollars, or 4.6 percent of GDP, in the year ending 30 September 2003. The deficit was still considerably smaller than its peak of 6.7 percent of GDP in early 2000, but was increasing steadily.

Fiscal policy

The Fiscal Responsibility Act 1994 is intended to assist in achieving consistent, good-quality fiscal management, enabling the government to make a major contribution to the economic health of the country and be better positioned to provide a range of services on a sustained basis.

The act requires the Crown's financial reporting to be in accordance with New Zealand Generally Accepted Accounting Practice.

The primary fiscal indicators are the operating balance, net debt and net worth.

The government is required to pursue its policy objectives in accordance with the principles of responsible fiscal management set out in the act. These include:

  • Reducing debt to prudent levels to provide a buffer against future adverse events.

  • Maintaining operating balances once prudent debt levels are reached, ie the government is to live within its means over time, with some scope for flexibility through the business cycle.

  • Achieving and maintaining levels of net worth to provide a buffer against adverse events.

  • Managing risks facing the Crown.

  • Pursuing policies consistent with a reasonable degree of predictability about the level and stability of future tax rates.

Primary fiscal indicators

Operating balance. Following a prolonged period of fiscal deficits, New Zealand achieved surpluses in 1993/94.

The initial improvement in the operating balance from 1993/94 onwards reflected a growing economy, increasing tax revenues and firm expense control. Reductions in the operating balance in the late 1990s largely reflected two rounds of tax reductions and lower nominal economic growth that reduced tax revenue growth.

Strong growth in the past few years has seen operating balances recovering. The operating balance, excluding revaluations and accounting policy changes, reached $5.58 billion in 2002/03.

Government operating expenses (core Crown) have been reduced as a percentage of gross domestic product (GDP), from around 40 percent in 1992/93 to 32.4 percent in 2002/03. Core Crown expenses as a percentage of GDP are expected to fall to around 31.1 percent by 2007/08.

Operating surpluses are expected to continue. Forecasts for 2003/04, 2004/05, 2005/06, 2006/07 and 2007/08 are $6.1 billion, $6.4 billion, $5.8 billion, $5.9 billion and $6.2 billion respectively.

Net debt. Net core Crown debt has fallen from 49 percent of GDP in 1992/93 to 13.1 percent in 2002/03. Debt repayments have been financed from asset sales proceeds (during the 1990s) and operating surpluses.

Looking forward, net debt is projected to fall to around 8 percent of GDP in 2007/08.

However, surpluses are also being used to build up financial assets in the New Zealand Superannuation Fund (NZSF) to partially pre-fund future superannuation costs, rather than solely paying down debt. These assets do not form part of reported net debt. The NZSF is forecast to contain assets of around 9 percent of GDP by 2007/08.

Net worth. Net worth was $18.5 billion in 2002/03. With operating surpluses forecast to continue, net worth is projected to reach $32.5 billion in 2007/08.

Public debt

Before March 1985, the government borrowed externally to finance the balance of payments deficit and maintain a fixed exchange rate.

Since the adoption of a freely floating exchange rate, the government has borrowed externally only to finance foreign-exchange reserves. All other borrowing has been in the domestic market.

Net foreign-currency debt was eliminated in September 1996, largely through the proceeds from asset sales and, since 1994, sizeable fiscal surpluses.

Proceeds from the 2003/04 domestic bond programme are being used to finance maturing domestic term debt, to finance the forecast cash deficit during 2003/04 and to partially pre-fund the 2004/05 borrowing requirement. Gross sovereign issued debt amounted to 28 percent of gross domestic product in the year ending 30 June 2003.

Monetary policy

Objectives. The Reserve Bank of New Zealand Act 1989 requires the bank to formulate and implement monetary policy with the objective of achieving and maintaining stability in the general level of prices. The act requires an agreement between the Minister of Finance and the Governor of the Reserve Bank (the Policy Targets Agreement) more precisely specifying the objective. Initially, the agreement required the bank to maintain Consumers Price Index (CPI) inflation in the range of 0 to 2 percent in any 12-month period. The range was changed to 0 to 3 percent in December 1996 and further changed to 1 to 3 percent in the agreement signed in September 2002. The 2002 agreement also provides for an explicit medium-term focus for the inflation target, such that average inflation outcomes should be kept within the target range over the medium term.

The reserve bank has noted that the requirement to deliver price stability ‘on average over the medium term’ means monetary policy can be a little more flexible than previously. The medium-term target allows inflation to be briefly above or below the target range. In certain circumstances, this allows a more gradual policy response, while in others a more pre-emptive approach can be taken. A more gradual approach may help in situations where the effects of interest rate changes are uncertain, or where sharp changes in interest rates to bring inflation back quickly within the target range would be economically disruptive. A more pre-emptive approach may be helpful in circumstances where the bank is reasonably confident that the economy has passed a turning point in terms of inflation pressures. Then, even if inflation is still comparatively high or low, an early change to policy settings can help the economy return to more normal conditions.

This flexibility is expected to help the bank meet a requirement in the agreement that in aiming to deliver price stability it should ‘seek to avoid unnecessary instability in output, interest rates and the exchange rate’. The bank has noted that its ability to use this extra flexibility is contingent on inflation expectations remaining well anchored at low levels. The Reserve Bank Act contains certain provisions that enable the government to override the price stability objective and the Policy Targets Agreement, but this can only be done for periods not exceeding 12 months (but capable of further extension) and must be disclosed in parliament and publicly.

The statutory objective of the Reserve Bank of New Zealand is to achieve and maintain stability in the general level of prices.

Implementation. Under the Reserve Bank Act, the reserve bank acts with a considerable degree of autonomy in formulating and implementing monetary policy.

The bank controls the cost of liquidity by setting an Official Cash Rate (OCR). The bank stands ready to lend cash overnight at 25 basis points above the OCR and will take deposits at 25 basis points below the OCR.

By controlling the cost of liquidity for financial institutions, the bank has leverage over interest rates faced by households and firms.

There are pre-announced dates (eight each year) at which the bank may reset the OCR. Four of the dates coincide with publication of the bank's Monetary Policy Statements, which contain projected paths for future conditions and the bank's policy response.

As a small, open economy, both interest rates and the exchange rate can influence New Zealand's economic activity and inflation. The bank, therefore, takes the influence of both of these into account when setting the OCR. Other important factors to consider include credit conditions, inflation expectations and external conditions. The bank has noted that it is generally looking at the inflation outlook up to three years ahead when formulating its policy response.

17.2 National accounts

Countless transactions take place in the New Zealand economy every day. Businesses buy and sell goods and services, the government collects taxes and pays beneficiaries, and individuals are paid for their labour and buy groceries or pay the rent. Measuring all these transactions is a complex task, but essential to understanding how the economy operates.

In New Zealand, as in most other countries, myriads of transactions are classified, measured and recorded in the national accounts, which provide a convenient summary of key economic and financial flows. Moreover, they provide a framework in which to analyse and compare important economic variables such as household consumption and savings.

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.

Gross domestic product (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) is a better measure of New Zealanders' income, 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 the world give an even better measure of income (national disposable income).

Table 17.01 shows that in the year ending 31 March 2003, GDP in current prices rose by 4.8 percent. When the effects of inflation are removed, there was an increase of 4.5 percent in constant price GDP for the March 2003 year. A record inflow of migrants and a rising level of employment boosted consumer spending, and there was significant investment in new residential buildings. Increases were also recorded in government spending and business investment in fixed assets.

Table 17.01. Principal aggregates
Years ending 31 March

YearGross domestic product (GDP)Gross national income (GNI)1National disposable income (NDI)2GDP in constant prices3

1GNI = GDP plus net investment income from the rest of the world.

2NDI = GNI less consumption of fixed capital plus net current transfers from the rest of the world.

3Chain-volume series expressed in 1995/96 prices. Chain volume series are not additive.

Source: Statistics New Zealand

 $(million)
199173,11370,37960,18179,590
199272,91868,14257,34378,540
199375,27470,57159,36079,406
199481,50275,74964,51284,527
199587,32181,36669,65489,000
199692,67986,68074,41392,679
199797,23989,97677,73195,922
1998100,73994,34081,46697,317
1999101,94896,96983,39097,694
2000107,068100,46386,562102,450
2001113,766106,59491,660105,179
2002122,720116,10999,899108,665
2003128,652121,559104,491113,507

Consolidated accounts of the nation

The consolidated accounts of the nation consist of four accounts:

Gross domestic product and expenditure account. Gross domestic product is a measure of the value added from all economic activity in New Zealand. The account (Table 17.02) shows the various forms of income generated by production, and the categories of final expenditure on available goods and services.

Table 17.02. Gross domestic product and expenditure account
Years ending 31 March

Item199819992000200120022003

Note:Figures may not add to stated totals due to rounding.

- nil or zero

Source: Statistics New Zealand

 $(million)
Compensation of employees43,76944,47245,47347,60651,30554,470
Gross operating surplus43,79844,27447,77351,79556,24357,730
Taxes on production and imports13,49713,48414,15014,72415,52716,840
     Less subsidies325283329358355389
               Gross domestic product100,739101,948107,068113,766122,720128,652
Final consumption expenditure
     Private household59,19261,63164,06966,78870,20974,765
     Private non-profit organisations serving households1,3281,4761,5981,6511,6611,744
     Central government16,10416,41517,92118,04119,33420,298
     Local government2,3362,2482,3472,4222,6202,781
Change in inventories8171201,3731,2421,894739
Gross fixed capital formation20,61019,71321,06821,54123,48125,519
               Gross national expenditure100,387101,604108,377111,685119,197125,846
Exports of goods and services28,53130,46833,48841,44243,59541,836
Less imports of goods and services28,17930,13534,46239,25239,91439,911
Balance on external goods and services352333−9742,1903,6811,925
               Expenditure on gross domestic product100,739101,937107,403113,875122,879127,771
Statistical discrepancy-11−335−109−159881

National income and outlay account. National disposable income is the value of income available to New Zealanders, consisting mainly of incomes generated in New Zealand. Adjustments are made for income paid to, and received from, the rest of the world. The account (Table 17.03) also shows the part of disposable income spent by New Zealanders on current consumption, and the portion of income that was saved.

Table 17.03. National income and outlay account
Years ending 31 March

Item199819992000200120022003

Note:Figures may not add to stated totals due to rounding.

- nil or zero

Source: Statistics New Zealand

 $(million)
Use of income
Final consumption expenditure
      Private households59,19261,63164,06966,78870,20974,765
      Private non-profit organisations serving households1,3281,4761,5981,6511,6611,744
      Central government16,10416,41517,92118,041,19,33420,298 
      Local government2,3362,2482,3472,4222,6202,781
      Total final consumption expenditure78,95981,77185,93588,90393,82399,588
Saving2,5071,6196272,757,6,0774,903 
          Use of national disposable income81,46683,39086,56291,66099,899104,491
Income
Compensation of employees43,76944,47245,47347,60651,30554,470
Compensation of employees from the rest of the world, net------
Gross operating surplus43,79844,27447,77351,79556,24357,730
Taxes on production and imports13,49713,48414,15014,72415,52716,840
      Less subsidies325283329358355389
Investment income from the rest of the world, net−6,399−4,979−6,605−7,172−6,611−7,093
          Gross national income94,34096,969100,463106,594116,109121,559
Current transfers from the rest of the world, net551297427360134134
          Gross national disposable income94,89197,267100,890106,954116,243121,693
      Less consumption of fixed capital13,42513,87714,32815,29416,34417,202
          National disposable income81,46683,39086,56291,66099,899104,491

National capital account. This account (Table 17.04) records capital expenditure.

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.

Table 17.04. National capital account
Years ending 31 March

Item199819992000200120022003

1Includes all government-owned producer enterprises.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Change in inventories8171201,3731,2421,894739
Gross fixed capital formation
      Private17,12715,61416,56917,30718,20520,407
      Central government11,9751,9572,8572,5782,9912,993
      Local government11,5082,1411,6421,6562,2852,119
Purchase of non-produced non-financial assets from the rest of the world, net−5124−1−7−47
Net lending to the rest of the world−5,436−4,748−7,564−4,804−1,396−3,534
          Capital accumulation15,98615,09714,88117,97823,97222,676
Saving2,5071,6196272,7576,0774,903
Consumption of fixed capital13,42513,87714,32815,29416,34417,202
Capital transfers from the rest of the world, net54−387−409−1821,3921,452
          Finance of capital accumulation15,98615,10814,54617,86923,81323,557
          Statistical discrepancy −11335109159−881

The two key components of national income, employment income and business profits, both increased in 2003, with the strongest lift occurring in compensation of employees.

Following highly profitable returns in the 2002 and 2001 March years, primary producer incomes dropped significantly in the year ending 31 March 2003. These declines moderated the effect of increased business incomes in the rest of the economy.

National disposable income, which measures the income available to New Zealand residents for current consumption or saving, rose 4.6 percent.

However, with final consumption expenditure (private and government) up 6.1 percent, national saving declined from $6,077 million to $4,903 million.

As a proportion of national disposable income, saving was 4.7 percent in the March 2003 year, down from the 6.1 percent recorded in 2002.

Investment in fixed assets grew strongly for the second successive year, up $2,038 million in the March 2003 year. However, much of this reflected the buoyant housing market, with investment in new housing up 28.8 percent.

There was a further build up in inventories for the year ending 31 March 2003, although this was down on the significant increases recorded in the three previous years.

With the decline in domestic saving, much of the increase in investment was financed externally.

Net borrowing from the rest of the world increased from $1,396 million (1.1 percent of GDP) to $3,534 million (2.7 percent of GDP).

Figure 17.01 shows national saving and net overseas borrowing from 1994 to 2003.

External account. This account (Table 17.05) brings together all transactions with the rest of the world.

The residual ‘balance on the external current account’, when adjusted for net capital transfers, records New Zealand's net lending/borrowing to the rest of the world.

In the year ending 31 March 2003, the strengthening New Zealand dollar had a marked impact on the external account.

While export volumes continued to grow (up 7.0 percent), a stronger dollar, together with a drop in dairy commodity prices, reduced export receipts (down 4.0 percent). This followed increases of 23.8 percent and 5.2 percent in the March 2001 and 2002 years respectively.

The stronger dollar also reduced the New Zealand dollar cost of imports.

While import volumes were up strongly (by 9.4 percent), import payments, at $39.9 billion, were unchanged from the March 2002 year.

As a result of the decline in export receipts, the external current account deficit rose from $2.8 billion to $5.0 billion, or 3.9 percent of GDP.

Figure 17.01. National saving and net overseas borrowing
Years ending 31 March

National saving and net overseas borrowingYears ending 31 March

Table 17.05. External account
Years ending 31 March

Item199819992000200120022003

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
CURRENT
Income from the rest of the world
Export of goods22,07022,97524,89531,22132,98530,696
Exports of services6,4607,4938,59410,22110,61111,140
Compensation of employees------
Investment income2,0953,1942,8991,8382,1152,346
Current transfers1,1431,1221,2631,3581,307,1,301 
          Total31,76934,78437,65044,63947,01745,483
Payments to the rest of the world
Imports of goods20,63221,53025,57329,00829,85629,882
Imports of services7,5468,6048,88910,24410,05810,029
Compensation of employees------
Investment income8,4948,1739,5049,0118,7259,439
Current transfers5918258369981,1731,167
Balance on the external current account−5,496−4,349−7,152−4,623−2,795−5,034
          Total31,76934,78437,65044,63947,01745,483
CAPITAL
Capital transfers from the rest of the world8674474847792,2032,221
Less capital transfers to the rest of the world812834893961811769
Capital transfers from the rest of the world, net54−387−409−1821,3921,452
Balance on the external current account−5,496−4,349−7,152−4,623−2,795−5,034
          Capital receipts−5,441−4,736−7,561−4,805−1,403−3,581
Purchase of non-produced non-financial assets from the rest of the world, net−5124−1−7−47
Net lending to the rest of the world−5,436−4,748−7,564−4,804−1,396−3,534
          Capital disbursements−5,441−4,736−7,561−4,805−1,403−3,581
MEMORANDUM: Investment income
Investment income from the rest of the world of which:2,0953,1942,8991,8382,1152,346
Reinvested earnings on overseas direct investment7091,847546−1,203103272
Investment income to the rest of the world of which:8,4948,1739,5049,0118,7259,439
Reinvested earnings on direct investment in New Zealand772−4322504821,3602,094

Gross domestic product by industry

The ‘value added’ component of industrial production is measured by taking the value of goods and services produced by an industry (output) and deducting the cost of goods and services used by the industry in the production process (intermediate consumption).

Gross domestic product (GDP) is then obtained by totalling the value added for all industries.

GDP by industry is calculated annually in current and constant prices, and quarterly in constant prices.

Industries are combined to form the following broad groupings:

  • Primary industries (agriculture; fishing; forestry; mining and quarrying).

  • Goods-producing industries (manufacturing; electricity, gas and water; construction).

  • Service industries (wholesale trade; retail trade, accommodation and restaurants; transport and communications; finance, insurance, real estate and business services, including owner-occupied dwellings; government administration and defence; personal and community services).

A drier-than-average summer over much of the country limited growth in agricultural production, which was up by only 0.7 percent for the year ending 31 March 2003.

Milk production increased, but farmers quit stock earlier than usual in some areas.

The resulting lifts in dairy processing and meat slaughtering contributed to the increase in manufacturing activity, which was up 5.6 percent for the March 2003 year.

Tables 17.06 and 17.07 show production-based GDP statistics.

The increase in housing investment was reflected in strong growth in the construction industry, which was up 11.6 percent in the March 2003 year.

The lift in household expenditure was also shown in increased activity in service-based industries, up 3.7 percent for the March 2003 year, with the retail trade, accommodation and restaurants being a major contributor.

Table 17.06. Gross domestic product in constant prices1
By broad industry group

YearPrimary industriesGoods-producing industriesService industriesGross domestic product
$(million)Percentage change$(million)Percentage change$(million)Percentage change$(million)Percentage change

1Chain-volume series expressed in 1995/96 prices. Chain volume series are not additive.

Source: Statistics New Zealand

Years ending 31 MarchActual annual values and percentage change from the previous year
19916,77316.819,143−4.850,0890.179,5900
19926,8841.618,356−4.150,063−0.178,540−1.3
19936,227−9.518,6671.751,3692.679,4061.1
19947,14114.719,9857.153,9084.984,5276.4
19957,066−1.121,4007.156,6755.189,0005.3
19967,5186.422,0062.859,2394.592,6794.1
19978,31510.622,5212.361,1703.395,9223.5
19988,3590.522,5720.262,6192.497,3171.5
19997,983−4.521,807−3.464,0692.397,6940.4
20008,3714.922,9505.266,8754.4102,4504.9
20018,5402.022,952069,3593.7105,1792.7
20028,6561.423,0660.572,4904.5108,6653.3
20038,8362.124,6947.175,1993.7113,5074.5
Quarters endingSeasonally adjusted values and percentage change from the previous quarter
2001 Mar2,147−0.65,663−2.017,6111.326,4590.3
          Jun2,143−0.25,8413.117,7791.026,9231.8
          Sep2,1661.05,694−2.518,0151.326,9720.2
          Dec2,1730.45,7721.418,2141.127,2441.0
2002 Mar2,1770.25,757−0.318,4911.527,5211.0
          Jun2,2272.35,9543.418,6240.728,0011.7
          Sep2,187−1.86,2034.218,626028,2550.9
          Dec2,2312.06,2370.518,8791.428,5241.0
2003 Mar2,195−1.66,3081.219,0440.928,7220.7

Table 17.07. Gross domestic product in constant prices1
By industry
Years ending 31 March

YearAgricultureFishing, forestry and miningManufacturingElectricity, gas and waterConstructionWholesale tradeRetail, accommodation and restaurantsTransport and communicationFinance insurance and business servicesGovernment insurance and defencePersonal and community servicesGross domestic product

1Chain-volume series expressed in 1995/96 prices. Chain volume series are not additive.

Source: Statistics New Zealand

 $(million)
19914,4432,33813,5882,1463,4326,3835,8264,93420,4364,2988,41579,590
19924,4572,43313,3192,1172,8995,9205,7085,19920,6074,1488,64678,540
19933,7732,48613,7632,0462,8306,2665,8405,51220,8334,1428,90379,406
19944,5842,56114,6712,1713,1246,6396,1766,02421,5574,2109,38484,527
19954,5502,52115,6432,2483,5097,1256,6686,69922,1004,1809,92789,000
19964,9472,57215,9412,3673,6987,3166,8647,52622,9384,27410,32092,679
19975,4792,83916,1952,1894,1377,3056,9537,87723,9234,26710,84495,922
19985,4882,87116,0882,1894,2947,5147,0458,17124,4734,21811,21397,317
19995,1432,84015,4792,2684,0307,6967,0848,59024,7924,17711,77697,694
20005,4342,93116,1582,1884,5878,4887,4649,45925,3004,15512,205102,450
20015,5343,00116,4782,3034,1498,8617,61810,33125,9384,24412,675105,179
20025,6083,04516,6852,1474,2329,1847,92310,99426,8664,31213,568108,665
20035,6453,19717,6242,3354,7229,3988,34811,54627,8684,46813,961113,507

Figure 17.02 shows the contributions of primary, goods-producing and service industries to annual changes in GDP in constant prices.

Expenditure on gross domestic product

Another way of measuring gross domestic product (GDP) is to total all final domestic expenditures on goods and services, add the value of exports and subtract the value of imports.

There are three broad categories of final domestic expenditures:

  • Final consumption expenditure of households, private non-profit institutions serving households, and general government.

  • Gross fixed capital formation by producers.

  • Change in inventories, which consist of increases/decreases in producers' stockholdings of raw materials, work in progress and finished goods.

Conceptually, both the production and expenditure-based GDP series are the same.

However, as each series uses independent data and estimation techniques, some differences between the alternative measures do arise.

Expenditure on GDP is calculated annually and quarterly in current and constant prices. It is summarised in Table 17.08.

Figure 17.02. Business activity
Industry contributions to annual change in GDP in constant prices
Years ending 31 March

Business activityIndustry contributions to annual change in GDP in constant pricesYears ending 31 March

Table 17.08. Expenditure on gross domestic product
Years ending 31 March

YearPrivate final consumption expenditureGeneral goverment final consumption expenditureChange in inventoriesGross fixed capital formationGross national expenditureExports of goods and servicesLess imports of goods and servicesExpenditure on gross domestic product

Note:Figures may not add to stated totals due to rounding. Chain-volume series are not additive.

Source: Statistics New Zealand

 $(million)
 Current prices
199144,64014,058−15414,42172,96519,75519,56973,152
199244,49414,319−8811,97370,69621,48819,24872,936
199345,35114,86562412,57173,41123,70021,86575,246
199447,43515,1091,43215,03579,01125,08522,70881,387
199551,17715,3371,16617,74785,42726,95125,32687,052
199654,52116,3781,18219,89191,97127,12526,41792,679
199758,04816,98380920,87796,71827,52827,00697,239
199860,52018,44081720,610100,38728,53128,179100,739
199963,10718,66412219,713101,60530,46830,135101,938
200065,66720,2681,37321,068108,37733,48834,462107,403
200168,43920,4641,24221,541111,68541,44239,252113,875
200271,86921,9531,91923,481119,22243,59539,913122,904
200376,50923,08073125,521125,84141,83639,907127,769
 Chain-volume series expressed in 1995/96 prices
199148,24215,12431715,62879,24520,15219,41280,086
199247,50415,062−15412,86175,44722,14718,71179,163
199347,71615,20076213,15676,96722,87320,06579,957
199449,51315,4641,35015,51981,94724,45221,60284,968
199552,58715,6081,29217,95887,48126,52524,72389,332
199654,52116,3781,18219,89091,97127,12526,41792,679
199756,96116,60382421,02195,40928,40028,13995,667
199858,23118,06069920,83497,83429,50528,86198,433
199959,70617,68022619,97097,60130,42929,45598,532
200061,94618,9751,37721,682103,92032,57032,831103,613
200162,99418,58499421,548104,14934,54032,712105,878
200264,87319,4411,30922,871108,50835,22233,490110,155
200367,85519,88092925,058113,65937,69336,635114,673

Growth in the economy for the year ending 31 March 2003 was driven by internal demand.

Investment in fixed assets grew strongly, with significant spending on new residential housing.

There was a further build up in business inventories, following significant increases in the three previous years.

Consumer spending was buoyant and government spending also rose, largely because of increased payments to employees providing health and education services.

Household sector

Households consist of New Zealand resident individuals and families. Income is earned from businesses, as wages and salaries and entrepreneurial income, or from investments, as interest and dividends.

Households buy goods and services from businesses and incur interest charges to service borrowing. Consumer spending on goods and services (such as motor vehicles, food, recreation, health and education) is by far the largest part of household outlays. Indirect taxes (such as GST) are included in the value of consumer spending on goods and services.

Household consumption expenditure increased by 6.5 percent in the year ending 31 March 2003, following a rise of 5.1 percent in the previous March year. This reflected increased household incomes from both higher employment levels and earnings for paid employees.

Table 17.09 shows 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 hotel and restaurants item includes expenditure on food, alcohol and accommodation.

Table 17.09. Household consumption expenditure
By purpose
Years ending 31 March

YearFood and beveragesClothing and footwearHousingHousehold goods and servicesHealth and medicalTransportRecreation and educationHotels and restaurantsOther goods and servicesNet tourist expenditureTotal household consumption

.. figures not available

Note:Figures may not add to stated totals due to rounding. Chain volume series are not additive.

Source: Statistics New Zealand

 $ (million)
 Current prices
19907,1432,2338,4434,6081,2686,9493,6643,0564,758−40541,718
19958,8142,51110,3135,9321,6467,7125,3443,8105,339−1,23550,186
200010,8943,04213,7526,936..9,236..4,8067,236−2,11964,069
200111,0043,21613,9887,147..9,658..5,3647,632−2,33466,788
200211,9183,46314,0317,527..10,481..5,7338,087−3,05970,208
200312,6913,68614,5538,257..11,209..6,2248,784−3,65974,765
 Actual chain-volume series expressed in 1995/96 prices
19907,6172,37610,3955,0551,1958,1054,3183,4885,559−48347,466
19958,9232,48611,0835,9131,7237,9345,5533,9085,472−1,37651,599
200010,1662,98111,9696,956..9,582..4,4297,161−2,15960,377
200110,0593,13312,1807,055..9,498..4,8437,279−2,52061,370
200210,2913,31712,3487,317..10,114..5,0017,516−3,03363,253
200310,7783,49312,5157,967..10,617..5,2247,953−3,31866,138

Figure 17.03. Household spending
Annual percentage change
Years ending 31 March

Household spendingAnnual percentage changeYears ending 31 March

As figure 17.03 shows, the increase in household spending was most noticeable in purchases of durable goods, which rose 7.9 percent in the year ending 31 March 2003.

Significant items purchased were new and used vehicles, and big ticket items, such as furniture and appliances.

Spending by households on non-durable goods also rose, by 7.2 percent, as did spending on services, by 6.6 percent.

There has been consistent growth in the volume of household consumption spending since the start of the 2001 calendar year, with investment in new housing particularly strong in the March 2003 year.

Gross fixed capital formation

Table 17.10 records 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, but the value of construction work done by a firm's own employees is included. The term ‘gross’ indicates that consumption of fixed capital has not been deducted from the value of the outlays.

Capital investment grew by 8.7 percent in the year ending 31 March 2003, following a similar lift in the previous year.

There was significant spending on new housing, which was up by 28.5 percent in the year ending 31 March 2003.

Business investment in fixed assets rose 2.1 percent. When changes in prices are removed, the volume of investment increased 5.5 percent, with spending on transport equipment particularly strong.

Table 17.1. Gross fixed capital formation
By asset type
Years ending 31 March

YearResidential buildingsNonresidential buildingsOther constructionLand improvementsTransport equipmentPlant machinery and equipmentIntangible assetsTotal

Note:Figures may not add to stated totals due to rounding. Chain volume series are not additive.

Source: Statistics New Zealand

 $(million)
 Current prices
19903,3692,8391,4081971,8124,77445714,857
19954,8152,5021,2262212,4736,10640317,747
20006,3223,1102,1943092,2066,12780221,068
20015,4783,1322,2573622,2967,04897021,541
20025,7853,5692,5583842,7927,47192023,481
20037,4353,6702,3404043,2647,42698025,521
 Chain-volume series expressed in 1995/96 prices
19904,4823,1101,5882302,2294,38033116,201
19955,1582,5771,2452222,4435,91341817,958
20005,9323,0662,1112932,3167,01495621,682
20015,0043,0662,0703302,2587,8641,11821,548
20025,1723,4142,2313302,6088,2411,03022,871
20036,3823,4351,9973353,1428,7451,13825,058

Capital stock statistics

Statistics New Zealand produces two measures of capital stock:

  • Net capital stock is a wealth measure of the current value of the stock of fixed assets still in use in New Zealand.

  • Productive capital stock is a volume measure of the stock of fixed assets in New Zealand, adjusted for the decline in efficiency as the assets age.

Fixed assets included are buildings, infrastructure, transport equipment, machinery and other equipment and intangible assets owned by producers. Each asset type is further analysed by industry. The capital stock series, shown in Table 17.11, are calculated using a perpetual inventory model. Briefly, this involves progressively building up capital stock estimates using the following equation:

opening stock + acquisitions − disposals − consumption of fixed capital = closing stock

Consumption of fixed capital at replacement costs (economic depreciation in the national accounts) is an important output from the model.

External trade

Exports.Table 17.12 records the export values of goods and services. Export volumes rose 7.0 percent in the year ending 31 March 2003, with a significant lift occurring for dairy products. However, the strengthening New Zealand dollar, together with a drop in dairy commodity prices, reduced export receipts by 4.0 percent.

Table 17.11. Capital stock
Years ending 31 March

YearNet capital stock1Productive capital stock2

1Current prices (replacement cost).

2Chain-volume series expressed in 1995/96 prices.

Source: Statistics New Zealand

 $(million)
1996264,551319,267
1997275,459328,794
1998282,289336,752
1999289,564344,199
2000298,004352,973
2001313,196361,179
2002330,426371,145

Table 17.12. Exports of goods and services
Years ending 31 March

YearDairy productsMeat and meat productsSeafoodOther food and beveragesWood and wood productsCrude materialsMachinery and transport equipmentOther manufactured goodsTotal exports of goodsExports of servicesTotal

Note:Figures may not add to stated totals due to rounding.

Chain volume series are not additive.

Source: Statistics New Zealand

 $(million)
 Current prices
19902,2792,4417671,5041,3453,8479621,88715,0313,91218,943
19953,2572,7241,1792,0662,5284,0051,5773,40720,7436,20826,951
20004,6443,2521,2942,5952,9553,6942,7573,70524,8958,59433,488
20016,2303,9291,4623,2923,6394,6543,3074,70831,22110,22141,442
20027,3864,4941,5073,4853,5404,6353,1914,74732,98510,61143,595
20035,8754,3161,4083,4623,6564,1313,0194,82730,69611,14041,836
 Chain-volume series expressed in 1995/96 prices
19902,2482,2159381,4331,6483,4588331,72914,4304,36718,787
19953,7002,4721,1191,8032,5974,0011,5213,04720,1586,34526,525
20004,9872,6021,1002,3273,2063,8382,6223,81624,4638,04432,570
20015,1532,7501,0392,6483,3693,8392,8353,83825,4818,95734,540
20025,4322,7391,1112,8233,6093,8232,6153,83725,9679,14935,222
20036,5102,8411,2162,7933,9093,7062,6374,36427,9229,66937,693

Imports. Import volumes for the year ending 31 March 2003 increased 9.4 percent. However, with the stronger dollar reducing the New Zealand dollar cost of imports, import payments, at $39.9 billion, were unchanged from the March 2002 year, as Table 17.13 shows.

Table 17.13. Imports of goods and services
Years ending 31 March

YearFood and beveragesMineral fuelsCrude materialsTextiles and clothingChemicalsMetalsTransport equipmentMachinery and electrical equipmentNon-food manufacturesTotal imports of goods1Imports of servicesTotal

1Excludes cost of insurance and freight, which included in component categories.

Note:Figures may not add to stated totals due to rounding. Chain volume series are not additive.

Source: Statistics New Zealand

 $(million)
 Current prices
19909739558181,0242,0127442,2793,5912,47513,5435,37018,913
19951,3501,1059941,4152,8978082,8955,3183,25018,5226,80425,326
20001,9082,0911,2061,7803,7219194,5116,4904,64425,5738,88934,462
20012,1913,4311,4511,9964,2159903,9457,4995,23829,00810,24439,252
20022,4133,0811,5071,9594,4689565,0227,2185,30229,85510,05839,913
20032,4593,0771,4261,9264,2249655,3347,0625,39629,87910,02939,907
 Chain-volume series expressed in 1995/96 prices
19909598668131,0971,7286803,2043,1702,60613,4525,82119,275
19951,3151,1049941,3942,9178662,8774,9653,23118,1636,56124,723
20001,7131,5171,1531,6273,6399184,3037,2454,54925,0787,83232,831
20011,8061,5141,2001,6493,6548193,4597,8584,54924,8897,90732,712
20021,9491,5681,2201,6233,9128254,2027,7904,67326,1057,54633,490
20032,1301,6051,2671,7404,0329614,6358,8965,15128,5558,25636,635

Annual percentage changes in the current price value of exports and imports since 1994 are shown in figure 17.04

Figure 17.04. Imports and exports
Annual percentage change in value
Years ending 31 March

Imports and exportsAnnual percentage change in valueYears ending 31 March

The value of New Zealand's merchandise exports exceeded imports by $802 million in the year ending 31 March 2003.

17.3 International accounts

New Zealand's international accounts consist of balance of payments (BOP) and international investment position (IIP) statistics.

BOP statistics are statements of New Zealand's transactions in goods, services, income and transfers with the rest of the world, net flows of foreign investment in New Zealand, and New Zealand investment abroad.

IIP statistics show the value of foreign investment in New Zealand and the value of New Zealand investment abroad at specific points in time.

The IIP statement includes statistics measuring New Zealand's gross and net overseas debt for both the government and private sectors.

Statistics New Zealand publishes BOP and IIP statements for each quarter within 13 weeks of the end of the reference quarter. For example, statistics for the March quarter are published in the last week of June.

The level of detail in the quarterly series is sufficient to provide a useful basis for analysis and assessment of the country's external financial situation.

Annual BOP and IIP statements are published using a March reference period and feature country breakdowns of the source of foreign investment into New Zealand, and the destination of New Zealand investment abroad. The annual statements are published within six months of the end of the March year.

BOP statistics are presented in a set of accounts consisting of two main groups, namely the current account and the capital and financial account.

To aid analysis, each of the BOP accounts is further subdivided into major components and balances. A component ‘balance’ is the inflows (credits) less the outflows (debits) for a particular component.

Table 17.14 presents these accounts for the five years to 2003.

Table 17.14. Balance of payments - major components1
Years ending 31 March

Component19992000200120022003

1Tables presented in general accordance with principles laid down by the International Monetary Fund in the fifth edition of the Balance of Payments Manual.

2Due to methodology and data collection changes, financial account statistics for 2001 are not directly comparable with statistics for earlier periods.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
 Current account summary
Balance on goods1,445−6782,2133,128802
      Exports (free on board)22,97524,89531,22132,98530,686
      Imports (free on board)21,53025,57329,00829,85629,884
Balance on services−1,112−296−245531,182
      Exports7,4938,59410,22110,61111,203
      Imports8,6048,88910,24410,05810,021
Balance on income−4,976−6,604−7,172−6,611−7,021
      Income from investment abroad1,6501,4661,3771,9892,072
      Income from foreign investment in New Zealand6,6268,0698,5508,6009,093
Balance on current transfers297427360134134
      Inflow1,1221,2621,3581,3071,301
      Outflow8258369981,1731,167
Current account balance−4,347−7,151−4,623−2,795−4,903
 Capital account summary
Balance on capital account−399−413−1811,4001,499
      Inflow4554887822,2132,268
      Outflow855900963813769
 Financial account summary2
New Zealand investment abroad2,9345,81112,6636,6775,219
      Direct investment2,0291,3422,172−2,247435
      Portfolio investment591,6654,6203,5621,427
      Other investment1,7202,9765,8635,447760
      Reserve assets−874−1728−852,596
Foreign investment in New Zealand5,7989,98116,98512,2344,186
      Direct investment1,7792,9649,998−1,2031,379
      Portfolio investment743−6,0416,5814,5684,691
      Other investment3,27613,0584068,869−1,884
Net errors and omissions1,8823,394482−4,1624,437

The current account

The current account records New Zealand's transactions in:

  • Goods, with the balance on goods being the value of exports less the value of imports. The primary source of data is export and import entry documents lodged with the New Zealand Customs Service by importers, exporters and their agents.

  • Services, which include transportation of exports and imports, passenger airfare revenue and expenditure, spending by New Zealand tourists abroad and overseas tourists in New Zealand, telecommunications, insurance and financial services, and other business services. Royalties and licence fees are also included.

  • Income, which encompasses income earned by foreign investors in New Zealand and income earned by New Zealand investors abroad. Income from investments includes operating profits and losses, earnings retained in the business or distributed as dividends, and interest on debt instruments.

  • Current transfers, which include benefits and pensions received and paid, foreign aid and withholding tax. Transfers are classified into either current transfers (which affect the level of disposable income of the donor and recipient), or capital transfers (which involve transfers in ownership of fixed assets or forgiveness of financial liabilities and are included in the capital account).

Goods dominate New Zealand's current account. Exports of goods accounted for approximately 68 percent of total current account inflows (credits), and imports accounted for approximately 60 percent of total current account outflows (debits) for the year ending 31 March 2003. Table 17.15 presents New Zealand's international trade in services for the five March years to 2003 and shows that the value of trade in services has increased significantly during the period. The balance on services has moved from a deficit of $1,112 million in the year ending 31 March 1999 to a surplus of $1,182 million in the year ending 31 March 2003. Exports of services rose $3,711 million (49.5 percent) in the five years, more than offsetting an increase of $1,416 million (16.5 percent) in imported services. Earnings from travel services showed strong growth in the five years, illustrating the importance of international tourism to the New Zealand economy.

Table 17.15. Trade in services
Years ending 31 March

Service19992000200120022003

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Exports
Transportation2,2042,3992,9942,6892,571
Travel3,7964,5295,0775,8346,464
     Business500547570667734
     Personal3,2963,9824,5075,1675,730
          Education4155395979271,163
          Health1111111111
          Other2,8703,4323,9004,2294,556
Communication358371409407368
Construction311243248
Insurance1923305467
Financial7254593725
Computer and information114142187182208
Royalties and licence fees95100124113212
Other business services616631877882941
Personal, cultural and recreational104217325246159
Government services not included elsewhere112117115135140
          Total exports of services7,4938,59410,22110,61111,203
Imports
Transportation2,7712,8583,2323,4343,505
Travel2,7972,9433,3973,1423,104
Communication342366457297328
Construction3117119
Insurance226218176262285
Financial45638163110
Computer and information189204223218219
Royalties and licence fees567611732737737
Other business services1,4941,4231,7291,6651,481
Personal, cultural and recreational4257737789
Government services not included elsewhere129135137152154
          Total imports of services8,6048,88910,24410,05810,021
          Balance on services−1,112−296−245531,182

The capital account

The capital account records debt forgiveness, migrant transfers and sales and purchases of intangible assets, such as licences, patents, copyrights and franchises.

The financial account

The financial account records capital transactions between New Zealand residents and the rest of the world. These transactions increase or decrease the level of foreign investment in New Zealand and the level of New Zealand investment abroad. Investment instruments include equity capital (shares in companies), debt instruments (bonds and notes), money market instruments, loans, deposits and trade credits and debits. Figure 17.05 shows how net flows of investment into and out of New Zealand decreased substantially in the two years following peaks in the year ending 31 March 2001.

Classification of investment categories in the financial account is further determined by the relationship between transactors, and is presented as direct, portfolio and other investment.

Direct investment is all financial capital transactions occurring between parties where there is an ownership relationship of 10 percent or more. For example, where a foreign investor owns 10 percent or more of the equity capital of a New Zealand company, then all the financial capital transactions between the New Zealand company (the direct investee) and the overseas investor (the direct investor) are classified as direct investment. These transactions increase or decrease the level of foreign direct investment in New Zealand. Direct investment transactions include transactions in equity capital and debt instruments, including bonds, loans, trade credits and debits. Income from the foreign direct investor's investment in New Zealand is recorded in the current account as income from foreign investment in New Zealand; direct investment income.

Portfolio investment is those transactions in equity and debt instruments where the ownership relationship between the transactors does not meet the criteria for direct investment. Therefore, in addition to equity securities, this category includes marketable debt instruments - bonds and notes and money market instruments. Banking sector funding transactions in marketable debt instruments between direct investors and direct investees are included where these transactions are defined as being in the nature of usual banking business (financial intermediation), rather than transactions aimed at increasing or decreasing the direct investor's ownership role. Main contributors to New Zealand portfolio equity investment abroad are New Zealand resident fund managers. Foreign portfolio equity investment in New Zealand is dominated by investment into New Zealand companies via New Zealand resident nominees. New Zealand portfolio investment abroad in the form of debt securities is dominated by banks and fund managers. Foreign portfolio investment in New Zealand in the form of debt securities is spread more widely across the sectors, with banks and governments significant in the statistics.

Other investment is a residual component of financial assets and liabilities not classified as direct or portfolio, such as loans, deposits, trade finance (trade credits and debits) and other instruments.

International investment position

The international investment position (IIP) records the level of an economy's international financial assets and liabilities at a particular point in time. These are shown in figure 17.06.

Figure 17.05. Financial account
Years ending 31 March

Financial accountYears ending 31 March

Figure 17.06. International investment position
At 31 March

International investment positionAt 31 March

Figure 17.07. Current account balance
As proportion of gross domestic product
Years ending 31 March

Current account balanceAs proportion of gross domestic productYears ending 31 March

Balance of payments (BOP) and IIP statistics are closely related, with BOP measuring transaction flows and IIP measuring stock positions.

The difference in the level of international financial assets and liabilities between two points in time is due to BOP financial account transactions and other non-transaction changes that occur during the reference period. Non-transaction changes are revaluations of assets and liabilities, changes in market prices and other adjustments such as write-offs.

Table 17.16 shows New Zealand's international investment position at 31 March from 1999 to 2003. The statistics show that the value of New Zealand's investments abroad is much smaller than the value of foreign investment in New Zealand.

Table 17.16. International investment position1
At 31 March

Investment19992000200120022003

1Due to methodology and data collection changes, International Investment Position statistics for 2001 are not directly comparable with statistics for earlier periods.

2Annual estimates of managed funds invested abroad via smaller fund managers were $2,187 million at 31 December 2002 and $2,365 million at 31 December 2001. These estimates are not included in this table.

3Statistics New Zealand estimates the value of overseas shares directly held by New Zealand individuals to be $5,506 million at 30 June 2001 and $4,759 million (revised) at 30 June 2000. These estimates are not included in this table.

.. figures not available

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
New Zealand investment abroad
Direct13,45813,77818,31214,73713,379
      Equity capital and reinvested earnings30,02431,44914,14911,72211,105
      Other capital−16,566−17,6714,1633,0152,274
              Claims on affiliated enterprises3,6583,2806,7515,6414,506
              Liabilities to affiliated enterprises−20,223−20,951−2,588−2,625−2,232
Portfolio212,71717,03626,14928,60824,859
      Equity securities38,36713,41615,26417,37813,718
      Debt securities4,3503,62010,88511,23011,141
Other6,6899,67616,35921,89821,913
      Trade credits1,7911,0492,1742,8122,372
      Loans3,4666,90211,47216,62315,570
      Currency and deposits6731,6902,3221,9283,406
      Other assets75934392535565
Financial derivatives....12,4756,0748,260
Reserve assets7,2567,8778,5667,7239,115
                    Total40,12148,36681,86079,04077,526
Foreign investment in New Zealand
Direct63,12163,76653,19552,31752,534
      Equity capital and reinvested earnings50,63250,96941,42541,00040,016
      Other capital12,48912,79811,77011,31712,518
              Claims on direct investors−1,346−2,684−3,425−3,141−3,980
              Liabilities to direct investors13,83415,48215,19514,45916,498
Portfolio33,31527,72261,83264,20364,999
      Equity securities4538179,3969,67911,310
      Debt securities32,86226,90552,43654,52453,690
Other30,82543,96246,45654,71750,162
      Trade credits1,1321,2462,2342,5582,838
      Loans11,77412,22234,30440,00133,162
      Currency and deposits17,79030,3189,18111,59213,753
      Other liabilities130177737566409
Financial derivatives....8,4866,10910,253
                    Total127,261135,451169,968177,345177,949
                    Net international investment position ..−87,140−87,084−88,108−98,306−100,422

Deficits and surpluses

The balance on the current account is the sum of the balances on goods, services, income and current transfers.

Because they involve the exchange of resources, current account surpluses and deficits have financial implications. Surpluses (net outflows of resources) result in increases in New Zealand's net financial claims over the rest of the world. Conversely, deficits (net inflows of resources) translate into reductions in New Zealand's net financial claims over the rest of the world.

Figure 17.07 shows the current account balance as a proportion (ratio) of gross domestic product (GDP) from 1954 to 2003. This ratio measures New Zealand's net provision or acquisition of resources to or from abroad as a proportion of the value of New Zealand's annual output. The use of the ratio is an indication of the ability of the economy to sustain a current account imbalance. For example, an increasing current account deficit has different implications for a growing economy than for one where GDP is static or falling.

Many economic analysts regard a current account deficit to GDP ratio in excess of −7.0 percent as unsustainable. This is because the continuing debt-servicing implications of such deficits will have flow-on effects in the income component of the current account.

New Zealand has incurred persistent current account deficits since the mid-1970s. These have ranged between −13.4 percent of GDP in 1975 at the height of the oil crisis, to −0.8 percent in 1989. More recently, the −4.4 percent ratio for the March 2003 year represents a reduction from the −7.0 percent ratio for the March 2000 year.

International investment

Table 17.17 shows the main countries, economic groupings and regions which are the sources of foreign direct investment into New Zealand, and the destinations of New Zealand direct investment abroad. Direct investment occurs where there is an ownership relationship of 10 percent or more.

Table 17.17. Direct investment123
By selected countries and regional groupings
At 31 March

Countries and regions19992000200120022003

1Because only selected countries and regions are shown, and because some countries are also included in regional groupings, figures do not add to stated totals.

2Tables presented in general accordance with principles laid down by the International Monetary Fund, in the fifth edition of Balance of Payments Manual.

3Due to methodology and data collection changes, foreign direct investment statistics for 2001 are not directly comparable with statistics for earlier periods.

Cconfidential

Source: Statistics New Zealand

 $(million)
New Zealand direct investment abroad
OECD10,41711,93413,45511,3469,003
APEC12,24514,26713,24010,7238,955
Australia9,43810,4049,0788,5227,028
EU−2,522−2,0601,7582,5322,141
ASEAN785692605497814
United States4575902,224939526
Canada2,9172,8331,2093432
Germany464519862
Netherlands−4,163−3,851CC−176
Hong Kong−1,632−583−69443C
Japan1161671484C
Singapore288193320140C
United Kingdom1,2601,318251CC
          Total13,45813,77818,31214,73713,379
Foreign direct investment in New Zealand
OECD52,94454,34843,11339,66242,720
APEC41,71442,03828,80627,56129,545
Australia23,07424,57117,78517,52619,803
EU13,75714,71915,63413,67614,399
United Kingdom8,5869,2426,8366,5757,334
United States12,45211,6017,1996,1795,596
Netherlands3,6223,3537,3375,1865,052
Japan2,3272,0258161,1741,243
ASEAN1,8301,4941,1261,3461,078
Singapore1,1771,0231,1171,3451,073
Canada968995C458797
Hong Kong8751,0671,054738772
Germany241590340543C
Switzerland315363175CC
          Total63,12163,76653,19552,31752,534

Australia is New Zealand's single most important direct investment partner country in terms of both New Zealand direct investment abroad, and foreign direct investment in New Zealand.

The United States and the United Kingdom are significant sources of foreign direct investment in New Zealand.

New Zealand's most significant direct investment economic regions or groupings partners are Asia Pacific Economic Cooperation (APEC), the Organisation for Economic Co-operation and Development (OECD) and the European Union (EU).

Table 17.18 shows the New Zealand industries which hold international assets, and the New Zealand industries in which foreign investors have invested (New Zealand's international liabilities) at 31 March 2001 to 2003.

The finance and insurance industry accounts for the largest proportion of New Zealand's international assets and liabilities. The government administration and defence industry, and the manufacturing industry, each made significant contributions to New Zealand's international assets and liabilities.

Table 17.18. International assets and liabilities
By industry
At 31 March

Industry200120022003

Cconfidential

- nil or zero

Source: Statistics New Zealand

 $(million)
New Zealand's international assets
Finance and insurance53,86455,92152,742
Manufacturing7,4836,73510,371
Government administration and defence4,9735,5746,316
Retail tradeCC1,657
Property and business services1,7081,2181,044
Wholesale trade2,9193,811958
Construction236282183
Agriculture, forestry and fishingCCC
MiningCCC
Electricity, gas and water supplyCCC
Accommodation, cafes and restaurantsCCC
Transport and storageCCC
Communication servicesCCC
Cultural and recreational servicesCCC
Personal and other servicesCCC
EducationCC-
Health and community servicesCC-
Unallocated to industry1,7432,4472,561
          Total international assets88,162185,95984,175
New Zealand's international liabilities
Finance and insurance98,493105,815107,328
Manufacturing22,28720,32126,065
Government administration and defence7,3666,2455,117
Retail trade4,0004,1804,323
Wholesale trade4,7516,6203,148
Electricity, gas and waterC2,5272,456
Cultural and recreational services1,8592,1892,176
Property and business services2,5892,1412,033
Transport and storage1,3331,3461,241
Accommodation, cafes and restaurants766718750
Construction278352296
Personal and other servicesCC190
Agriculture, forestry and fishingCCC
MiningCCC
Communication servicesCCC
EducationCCC
Health and community servicesCCC
Unallocated to industry9,83114,33812,225
          Total international liabilities176,271184,265184,598

At 31 March 2003, the finance and insurance industry held 62.7 percent of New Zealand's international assets. The main contributions were from banks and funds invested abroad by fund managers on behalf of individuals. The finance and insurance industry was the recipient of 58.1 percent of the total funds invested in New Zealand by overseas investors (New Zealand's international liabilities).

The manufacturing industry held 12.3 percent of New Zealand's total international assets, and received 14.1 percent of the total foreign investment in New Zealand. The main contributions were from paper and paper product manufacturing, publishing, beverage and malt manufacturing, cement/lime/plaster/ concrete product manufacturing, basic chemical manufacturing, and iron and steel manufacturing.

The international investments held by the government administration and defence industry (7.5 percent of New Zealand's total international assets) are predominantly reserve assets held by The Treasury.

17.4 Business statistics

Annual and quarterly surveys conducted by Statistics New Zealand provide comprehensive information about businesses in New Zealand. The Annual Enterprise Survey, which covers most industries, collects information on the financial performance and position of New Zealand businesses. Quarterly business surveys, such as the Economic Survey of Manufacturing and Distribution, provide information on short-term activity, while the Quarterly Employment Survey offers a broad picture of employment across the economy.

In addition to these financial surveys, Statistics New Zealand also produces business demographic statistics, sourced from Statistic New Zealand's Business Frame, a register of businesses primarily used to select businesses for inclusion in business surveys. The Business Frame records names and addresses, predominant type of industrial activity, employment levels and the degree of overseas ownership. This information can also be used to produce statistics on changes in the number, type and location of businesses in New Zealand. Analyses can be undertaken using a range of variables, including geographic area, industry, institutional sector, business type, overseas ownership and employment levels. Business demographic statistics are produced annually from the Business Frame.

Up until 1994, business demographic statistics included businesses that compulsorily registered for GST. Since then, 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.

Statistics in Table 17.19, which shows enterprises and full-time equivalent (FTE) people engaged, are derived from a snapshot of the Business Frame. A ‘geographic unit’ is a separate operating unit engaged in one (or predominantly one) kind of economic activity from a single physical location. A person is regarded as working full time if he or she works 30 or more hours a week.

Table 17.19. Businesses1 and FTE persons2 in economically significant enterprises, 2003

EnterprisesGeographic unitFull-time equivalents

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

Services to agriculture, hunting and trapping4,83620,660
Forestry and logging5,93711,070
Commercial fishing2,0314,840
          Total agriculture, forestry and fishing12,80436,580
Coal mining43870
Oil and gas extraction24500
Metal ore mining64450
Other mining3381,850
Services to mining68340
          Total mining5374,010
Food, beverage and tobacco1,84465,600
Textile, clothing, footwear and leather manufacturing2,01819,740
Wood and paper product manufacturing2,30626,540
Printing, publishing and recorded media2,14619,780
Petroleum, coal, chemical and associated product manufacturing1,33120,000
Non-metallic mineral product manufacturing8907,000
Metal product manufacturing3,44528,700
Machinery and equipment manufacturing5,61645,500
Other manufacturing2,97315,150
          Total manufacturing22,569248,010
Electricity and gas supply2475,390
Water supply, sewerage and drainage services1751,380
          Total electricity, gas and water supply4226,770
General construction13,76548,540
Construction trade services22,99968,070
          Total construction36,764116,620
Basic material wholesaling4,37025,500
Machinery and motor vehicle wholesaling6,48235,800
Personal and household good wholesaling8,78744,200
          Total wholesale trade19,639105,500
Food retailing9,80262,360
Personal and household good retailing19,02679,970
Motor vehicle retailing and services10,57347,860
          Total retail trade39,401190,190
Accommodation, cafes and restaurants11,67476,250
     Total accommodation, cafes and restaurants11,67476,250
Road transport7,59333,710
Rail transport831,300
Water transport3322,740
Air and space transport5188,260
Other transport130310
Services to transport2,78417,690
Storage5433,720
          Total transport and storage11,98367,730
Communication services3,55327,550
          Total communication services3,55327,550
Finance7,12025,520
Insurance1,4647,330
Services to finance and insurance4,40713,310
          Total finance and insurance12,99146,140
Property services58,35334,400
Business services42,559175,430
          Total property and business services100,912209,820
Government administration1,82345,820
Defence6311,130
          Total government administration and defence1,88656,940
Education7,912108,360
          Total education7,912108,370
Health services11,91995,820
Community services3,25238,070
          Total health and community services15,171133,890
Motion picture, radio and television services2,0338,400
Libraries, museums and the arts3,13511,410
Sport and recreation6,20819,340
          Total cultural and recreational services11,37639,140
Personal services8,05422,890
Other services6,18330,760
Private households employing staff820
          Total personal and other services14,24553,680
          TOTAL ALL ENTERPRISES323,8391,527,200

Contributors

  • 17.1The Treasury; Reserve Bank of New Zealand.

  • 17.2-17.4Statistics New Zealand.

Websites

www.imf.org - International Monetary Fund

www.nzier.org.nz - New Zealand Institute of Economic Research

www.rbnz.govt.nz - Reserve Bank of New Zealand

www.stats.govt.nz - Statistics New Zealand

www.treasury.govt.nz - The Treasury

www.worldbank.org - World Bank

Chapter 18. Agriculture

Table of Contents

Many New Zealand sheep farmers use exotic breeds to improve meat production characteristics.

Farming and horticulture continue to be significant export earning industries for New Zealand. In the year ending 30 June 2003, the agricultural, horticultural and forestry sectors provided more than 64 percent of New Zealand's export earnings. Dairying, deer and wine were the fastest growing sectors.

Dairying has been expanding since 1996 in response to product price signals. Many farms have been converted to dairying, especially in Canterbury and Southland, and dairy farms across New Zealand have increased in size. While the number of traditional sheep and cattle farms has decreased through conversion and amalgamation, productivity has increased through improved breeds and strains of livestock and plant cultivars and their management. Cereal crops and horticultural products were traditionally grown mainly for the home market, but horticulture is now an important export earner.

New Zealand has considered the strategic opportunities offered by genetic modification. Following a Royal Commission of Inquiry, the government accepted its recommendation to proceed with caution and preserve those opportunities. New Zealand researchers have developed genetically-modified potatoes resistant to pests, and genetically-modified cattle to produce therapeutic proteins in their milk.

18.1 Current situation and trends

Rural produce makes up more than half of New Zealand's merchandise exports. Uniquely among developed countries, New Zealand farmers are almost totally exposed to world market forces. They receive no subsidies from the 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 subsidies other countries can give to agricultural production and exports. One effect is to increase access opportunities for New Zealand's exports into overseas markets.

New Zealand's total milk production (including domestic market milk) for the season to 31 May 2003 was estimated at 1,191 million kilograms of milksolids (kgMS). This was up 3.5 percent from the previous season due to more cows and a slight increase in per-cow production. The number of dairy cows in milk was estimated at 3.842 million at 30 June 2002, compared with 3.549 million in the previous year. The average dairy company payout for the 2002/03 season was $3.62 of milksolids, down 32 percent from the previous season's level.

Total sheep numbers were estimated at 39.6 million at 30 June 2002 (down from 44 million the previous year) and sheepmeat production for the year ending 30 September 2003 was 546,000 tonnes, up 5 percent. Wool production fell slightly to 173,000 tonnes for the year ending 30 June 2003.

Table 18.01. Farm types
By number and hectarage
At 30 June 2002

Farm typeFarmsHectares

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

Plant nurseries1,40010,351
Cut flower and flower seed growing1,1005,107
Vegetable growing2,400113,102
Grape growing1,20025,611
Apple and pear growing1,30024,415
Stone fruit growing3304,337
Kiwifruit growing2,20024,748
Citrus growing4304,959
Berry growing2804,788
Other fruit growing2,00014,162
Grain growing52074,020
Grain-sheep and grain-beef farming25049,156
Sheep/beef farming2,0001,008,193
Sheep farming13,0007,197,476
Beef farming13,0002,142,622
Dairy farming14,0002,048,211
Poultry farming (meat)2002,630
Poultry farming (eggs)1902,266
Pig farming36016,363
Horse farming2,30049,211
Deer farming2,200341,447
Mixed livestock farming.1,100149,497
Other livestock farming73020,722
Tobacco and hops growing151,080
Cultivated mushroom growing25121
Other crop and plant growing61031,964
Other services to agriculture1,600105,614
Forestry4,5002,162,500
Other3605,676
             Total70,00015,640,348

Figure 18.01. Agricultural assistance
Estimated support per capita, 2002P

Agricultural assistanceEstimated support per capita, 2002P

The New Zealand beef cattle herd was estimated at 4.49 million at June 2002 (4.7 million the previous year). Beef and veal production increased by 15 percent to 660,000 tonnes for the year ending 30 September 2003.

Table 18.01 shows farm types by number and hectarage, while Table 18.02 shows farm land use by regional council area. Figure 18.01 compares New Zealand's agricultural assistance with that provided by other Organisation for Economic Co-operation and Development countries.

Table 18.02. Farmland use
By regional council area
At 30 June 2002

RegionFarmsGrazing, arable, fodder and fallow landLand in horticulturePlantations of exotic timberOther landTotal land

Note:Figures may not add to stated totals due to rounding.

Cconfidential

- nil or zero

Source: Statistics New Zealand

 NumberHectares
Northland5,800515,9585,109193,482121,347835,897
Auckland5,500196,4949,33251,72444,460302,011
Waikato12,0001,195,80310,145329,781194,5351,730,264
Bay of Plenty5,700244,98714,643266,82673,517599,973
Gisborne1,300397,4577,481146,415101,347652,701
Hawke's Bay3,900715,22717,836123,272105,468961,804
Taranaki3,900384,2451,23428,48381,778495,742
Manawatu-Wanganui6,5001,211,7745,022141,280187,1421,545,218
Wellington2,500353,0502,43168,87979,477503,838
      Total North Island47,0005,214,99773,2341,350,142989,0747,627,447
Tasman1,900114,6356,940101,12653,799276,500
Nelson190C17911,582C21,399
Marlborough1,700529,92610,22567,276115,854723,281
West Coast830127,793261CC225,454
Canterbury10,0002,791,21112,267108,388239,0253,150,891
Otago4,1002,090,1125,171133,036139,2512,367,570
Southland4,3001,063,1961,30170,97862,9131,198,388
Chatham Islands35C-CC49,418
      Total South Island23,0006,751,95736,344528,676695,9248,012,900
      Total New Zealand70,00011,966,953109,5771,878,8181,684,99915,640,348

Agricultural organisations

New Zealand remains a world leader in agricultural research, reflecting the importance of agriculture to the country. There is also a broad range of administrative and special interest organisations in the sector.

Ministry of Agriculture and Forestry (MAF). The mission of the Ministry of Agriculture and Forestry Te Manatu Ahuwhenua, Ngaherehere is to advance the agriculture, horticulture, forestry and food sectors for the benefit of all New Zealanders. The organisation has a staff of about 1,300 spread nationally.

MAF Policy - 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 Māori land.

MAF Operations - MAF Operations has three businesses:

  • 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 and export health standards are compiled with; and maintains capability to respond to exotic diseases and pests.

  • The Verification Agency validates food inspection processes; verifies and certifies export and domestic meat and meat by-products, dairy products, seafood and seafood by-products, plants and petfood; and certificates food preparation, packing and storage facilities.

  • The New Zealand Animal Health Reference Laboratory and Exotic Disease Control Centres at Wallaceville, and the National Plant Pest Reference Laboratories at Lincoln and Lynfield have responsibility for national reference and diagnostic services, and management and contingency planning of responses to exotic diseases and pests.

Meat inspection services in New Zealand are carried out by Asure NZ Ltd.

Asure New Zealand Ltd and AgriQuality New Zealand Ltd. Asure New Zealand Ltd provides frontline meat inspection services; solutions to food safety issues; responses after the detection of pests and diseases to secure, contain and eradicate; 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 carried out by the Ministry of Agriculture and Forestry.

The New Zealand Food Safety Authority (NZFSA) administers legislation covering food for sale on the domestic market; primary processing of animal products and official assurances related to their export; exports of plant products; and the controls surrounding registration and use of agricultural compounds and veterinary medicines. NZFSA is the New Zealand controlling authority for imports and exports of food and food related products.

18.2 Pastoral agriculture

Pastoral agriculture is practised throughout New Zealand, with beef cattle predominating in Northland, dairying in Waikato and Taranaki, and sheep farming with cattle in the hills in the south of the North Island. 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. An increasing amount of dairying is carried out on the flat land of Southland, Canterbury and Otago.

New Zealand livestock are predominantly grass-fed, but feeding of natural grass-based supplements such as hay and silage occurs in winter and during very dry periods. Grass growth is seasonal, largely dependent on location and climatic fluctuations, peaks in the spring and is at a minimum in winter. Feed surpluses are harvested and stored for feeding out during winter or in times of feed shortages. Stock is grazed in paddocks, often with movable electric fencing, which allows rotation of grazing. Lambing and calving are carefully managed to take full advantage of spring grass growth.

New Zealand has at least three feed-lot units that produce table beef for export.

Livestock numbers and types

Probably New Zealand's best known statistic was that it had more than 20 times as many sheep as people. As at 30 June 2002, however, the ratio had dropped to around 10. Climatic conditions, soil types and contours determine stocking rates for New Zealand farms. Finishing sheep and beef land in both islands carry around 11 to 12 stock units per hectare, while South Island high country farms average around one stock unit per hectare. The average dairy farm carries 2.5 cows per hectare at peak milk.

Trends in livestock numbers are largely determined by world market prices for farm products, including meat, wool and dairy products. The sheep population has declined from 70.3 million at 30 June 1982 to 39.6 million at 30 June 2002. The beef cattle population fell 9 percent in the same period to 4.49 million. The number of dairy cattle at 30 June 2002 totalled 5.16 million, up 2.15 million on the 30 June 1982 total. Total deer numbered 1.64 million at 30 June 2002 compared with just 0.15 million in 1982.

Table 18.03. Sheep categories
At 30 June

YearBreeding ewes and hoggetsOther sheepTotal

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.

3Caution should be used when making comparisons between 1999 and earlier years because of changes to the survey populations.

4An agriculture census of farms involved in livestock, cropping, horticulture, cropping and forestry was conducted in 2002.

Note:Sheep numbers were not counted in the 1997, 1998, 2000 and 2001 agricultural surveys.

Source: Statistics New Zealand

 (000)
199042,09715,75657,8522
199139,83315,32955,1622
199238,39914,16952,568
199336,63813,66150,2982
1994135,75413,61849,4662
199534,99913,61948,8162
199634,39213,00247,394
1999332,23413,44645,680
2002429,12310,42339,546

Deer. Deer farming in New Zealand 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 2003, 16,222 tonnes product weight (pw) of chilled and frozen venison, valued at $158 million, were exported, compared with 16,034 tonnes pw, worth $215 million, in 2002. New Zealand has developed more than 30 export markets, but the highest returning markets are Germany, United States, France and Belgium.

Deer farming is generally permitted in most regions, but some species may be farmed in specified areas only. Red, Wapiti and fallow deer are the predominant farmed species. At the end of 2003, there were about 1.6 million deer in New Zealand.

Sheep. Sheep have been a success story for New Zealand farmers in recent years. Production per ewe has improved through higher lambing percentages and higher lamb slaughter weights. The special quota arrangement New Zealand has with the European Union underpins the sector, while China has emerged as a growing export market. Many farmers are using exotic breeds to introduce hybrid vigour and better meat production characteristics.

Table 18.03 shows how sheep numbers have fallen in recent years.

Beef cattle. The major beef cattle breeds in New Zealand are the Angus and the Hereford. Approximately 75 percent of beef numbers are located in the North Island, with about 25 percent of the beef herd run on small non-commercial farms.

Dairy cattle. The major dairy cow breed in New Zealand is the Holstein-Friesian, followed by the Holstein-Friesian/Jersey cross and then the Jersey. Seventy-five percent of the dairy herd is in the North Island, with 50 percent located in the Waikato-Bay of Plenty area and regions further north.

Table 18.04 shows numbers of dairy and beef cattle.

Table 18.04. Cattle categories
At 30 June

Category19961999120021

1Caution should be used when making comparisons between these reference years as the population for agricultural surveys has changed.

Source: Statistics New Zealand

Dairy cows and heifers in milk or calf3,219,5463,337,4863,841,553
Dairy cows and heifers not in milk or calf182,158170,227221,539
Dairy heifer yearlings and calves (including bobby)730,994769,0391,044,470
Dairy bulls for breeding32,40039,65754,027
          Total dairy4,165,0984,316,4095,161,589
Beef cows and heifers2,123,4031,979,5172,329,367
Bulls - all ages548,201841,2871,065,463
Other beef cattle2,180,5751,822,9011,099,848
          Total beef4,852,1794,643,7054,494,678
          Total cattle9,017,2778,960,1149,656,267

Dairy farming has replaced sheep farming in parts of Canterbury and Southland in response to product price signals.

Goats. Goats are farmed commercially in New Zealand for their milk, mohair and meat production, as well as for weed control. Goat numbers have declined in recent years, but niche markets for milk products and fibres have been developed.

Table 18.05 shows distribution of livestock throughout the regional council areas.

Table 18.05. Distribution of livestock
By regional council area
At 30 June 2002

RegionDairy cattleBeef cattleSheepDeerPigsGoatsHorses

Cconfidential

- nil or zero

Source: Statistics New Zealand

Northland405,387468,432522,18923,4124,70811,0913,097
Auckland150,089172,348368,21720,25914,32711,3788,470
Waikato1,663,446666,8842,592,399143,09863,35332,71317,107
Bay of Plenty331,410134,815389,18273,0279,49714,6672,846
Gisborne12,533313,2201,679,37725,7521,4534,5362,218
Hawkes Bay88,982555,9893,788,653128,5587,99613,9754,598
Taranaki651,700127,218697,63710,76215,8206,3592,390
Manawatu-Wanganui416,802726,3066,563,838145,28825,58710,9847,958
Wellington111,180181,3201,812,53127,42318,4082,6702,735
          Total North Island3,831,5293,346,53218,414,023597,579161,149108,37351,419
Tasman67,47349,032356,24032,1857613,695763
NelsonC2,64211,0892,22818C117
Marlborough32,52672,479785,11522,842C4,707841
West Coast124,64038,90892,50833,262322685536
Canterbury542,610505,4617,758,336411,581151,06321,02013,251
Otago204,802267,0916,120,918196,70314,9108,7823,789
Southland356,220203,6705,950,657347,5587,3764,5775,097
Chatham IslandsC8,86356,723-CC43
          Total South Island1,330,0601,148,14621,131,5861,046,359180,22844,71124,437
          Total New Zealand5,161,5894,494,67839,545,6091,643,938341,377153,08475,856

18.3 Meat

Meat products are New Zealand's second largest export income earner behind dairy products, accounting for 15 percent of New Zealand's total merchandise exports for the year ending 30 June 2003. New Zealand's main meat exports are lamb, mutton and beef. Approximately 92 percent of lamb, 87 percent of mutton and 83 percent of beef produced in New Zealand was exported in the year ending 30 September 2003. However, New Zealand accounts for only 1 percent of global beef and veal production and 7 percent of global lamb and mutton production.

Increasingly, lamb exports are being 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 takes all pigmeat and poultry produced in New Zealand.

Sheepmeat

Lamb - a sheep under 12 months, or one that does not have any permanent incisor teeth in wear.

Hogget - a young male sheep or maiden ewe having no more than two permanent incisors in wear.

Ram - an adult uncastrated male sheep having more than two permanent incisors in wear.

Mutton - 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, with 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 less than two weeks old.

Veal - Veal is no longer an export meat type, as numbers are now insignificant. Previously, veal was defined as maiden female, castrated male, or entire males (not showing masculine characteristics) up to 14 months old.

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 Ltd on a voluntary basis, although some plan to develop their own system in the medium to long term.

Schedule prices

Some meat processors publish their schedule 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.

Average net schedules for the season, which runs from 1 October to 30 September, are compiled by the Meat and Wool Economic Service and are reproduced in Table 18.06. The schedule prices quoted are inclusive of pelt, slipe wool and hide payments.

Table 18.06. Average net schedule prices

Classification1995-961996-971997-981998-991999-002000-012001-022002-03P

1Includes skin and one kilogram wool pull.

Pprovisional

Source: Meat & Wool New Zealand

Lamb$/head1
YL (9.1-13.2kg)26.6131.3827.8525.9833.5041.9443.8842.73
YM (13.3-17.0 kg)37.9044.4539.9141.0047.4861.9966.7659.93
YX (17.1-21.3 kg)44.7052.8249.5754.0057.9370.1779.2671.73
Mutton$/head1
MX1 (< 23kg)24.8031.5328.2923.5425.5639.6047.6543.21
MX2 (> 23kg)28.1836.9233.5727.9129.9247.6157.9054.16
Beefcents/kg
P2 Steer (270.5-295kg)184.0188.3214.3248.8311.6367.3386.8306.8
M Cow (170.5- 195kg)125.5146.4185.6206.2267.4331.5314.8211.0
M Bull (270.5-295kg)183.7187.1229.0262.6325.0372.7385.4277.3

The 2002/03 farming year was more difficult than the previous season because of lower prices for livestock and droughts in some regions. The lower prices reflected the increased strength of the New Zealand dollar relative to the currencies of the United States and other trading partners.

Mild conditions, with few storms in the spring of 2002, contributed to a record lambing percentage. Summer and autumn were drier than usual for most parts of the country, with drought conditions in the lower North Island, Marlborough, Canterbury and parts of Otago.

Overall, sheep and beef farm profitability was down 27 per cent on the previous year's peak. Table 18.07 shows recent annual meat production volumes.

Table 18.07. Meat production1
Years ending 30 September

Carcasses199219931994199519961997199819992000R200120022003P

1Inspected meat production at meat export works and abattoirs.

21992 - 1995 old series, 1996 onwards new series.

Pprovisional

Rrevised

Source: Ministry of Agriculture and Forestry

 Tonnes (000)
Beef522558523609606620609538552570554633
Veal141414232726252320202226
Mutton158134125144134124129117106129107113
Lamb400352398389375419416400433434414431
Pigmeat474949515048484846444547
Deer101722181619242322282629
Poultry264727893919099102101119230142
           Total1,2151,1961,2091,3271,2991,3461,3501,2511,2801,3441,3981,421

Meat & Wool New Zealand

Meat & Wool New Zealand is the new single-levy-funded organisation charged with furthering the interests of New Zealand meat and wool producers.

It is funded by all New Zealand beef, sheep and goat producers through a levy on stock slaughtered. It works to ensure that its levypayers obtain the best possible long-term return on their investment.

Meat & Wool New Zealand is involved in market access, market development and international promotion. It provides market support through offices in Wellington, Brussels, London, Tokyo, Washington and Seoul. It is also involved in commissioning or funding research and development activities, with a major focus on on-farm activities designed to help livestock farmers increase the profitability of their farms.

Meat & Wool New Zealand provides funding for a number of organisations, including the beef, sheep and goat councils, and provides partial funding for the New Zealand Beef and Lamb Marketing Bureau.

Figure 18.02 shows changes in the meat consumption of New Zealanders between 1993 and 2003.

Figure 18.02. Meat consumption
Per person
Years ending 30 September

Landcorp Farming Ltd tomographically scans ram lambs to identify high muscle and low fat content.

Table 18.08. London wholesale lamb prices
Mid-March

YearPM (13-16kg)PX (16.5-20kg)
Source: Meat & Wool New Zealand International Meat Trade Association
 Pence per kilogram
1992133.4124.6
1993168.7157.7
1994191.8178.6
1995164.2163.1
1996167.5164.2
1997209.4205.0
1998162.0156.5
1999147.7145.5
2000170.9172.0
2001207.2202.8
2002213.8205.0
2003220.5220.5

Table 18.09. United States beef prices
Mid-March

YearManufacturing bullManufacturing cow
Source: Meat & Wool New Zealand
 US cents/kg
1992271.0257.8
1993266.6256.6
1994285.3282.0
1995215.9209.3
1996176.2165.2
1997220.3208.2
1998198.3182.8
1999198.3184.0
2000215.9202.7
2001229.1207.1
2002245.7239.0
2003211.5193.9

Beef and veal

New Zealand's biggest market for beef and veal in the 2002/03 season remained the United States, with shipments up 24,300 tonnes on the previous year to 216,930 tonnes. Beef shipments to North Asia, including South Korea, Taiwan and Japan, increased 39 per cent to 66,255 tonnes, while shipments to Canada eased 8 per cent to 42,580 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 18.08 are an indicator of price trends, but are not as important as they used to be because the majority of New Zealand's lamb is now exported as frozen and chilled cut, or boneless product, rather than in carcass form. Table 18.09 shows the movement in recent years of manufacturing beef prices in the United States.

Export marketing

New Zealand beef and lamb is sold overseas by around 270 companies fully licensed by Meat & Wool New Zealand. New Zealand is a major exporter of sheepmeat, accounting for more than 50 percent of the world export trade. New Zealand's major sheepmeat markets are the United Kingdom, Germany, France, North America and the Middle East.

Compared with sheepmeat, New Zealand is a smaller player in the global market for beef, accounting for just 8 percent of all world beef exports. North America and Asia (Japan, Taiwan, Hong Kong, Korea, Singapore and Malaysia) are the major markets for beef and veal.

Table 18.10 shows the number of livestock slaughtered at meat export works, while Table 18.11 shows export meat production by shipping weight.

Table 18.1. Livestock slaughter
At meat export works and abattoirs1
Years ending 30 September

Animals199219931994199519961997199819992000200120022003P

1Excludes condemned carcasses.

Pprovisional

.. figures not available

Source: Ministry of Agriculture and Forestry

 Head of stock (000)
Lambs28,02023,34226,17426,64624,68026,40227,02424,47226,05026,25624,71125,114
Sheep7,6826,5645,7966,8246,2805,5555,7615,1364,5835,5074,6544,983
Adult cattle2,1332,2602,0422,4102,4362,4242,4622,2192,1722,1842,2242,337
Calves and vealers7807938141,2371,3891,3871,3811,2901,1261,2121,3561,670
Pigs807817822846813772775765714696709763
Deer..........313412422404442465495

Table 18.11. Export meat production
Years ending 30 September

 1997199819992000200120022003
Source: Meat & Wool New Zealand
 Tonnes shipping weight
Lamb298,550291,210281,711289,800298,949270,021309,370
Mutton58,50563,26057,58545,93262,02354,78462,940
Beef339,204324,611304,341315,211342,237337,788378,581
Bobby veal13,25013,50712,93310,87611,49013,57715,551
Goat1,5671,4051,4069451,4001,1401,247
Variety meats50,02150,78249,01654,99558,88658,73259,515
Inedible meats and offal15,87822,63921,33720,36218,2992,4494,266
          Total776,975767,414728,329738,121793,284738,491831,470

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 for interior textiles, such as carpets, upholstery, furnishings, bedding and rugs. It is also used for hand-knitting yarn, in knitwear and in blankets.

Wool production. Although New Zealand's sheep flock ranks fifth 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 18.12 shows recent annual wool production figures and average auction prices.

Table 18.12. Wool production1
Years ending 30 June

YearFlock size2Yield/headWool production (clean)Average auction price (clean)

1Wool quantities are measured at point of sale rather than at source and are therefore not strictly measures of production. In 2000 and 2001, no account was taken of changes in grower-owned stocks of wool held in the likes of brokers' stores.

2At beginning of the season.

Source: Tectra Ltd

 MillionKgTonnes (000)Cents/kg
199450.35.6214414
199549.55.8213554
199648.85.5199494
199747.45.8203443
199846.85.7197449
199946.05.5185408
200045.75.6193440
200145.45.2178520
200240.05.7174508
200339.55.8173551

The New Zealand Wool Board

The New Zealand Wool Board was disestablished in September 2003. Succeeding it is the Wool Board Disestablishment Company Limited (DisCo), which has responsibility for distributing the former board's assets to wool growers. These assets are being transferred in the form of shares and redeemable preference shares in Wool Equities Limited and Merino Grower Investments Ltd.

For the period to 30 June 2004, DisCo continued to collect and administer the levy set by the former wool board to fund contracted research and development, market development, technology and information transfer, training and the maintenance of quality systems and standards.

The levy funding of industry good activities has now been assumed by a new organisation formed through a merger of Meat New Zealand and SheepCo, the latter having been formed to represent wool grower industry interests. Levies are now collected under the Commodity Levies Act.

Tectra Ltd (Tectra). Tectra provides independent wool appraisal and market information services for New Zealand's wool industry. Tectra specialises in providing education and training, technology transfer and extension, and risk and quality services to the primary sector and associated supply chain. Tectra is a wholly owned subsidiary of Wool Equities Limited, an investment company owned by New Zealand sheep farmers.

Markets for wool

The most common way of selling wool in New Zealand is by open auction and 42.5 percent was sold this way in the year ending 30 June 2003. The auction season runs from July to the following June and sales are held in Napier and Christchurch.

Table 18.13 lists recent annual quantities and value of wool sold at auction. The sales attract buyers from all the main wool importing countries.

Private sales by growers to merchants accounted for 43.4 percent of sales in the year to 30 June 2003.

About 80 percent of the New Zealand clip leaves the country in greasy, scoured or slipe form, with 78 percent 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.

During 2002/03, the largest importers were China, the United Kingdom, Australia and India. 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 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 hand-knotted carpets for export to Europe and North America.

It is important to distinguish between initial and final destinations of New Zealand wool exports, as initial destinations have changed substantially throughout the years, and there are sometimes large changes from year to year.

Export destinations for wool fibre are shown in Table 18.14 on page 334.

Table 18.13. Wool sold at auction
Years ending 30 June

YearGreasy and scoured new season wool (clean equivalent)Average clean price per kilogramSale value
Source: Tectra Ltd.
 Tonnes (000)Cents$(million)
1993116433517.3
1994125414568.3
1995119554656.5
1996107494520.0
1997104443447.7
199898449432.3
199984408336.1
200081440353.5
200178520407.3
200275508384.8
200373551395.6

Table 18.14. Export destinations of New Zealand wool fibre
Years ending 30 June

Country19961997199819992000200120022003

- nil or zero

Source: Tectra Ltd.

 Clean tonnes
China50,86440,61735,54825,16927,35029,43134,73924,428
Italy4,8267,2408,6949,85412,24213,06310,83810,452
Nepal8,1968,6304,0075,2546,7007,2554,6585,204
United Kingdom17,09325,04027,72523,85925,95228,89523,29022,216
Japan9,89811,2288,8559,1758,1858,4436,6205,153
Belgium7,8828,48712,36811,99612,63010,5549,6308,084
India7,71612,67514,12615,07017,75212,61313,1399,852
Germany12,13912,03412,04712,10111,23311,2308,4657,615
Hong Kong16,3959,5219,0042,5722,0141,492917987
United States8,4338,8359,2688,7867,2338,9424,5976,219
Australia8,71310,28311,29510,40712,1749,16410,32711,182
Commonwealth of Independent States.---10065423560772
Other29,53530,65028,65325,16526,40823,98022,80925,118
              Total181,690185,240181,590159,508169,938165,485150,589137,282

Wool product exports. The most important wool product exports from New Zealand are floor coverings and yarns, particularly carpet yarns. Carpets and rugs accounted for 29 percent of wool product export earnings in the 2002/03 financial year. Carpet yarn accounted for 26 percent and other yarn for 4 percent. Other wool-based export items included raw and processed sheepskins, tops, wool waste, blankets, fabrics, knitwear and other clothing. Total export earnings from wool products decreased 1 percent to $362 million in the 2002/03 financial year. Wool export earnings are summarised in Table 18.15.

Table 18.15. Wool sector export earnings
Years ending 30 June

Product19961997199819992000200120022003P

1Free on board at port of loading.

Pprovisional

Source: Tectra Ltd.

 $(million) fob1
Carpets/rugs727372829485101105
Wool yarn60678491988788108
Wool apparel1522242427302932
Sheepskin final products352082018415146
Sheepskin - raw and processed5862544634476539
All other2031252428413232
               Total260275267287299331366362
Wool fibre - greasy, scoured slipe1,034947911741801886823798
               Total wool sector1,2941,2221,1781,0281,1001,2171,1891,160
 Percent
Wool sector as proportion of total merchandise exports6.56.05.54.54.23.83.74.0

English-based John Smedley Ltd sources all its merino wool requirements through The New Zealand Merino Company. It exports its branded range of merino wool garments to more than 30 countries.

18.5 Dairy produce

Dairy products, at $5.6 billion, made up 19.2 percent of the value of New Zealand's total merchandise exports in the year ending 30 June 2003. With the exception of milk and some dairy products for local consumption, the industry is primarily geared towards overseas markets, which account for more than 90 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 whole milk powder, skim milk powder and buttermilk powder; cream products such as butter, anhydrous milkfat and ghee; cheese; and protein products such as casein and caseinates. Liquid whole milk can be broken down into three chief components: milkfat, solids-non-fat (principally 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 separation of the cream. Buttermilk powder is made from buttermilk, a by-product of the butter manufacturing process. Most butter produced is of a ‘sweet cream’ type, and anhydrous milkfat and ghee are further refinements of butter.

Cheesemaking at Kapiti Fine Foods, Paraparaumu.

The predominant cheese variety manufactured in New Zealand is cheddar or cheddar types, although the manufacture of speciality cheese types has shown considerable growth in recent years.

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 manufactures such as cheese.

Dairy organisations

At the end of the 2002/03 dairy season on 31 May, there were three cooperative manufacturing dairy companies in New Zealand operating nearly 30 dairy factories.

Each company was governed by a board of directors elected by supplying farmers, with the provision for the appointment of a small number of non-farmers noted for their commercial expertise.

The cooperatives utilised funds supplied in the form of share capital by the farmers.

The cooperative dairy industry produces nearly all dairy products manufactured in New Zealand. On an annual basis, the companies convert approximately 14.5 billion litres of milk into nearly 2 million tonnes of dairy products, more than 90 percent of which is exported. The balance is consumed in the relatively small domestic market. In addition, there are approximately 20 small private dairy companies producing around 2,000 tonnes of cheese a year, plus several ice cream manufacturers.

Dairy Companies Association of New Zealand. The Dairy Companies Association of New Zealand was formed in 2003 by New Zealand's leading dairy companies, Fonterra Co-operative Group, Tatua Co-operative Dairy Company, Westland Co-operative Dairy Company, Mainland Products and New Zealand Dairy Foods. It represents the joint interests of New Zealand dairy companies on domestic and international policy issues, a role undertaken by the New Zealand Dairy Board before its incorporation into Fonterra. The general activities of the association are funded by membership subscription, with special activities funded according to a proportional funding formula. The association's email address is secretariat@dcanz.co.nz

Fonterra. Fonterra Co-operative Group Limited is one of the world's largest dairy companies and is owned by approximately 12,000 New Zealand dairy farmers. During the year ended 31 May 2003, Fonterra collected more than 14 billion litres of milk in New Zealand and manufactured more than 2 million metric tonnes of dairy products. Internationally, it is one of the world's largest exporters of dairy products, selling more than 90 percent of its New Zealand production overseas. The company is structured around two main operating segments:

  • Ingredients - collects milk, processes it into milk products, and markets and distributes to world markets.

  • New Zealand Milk - global producer, marketer and distributor of fast-moving consumer dairy products.

Dairy farmers who supply milk to Fonterra are paid for the milksolids they provide. A milksolid is a measure of milkfat and protein, adjusted for water content. The raw milk is manufactured into products such as milk powder, butter and cheese, and sold to food manufacturers and distributors, or directly to consumers. The price paid to a Fonterra dairy farmer for milksolids is based on returns achieved from these sales. For the 2002/03 year, a Fonterra shareholder received $3.60 per kilogram of milksolid provided (about 80,000 kilograms per annum of milksolids are provided per farm).

Fonterra's website is www.fonterra.com

Westland Milk Products. Westland Milk Products is an independent cooperative dairy company owned by its 370 farmer shareholders. It processes more than 350 million litres of milk annually. The processing plant in Hokitika uses state-of-the-art technology.

Westland is New Zealand's only independent producer of milk powder and butter. Westland is also developing a range of other commodity and specialist products as part of its new business strategy. The company markets its products nationally and internationally.

Westland is a market-focused manufacturer with two brands tailored to suit specific customer needs:

  • Westpro - which services the industrial ingredient market, including bulk powder mixes and blends.

  • Westgold - which services Westland's retail-intended market with product such as 250 gram and 500 gram butter packs, and sachet and can packs of assorted milk powders and blends.

A third brand, Westland Nutritionals, is being developed to market nutritional solutions and formulations.

Westland's website is www.westland.co.nz

Tatua Cooperative Dairy Company. Tatua is an autonomous, independent diary company owned by 138 farmer shareholders. The company was established in 1914 and has never been part of an amalgamation of diary companies.

The factory, located at Tatuanui, in Waikato, processes 100 million litres of milk annually. About 90 percent of Tatua's products are exported. Tatua has two manufacturing arms:

  • Tatua Foods - which makes ultra heat treated and sterilised liquid food products, such as aerosol canned cream, butter oil mist and liquid pre-mixes.

  • Tatua Nutritionals - which makes speciality food ingredients and also produces nutritional formulations, tablets and capsules containing bioactive ingredients.

Tatua's website is www.tatua.com

Overseas marketing

The international market for dairy products is characterised by its small size relative to total world milk production, with less than 10 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 by major producers can trigger major 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 about 90 percent of dairy products traded on the international market.

In the year ending 30 June 2003, the United States, the EU, the Philippines, the People's Republic of China, Japan and Mexico were New Zealand's most valuable markets for dairy produce.

18.6 Pigs, poultry and bees

Pigs

Domestic pork production in terms of the number of pigs slaughtered and the volume of meat produced rose substantially in the year ending 30 September 2003. The number of pigs slaughtered rose 5 percent on the previous year's 709,178 to 748,496 and the volume of domestic pig meat produced increased by 2,073 tonnes to 47,224 tonnes. During the same period, New Zealand imported 26,467 tonnes (estimated on a carcass weight basis) of pork products, up 15 percent on the previous year.

Consumption of imported and domestic pigmeat products was 18.3kg a head, a significant increase on the 17.1kg a head consumed in the September 2002 year.

New Zealand Pork Industry Board. The board is a statutory body operating under the Pork Industry Board Act 1997. The board's mission statement is to secure for the New Zealand producer ‘a profitable premium position for pork products in the food business.’ To achieve this, the board has five key strategic areas of focus: supply chain links; product differentiation; biosecurity and trade; environmental sustainability and animal welfare; and research and innovation. Board income comes from a levy on pigs slaughtered at licensed premises. The board consists of five directors, four of whom are elected by producers and one appointed by the government.

Technology transfer and research activities are carried out on behalf of the board by the Monogastric Research Centre, at Massey University, Palmerston North. Technology transfer is achieved through seminars and workshops for producers 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.

A pig farming code of practice - under review at the end of 2003 - sets out guidelines for the establishment and management of pig farms to ensure environmental risks are minimised.

Maintaining animal welfare standards is another area of board activity. A total quality management culture is encouraged throughout the industry, complemented by industry-agreed minimum standards. While the board does not own product, it undertakes generic market development as appropriate. The New Zealand Pork Industry Board website is www.pork.co.nz. Recent annual pig numbers are shown in Table 18.16.

Table 18.16. Pigs
At 30 June

YearBreeding sows and mated giltsOther pigs of all ages (including boars)Total pigs

1A shortened agricultural census was undertaken and there was no question on the number of breeding sows.

2Survey population definition changed.

3Survey population definition changed to all farm units on the Agribase known to hold livestock and/or engage in grain/arable cropping.

.. figures not available

Note:Pig numbers were not counted in the 1997, 1998, 2000 and 2001 agricultural surveys.

Source: Statistics New Zealand New Zealand Pork Industry Board

199050,990343,711394,701
19911....407,306
199251,324359,824411,148
19931....395,117
1994258,065364,701422,766
199559,250371,755431,005
199657,065367,009424,074
1999360,626308,261368,887
200246,148295,229341,377

Poultry

The poultry meat industry is relatively new in New Zealand and is expanding rapidly. It is now the major intensive livestock industry in New Zealand. For the year ending 31 December 2003, the New Zealand poultry industry produced more than 142,000 tonnes of poultry meat, almost solely for the domestic market. More than 97 percent of 2003 production was chicken meat produced from 80 million broiler chickens, with turkey, duck and roasting fowl making up the remaining 3 percent. Table 18.17 gives recent annual chicken production numbers and percentages of fresh and frozen chicken.

Table 18.17. Chicken production
Years ending 31 December

YearBirdsDressed weightFreshFrozen
Source: Poultry Industry Association of New Zealand
 NumberTonnesPercentPercent
199043,46955,37955.244.8
199145,89159,03653.546.5
199248,18762,79255.045.0
199351,00669,57052.247.8
199455,84476,81158.641.4
199563,75689,15760.040.0
199660,71287,16565.434.6
199760,74988,90466.233.8
199864,66797,12064.635.4
199963,945100,08570.729.3
200067,067108,92971.228.8
200169,361115,78673.726.3
200277,357130,51973.426.6
200380,728138,69775.424.6

The Poultry Industry Association of New Zealand (PIANZ) represents the interests of all poultry processing and livestock breeding companies in New Zealand. Membership is voluntary, but more than 99 percent of New Zealand's primary poultry production is represented by PIANZ. Tegel Foods, Inghams Enterprises, and PH van den Brink produce more than 98 percent of New Zealand's broiler chickens. The poultry meat industry earns nearly $500 million in retail sales and provides jobs for about 3,000 people. Cheaper prices in real terms, lifestyle changes and consumer perceptions saw poultry consumption increase from 21 kilograms a person to 36 kilograms a person in the 10 years to 2003. Total meat consumption was relatively static during this period, so the percentage of poultry meat consumed to total meat consumption increased from 23 percent to 36 percent. Increases in chicken consumption have been mainly in the fresh and further processed areas, with 75 percent of chicken now sold fresh and less than 40 percent sold as whole birds.

Eggs. New Zealand's estimated 2.8 million laying hens produced around 72 million dozen eggs in 2003. More than 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 more than $160 million a year. Total egg production increased by approximately 20 percent in the decade to 2003, with annual per capita consumption now around 220 eggs. Most eggs produced in New Zealand are from caged hens, with free-range and barn egg production accounting for 8 percent of the total. New Zealand has around 160 commercial egg producers, with the largest 20 producers accounting for more than half of total production. 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. Eggs Incorporated, which is contracted to the EPF, provides nationwide activities to promote eggs on a generic basis. There are some exports of specialist table eggs to niche markets overseas, in addition to sizeable fertile egg and day-old chick exports to the Pacific.

Beekeepers puff smoke into hives to quieten the bees and make them easier to work with.

Bees and beekeeping

In the more than 160 years that honey bees have been kept in New Zealand, beekeeping has moved from being a home craft to a progressive industry and New Zealand is now recognised as one of the most advanced beekeeping countries in the world.

Miss Mary Bumby, the sister of an English missionary, was the first person to successfully ship honey bees to New Zealand when she brought two basket hives (skeps) of bees into Northland in 1839. More than 100 years later in 1950, beekeeper numbers peaked at 7,000, although they owned only about 150,000 hives, or half of today's number.

The late 1970s and early 1980s saw large changes in the beekeeping industry. The centralised Honey Marketing Authority ceased operations and private individuals and companies began exporting honey products. The number of hives increased by more than 50 percent to 335,000, spurred on by the demand for paid pollination services, especially from the kiwifruit industry. Since then, however, the number of beekeepers and hives has decreased to the point where, in 2003, there were 3,596 registered beekeepers owning 300,841 hives (see Table 18.18). The trend for fewer beekeepers to own more hives continues.

Table 18.18. Beekeepers, apiaries, hives and honey production
Years ending 31 December

YearBeekeepersApiariesHivesHoney production
Source: Agri Quality New Zealand
 NumberTonnes
19945,56525,331289,87511,81
19955,40924,764293,0808,047
19965,30624,379286,8068,610
19975,28623,754287,4588,537
19985,35623,027298,9218,081
19994,91421,793302,9889,069
20004,95622,443320,1139,609
20014,53921,304314,0949,144
20023,97320,258305,1524,682
20033,59620,153300,84112,252

In April 2000, the serious bee mite varroa destructor was found in Auckland and has since spread throughout most of the North Island. Attempts are being made to keep it out of the Wairarapa, Hawke's Bay and the South Island for as long as possible. The mite, if left untreated, kills beehives. While it can be controlled using miticide strips and some organic acids, these can be expensive to buy or apply. The mite has changed New Zealand beekeeping forever and many hobby beekeepers have decided not to continue. The number of registered beekeepers decreased from nearly 5,000 at the time of the varroa outbreak in April 2000 to 3,596 in 2003. Some commercial beekeepers will also not be able to sustain their businesses in light of the increased costs caused by varroa. On the positive side, increases in the price of honey and other bee products, live bees and pollination services, have helped many beekeepers cope with increased costs and loss of hives.

AgriQuality Limited assessed the total saleable honey crop for 2003 at 12,252 tonnes (40.7 kilograms a hive), which was a record for New Zealand and contrasted with the 4,682 tonnes (15 kilograms a hive) produced in 2002. The six-year average was 8,806 tonnes (28.6 kilograms a hive). The 2002 honey season was characterised by all regions experiencing a below average crop, which was reversed in 2003.

In 1992, Waikato University researchers confirmed that manuka honey was unusually effective as an antiseptic dressing for wounds and burns. As a result, both the demand and the price for manuka honey has risen dramatically.

The marketing of bees and bee products has become more sophisticated, and other products such as deer velvet, bee venom, dried fruits, pollen and royal jelly can be blended with honey to add value. The industry's other main marketable products are beeswax, propolis (an antibiotic gum or resin from plants), pollen and live bees, which include package bees and queen bees. Package bees are ventilated containers with usually 1kg of bees, a queen bee and some food supplies. Bee pests and diseases, as well as the aggressive Africanised honey bees, have spread throughout many countries where bees are kept, which has increased the demand for bees from countries like New Zealand. Annual exports of live bees are around 20,000 to 25,000 queen bees and 25,000 × 1kg package bees, mainly to Canada, Japan and Europe.

New Zealand beekeepers provide a commercial pollination service to growers of tree and berry fruits, kiwifruit, cucurbits (squash and melons) and small seeds. About 90,000 hives are moved for pollination each season, and this business is becoming more important each year as feral or wild hives are reduced or eliminated by the varroa mite. The real value of beekeeping is now in pollinating plants rather than producing apiculture products.

The National Beekeepers' Association (NBA) is a voluntary organisation supported by fee-paying members. The NBA represents the interests of beekeepers to government and coordinates a national response on issues affecting their industry. The NBA also levies all beekeepers under the Biosecurity Act 1993 to pay for its American foulbrood pest management strategy. The association publishes a monthly magazine, The New Zealand Beekeeper, and maintains a loan library.

The NBA website is www.nba.org.nz

18.7 Crops and horticulture

Although pastoral farming is the major land use in New Zealand, there have been significant increases in recent years in areas planted in horticulture and crops. Major crops for the export market include kiwifruit, pipfruit, stonefruit, onions, squash, flowers and berryfruit. Increasing volumes of grapes are grown for the rapidly expanding export wine market. Table 18.19 shows recent annual values of horticultural exports by type and the proportion of total horticultural exports each type comprises.

Grain, vegetable and seed crops

Stock feed. Animals can be grazed in open pasture in New Zealand for the full 12 months of the year. 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, and 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, are grown in the South Island, since the colder climate necessitates more extensive supplementary feeding than in the North Island.

Table 18.19. Horticultural exports
By value and as proportion of total
Years ending 30 June

 199719981999200020012002
Source: Statistics New Zealand
 $(million)Percent$(million)Percent$(million)Percent$(million)Percent$(million)Percent$(million)Percent
Fresh fruit768.559.0817.656.51,039.159.8962.664.01,017.658.81,148.262.0
Processed fruit166.912.8178.612.4203.011.772.34.8106.36.183.84.5
Fresh vegetables150.811.6217.315.0232.013.4213.314.2255.414.8260.014.0
Processed vegetables136.710.5142.69.9170.59.8174.411.6251.314.5259.914.0
Cut flowers42.03.247.03.345.92.646.23.151.63.047.92.6
Seeds, plants and foliage37.72.942.02.947.02.737.32.348.62.852.92.9
               Total1,302.6100.01,445.1100.01,737.5100.01,506.1100.01,730.8100.01,852.7100.0

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 Canterbury region.

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 grain is used as poultry feed and, increasingly, as a supplementary feed for pigs and other livestock. Maize silage is also used as a supplementary feed.

Oats. Grown mainly for threshing and green feed, oats are also used to produce milled rolled-oats, oatmeal and oaten foods. The main growing areas for oats are Canterbury and Southland.

Seed certification. AgriQuality operates a seed certification scheme covering all main herbage and arable species, and participates in the Organisation for Economic Co-operation and Development's seed scheme. New Zealand certified seed is exported to European Union countries, countries of the Pacific Basin, and North and South America.

Fruit

Table 18.20 lists recent annual plantings of fruit, as well as the main growing regions for each type of fruit. Production and export of avocados, berry fruit, tamarillos, citrus fruit and feijoas are all making an impact on local and international markets.

Summerfruit. Summerfruit includes cherries, peaches, nectarines, apricots and plums. The New Zealand industry consists of approximately 550 growers on 3,000 hectares. The main growing areas are Central Otago, Hawke's Bay and Marlborough and they produce, respectively, 50 percent, 35 percent and 5 percent of the crop. The domestic market takes 60 percent of the product, with Taiwan, Australia and the United States taking another 25 percent. Processing of mainly peaches and apricots accounts for between 10 and 15 percent of the market. In the 2002/03, season apricots made up 61 percent of exports, followed by cherries (36 percent), peaches (2 percent), nectarines (0.3 percent) and plums (0.5 percent). Summerfruit New Zealand is predominantly funded by a commodity levy and is a recognised product group under the New Zealand Horticulture Export Authority.

Table 18.2. Areas planted in fruit
At 30 June

Fruit19931994119951996200022002Main regions

1Change in survey population definition introduced in 1994.

2The population for the 2000 Agricultural Production Survey - Horticulture differed from that of previous agricultural surveys, so figures are not directly comparable with previous years.

3Areas of grapes planted by activities classified to winemaking not included.

Ssuppressed because of poor statistical quality

Note:Areas planted in fruit not counted in the 1997, 1998, 1999 and 2001 agricultural surveys.

Source: Statistics New Zealand

 Hectares
Citrus
       Grapefruit/goldfruit15611711711511782Bay of Plenty
       Lemons283263S330339364Northland
       Mandarins533619654637946911Northland
       Oranges760789757607597573Gisborne, Northland
       Tangelos357295316230167163Bay of Plenty
Pip fruit
       Apples12,93715,25715,91615,81914,11411,715Hawke's Bay
       Pears1,0681,2791,2661,151958965Hawke's Bay, Tasman
       Nashi (Asian pears)484418413313185119Bay of Plenty, Auckland
Stone fruit
       Apricots804844831735759635Otago
       Nectarines845667705559618528Otago, Hawke's Bay
       Peaches869714738756725808Hawke's Bay
       Plums303342336303408394Hawke's Bay
       Cherries273274353339535550Otago, Marlborough
Berry fruit
       Blackcurrants7957207146148341,308Canterbury
       Blueberries340357377280348430Waikato
       Boysenberries223231222227263239Tasman
       Raspberries224199SS254302Canterbury
       Strawberries247331SS384361Auckland
Subtropicals
       Avocados1,2601,3751,5881,5732,6463,099Bay of Plenty, Northland
       Feijoas226161S138217198Auckland
       Kiwifruit14,09912,17411,87311,64012,18411,964Bay of Plenty
       Tamarillos325299249188297270Northland, Bay of Plenty
       Passionfruit685454416670Bay of Plenty
       Grapes (outdoor)35,6637,1607,3827,62712,66517,359Marlborough, Hawke's Bay, Gisborne
       Persimmons400412428361384282Auckland

Pipfruit. The New Zealand pipfruit industry was deregulated in October 2001, meaning that any company can source pipfruit in New Zealand for export. In January 2003, New Zealand's largest exporter, ENZA, merged with Turners & Growers to create a produce marketer of global significance. While the company retained the Turners & Growers name, exports remain under their own distinctive brands. Turners & Growers exports to more than 50 countries worldwide, with most of its product going to Europe, the United Kingdom and the United States. About 30 varieties of apples and pears are sold under the ENZA brand. Table 18.21 shows pipfruit exports since deregulation.

Kiwifruit. Kiwifruit is New Zealand's most important horticultural export earner. New Zealand is a major world supplier of kiwifruit and has led the development of the global industry. ZESPRI International Ltd is a consumer-driven, grower-owned company dedicated to the global marketing of kiwifruit. It is one of New Zealand's leading exporters, earning in excess of $900 million annually and with a growth strategy in place to propel revenues to more than $1 billion a year as the company moves into year-round marketing of kiwifruit. With global headquarters in New Zealand and a network of offices in Europe, North America, Asia and the Pacific, ZESPRI is the biggest marketer of kiwifruit in the world and is regarded as the world leader in all aspects from quality to innovation. ZESPRI sold more than 60 million trays of New Zealand kiwifruit in some 60 countries in 2003. Sales were focused in five major markets: Europe (60 percent), Japan (20 percent), East Asia and South-east Asia (10 percent), North America (5 percent) and developing markets, which include Australia, the Middle East, the Indian Ocean region, New Zealand and Far East Russia (5 percent). 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, France, Greece, Spain, Japan, China, Korea, Chile and the United States. Kiwifruit is produced in many regions of New Zealand's North Island, as well as in the north of the South Island. The Bay of Plenty, with more than 80 percent of production, is the major growing area. There are about 2,400 kiwifruit growers in New Zealand.

Recent annual kiwifruit plantings and sales are shown in Table 18.22

Grape growing and wine production. The area planted in producing grapevines increased from 10,197 hectares in 2000 to 13,787 hectares in 2002 and to 15,800 hectares in 2003. Marlborough (6,831 hectares in 2003), Hawke's Bay (3,702 hectares) and Gisborne (1,885 hectares) are the major grape-producing areas. The 2003 season produced 76,400 tonnes of grapes. Sauvignon blanc (28,266 tonnes), chardonnay (15,534 tonnes) and pinot noir (9,402 tonnes) were the most popular grapes of the season. Exports of wine increased from 23.0 million litres in 2002 to 27.1 million in 2003. The United Kingdom, which imported 12.2 million litres of wine in the year ending 30 June 2003, was New Zealand's major export market for wine. The United States, which imported 5.7 million litres, was the second-largest export market. The number of wineries in New Zealand increased from 175 in 1993 to 421 in 2003. The Wine Institute of New Zealand's website is www.nzwine.com

Table 18.21. Pipfruit exports1
Years ending 30 September

Pipfruit20022003

1Tray carton equivalents.

Source: Customs New Zealand Pipfruit New Zealand

Apples18,124,49917,766,789
Pears400,000300,000
          Total pipfruit18,524,49918,066,789

Table 18.22. Kiwifruit production
Years ending 31 March

YearAreaTrays submitted1Trays sold

1Trays submitted represents the number of trays received from suppliers, while trays sold represents final sales numbers. The difference is the fruit loss which occurs in transit.

Source: ZESPRI International Ltd

 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
199710,24360.656.2
199810,01560.359.7
199910,23452.351.8
200010,15963.761.8
200110,10066.365.0
200210,37662.261.6

Table 18.23 gives recent annual figures for the wine industry.

Table 18.23. Wine industry statistics
Years ending 30 June

Category19961997199819992000200120022003
Source: Wine Institute of New Zealand
Wineries (number)238262293334358382398421
Producing area (hectares)6,6107,4107,5809,00010,19711,64813,78715,800
Average yield (tonnes per hectare)11.28.110.38.97.86.18.64.8
Crushed (tonnes)75,30060,00078,30079,70080,10071,000118,70076,400
Total production (million litres)57.345.860.660.260.253.389.055.0
Domestic sales (million litres)35.638.838.238.441.336.232.634.4
Consumption per capita (litres NZ wine)9.910.410.110.110.69.38.28.6
Stock: sales ratio2.06:11.66:11.72:11.78:11.60:11.72:12.34:11.93:1
Export volume (million litres)11.013.115.216.619.219.223.027.1
Export value ($ million)60.375.997.6125.3168.6198.1246.4281.9

Contributors

  • 18.1-18.2 Ministry of Agriculture and Forestry; Statistics New Zealand; OECD.

  • 18.3 Meat New Zealand; Ministry of Agriculture and Forestry; Meat and Wool Economic Service of New Zealand.

  • 18.4 Tectra Ltd.

  • 18.5 Fonterra, Tatua Cooperative Dairy Company; Westland Milk Products, Dairy Companies Association of New Zealand.

  • 18.6 New Zealand Pork Industry Board; Poultry Industry Association of New Zealand;National Beekeepers'Association of New Zealand; AgriQuality New Zealand.

  • 18.7 Ministry of Agriculture and Forestry; Statistics New Zealand; Summerfruit New Zealand; ZESPRI International; ENZA; Wine Institute of New Zealand; Pipfruit New Zealand; Customs New Zealand.

Websites

www.agriquality.co.nz - AgriQuality

www.enza.co.nz - ENZA

www.fonterra.com - Fonterra

www.forestresearch.co.nz - Forest Research

www.hort.cri.nz - HortResearch

www.nzmeat-wool.co.nz - Meat and Wool Economic Service of New Zealand

www.nzmeat.co.nz - Meat New Zealand

www.maf.govt.nz - Ministry of Agriculture and Forestry

www.nba.org.nz - National Beekeepers' Association of New Zealand

www.pork.co.nz - New Zealand Pork Industry Board

www.woolboard.co.nz - New Zealand Wool Board

www.pianz.org.nz - Poultry Industry Association of New Zealand

www.stats.govt.nz - Statistics New Zealand

www.summerfruitnz.co.nz - Summerfruit New Zealand

www.vegfed.co.nz - NZ Vegetable and Potato Growers Fed (Inc.)

www.nzwine.com - Wine Institute of New Zealand

www.woolpro.co.nz - WoolPro

www.zespri.com - Zespri International

Chapter 19. Forestry and Fishing

Table of Contents

Wetfish exports earn New Zealand more than $1 billion a year.

19.1 Forestry

Forests cover nearly 30 percent, or 8 million hectares, of New Zealand's land area. Of this, about 6.2 million hectares are indigenous forests and 1.8 million hectares are planted production forests. In addition to tall forests, there are 2.7 million hectares of shrublands, some of which are reverting to indigenous forest. Of the total planted production forest estate, 89 percent is radiata pine (pinus radiata), and 6 percent is Douglas fir (pseudotsuga menziesii). Hardwoods comprise about 3 percent of planted production forests, the most important being eucalyptus species from Australia.

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 indigenous forests, special-purpose species such as blackwood (acacia melanoxylon), macrocarpa (cupressus macrocarpa) and black walnut (juglans nigra) have been established to meet specialist markets.

In the 10-year period to 2001, new forest planting rates were above the average 40,000 hectares a year achieved during the 1970s and 1980s, with an average 59,000 hectares a year planted. However, the rate of new planting has since declined.

Available wood resource from plantations will rise rapidly in 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 a 70 percent increase in potential harvest volumes forecast in the decade to 2010.

Resources

Indigenous forests. New Zealand's 6.2 million hectares of indigenous forests are located mainly in mountainlands, particularly on the West Coast of the South Island. New Zealand's indigenous forests comprise a mix of more than 2,450 species of trees, shrubs and smaller plants. The major indigenous tree species in these complex forests are beech, rimu, kauri, taraire and tawa. 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. The forests' significance include recreational, scientific, historic and scenic values. 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 owns about 83 percent of indigenous forests, with the remainder in private hands. Part IIIA of the Forest Act 1949, introduced in 1993, promotes 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, by controlling indigenous timber input to sawmills, and by prohibiting indigenous woodchip and log exports.

Pruning radiata pine in a Bay of Plenty forest.

Having a large planted forest resource enables New Zealand to protect and sustainably manage its Crown and privately-owned indigenous forests. Less than 1 percent of New Zealand's total forest production is harvested from indigenous forests. Harvesting timber from state-owned indigenous forests, previously confined to the West Coast of the South Island, ceased in accordance with government policy in 2002. The state-owned indigenous production forests on the West Coast, totalling about 130,000 hectares, are now conservation forests, administered by the Department of Conservation. A further 12,000 hectares of indigenous forests in Southland, set aside for production and managed by state-owned enterprise Crown Forest Management Ltd, were transferred to the Waitutu Incorporation in 1996. These forests are managed under an approved sustainable forest management plan.

Harvesting and milling of‘salvage’ timber from areas of farmland and non-natural forest, along with windblown and naturally dead trees from indigenous forests 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 indigenous forests must be registered and are restricted to processing timber from approved sources.

Exports of indigenous 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.

Planted production forests. Trees planted in the second boom of afforestation (1970 through to the mid-1980s) are now a valuable resource for large-scale utilisation, providing 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. Figure 19.01 shows wood supply from 1950 and forecasts to 2040.

Figure 19.01. Past and future wood supply
Forecast based on 40,000 hectares of new planting a year Years ending
31 March Year

Past and future wood supplyForecast based on 40,000 hectares of new planting a year Years ending31 March Year

Ownership of forests

Many early plantation forests were developed by the state, but ownership has moved increasingly to the private sector.

Today, approximately 92 percent of the plantation resource is in private ownership.

Around 32 percent is owned or managed by two major forestry companies, Carter Holt Harvey Ltd and Fletcher Challenge Ltd.

Nine medium-sized forestry companies own a further 21 percent. Five 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 remainder 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.

An agreement among 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 the 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 19.01 summarises forestry planting and production from 1920.

Table 19.01. Forest planting and production
Years ending 31 March

YearNew area plantedProduction
StatePrivateRough-sawn timberWood pulp1Paper and paperboard

1Chemical and mechanical wood pulp.

Pprovisional

- nil or zero

.. figures not available

Source: Ministry of Agriculture and Forestry

 Hectares (000)Hectares (000)Cubic metres (000)TonnesTonnes
1920....726....
192568812....
19302215668....
193557575....
19402..79322113,079
1945..-80315,68120,949
1950211,13121,78122,136
1955321,45353,01640,917
1960421,638221,408164,255
1965851,739370,499316,104
197015111,803521,654445,976
197522232,086843,244546,834
198017212,0001,122,456673,853
198518302,3061,144,911770,098
1990-162,1211,233,809757,371
1995-742,9551,360,389876,187
1996-842,9041,405,307892,969
1997-643,0231,377,264877,152
1998-513,1951,412,165879,576
1999-403,2261,400,739814,314
2000-343,8061,527,565829,812
2001-303,8481,572,277871,607
2002-..3,8641,523,730846,727
2003P-..4,5021,512,602851,663

19.2 Forest products and timber

Forest products

Pulp and paper. The pulp and paper industry is mainly concentrated near the large planted production forests on the volcanic plateau of the North Island. All eight plants are located in the North Island, and four are integrated with sawmills to fully utilise the total input of wood. There are four main pulp and paper companies:

  • Norske Skog Australasia operates the Tasman pulp and paper mill at Kawerau, in the Bay of Plenty. This plant produces mechanical pulp, newsprint and directory paper.

  • Carter Holt Harvey operates pulp and paper plants at five sites in New Zealand. The Penrose, South Auckland, plant produces corrugated medium paper from recycled waste paper. At the large Kinleith site, near Tokoroa, bleached and unbleached market kraft pulp, linerboards and corrugated paper mediums are produced. A plant at Whakatane produces paperboard from mechanical pulp, outsourced kraft pulp and waste paper-based pulps. A tissue plant at Kawerau has a chemical thermo-mechanical pulp mill that manufactures a wide range of tissue, towelling and speciality grades. Carter Holt Harvey acquired Norske Skog's Tasman kraft pulp manufacturing business at Kawerau in March 2001.

  • Pan Pac Forest Products 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, near Waiouru. The plant uses wood from surrounding forests, as well as sawmill residues.

Recent annual production volumes of pulp and paper products are shown in Table 19.02.

Table 19.02. Pulp and paper production
Yearsending 31 March

YearWood pulpPaper and paperboard
Chemical1Mechanical2NewsprintOther printing and writing paperOther paper and paperboardTotal paper and paperboard

1Includes semi-chemical pulp.

2Includes groundwood pulp, thermo-mechanical and chemithermo-mechanical pulp.

Pprovisional

- nil or zero

Source: Ministry of Agriculture and Forestry

 Tonnes
1994701,630669,604370,85313,794450,966835,613
1995684,454675,935374,86514,924486,398876,187
1996702,575702,732391,43613,084488,449892,969
1997652,308724,956384,14711,870481,135877,152
1998675,453736,712393,54513,556472,475879,576
1999645,032755,707383,37211,586419,356814,314
2000753,885773,680360,62310,285458,904829,812
2001744,991827,286380,6144,155486,838871,607
2002723,054800,676334,058-512,669846,727
2003P684,187828,415355,569-496,094851,663

Panel products.Table 19.03 shows recent production volumes of wood panel products.

Table 19.03. Panel production
Yearsending 31 December

YearVeneerPlywoodParticleboardFibreboard

Pprovisional

Source: Ministry of Agriculture and Forestry

 Cubic metres
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
2000378,282239,947188,054744,879
2001401,590243,702204,524801,493
2002460,619263,332198,347821,994
2003P601,600321,655209,977883,117

Overseas trade in forest products

Exports. In the year ending 30 June 2003, forest product exports were valued at $3,488 billion, compared with $3,695 billion in 2002. Australia took 27 percent (by value) of exports, mainly in sawn timber, wood pulp and panel products. Japan took 19 percent, mainly logs, sawn timber, panel products, pulp and paper, and paperboard. The remaining 54 percent was taken by smaller customers, of which the largest was the United States, with 15 percent. Table 19.04 gives recent annual volumes of timber exports and figure 19.02 shows proportions of exports going to each country.

Table 19.04. Timber exports
By volume
Years ending 30 June

YearSawn timberLogs and poles
Natural forestRadiata pineDouglas firOtherTotal

Pprovisional

Source: Ministry of Agriculture and Forestry

 Cubic metres (000)
1994285232359214,315
1995199442281,0654,802
1996189731199485,460
199721,01741231,0835,915
199811,10516301,1524,657
199911,21661211,2995,194
200011,40026551,4826,179
200111,353351031,4926,177
200211,59532961,7247,604
2003P11,660181291,8088,393

Figure 19.02. Forestry exports
Proportions by destination
Year ending 30 June 2003P

Forestry exportsProportions by destinationYear ending 30 June 2003P

Imports. The main categories of sawn timber imports are tropical hardwoods, Australian hardwoods and North American softwoods. Imported sawn timbers generally have specialist applications, such as weatherboards with a natural finish, decorative furniture, panelling and boat-building. Durable Australian hardwoods are imported for use as large poles, 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.

Speciality pulps, manufactured articles of paper and paperboard, together with paper and paperboard not produced in New Zealand, accounted for 75 percent of the value of total forest product imports in the year ending 30 June 2003.

Table 19.05 shows annual volumes of timber imports since 1994.

Table 19.05. Timber imports
By volume
Years ending 30 June

YearSawn timberLogs and poles
HardwoodsSoftwoodsTotal

Pprovisional

Source: Ministry of Agriculture and Forestry

 cubic metres (000)
1994823313
19951023332
19961324372
19971021313
19981119303
19991215274
20001320334
20011415296
20021713306
2003P1717345

Table 19.06 shows annual values of forest product imports and exports since 1994.

Table 19.06. Overseas trade in forest products
By value
Years ending 30 June

YearWood and wood productsWood pulpPaper and paper productsAll forest products

1Valued cost including insurance and freight.

2Valued free on board at New Zealand ports.

Pprovisional

Source: Ministry of Agriculture and Forestry

 $(000)
Imports1
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
1999217,64818,710738,154974,512
2000263,9957,596832,2631,103,854
2001271,15911,235909,6631,192,057
2002276,17012,833933,8061,222,809
2003P308,2527,366924,2281,239,846
Exports2
19941,738,412326,977403,6662,469,055
19951,720,892480,862430,7832,632,537
19961,605,232456,788523,4372,585,457
19971,625,339344,086409,9542,379,379
19981,501,981351,850489,9712,343,802
19991,571,928370,892535,8162,478,636
20002,104,442609,798631,5793,345,819
20012,289,741620,349695,9573,606,047
20022,491,276518,188685,2783,694,742
2003P2,472,627433,458582,3883,488,473

Table 19.07 shows annual import and export volumes of pulp and paper since 1994.

Table 19.07. Overseas trade in pulp and paper
By volume
Years ending 30 June

YearOther paper and wood pulpNewsprintPaperboard1

1Products manufactured from paper and paperboard are excluded.

Pprovisional

Source: Ministry of Agriculture and Forestry

 Tonnes
Imports
199417,03787143,912
199514,32465174,981
199615,29924161,129
199718,6901,987226,047
199811,209128247,463
199921,662105302,973
20006,895467339,924
2001P8,839105311,400
Exports
1994628,928251,712117,029
1995665,274232,418116,516
1996654,326245,972121,710
1997667,682250,910121,914
1998626,579262,060171,422
1999622,636246,386201,648
2000687,624228,022252,070
2001P707,234227,180245,412

Timber

Roundwood. In the year ending 31 March 2003, logs from planted production forests supplied 23.10 million cubic metres, or 99.8 percent, of total roundwood removals. Approximately 360 sawmills and 11 veneer, seven plywood and six fibreboard mills were supported. Roundwood production does not include firewood.

Table 19.08 shows quantities of roundwood removed from New Zealand forests since 1994.

Table 19.08. Roundwood removals from New Zealand forests
Years ending 31 March

YearNatural forest removalsPlanted production forest removals
Saw logsPulp logsExport logsOther1TotalTotal removals

1Includes peeler logs, small logs and export chips.

Pprovisional

Rrevised

Source: Ministry of Agriculture and Forestry

 Cubic metres (000)
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
2000766,9853,0495,8062,28018,12018,196
2001R557,2213,5665,9172,52819,23219,287
2002P567,3243,5047,3822,67020,88020,936
2003P418,5603,4788,0872,97323,09823,139

Sawn timber. Radiata pine accounts for about 96 percent of the total cut of exotic timber, Douglas fir for three percent and other conifers for most of the remainder. Less than one percent of New Zealand's sawn timber production comes from indigenous forests, and this proportion has reached the point where only a small, sustained yield in native timber is possible for special purposes.

Table 19.09 shows sawn timber production by species.

Table 19.09. Sawn timber production
By species
Years ending 31 March

Species1996199719981999200020012002P

Pprovisional

- nil or zero

Source: Ministry of Agriculture and Forestry

 Cubic metres (000)
Natural forest
Rimu and miro44442830221713
Kauri2111-11
Tōtara--1---1
Kahikatea11--1--
Tawa311111-
Beech47546813
Other1222-1-
               Total natural forest species55563838302828
Planted production forest
Radiata pine2,6312,7612,9952,9963,5833,6253,678
Douglas fir104122105143134136124
Eucalypts5323433
Other109815546555631
               Total planted production forest species2,8492,9673,1573,1883,7763,8203,836
               Total all species2,9043,0233,1953,2263,8063,8483,864

Biosecurity

New Zealand's quarantine and inspection services provide a degree of insurance to primary industries by limiting movement of insects and disease into and out of the country. Ministry of Agriculture and Forestry (MAF) officers inspect all arriving aircraft and vessels to ensure that any arriving passengers, crew, cargo, mail or the craft itself does not pose a biosecurity risk. Ships assessed as having called at a high-risk country may be inspected for gypsy moth, a potentially devastating insect for New Zealand's forestry industry.

Where an importing country requires a phytosanitary certificate (to certify its pest-free status) for exported New Zealand produce, MAF has systems in place which includes inspection of primary produce exports such as fruit, logs and timber.

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 size of the zone, the waters are relatively deep and not particularly rich in nutrients and, because of that, the average productivity of fishery resources tends to be low. Less than one-third of the New Zealand EEZ is shallower than 1,000 metres, which is the area where most fish resources occur. Only one-twentieth of the EEZ is coastal water shallower than 200 metres.

There are more than 1,000 marine species in New Zealand's waters, about 100 of which are commercially significant. Species include shallow water shellfish, open water migratory pelagic fish and deepwater species, living 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

Fisheries within New Zealand's Exclusive Economic Zone (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.

Because most New Zealanders, at some time or other, use the fisheries as a source of food, for work, or for relaxation, demands on the fisheries are steadily increasing. In less than 30 years, for example, the commercial fishing industry has expanded from a small, domestic industry to a $1.5 billion-a-year export business.

The main method used to manage the fisheries is the Quota Management System (QMS), a system based on controlling the levels of catch. 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 to improve economic efficiency in the fishing industry. The QMS also provides security for participants in the fishing industry, enabling them to invest in harvesting and processing capacity. The QMS applies throughout the New Zealand EEZ for main commercial species.

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. Table 19.10 shows TACCs of fish and shellfish for 2001/02 and 2003/04.

Customary fishing regulations

The Fisheries Settlement Act 1992 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 kaimoana customary fishing regulations were developed by the Crown and Māori. They aim to provide effectively for customary non-commercial fishing, while ensuring sustainability of the resource. The definition of customary food gathering in the regulations refers to traditional rights confirmed by the Treaty of Waitangi and the act. Regulations for the South Island were effective from April 1998 and in the North Island from February 1999.

The regulations cover non-commercial customary fishing only and do not remove the right of tangata whenua to catch recreational limits under amateur fishing regulations. Those given permission to take fish under customary fishing regulations cannot trade the fish, exchange the fish for money, or accept any other form of payment. The regulations do not provide for commercial fishing. In the North Island, fish taken in freshwater fisheries are not covered by the regulations, but they are in the South Island. 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.

The regulations apply only 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, hapū or iwi which holds manawhenua manamoana over a particular area. To date more than 80 tangata tiaki/kaitiaki have been appointed in the South Island, and 13 tangata kaitiaki/tiaki in the North Island.

Treaty of Waitangi Fisheries Commission Te Ohu Kai Moana

The Treaty of Waitangi Fisheries Commission was established following agreement between Māori and the Crown over Māori commercial fishing rights and settlement of Māori commercial fishing claims. As a result of an interim settlement in 1989 and a final settlement in 1992, the commission is now one of the largest single players in New Zealand's commercial fishing industry.

Te Ohu Kai Moana Group - which includes interests in Sealord Group Ltd, Moana Pacific Fisheries Ltd, Chatham Processing Ltd, Pacific Marine Farms Ltd and Prepared Foods Group - owns approximately 33 percent by volume of New Zealand's commercial fisheries quota and has the right of ownership of 20 percent of the quota for all new species brought into the quota management system. Through ownership of fishing companies and quota, the commission is responsible for more than $800 million worth of fisheries assets - more than triple the value of the original settlement.

A major task for the commission has been to devise a method of allocating or distributing the benefits of fisheries assets. In December 2003, the Māori Fishers Bill, which sets out the method of allocation, was introduced into parliament. It was expected that the bill would become law before the end of 2004.

The bill changes the role and functions of the Treaty of Waitangi Fisheries Commission and creates a new commercial entity, Aotearoa Fisheries Limited.

In the interim, the commission continues to play a role in protecting and increasing its assets, and building capacity within Māori to manage those assets.

Te Ohu Kai Moana helps coordinate Māori fishing activities to integrate Māori interests across both commercial and customary fishing. Within the commercial sector, it also works to build substantive mechanisms to assist integration and cooperation between aquaculture and wild fisheries.

In proposals for allocation of pre-settlement assets and distribution of the benefits of post-settlement assets, Te Ohu Kai Moana aims to provide a platform that takes into account the need for Māori to have appropriate influence at both the international and domestic level. Te Ohu Kai Moana proposes that Māoridom, as a whole, cooperates to ensure that collective interests continue to grow in size and scope. As part of this, it is looking to make arrangements that have Te Ohu Kai Moana subsidiaries included among the entities working with iwi on joint venture arrangements to their mutual advantage. It is looking to provide appropriate skill development over time to ensure that Māori can fill key positions in these companies. It is also looking to provide commercial mechanisms that ensure settlement assets remain with Māori and provide enduring benefits.

Table 19.1. Total allowable commercial catch

Fish or shellfish2001/022003/04

- not included in quota

Source: Ministry of Fisheries

 Tonnes
Alfonsino2,995.702,995.70
Anchovy-560.00
Anguilla (South Island freshwater eels)376.22420.15
Barracouta32,672.5032,672.46
Black cardinal fish3,670.003,670.00
Blue cod2,681.502,681.50
Blue mackerel-11,550.00
Blue moki608.11608.11
Blue warehou4,512.364,512.36
Bluenose3,058.403,058.40
Butterfish-162.00
Cockle-1,736.00
Elephant fish1,068.501,193.50
Frostfish3,858.003,858.00
Garfish-50.00
Gemfish1,060.391,060.39
Ghost shark2,943.002,943.00
Ghost shark, pale803.00803.00
Grey mullet1,005.601,005.60
Gurnard5,147.285,047.05
Hake14,066.5414,066.54
Hāpuke/bass/groper2,181.602,181.60
Hoki200,010.00180,010.00
Jack mackerel60,547.2360,547.23
John Dory1,106.701,106.70
Kina-937.00
Kingfish-200.00
Leatherjacket-1,431.00
Ling19,843.2019,978.50
Long-finned eel-1.00
Mixed flats6,670.306,670.30
Orange roughy15,921.0015,221.00
Oreos20,143.0021,143.00
Oysters505.00505.00
Oysters (Foveaux)14,950,000 units14,950.00 units
Packhorse rock lobster40.3040.30
Paddle crab-765.00
Pāua1,194.161,058.49
Pilchard-2,485.00
Queen scallop-380.00
Red cod16,074.0916,074.09
Ribaldo1,282.001,282.00
Rig2,034.082,034.08
Rough skate-1,986.00
Ruby fish595.00786.00
Scallop760.00832.00
School shark3,120.183,120.18
Sea perch1,778.001,778.00
Short-finned eel-10.00
Silver warehou9,512.2010,380.20
Smooth skate-849.00
Snapper6,494.606,557.30
Southern blue whiting45,148.0035,648.00
Spiny rock lobster2,685.242,685.24
Sparts-450.00
Squid127,332.38127,332.38
Stargazer5,116.105,411.40
Tarakihi5,994.165,994.16
Trevally3,933.103,933.10
Trumpeter144.00144.00
White warehou3,374.003,374.00
Yellow-eyed mullet68.0068.00

Table 19.11. Registered commercial fishing vessels
At 30 September

YearForeign licensedForeign charteredDomestic
Source: Ministry of Fisheries
199244792,802
1993251672,707
199432632,569
199532542,575
199622552,458
199716592,170
199817521,965
199910461,861
20000371,752
20010361,700
20020371,674
20030381,566

By law, Te Ohu Kai Moana (TOKM) is charged with helping Māori to enter and develop the business and activity of fishing. Its statutory functions include:

  • Development of a method of allocating pre-settlement fisheries assets and distributing the benefits of post-settlement fisheries assets to iwi, according to the provisions of the Māori Fisheries Act 1989, as amended by the Settlement Act and the Deed of Settlement.

  • Making available annual catch entitlements to iwi until an allocation scheme is in place. This includes providing catch entitlements to iwi at a rate calculated below true market rates.

  • Encouraging Māori into the business and activity of fishing.

  • Ensuring the widest possible iwi representation in the legislative process. TOKM has had a major role in defining how post-settlement assets are distributed, according to proposals developed after full consultation with Māori.

  • 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.

Allocation of assets to iwi. The Treaty of Waitangi Fisheries Commission Te Ohu Kai Moana 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.

New Zealand control

New Zealanders and New Zealand companies have held control of New Zealand's fisheries resources since introduction of the quota management system. At 30 September 2003, there were 1,566 domestic-registered commercial fishing vessels.

There were also 38 foreign-registered vessels working under charter to New Zealand companies. This charter fleet dominates high-volume lower-value catches such as southern blue whiting, jack mackerel and squid.

Table 19.11 lists the number of registered commercial fishing vessels.

19.4 Seafood industry

Exports

The seafood industry generated more than $1.5 billion in export receipts in the year ending 31 December 2002, a 2.3 percent increase on the 2001 year.

Shellfish was a major contributor to the increase, with exports receipts rising 13 percent, from $321 million to $362 million.

While export receipts rose 2.3 percent in 2002, the volume of seafood exported rose 17 percent, reflecting a lower dollar yield per tonne across all species ($4.78 million a tonne, compared with $5.48 million a tonne in 2001).

Back home in Island Bay, Wellington, after a day's fishing.

Table 19.12 shows recent annual export quantities and values of the main fish species exported; Table 19.13 gives the value of seafood exports to the three main markets; and Table 19.14 shows recent annual quantities and values for finfish, rock lobster and shellfish exports.

Table 19.12. Seafood exports1
By principal species
Years ending 31 December

Species1999200020012002
QuantityValueQuantityValueQuantityValueQuantityValue

1Valued free on board at New Zealand ports.

Source: New Zealand Seafood Industry Council

 Tonnes (000)$ (million)Tonnes (000)$ (million)Tonnes (000)$ (million)Tonnes (000)$ (million)
Hoki89.3325.874.9310.979.0348.377.2314.7
Mussels29.3116.928.1169.220.9157.528.8185.4
Rock lobster3.0115.72.8128.92.2124.32.1128.0
Orange roughy6.8103.65.385.34.174.18.2127.2
Squid23.341.213.541.921.061.241.486.2
Ling8.960.99.478.57.674.17.965.7
Abalone1.055.80.975.80.867.70.863.0
Salmon2.929.92.531.93.637.56.043.7
Tuna9.032.415.343.97.846.58.542.4
Hake7.740.36.139.25.934.76.435.8
Snapper5.541.14.638.94.137.44.034.0
Oreo dory6.628.15.228.64.429.55.127.8
Scampi1.022.01.025.00.822.90.926.0
Warehou7.728.68.234.37.133.75.523.3
Jack mackerel23.220.011.49.813.717.419.619.6
Barracouta10.513.29.312.410.012.29.910.9
Blue mackerel4.54.15.65.36.56.78.28.5
Southern blue whiting4.05.04.26.38.04.44.77.2
Scallops0.513.00.410.40.514.70.35.9
Gemfish0.55.20.46.50.24.50.22.5

Table 19.13. Seafood exports1
By destination
Years ending 31 December

Destination1999200020012002
ValueProportion of totalValueProportion of totalValueProportion of totalValueProportion of total

1Valued free on board at New Zealand ports.

Source: New Zealand Seafood Industry Council

 $ (million)Percent$ (million)Percent$ (million)Percent$ (million)Percent
United States270.720.3258.318.1236.315.8315.720.6
Japan288.621.6318.722.2303.820.3265.417.3
Australia155.811.7167.411.7195.613.1200.913.1
Other markets625.046.4686.448.0759.250.8748.049.0
               Total1,340.1100.01,430.8100.01,494.9100.01,530.0100.0

Table 19.14. Seafood exports
By volume and value1
Years ending 31 December

Commodity1999200020012002
QuantityValueQuantityValueQuantityValueQuantityValue

1Valued free on board at New Zealand ports.

Source: New Zealand Seafood Industry Council

 Tonnes (000)$ (million)Tonnes (000)$ (million)Tonnes (000)$ (million)Tonnes (000)$ (million)
Finfish (wetfish)261.5954.2229.6958.8223.21,017.4242.21,005.9
Rock lobster2.9117.32.8129.02.2124.32.2128.0
Shellfish56.6243.245.1314.346.1321.374.1362.2
Other Crustacea1.625.41.628.71.831.91.933.9
               Total322.61,340.1279.11,430.8273.31,494.9320.41,530.0

Contributors

  • 19.1-19.2 Ministry of Agriculture and Forestry

  • 19.3 Ministry of Fisheries; Treaty of Waitangi Fisheries Commission Te Ohu Kai Moana; New Zealand Seafood Industry Council.

  • 19.4 New Zealand Seafood Industry Council; Statistics New Zealand.

Websites

www.forestresearch.co.nz - Forest Research

www.maf.govt.nz - Ministry of Agriculture and Forestry

www.fish.govt.nz - Ministry of Fisheries

www.seafood.co.nz - New Zealand Seafood Industry Council

www.niwa.co.nz - NIWA

www.tokm.co.nz - Treaty of Waitangi Fisheries Commission Te Ohu Kai Moana.

Chapter 20. Energy and Minerals

Table of Contents

A coal train is loaded at the Huntly East underground coal mine.

20.1 Future energy scenario

New Zealand's energy sector faces major challenges in the years ahead. These include meeting the growth in demand for energy at a time when gas availability from the Maui field is coming to an end and when greenhouse gas emissions are an increasingly important consideration.

The Ministry of Economic Development's Energy Outlook predicted in October 2003 that consumer energy demand would grow by 0.6 percent a year between 2000 and 2025.

Residential sector consumer energy demand is projected to grow at around 1.0 percent a year between 2000 and 2025, the industrial and commercial sector to decline by 0.1 percent and the transport sector to grow by around 1.3 percent a year. During the same period, electricity consumption is projected to grow each year by around 1.2 percent, the consumer energy of coal by 0.6 percent, oil by 1.3 percent, while gas is projected to decline by an average of around 2.6 percent. The draw down of the Maui field in the years to 2008-2010 and likely closure of petrochemical plants affect gas consumption.

Around 3,357 megawatts of new electricity generating capacity is projected to become economic between 2000 and 2025 as demand for electricity exceeds the economic capacity of the current system. Around 800 megawatts of gas combined cycle, 630 megawatts of geothermal and about 630 megawatts of wind are projected to become economic in the same period, along with around 890 megawatts of hydro, 350 megawatts of cogeneration and 50 megawatts of distillate plant.

Composition of electricity generation is projected to change significantly as new increments are installed, when Huntly switches to coal, and as gas prices rise above coal prices in the years leading up to 2005. The share of electricity generation from the hydro system is expected to decline from 65 percent in 2000 to around 55 percent in 2025, and the gas share from around 21 percent in 2000 to around 6 percent in 2025. Electricity generated from coal is expected to experience rapid fuel share growth, from around 4 percent in 2000 to around 20 percent in 2025, after declining slightly to about 2.5-3.5 percent during 2010-2020.

National strategy

The government's National Energy Efficiency and Conservation Strategy, publicly released in September 2001, outlines economic, social and environmental benefits aimed at the goal of a sustainable energy future. The benefits include a more productive and internationally competitive economy; a cleaner environment; healthier and happier communities in warmer and drier homes; increased transport choices; industry development and more jobs; and less chance of energy supply disruptions and price shocks.

The targets are to improve New Zealand's energy efficiency by 20 percent by 2012 and increase renewable energy production (eg wind, solar, geothermal and biomass) by 30 petajoules in the same period.

The government's Energy Efficiency and Conservation Authority oversees implementation of the strategy, which relies heavily on policy and resource commitments by the wider public and private sectors.

Increasingly, strategy measures are seen by other public sector bodies as contributing directly to their bottom lines.

For example, transport energy efficiency measures support sustainable transport - a concept at the centre of the New Zealand Transport Strategy released by the Ministry of Transport in December 2002.

The energy efficiency and conservation strategy's initiatives target the government, energy supply, industry, building and appliances, and transport sectors. The Energy Efficiency and Conservation Authority's website is www.eeca.govt.nz

Energy intensity and efficiency

New Zealand's overall energy self-sufficiency is around 90 percent, with coal exports balancing dependency on imported oil.

In the year ending 31 March 2002, New Zealand consumed 463 petajoules of energy - an 8 percent increase since 1996.

Sectoral growth in more energy-intensive sectors contributed to increased energy use, but a decline in energy intensity, improved technical efficiency and behavioural changes contributed to a reduction in use.

For every 1 percent increase in gross domestic product (GDP), only 0.4 percent extra energy was used, reflecting a decrease in the energy to GDP ratio.

The declining trend in the ratio suggests New Zealand has succeeded in decoupling energy use from economic growth.

The economy-wide energy to GDP ratio fell 1.6 percent, 0.9 percent and 2 percent respectively in the three years to 2002.

  • The transport sector is the largest and fastest-growing energy-consuming sector, accounting for 41 percent of total consumer energy use. Its growth accounted for nearly 70 percent of total growth between 1996 and 2002. Passenger and freight transport respectively account for 65 percent and 35 percent of total energy used in transport. Between 1996 and 2002, overall passenger and freight transport energy intensity both decreased by 5 percent. Transport energy use continues to be driven by a wide range of factors, including rapidly-increasing vehicle numbers, larger vehicles, vehicles with more features, and increased demand for mobility and freight haulage.

  • The residential sector consumed 59 petajoules − 13 percent of national consumed energy. Residential energy use increased 9 percent from 1996 to 2002 and energy use per square metre of floor area declined by 5 percent. In recent years, New Zealanders have increased their levels of indoor comfort and amenities in the form of space heating, water heating, electrical appliances and lighting.

  • The commercial sector consumed 43 petajoules − 9 percent of total national consumed energy. Between 1996 and 2002, commercial sector energy use increased by 13 percent; the energy to GDP ratio declined by 7 percent; energy use per working person declined by 5 percent; and energy use per square metre of floor area decreased by 1 percent. The sector's reduced energy intensity is largely the result of increased energy efficiency in buildings and equipment, coupled with improved energy management practices by building occupants.

  • The industrial sector produces about 25 percent of New Zealand's GDP and uses around 30 percent of consumer energy. A few large energy users dominate this sector, and more than 70 percent of its energy use is accounted for by the basic metals, food and paper products sub-sectors. Between 1996 and 2002, industrial sector energy use remained nearly unchanged at 137 petajoules, while output grew by nearly 4 percent. The industrial sector's energy to GDP ratio declined by 5 percent during the same period.

  • The primary production sector includes dairy farming, other agriculture and fishing, forestry and logging, hunting, commercial fishing, mining and exploration. In 2002, it consumed 33 petajoules − 7 percent of the nation's energy - and produced approximately 8 percent of GDP. From 1996 to 2002, the primary sector's energy to GDP ratio decreased by 12 percent.

The following points should be considered when examining Table 20.01, which shows the balance between energy supply and demand:

  • Supply data is compiled from monthly returns. Figures for 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. Liquefied petroleum gas 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.

  • Transformation of energy from one form to another always results in conversion losses, which 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, eg 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. Domestic transport refers to domestic road, rail and air transport.

Table 20.01. Energy supply and demand balance1
Year ending 31 December 2002

Supply/demandOilGasHydroGeothermalOther renewableElectricityTotal

1Data for coal unavailable because of confidentiality requirements.

- nil or zero

Source: Ministry of Economic Development

 Petajoules
Supply
      Indigenous production75.0235.386.684.552.9-534.3
      + Imports288.6-----288.6
      - Exports60.3-----60.3
      - Stock change7.5-----7.5
      - International transport42.4-----42.4
               Total primary energy supply253.4235.386.684.552.9-712.7
Transformation
      Electricity generation-−69.6−86.6−64.1−1.3132.7−88.9
      Cogeneration-−19.6-−1.1−20.59.6−31.6
      Liquid fuels production−2.9-----−2.9
      Losses and own use−0.4−6.4-−6.0-−10.9−23.7
               Total transformation−3.3−95.6−86.6−71.2−21.8131.4−147.1
      Non-energy use−11.1−95.9----−107.0
               Consumer energy (calculated)239.043.80.013.331.1131.4458.6
Demand
      Agriculture14.8----6.221.0
      Industrial13.522.7-10.824.447.5118.9
      Commercial3.912.9--0.223.340.3
      Residential2.18.0-2.56.543.062.1
      Domestic transport207.40.2---1.8209.4
               Consumer energy (observed)241.743.8-13.331.1121.8451.7
Discrepancy−2.7----9.66.9

20.2 Energy

The energy industry 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, on its economic growth and on the quality of the environment. New Zealand is self-sufficient in all energy forms apart from oil. In 2002, New Zealand was 70 percent self-sufficient in its total primary energy needs and 31 percent self-sufficient in oil, down from the 36 percent of 1995. Total primary energy supply in petajoules, from 1980 to 2002, broken into various sources, is shown in Table 20.02 on page 358.

Environmental impacts. The Resource Management Act 1991 ensures that environmental costs are recognised in the energy production planning process and that local impacts are avoided, remedied or mitigated. In the global environmental field, there is considerable debate about how best to deal with carbon dioxide emissions resulting from the use of fossil fuels (oil, gas and coal) and the associated risk of climate change. Considerable attention has focused on ‘polluter-pay’ approaches, whereby perceived environmental costs are incorporated into energy prices through low level carbon taxes or tradeable emission permits. New Zealand is a signatory to the Kyoto Protocol under which emission levels of greenhouse gases during 2008-2012 have to be reduced to levels prevailing in 1990.

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 rest. Gross CO2 emissions from energy sources and industrial processes were about 33 million tonnes in 2001, compared with about 29 million tonnes in 1998. Energy related CO2 emissions are projected to increase by about 1.6 percent a year in the next two decades in the baseline scenario, with transport and electricity generation contributing most of the growth. This growth could be halved, however, under successful National Energy Efficiency and Conservation Strategy and climate change policy initiatives. New Zealand's emission of about eight tonnes of CO2 per capita, which has not changed significantly 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). The agriculture sector is the main contributor to N2O and CH4 emissions, with the energy sector's contribution small at 2 and 4 percent respectively.

Table 20.02. Primary energy supply
Years ending 31 December

YearCoalImported oil & oil productsIndigenous oil (net)GasHydroGeothermalOther renewableTotalImported oil as proportion of total
Source: Ministry of Economic Development
 PetajoulesPercent
198049.06148.0215.7135.3169.0257.0630.12404.3036.6
198545.57115.3631.38140.5670.2478.9331.07513.1122.5
199052.55141.1346.92180.9382.6392.6535.23632.0422.3
199548.80189.4031.22179.1698.1393.3036.38676.3928.0
200048.01223.7826.41235.1887.7985.9653.37760.5029.4
200148.17236.2521.15247.0780.6183.3852.62769.2530.7
200260.88232.2921.10234.9486.6284.4752.86773.1630.0

Energy research and development. The New Zealand Government has a process for setting long-term priorities for the allocation of funds for energy research. Priorities set in 1992 for the five-year period to 1997/98 provided increased funding and 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 funding for energy research and development was increased by 11 percent between 1997/98 and 1999/2000 to $6.42 million. This compared with an overall increase of 5 percent in funding from the Foundation for Research, Science and Technology (FRST). FRST funding for energy research increased further in 2001/02 to about $10.1 million. Allocated research expenditure across broad areas is as follows: Petroleum and coal 49 percent, energy efficiency and non-traditional renewables 20 percent, geothermal 14 percent, and other non-specific areas 17 percent.

20.3 Electricity

Depending on demand, rainfall and lake storage conditions, about 68 percent of New Zealand's electricity demand is met by traditional renewable resources, with hydro contributing 61 percent in 2002 and geothermal 7 percent. More than 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 (25 percent in 2002), with a small amount from coal and a small but increasing contribution from non-traditional renewables wind and landfill gas. Table 20.03 shows electricity generation in gigawatt hours by fuel type since 1992.

Table 20.03. Electricity generation
By fuel type
Years ending 31 December

YearsHydroGeothermalOilCoalGasBiogasSteamWoodWindTotal

1Negative generation due to net import of electricity into station to maintain viability and system voltage stability.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Ministry of Economic Development

 Gigawatt hours
199220,8822,1801881,0447,005156633360.731,853
199323,2582,284595636,542156633361.033,262
199425,5792,140105095,137162633361.033,938
199527,2592,049476874,539202633361.035,183
199625,7132,020159746,422227633118.235,753
199723,5942,130(14)11,2798,07413933531213.535,863
199824,1652,386(1)11,0438,08613748140921.836,727
199923,2212,637-1,1838,29411457043838.836,497
200024,3872,756-9408,941103593447119.038,285
200122,3912,678-1,27910,882101607361138.038,437
200224,0622,715-1,51310,06694587327151.039,515

Open spillways at the Clyde Dam alleviate flooding fears at Lakes Wanaka and Wakatipu.

Generation. Four electricity generators provided 83 percent of total generation capacity in the year ending 31 March 2003, with Meridian providing 32 percent, Contact Energy 22 percent, Genesis 16 percent and Mighty River Power 13 percent. Smaller generating schemes provided a combined 13 percent, with the remaining 4 percent coming from on-site cogenerators.

Transmission. Transpower is New Zealand's national grid company. A State-owned enterprise, Transpower is owner and system operator of New Zealand's high voltage electricity transmission grid, linking generators to distribution companies and major industrial users.

Conveyance. New Zealand is fully reticulated through a national high voltage transmission network and local low voltage distribution networks largely operated by electric power companies. Power transmission between the North and South Islands is via a high voltage direct current link from the Benmore power station in the South Island to Haywards substation just north of Wellington. Part of this link is a submarine cable 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.

Distribution. The Energy Companies Act 1992 required corporatisation of electric power boards and municipal electricity departments of local authorities. The resultant mix of companies included municipal, consumer/community trusts and private owners. Today, line companies are largely owned by local communities, while electricity retailing is largely controlled by three government-owned and two privately-owned major generators. Line charges to small domestic consumers have fallen in both nominal and real terms since 1994, but delivered electricity prices have risen, reflecting rising wholesale energy prices. The Electricity Industry Reform Act 1998 required power companies to separate ownership and control of line businesses from energy retailing and generation activity. Before this, line companies were rapidly emerging as major investors in new and renewable generation, accounting for two-thirds of load growth between 1996 and 1999. In August 2001, these controls were partially relaxed, allowing line companies to generate electricity from new renewable resources, and extending rights to generate small quantities of electricity from conventional plants. The Electricity and Gas Industries Bill, expected to be passed in 2004, will relax these rules further. However, few line companies are involved in generation today. From April 1999, the electricity industry, as required by the government, put in place a low cost system to enable domestic and small consumers of electricity to switch suppliers. Such switching has developed steadily, although the main cause of consumer migration has been the purchase of retailing businesses by major generator-retailers. An inquiry by the Ministry of Economic Development in January 2004 found that competition was increasing, but only slowly. The government announced in 2003 that a new Electricity Commission was to be set up to provide oversight of the operation and governance of the electricity market, and of transmission pricing and quality standards. Line companies now also have to meet price and quality targets set separately by the Commerce Commission, or risk the imposition of price control by that body.

Consumption. New Zealand's largest electricity-using sector is industry (an aluminium smelter, iron and steel works, several pulp and paper mills and large dairy factories), which accounted for 44 percent in the year ending 31 March 2002, followed by the household sector (35 percent) and commercial applications (21 percent). Table 20.04 on page 360 shows electricity consumption by the residential, commercial and industrial sectors.

Electricity Commission

The Electricity Commission is a new Crown entity responsible for overseeing all aspects of the New Zealand electricity market, from generation to consumption.

The commission's principal objectives are to ensure that electricity is generated, conveyed and supplied to all classes of consumers in an efficient, fair, reliable and environmentally sustainable manner.

The commission is required to operate in a manner consistent with the government's policy statement on the effective operation of the electricity market. The policy identifies three priority areas:

  • Security of supply and reserve generation.

  • Priority investment in the transmission grid.

  • Hedge market arrangements and demand-side participation.

Operation of the electricity market under the new regime began on 1 March 2004. The market allows 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 compete to buy electricity from the pool for on sale to retail customers. As with other markets, interaction between supply and demand establishes price.

Table 20.04. Electricity consumption
By sector
Years ending 31 March

YearResidentialCommercialIndustrialTotal consumption
ConsumptionNumber of consumersAverage price (excl. GST)ConsumptionNumber of consumersAverage price (excl. GST)ConsumptionNumber of consumersAverage price (excl. GST)

Rrevised

Note:Figures may not add to stated totals due to rounding.

Source: Ministry of Economic Development

 GWh(000)cents/KWhGWh(000)cents/KWhGWh(000)cents/KWhGWh
199210,4741,3268.875,55014811.5412,5841255.8028,609
199310,1241,3339.215,39714511.4712,2651306.0727,786
199410,2561,3439.705,58014611.0413,3921325.9929,228
199510,4161,35610.245,67513910.8613,8341325.8429,925
199610,5841,37110,735,59514111.1214,3421316.3330,522
199710,9591,37711.456,10113810.9914,2001366.1231,260
199810,8241,41812.087,1731379.9813,9371257.0131,934
199911,2901,42311.617,3341409.7214,0101276.9832,635
2000R11,0571,44411.876,91913810.1114,7591125.9432,735
200111,3061,54311.766,81913710.3115,1421106.3133,267
200211,6601,50112.866,96512910.1614,5251026.7133,150

20.4 Oil

Consumption of energy in New Zealand is dominated by oil liquids which accounted for 247 petajoules, or 49 percent, of total consumer energy in the year ending March 2003.

Oil liquids (which include condensate, crude oil, naptha and LPG) also accounted for 265 petajoules (34 percent) of primary energy supplied to New Zealand markets.

Table 20.05 shows reserves and production figures for oil and condensate.

Table 20.05. Oil and condensate
Reserves and production

FieldReservesProduction
Ultimate recoverableAt 1 January 2003Year ending 31 December 2002

1Includes LPG

- nil or zero

.. figure too small to be expressed

Source: Ministry of Economic Development

 Cubic metres (million)Cubic metres (million)PetajoulesCubic metres (million)Petajoules
Kaimiro0.500.103.70.0270.99
Kapuni110.230.7426.20.2195.83
Kupe2.592.5995.4-0.00
Maui135.175.54180.21.58957.36
McKee7.370.3212.20.0983.75
Mangahewa0.080.041.60.0220.88
Ngatoro0.165.40.0571.75
Piakau0.24----
Tariki/Ahuroa11.000.3313.50.0782.55
Waihapa/Ngaere3.840.062.40.0180.73
Rimu/Kauri1.481.4261.10.0311.11
          Total62.5011.30401.72.13974.95

Reserves. New Zealand's estimated remaining crude oil and condensate reserves are dominated by the Maui field which, at 1 January 2003, contained about 45 percent of New Zealand's officially recorded reserves. Condensate is reservoir gas that at atmospheric pressure condenses into liquid form, hence the name condensate. It is typically refined into transport fuels and, depending on demand, can be sold at a premium to conventional crude. The condensate-rich Pohokura field, which comes into production in 2006, and the Maari oil field and Kupe oil and gas-condensate field, both in the preliminary stages of development, are together expected to add substantially to oil reserves. The Kapuni, Rimu and McKee fields dominate the remaining current reserves.

Production. New Zealand's production of crude oil and condensate was 63.8 petajoules in the year ending 31 March 2003, all from onshore and offshore fields in the Taranaki region. About 79 percent of total production came from the offshore Maui field. About 51 percent of oil production is in the form of condensate, 27 percent as crude oil and 22 percent as naphtha. Average daily production of crude oil and condensate was about 31,000 barrels. About 75 percent of local production was exported, with the remainder used as domestic refinery feedstock.

Imports. New Zealand imported crude oil in the year ending 31 March 2003 from Saudi Arabia, Oman, Australia, the United Arab Emirates, Malaysia, Brunei and Indonesia. To meet demand, oil wholesalers also import refined petroleum.

Exports. New Zealand exported about 75 percent of its local crude oil and condensate production in the year ending 31 March 2003. In addition, about 4 percent of refined products were exported and 16 percent were used by international transport. Production and trade figures are given in Table 20.06.

Self-sufficiency. New Zealand's primary self-sufficiency in oil depends on both local oil production and demand. Self-sufficiency increased dramatically during 1974 to 1986 from below 5 percent to more than 50 percent. In the 1990s, as demand grew faster than production, the figure declined to between 30 and 40 percent. With production also declining in a number of fields, notably Kapuni, McKee and Waihapa, self-sufficiency was down to 28 percent in the year ending 31 March 2003.

Refinery. New Zealand's only oil refinery is at Marsden Point, near Whangarei. Main feedstocks are imported crude oil (about 95 percent), with local crude oil and condensate making up the rest. The refinery produces petrol, diesel, aviation kerosene, fuel oils and bitumen.

Distribution. A refinery-owned pipeline transports about a third of Marsden Point's refined production to Wiri (South Auckland) to supply the Auckland area. The rest of New Zealand is mostly supplied by coastal tankers supplying port depots, which, in turn, supply road tankers, which then distribute supplies to retailers. Imported refined production is shipped directly to coastal ports.

Retailing. Four major oil suppliers, BP, Caltex, Mobil and Shell, have been the dominant fuel retailers in New Zealand for many years. In 1998, Australian independent Gull began retailing operations. Another independent company, Challenge, was bought out by Caltex in 2001.

End use. New Zealand's consumer energy is dominated by oil, comprising 247 petajoules of total consumer energy of 490 petajoules in the year ending 31 March 2003. Domestic transport dominates consumer energy use of petroleum products, with 85 percent of oil consumption being used for transport. Annual per capita end use of petroleum products is 63 gigajoules (about 10 barrels or 1,614 litres).

Unleaded petrol. Unleaded regular grade petrol, introduced into New Zealand in 1987, comprised about 77 percent of total unleaded petrol demand for the year ending 31 March 2003. Premium unleaded petrol made up the rest, with the sale of leaded petrol banned since 1 October 1996.

20.5 Gas

New Zealand's known gas resources are undergoing major changes with the Maui offshore field, for so long a dominating presence in the local energy scene, now approaching the end of its life.

A major write-down of Maui gas reserves by an independent expert in 2002, left only an estimated 370 petajoules of Maui contract gas available.

Gas reserves are now located in a number of smaller fields.

The Pohokura gas-condensate field, discovered offshore near New Plymouth in 2000, is now the largest single reserve of gas, with an estimated 600-800 petajoules of gas and condensate. Pohokura is scheduled to go into production in 2006.

The offshore Kupe field, containing 300 petajoules, is also planned for development.

Onshore Taranaki gas fields such as Kapuni, TAWN (the collective name for Tariki, Ahuroa, Waihapa, and Ngaere), McKee, Mangahewa, and Rimu/Kauri will play important roles in gas supply.

New Zealand's estimated economically recoverable gas reserves at 1 January 2003 were 1,487 petajoules (which excludes the estimated 600-800 petajoules from Pohokura).

Three times as much regular grade petrol is sold in New Zealand as premium grade.

Exploration and production. Increased demand for natural gas, combined with declining supplies, has stimulated an increase in exploration for gas to help fill the gap left by the Maui decline. Most exploration is planned for onshore and offshore Taranaki. A major effort is also being made to extract gas from in-ground coal beds in Waikato, Taranaki, West Coast and from Southland and Otago lignite fields. Twenty-two coal seam gas exploration permits were on issue at the end of 2003. Total New Zealand natural gas production for the year ending 31 March 2003 was 230 petajoules. The Maui and Kapuni fields accounted for about 90 percent. TAWN (Tariki, Ahuroa, Waihapa and Ngaere), Mangahewa and McKee were the largest of the remaining fields in production. Table 20.07 shows gas reserves and production figures.

Table 20.06. Crude oil and condensate production and trade
Years ending 31 December

YearNew 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
1997120.56168.30212.2977.70
199895.67202.51217.7270.97
199984.36198.77212.7263.45
200074.96203.30221.0355.07
200170.02191.46208.9356.43
200263.55205.31219.9450.50

Gas testing operations at Kahili-1B in onshore Taranaki.

Table 20.07. Natural gas
Reserves and production

FieldReservesProduction
Ultimate recoverableAs at 1 Jan 2003Year ending 31 December 2002

1Excludes LPG.

2Net of gas re-injection which occurs only at Kapuni.

- nil or zero

Source: Ministry of Economic Development

 Cubic metres (million)PetajoulesCubic metres (million)PetajoulesCubic metres (million)Petajoules
Kamiro718273751415.30.56
Kapuni140,3381,09013,302359965.825.762
Kupe7,4763097,476309--
Maui197,6523,74414,9825744,364.0178.78
McKee4,1871721,25952144.05.95
Mangahewa1,978771,56261255.59.89
Ngatoro2581265331.71.60
Piakau1367----
Tariki/Ahuroa13,2711341,57264327.213.35
Waihapa/Ngaere81033160.76.90.28
Rimu/Kauri1,194521,15850.216.70.73
               Total158,0185,65741,7671,486.96,127.1236.90

Distribution. Natural gas distribution occurs only in the North Island and consists of 2,600km of high pressure gas transmission pipelines and low pressure distribution systems in most cities.

Electricity generation. Around 41 percent of natural gas production was used for electricity generation, including co-generation, in the year ending 31 March 2003. Petrochemicals used 40 percent of gas, mainly for chemical methanol plants at Motunui and Waitara. The remaining 19 percent of gas production was reticulated to industry and domestic gas users. Annual per capita end use of gas was 10.7 gigajoules (about 285 cubic metres) in the March 2003 year.

Petrochemicals. About 40 percent of New Zealand's natural gas production in the year ending 31 March 2003 was used to produce 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. Some Maui and Kapuni gas is also used in the production of ammonia/urea.

Compressed natural gas. Compressed natural gas (CNG) is supplied for the automotive market through a shrinking network of North Island service stations. The gas industry also produces liquefied petroleum gas, which is transported by sea and rail throughout New Zealand and exported. Table 20.08 shows production and demand figures for gas from 1992 to 2002.

Table 20.08. Gas production and demand
Years ending 31 December

YearTotal gross natural gas productionGas re-injectedLPG extractedFlaredProduction losses and own useNet natural gas productionDirect sales (est)Reticulated sales (est)

Rrevised

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
1998226.8521.129.543.095.57187.53131.1555.93
1999R253.4717.7410.021.945.56218.21156.9460.64
2000R254.176.8510.471.645.51229.70170.2458.88
2001265.253.5911.542.595.83241.70177.5363.11
2002248.800.5011.401.615.74229.55165.1563.44

20.6 Coal

Resources. Coal occurs widely throughout New Zealand, with total in-ground 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 has steadily increased in recent years, with output up 22 percent to 4.8 million tonnes (128 petajoules) in the year ending 31 March 2003, compared with the March 2002 year. About 68 percent of coal production by energy content was produced in the South Island as bituminous, sub-bituminous and lignite ranks. Coal produced in the North Island, mostly from the Waikato region, was of sub-bituminous rank. Export markets for premium grade New Zealand coals grew by 21 percent to 2.1 million tonnes in the year ending 31 March 2003. Coal exports from New Zealand have grown steadily since 1998. Most exports are of bituminous coal from the Buller field in the South Island. Table 20.09 shows coal production, export and consumption figures from 1992 to 2002. Figure 20.01 shows the location of operating coal mines.

Table 20.09. Coal production, exports and consumption
Years ending 31 December

YearTotal 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 cogeneration) and basic metals consumption. The difference between production and consumption is a change in stock levels.

Source: Ministry of Economic Development

 Gross petajoulesTonnes (000)
199273.4024.1576.902,948.5769.73,148.6
199379.2424.7176.103,098.6787.63,082.5
199476.4832.7481.282,997.61,043.63,202.5
199591.5042.7191.633,446.01,333.83,477.3
199696.2150.9098.923,610.61,589.53,698.7
199786.8538.9090.713,370.71,243.63,521.4
1998R84.8534.1881.383,319.21,092.83,165.3
199992.1342.2790.663,505.71,332.73,482.4
2000.95.7848.4893.803,585.61,528.53,544.6
2001103.7856.84112.793,911.41,792.44,237.7
2002119.5861.27116.834,458.91,931.74,382.5

Figure 20.01. Operating coal mines1
As at 1 January 2004

Operating coal mines1As at 1 January 2004

1 Mines producing more than 100,00 tonnes per annum.

Source: Department of Conservation

End use. The main end use of coal in New Zealand for the year ending 31 March 2003 was for electricity generation (including cogeneration), which took 30.5 percent of production. Other end users were the iron and steel industry (26 percent), other industry (mainly cement, lime and plaster, meat, dairy products, forestry and timber products), which took 31 percent, commercial (8 percent), and others - mainly agriculture and residential - (5 percent).

Solid Energy New Zealand Ltd. State-owned enterprise Solid Energy New Zealand Ltd produced just over 4 million tonnes of coal in the year ending 30 June 2003 - more than 80 percent of New Zealand's total production. The company exported more than 2 million tonnes in 2002-2003, generating more than $100 million in export earnings. Solid Energy's website is www.solidenergy.co.nz

20.7 Renewables

Renewables are a major part of New Zealand's total primary energy supply, contributing 224 petajoules in 2002.

Hydro and geothermal production dominated, with around 87 and 84 petajoules respectively.

Total biomass and waste (wood and wood products) provided the next largest renewable contribution of 52 petajoules (35 petajoules from woody biomass and animal products, 16 petajoules from industrial waste and about 1 petajoule from biogas and landfill gas).

Table 20.10 shows renewable energy statistics from 1995 to 2002.

Electricity generation. The major use of renewable energy resources in New Zealand is for electricity generation. About 66 percent of New Zealand's electricity is generated from renewable resources, predominantly hydro (60 percent) and geothermal (6 percent), with the contribution from wind energy, while growing, still at a negligible level (0.4 percent).

Direct use. Apart from electricity, 9 percent (44 petajoules) of consumer energy is provided by the direct use of renewables. This is dominated by wood (30 petajoules a year).

Direct geothermal use for heating contributes 13 petajoules and wastes and biogas provide 0.6 petajoules. Annual per capita direct end use of geothermal energy is 3 gigajoules a person, with per capita end use of biofuels, predominantly wood, estimated at 7.5 gigajoules.

While non-traditional renewable sources such as biomass, micro-hydro, wind and solar schemes make a small contribution to overall consumer energy supply, they have the potential to make a greater contribution in the future.

Landfill gas. Landfill gas is used to produce energy at plants in Auckland and Wellington.

Table 20.1. Renewable energy supply and consumption
Years ending 31 December

Year19951996199719981999200020012002

1Efficiency of geothermal plants for electricity generation has been assumed to be 10 percent before 2000. From 2000, it is assumed to be 15 percent.

Pprovisional

.. figures not available

Note:Figures may not add to stated totals due to rounding.

Sources: Ministry of Economic Development Statistics New Zealand

 Petajoules
Primary energy supply
Hydro98.1392.5784.9486.9983.6087.7980.6186.62 P
Geothermal193.3091.8795.95105.49115.2485.9783.3884.48 P
Other renewables0.0040.0300.0480.0790.1400.4280.4950.545 P
      Solar................
      Wind0.0040.0300.0480.0790.1400.4280.4950.545 P
      Tide, wave and ocean................
Biomass and wastes36.3738.9141.8948.1750.8152.9352.1252.32 P
      Woody biomass and animal products32.3732.0931.7134.5335.2135.8834.6935.45 P
      Biogas and landfill gas2.131.811.741.711.511.411.421.34 P
      Municipal waste................
      Industrial waste1.875.018.4411.9314.0915.6516.0115.53 P
               Total227.81223.38222.82240.73249.79227.13216.61223.95 P
 Petajoules
Final consumption
Geothermal13.5313.1713.2613.6114.3113.8313.1213.30 P
Biomass and wastes27.9628.0727.6729.1029.4529.5629.7431.05 P
      Woody biomass and animal products27.5227.6327.2228.6428.9029.0029.1330.41 P
      Biogas and landfill gas0.060.060.070.070.140.150.180.19 P
      Municipal waste................
      Industrial waste0.370.380.390.400.410.420.430.45 P
               Total41.4941.2440.9342.7243.7643.3942.8644.35 P

Wind turbines at the Tararua wind farm near Palmerston North.

Wind energy

New Zealand lies across prevailing north-westerly winds, which are consistent and relatively strong throughout the year. For this reason, wind speeds in New Zealand are among the highest in the world and, as a result, wind turbines here are able to produce eight times as much power as identical turbines in some parts of Europe.

Germany, which has a land area 50 percent greater than New Zealand's, has installed wind generation capacity of 14,000 megawatts. Denmark, with a land area 16 percent of New Zealand's, has an installed capacity of 3,100 megawatts and generates 15 percent of its total electricity needs from the wind.

The potential for New Zealand is clearly very large and wind-generated electricity can no longer be considered as either a marginal technology or a niche industry.

Installations. While wind energy developments began in New Zealand with a few tentative projects, installation rates are growing rapidly. In 1993, a single Vestas 225-kilowatt unit was installed in the Wellington suburb of Brooklyn. The Hau Nui wind farm, a 3.5-megawatt development in the Wairarapa, saw the installation of seven Enercon 500-kilowatt turbines in 1996. On the Tararua Ranges, near Palmerston North, a 32-megawatt wind farm was commissioned in 1999 with 48 Vestas 660-kilowatt turbines. A further 500 kilowatts was added with installation of a Windflow turbine at Gebbies Pass, in the Canterbury region, in 2003.

This brought total installed capacity at the end of 2003 to 35.9 megawatts. This generates in the region of 35,000 gigawatt hours annually, which is sufficient to provide power to 4,500 households. In 2004:

  • A further 130 megawatts was installed and commissioned at three sites in the North Island.

  • Fifty-five Vestas 660 kilowatt-turbines were planned to be added to the Tararua development.

  • Fifty-five NEG Micon (now Vestas following the merger of these two companies) 1.65 megawatt-turbines were to be installed at Te Apiti near the Manawatu Gorge.

  • Five megawatts will be added to the existing Hau Nui site.

At the end of 2004 there was expected to be 167.2 megawatts of wind energy installed. This would generate in the region of 585 gigawatt hours, or about 1.4 percent of total estimated 2005 electricity generation. This would be enough power to meet the needs of about 75,000 households.

Future issues. The existing grid, at both a distribution and transmission level, was built around large centralised synchronous generators. Wind developments, on the other hand, tend to be relatively small and decentralised. In addition, the predominant technology tends to utilise asynchronous generators. Consequently, the installation of significant amounts of distributed wind generation will have ramifications on grid networks - in terms of meeting existing technical standards and grid reinforcement. These are areas where additional work is required in order to ensure that the appropriate investment is undertaken and the necessary work carried out in a timely fashion. If such work does not take place, inefficient resource allocation and bottlenecks in wind farm developments will be the likely result.

Public perception. Surveys of public opinion from around the world show that the general public is extremely supportive of renewable energy and would consistently prefer to see new-generation capacity being of the renewable variety.

Solar. While solar energy is potentially available throughout New Zealand, amounts vary according to topography and regional, diurnal and seasonal variations. The main immediate markets for solar water heating in New Zealand are the residential and commercial building industries. The flat plate systems presently available are mostly limited to operating at temperatures below 60° Celsius in order to maintain a relatively high conversion efficiency of about 35—45 percent. This makes them useful for swimming pool heating and domestic hot water applications. The main barrier to the dissemination of solar technologies is their initial capital cost.

20.8 Minerals

New Zealand has a wide variety of minerals reflecting its diverse geology and dynamic tectonic history. While it is best known for its gold production (just under 10 tonnes in 2002), 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. In New Zealand, the Crown owns all petroleum, gold and silver, along with approximately half of the in-ground coal, metallic and non-metallic minerals, industrial rocks and building stones. 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. The government sees the development of petroleum and minerals resources as a significant contributor to national and regional economic development. A permit from Crown Minerals does not give land access, which is negotiated with each landowner and occupier. Environmental impacts are regulated under the Resource Management Act 1991, with resource consents granted by district or regional councils.

Metals

Gold. Gold is present in New Zealand in quartz veins, disseminated or finely dispersed through host rocks, and as alluvial gold in river gravels. The majority of gold production during 2002 came from two hardrock mines, Macraes mine, at Macraes Flat, in east Otago, and Martha mine, at Waihi, in the Coromandel area. Macraes, the largest mine in New Zealand, produced more than 170,000 ounces in 2002. The modern, open pit Martha mine, which began operating in 1987, produced more than 120,000 ounces in 2002. The mine is scheduled to close around 2007. An increased level of exploration for hard-rock gold has occurred in recent years. Three new projects are under development, two planned mines near Reefton on the West Coast and one at Waihi. The Globe Progress mine will be open pit and the Blackwater mine will be underground, targeting the deep rich Birthday Reef, mined in the first half of the 20th century. The third, an underground resource at Favona, will be situated near the Martha mine, with first production scheduled for 2005. Alluvial gold mining takes place in the South Island, predominantly on the West Coast and in Otago. Extraction methods range from sole operator plants to medium and large floating or skid-mounted plants fed by hydraulic excavators. The Grey River dredge remains one of the world's largest bucket-ladder dredges.

Silver. Silver is almost always associated with gold in various proportions. Historically, the Coromandel area has produced most of the silver mined in New Zealand, and production in recent years has been mostly from the Martha mine.

Iron. New Zealand has a large resource of iron ore in the black sands of North Island west coast beaches, especially between Wanganui and Muriwai. Two deposits of titanomagnetite (ironsand) are currently mined by BHP New Zealand Steel Ltd. At Waikato North Head, mining has been carried out since 1969 using two bucket-wheel excavators which convey the ore to concentration plants. The titanomagnetite concentrate slurry is then pumped through an 18km pipeline to the Glenbrook steel mill, where it is reduced in a solid state process and smelted with scrap in an electrical arc furnace to produce a range of steel products. The operation at Taharoa, started in 1972, pumps titanomagnetite concentrate slurry to ships moored offshore for export to Japan, South Korea and China.

Ilmenite. Ilmenite-bearing sands are present, at beach intervals, over 320km of the West Coast of the South Island. The largest known ilmenite resource is at Barrytown, where exploration has defined a 50 million tonne resource. South of Westport, another indicated resource of between 17 and 30 million tonnes contains 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 a minor component.

Platinum group metals. A number of areas in the South Island, particularly in Southland, are being explored for platinum group metals. The Longwood Range, in western Southland, consists of a layered gabbro complex and is the only place in New Zealand where platinum has been produced, in association with alluvial gold.

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 little prospecting. Iron ore, stibnite (antimony), orpiment (arsenic), chromite, monazite (rare earths), nickel and rutile have all been mined in the past.

Cassiterite (tin) is known in 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 produced from a variety of rocks, gravels and sands and are used in road construction and in concrete manufacture. Suitable rocks for aggregate production are found throughout New Zealand. Several large companies - Firth Industries, Winstone Aggregates, W. Stevenson & Sons and Fulton Hogan - dominate aggregate production. There are also many smaller companies supplying products 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 the manufacture of fine ceramics and porcelain. Bentonite, 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 drilling operations because long-established overseas sources are commonly preferred, New Zealand bentonite is being increasingly used.

Dolomite. Dolomite rock, used in agriculture, glassmaking and for harbour protection blocks, is produced near Collingwood.

Greenstone. Nephrite and bowenite, popularly known as greenstone or pounamu, are present in north Westland and northern Fiordland. A deposit of nephrite boulders in a tributary of the Arahura River has been the main source of greenstone. Best known occurrences of bowenite, the serpentine variety of greenstone, are in the Griffin range in Westland and in Fiordland.

Boulders of greenstone are reduced in size using a portable diamond saw, and airlifted by helicopter. Ownership of pounamu has been returned to Ngāi Tahu, the largest Māori iwi in the South Island, as part of its Treaty of Waitangi settlement.

Limestone. Limestone is found throughout New Zealand and is used in cement manufacture, reading, 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. Salt is produced by the solar evaporation of sea water at Lake Grassmere, in Marlborough. 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 are 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 Piopio, south of Hamilton, and at Greenhills, in Southland.

Silica sand. Northland, North Auckland and Canterbury have deposits of silica sand, mined for use in glass manufacture, foundry moulds and in the building industry.

Sulphur. Sulphur, mainly used in the production of agricultural fertiliser, is mined at Tikitere, near Rotorua.

Zeolite. Zeolite is mined at Ngakuru, in the central North Island near Rotorua. 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), talc (cosmetics) and wollastonite (paper, asbestos substitute, ceramics, adhesives and plastics).

Contributors

  • 20.1Ministry of Economic Development; Energy Efficiency and Conservation Authority.

  • 20.2Ministry of Economic Development.

  • 20.3Ministry of Economic Development; TransPower; Electricity Networks Association; Electricity Commission.

  • 20.4-20.7Ministry of Economic Development.

  • 20.8Ministry of Economic Development; Statistics New Zealand.

Websites

www.crownminerals.govt.nz - Crown Minerals, Ministry of Economic Development

www.eeca.govt.nz - Energy Efficiency and Conservation Authority

www.med.govt.nz - Ministry of Economic Development

www.minerals.co.nz - New Zealand Minerals Industry Association

www.grd.com.au - GRD Macraes Ltd

www.marthamine.co.nz - Newmont Waihi Ltd

www.solidenergy.co.nz - Solid Energy New Zealand Ltd

Chapter 21. Manufacturing

Table of Contents

A dishwasher manufacturing line at Fisher and Paykel Appliances, Auckland.

21.1 Manufacturing

Manufacturing environment

The environment in which New Zealand manufacturers operate has undergone significant change in the past decade.

The removal of import licensing and tariffs on all imported goods for which there is no local manufacture of suitable alternatives, means the manufacturing sector is now more reliant on general economic conditions than it has been in the past.

Balanced monetary and fiscal policies, maintenance of low inflation, and flexibility of labour markets provide a competitive base to manufacturing, and create 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 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 reliant on being innovative, enterprising and able to respond swiftly to market demands. To achieve this, manufacturers are encouraging high levels of quality in their operations and management.

The government, through New Zealand Trade and Enterprise, provides a range of export development services and programmes to firms in the manufacturing sector. Manufacturing firms that produce low volume, high value niche export market goods have been targeted by Trade and Enterprise, which works with them to develop manufacturing clusters, long-term growth strategies, and access to export markets. Targeted niche manufacturing areas have included aviation engineering, designer furniture, advanced materials and marine manufacturing.

Skills training and education are also important for the continuing development of manufacturing 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 those needs to be met by the educational framework in a timely manner.

Table 21.01. Manufacturing sector performance
Years ending 31 March

YearContribution to GDP1Change from previous yearGDP1

1Chain-volume series expressed in 1995/96 prices.

Source: Statistics New Zealand

 $(million)Percent$(million)
199915,479−3.897,694
200016,1584.4102,450
200116,4782.0105,179
200216,6851.3108,665
200317,6245.6113,507

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 will, however, have to continue to respond to a constantly changing external environment.

Table 21.01 gives an overview of the manufacturing sector's performance in recent years.

Tariffs

Tariffs on imports are maintained to assist New Zealand producers. Tariffs are not a revenue device, although they do contribute a small percentage of overall government revenue. In 2002, duty levied on all imports totalled $288 million − 0.7 per cent of government revenue.

In the period 1988 to 2000, tariffs were significantly reduced and New Zealand's tariff profile has reached the point where it has one of the lowest average rates in Organisation for Economic Cooperation and Development countries at 4.1 per cent. Approximately 95 per cent of imports (by value) now enter New Zealand free of duty and most dutiable imports face low tariffs of between 5 and 7 percent.

In 2000, the government announced that tariffs would be frozen at July 1999 levels until July 2005. Tariffs would reduce in this period only on a reciprocal basis under free trade agreements, for example the New Zealand-Singapore Closer Economic Partnership, or under ‘zero-for-zero’ agreements negotiated through the World Trade Organisation. A decision to remove remaining tariffs on imports from ‘least developed countries’ (the world's 48 poorest nations) took effect in July 2001. This tariff removal was consistent with a broad commitment to assist the world's poorest nations to use exports as a tool for boosting economic development and thereby reducing international disparities. The government simultaneously tightened up on ‘rules of origin’ to remove the risk that firms in richer developing countries might take advantage of this special tariff measure. In 2003, officials from the Ministry of Economic Development undertook a tariff review to make recommendations on tariff policy for the post-2005 period. The government took decisions on the review in September 2003.

These decisions involve the gradual reduction of ad valorem tariffs from 1 July 2006 until 1 July 2009. The highest ad valorem tariff rates of between 17 and 19 per cent (those that apply to carpet, clothing, headgear, footwear, and ambulances and motorhomes) will reduce gradually to 10 per cent by 1 July 2009. Ad valorem tariff rates on all other goods will reduce to 5 per cent by July 2008. Alternative specific tariffs, which apply largely to clothing, will revert to the applied ad valorem rates for those items on 1 July 2005.

Adoption of this programme of tariff reduction was reached after consideration of a wide range of issues raised by many business groups, firms, unions and individuals throughout New Zealand. The government recognised that there were further welfare gains to be had across the economy and within industries from further tariff reduction, and that firms needed to continue to move up the value chain to become more innovative and internationally competitive. While previous tariff reductions had generated significant productivity and welfare gains, it was recognised they had also imposed significant adjustment pressures on industries, particularly the textile, footwear, and clothing industries (TCF). For this reason, the government decided on a gradual reduction of tariffs during the 2006-2009 period, and decided against moving to zero tariffs. The government will work closely with the TCF sector to assist adjustment to the lower tariff environment. A newly-established industry development organisation, Textiles New Zealand, will assist the sector in making the transition to an internationally-focused industry, concentrating on high added-value and niche market products.

A further review will take place in 2006 to determine tariff policy post-2009.

Ministry of Economic Development

The Ministry of Economic Development was established in February 2000 and works directly for the Ministers for Economic Development; Industry and Regional Development; Small Business; Commerce; Tourism; Communications; Consumer Affairs; Energy; and Information Technology. The ministry works cooperatively with sectors, businesses, regions, local government, iwi and other state sector agencies to advise on, coordinate and align activities that stimulate economic development.

The Government's Growth and Innovation Framework, published in February 2002, sets a specific economic objective: to return New Zealand's per capita income to the top half of Organisation for Economic Co-operation and Development rankings and maintain that standing. The ministry has adopted as its major outcome working to ensure that New Zealand's business environment actively promotes and enables a higher rate of sustainable economic development.

The ministry leads the production and coordination of policy advice related to economic, regional and industry development. It also works with New Zealand Trade and Enterprise designing and implementing programmes to deliver the government's economic development policies.

The ministry is also the government's primary advisor on the operation and regulation of specific markets and industries, including energy and telecommunications. The legal framework the ministry focuses on providing is one that will see New Zealand business flourish now and into the future. This framework means an economy where intellectual property can be protected, where consumers and investors have appropriate rights, and where markets can function effectively. The framework also allows New Zealand business to compete effectively in the international arena. The ministry's website is www.med.govt.nz

College students gain work experience at Griffins Foods Limited's biscuit manufacturing plant at Lower Hutt.

Business development

The goal of the New Zealand Trade and Enterprise Business Development Programme is to improve the management capabilities and performances of small to medium-sized enterprises (SMEs) in an increasingly competitive business environment.

The programme comprises a number of key elements:

  • Enterprise Training Programme - where the objectives are to improve the management capability of owners and operators of SMEs and to increase understanding of the value of expert external assistance in improving management capability and business growth. The programme involves workshops and follow-up coaching delivered by specialist training providers in 18 New Zealand regions.

  • Exporter Education Programme - where the objective is to develop and implement a comprehensive range of relevant, affordable courses designed to stimulate and grow the capability, profitability and international competitiveness of New Zealand businesses by enhancing their ability to become successful exporters and to develop sustainable export earnings. Companies that have not exported can obtain exporter education from Enterprise Training Programme providers, while training for established exporters is available from a national provider.

  • Business Information Services - where the objectives are to be a first point of contact for SME business assistance enquiries; to improve awareness of the availability and value of business assistance; and to increase the provision of information about public and private business assistance. The services are operated through specialist business information centres throughout New Zealand and via 0800 42 49 46. Information is also available at www.biz.org.nz

  • Escalator Service - which is designed to fuel business growth by providing innovative SMEs and entrepreneurial New Zealanders with the skills and the assistance needed to access investment opportunities. Eligible participants needing capital to expand, diversify or commercialise a new concept can use the service to develop a greater understanding of funding business growth issues and learn when additional investment is needed and how to access it. Some may also gain assistance from specialist brokers to secure equity investment and/or strategic partnerships. The service offers online information and assistance; assessment of investment potential; investment-specific workshops; brokering expertise and assistance to raise up to $5 million; expertise in negotiating strategic partnerships; and coordination with appropriate agencies and advisors. The service's website is www.escalator.co.nz

  • Enterprise Development Fund - whereby grants are available to assist entrepreneurs and individual companies gain additional business skills and obtain external expertise and assistance in developing business projects. Eligible costs include mentoring, advanced management or technology-based training, specialised external advice or expertise and some market development activity. Grants are aimed at businesses with an annual turnover of less than $5 million. To be eligible, businesses must be New Zealand tax-registered, be financially viable and operate or intend to operate in a commercial environment. Entrepreneurs must be New Zealand citizens and be able to show how they will fund the project. Successful applicants can receive up to 50 percent of eligible costs on a 50:50 reimbursement basis, up to a maximum of $20,000 (inc GST) a year (1 July - 30 June).

Further information on the business development programme can be found at www.nzte.govt.nz

Manufacturing groups

Tables 21.02 and 21.03 show regional employment numbers for the North and South Islands.

Following is a brief description of some of the major secondary industries in New Zealand.

Wine. Export volumes of wine reached a record 27.1 million litres in the year ending 30 June 2003, with increased supplies of wine available from the bountiful 2002 vintage. This was 18 percent ahead of the previous year. The value of exports rose strongly, reaching $281.9 million in the 2003 year, 14 percent ahead of the previous year. Sauvignon blanc remains the flagship wine style, accounting for 62 percent of total exports, a rise of 39 percent on the previous year. The advantages of the low value of the New Zealand dollar in recent years evaporated in 2003 and 2004, with the dollar rising against many currencies and affecting export returns. For the first time since 1995, the average per litre price slipped in 2003, dropping 3 percent from $10.73 in 2002 to $10.39_ Extensive media coverage continues to encourage consumer and trade interest in New Zealand wines and, according to the latest export projection survey, international sales are forecast to reach 73 million litres by 2007.

Carpet. Tufted and woven carpet production in the year ending 30 June 2002 increased by 6 per cent on the same period in the previous year, to 11.452 million square metres. New Zealand manufacturers exported 3.761 million square metres of tufted carpet in the year ending 30 June 2002, a decrease of 1 per cent on the previous year's figure. Australia was the principal market, taking 93 per cent of New Zealand's exports. In the year to 30 June 2002, New Zealand imported 1.830 million square metres of carpet, down 7 per cent on the same period in the previous year. Nylon was the most prevalent carpet fibre imported.

Textiles and apparel. Removal of import licensing and a progressive reduction in tariffs have seen apparel imports from all sources increase significantly, from $86 million in 1989 to $860 million in 2001, with 69 per cent coming from China. This has led to considerable rationalisation within the industry, with an accompanying reduction in employment levels. The textile and apparel industries remain significant employers, however, in 2001 employing 16,100 people. Apparel exports have increased from $29 million in 1989 to $222 million in 2001. Australia is New Zealand's main export market for apparel, but efforts have been made to diversify export destinations, particularly into Asia. 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 are often involved in the distribution and retailing of their products. New Zealand manufacturers produce all major garment categories, including outerwear, underwear, hosiery, nightwear, swimwear, ties, headwear and leather apparel. A number of companies have moved manufacturing operations offshore to take advantage of lower labour costs.

Footwear. Considerable rationalisation of the New Zealand footwear industry has taken place since 1986 when the first significant reductions in protection occurred. Domestic production reduced from 7.7 million pairs in 1986/87 to approximately 1.6 million pairs in 2001/02, the latest statistics available. Reduction in assistance to domestic manufacturers also led to a significant increase in footwear imports. In the year ending 30 June 2003, imports totalled more than 14.4 million pairs, compared with 7.7 million pairs in 1993 and 6.1 million pairs in the June 1990 year. Exports increased from 623,000 pairs in 1992 to 838,000 pairs in 2003. Australia is the main market for New Zealand footwear exports, taking 41 percent of the total for the year ending 30 June 2003. The value of footwear exports in the year ending 30 June 2003 was $35 million, compared with $45 million in the previous June year. In the June years 2001, 2000 and 1999, export receipts were $39 million, $40 million and $41 million respectively.

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 a decision to reduce 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, Mitsubishi, Nissan, Honda and Toyota, all announced their decisions to cease local production during 1998. In response to a request from the motor vehicle industry, the government then agreed to remove tariffs on all passenger and light commercial vehicles, excluding motorhomes and ambulances. This decision was announced on 14 May 1998 and took immediate effect. The decision aimed to remove uncertainty from the vehicle market and achieve savings for New Zealand families and businesses. It represented the removal of a major cost impost and was designed to lower transportation costs across the economy, thereby improving the international competitiveness of New Zealand firms. Remaining tariffs on motor vehicles are subject to the government's normal tariff policy. Although the automotive component-manufacturing sector has been affected by closure of the local assembly industry, it is still a significant sector in terms of production and exports. In 2001, total income for the industry was $517 million. In the year ending 30 June 1998, automotive component exports were worth $141 million, which had increased to $242 million by the 2002 June year. Exports include tyres, alloy wheels, wiring harnesses, springs and windscreens. The automotive component sector employs about 3,600 people.

Figure 21.01 shows the proportion of people employed in the various manufacturing industries.

Manufacturing statistics

Statistics New Zealand's Quarterly Economic Survey of Manufacturing (QMS) gives a representative survey estimate of economic activity for 15 groups within the manufacturing sector.

The QMS consists of a postal sample of approximately 1,400 firms and a tax strata of approximately 17,000 firms. These vary slightly each quarter.

Nearly $1.5 billion was paid in salaries and wages by the dairy and meat industry groups in the year ending 31 March 2003.

Figure 21.01. Employment in manufacturing1
By industry type
Year ending 31 December 2002

1Full-time equivalent persons engaged.

Note:Percentages calculated using unrounded figures.

Source: Statistics New Zealand

The survey asks for operating income, purchases and operating expenditure, salaries and wages, closing stocks of material and finished goods, and additions to and disposals of fixed assets.

Table 21.04 presents the data for recent years.

Table 21.04. Manufacturing sector
Years ending 31 March

YearOperating incomePurchases and operating expenditureSalaries and wagesStocks of raw materials for use in productionFinished goods, work in progress and trading stocksAdditions to fixed assetsDisposals of fixed assets

- nil or zero

Source: Statistics New Zealand

 $(million)
199852,67838,3768,5472,4704,0342,975-
199950,89637,0438,3562,2593,8972,242-
200054,14739,1038,5832,3504,1262,314-
200160,53743,6988,7972,6364,5851,950-
200263,39647,1638,9612,6184,9452,806337
200365,14647,7709,5232,5956,9542,392327

The QMS 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.

Table 21.05 shows QMS figures for the sum of the four quarters for the year ending 31 March 2003, by industry groups.

Table 21.05. Manufacturing sector contributors
By industry group
Year ending 31 March 2003

Industry groupOperating incomePurchases and operating expenditureSalaries and wagesStocks of raw materials for use in productionFinished goods, work in progress and trading stocksAdditions to fixed assetsDisposals of fixed assets

Cconfidential

Source: Statistics New Zealand

 $(million)
Dairy and meat products16,05713,7771,4812613,015CC
Other food6,9395,063869213651CC
Beverage, malt and tobacco2,9262,060292154423CC
Textile and apparel3,0692,092579205296795
Wood products4,2453,227674107381CC
Paper and paper products2,8702,002407110206CC
Printing, publishing and recorded media3,3922,0017968484CC
Petroleum and industrial chemical3,2022,1542671951921117
Rubber, plastic and other chemical products4,1442,84072821851315119
Non-metallic mineral products2,0411,36429552137CC
Basic metal2,0411,524314108161CC
Structural, sheet and fabricated metal products4,1122,849780195214CC
Transport equipment manufacturing2,2441,4884992121456116
Machinery and equipment5,8764,0101,13835742913011
Furniture and other manufacturing1,9841,317405124106385

Contributors

  • 21.1Ministry of Economic Development; Statistics New Zealand; Wine Institute of New Zealand; New Zealand Footwear Industry Association.

Websites

www.nzte.govt.nz - New Zealand Trade and Enterprise

www.biz.org.nz - Business Development Programme (BIZ)

www.med.govt.nz - Ministry of Economic Development

www.nzier.org.nz - New Zealand Institute of Economic Research Inc

www.stats.govt.nz - Statistics New Zealand

Chapter 22. Housing and Construction

Table of Contents

Housing is a central part of the New Zealand economy, providing employment for a variety of tradesmen.

22.1 Housing

As a physical centre within the environment, a house provides shelter and security for both the family and the individual. A home can fulfil social requirements as well as physical needs, allowing individuals the opportunity to express aspirations and tastes. Housing is a central part of the domestic economy, since it is a major source of investment for many New Zealanders and provides employment and livelihood for a variety of trades. Home ownership is seen as a form of investment saving, an expression of independence and a mechanism for achieving security and self-determination.

While still the predominant form of tenure, the level of home ownership in New Zealand is experiencing a downward trend. The 2001 Census of Population and Dwellings recorded 1,359,843 occupied private dwellings and 8,364 non-private dwellings. There were 1,344,267 households in occupied private dwellings, and 868,656 of these owned their dwellings, with or without a mortgage. This level of home ownership was 2.9 percentage points lower than in 1996, down from 70.7 percent to 67.8 percent. The number of households renting their dwellings increased from 290,124 at the 1996 Census to 358,890 in 2001, an increase of 23.7 percent.

The 2001 Census also revealed that the average number of usual residents per household had dropped, from 2.8 in 1996 to 2.7.

House prices. The average sale price for houses in the year ending 31 December 2002 was $216,830, as shown in Table 22.01. This was 8.1 percent higher than the average price for the previous year ($200,670) and 19.5 percent higher than that recorded five years previously in 1997 ($181,372). Sale prices exclude chattels and other considerations.

Table 22.01. Property prices
Years ending 31 December

Average sale price199719981999200020012002

Note:From 1999 onwards, sales have been collated by sale date. Prior to that, sales were collated by the date the sale notice was received.

Source: Quotable Value

 $
Sections76,41078,56284,46790,47297,539103,055
Houses181,372182,969188,316189,032200,670216,830
Owner-occupier flats166,679164,900167,719161,743171,701184,858

Quotable Value's residential house price index measures changes in the average level of prices paid for residential properties during each quarter. Variations in the average age of properties, as an indicator of the average quality of such properties, are eliminated in the index methodology in order to arrive at a valid index of price level changes. Table 22.02 shows changes in recent years in the house price index, by locality.

Table 22.02. House price index1
Quarters ending 31 December

Locality19951996199719981999200020012002

1Base: Quarter ending 31 December 1989 = 1000.

2Includes North Shore City, Waitakere City, Manukau City. Papakura District and Auckland City.

3Includes Porirua City. Upper Hutt City, Wellington City and Hutt City.

Source: Quotable Value

Whangarei District1,2611,4081,6511,5761,5711,5591,5601,606
Auckland21,4701,6771,7441,6491,6721,6371,6951,946
Hamilton City1,3461,4861,5991,5191,4971,4261,4251,539
Tauranga District1,3481,5161,7061,6081,6121,6121,6291,802
Rotorua District1,3231,4801,6681,5621,5521,5791,5671,572
Gisborne District1,5511,5751,5201,4221,5421,5121,4631,552
Napier City1,4501,4831,4931,4931,5111,5301,5721,793
Hastings District1,4951,5071,5021,4771,5241,5251,6021,746
New Plymouth District1,3641,3751,3301,2891,3371,3431,3891,607
Wanganui District1,1271,0951,0851,0621,0671,0141,0461,098
Palmerston North City1,0721,0611,0621,0381,1071,1141,1201,189
Masterton District1,0931,0621,0681,0401,1391,2031,2511,416
Wellington21,0161,1021,2421,2971,4241,4451,4961,644
Nelson City1,4221,4441,4651,3971,4431,4601,5061,896
Christchurch City1,3931,5181,5921,5101,5471,4861,4981,599
Timaru District1,3781,4091,3921,3531,3511,2961,3841,502
Dunedin City1,3631,3801,3021,2461,2691,2961,3381,420
Invercargill District1,3221,3191,2261,1261,0581,0121,1331,358
All New Zealand1,3581,4911,5721,5161,5531,5371,5831,767

House sales. In the year ending 31 December 2002, 81,494 freehold open market house sales were notified to Quotable Value, a 33.7 percent increase on the 60,969 sales recorded in the previous year. Freehold open market sales cover about 80 percent of all house sales, but exclude forced sales, sales between family members with a gift element, and sales of leasehold and mixed tenure properties.

Housing New Zealand Corporation

Housing New Zealand Corporation is a Crown entity established under the Housing Corporation Act 1974 as amended by the Housing Corporation Amendment Act 2001. It provides housing and services related to housing, and ensures that the Minister of Housing receives appropriate policy advice and information on housing issues.

A major focus for the corporation during 2002/03 was development of the draft New Zealand Housing Strategy. The strategy focuses on identifying future housing needs, ensuring that the housing sector is well placed to provide affordable housing to New Zealand families.

In providing access to sustainable housing for individuals with a need, the corporation uses a social allocation system to assess an applicant's waiting list priority. In 2002/03, the corporation dealt with 40,454 enquiries and assessed 30,144 applicants for placement in its properties. This resulted in 9,885 new tenancies, representing 29,400 people being assisted into housing. At 30 June 2003,11,848 applicants were on state house waiting lists. Table 22.03 details housing activity in recent years.

Table 22.03. Housing New Zealand Corporation activity
Years ending 30 June

 1997199819992000200120022003

1Includes all stock, standard units (non-relocatables), relocatables, garages and carparks.

2The number of new tenancies has declined because tenant turnover has dropped.

3Figures from 2001 only due to introduction of the social allocation system in December 2000.

4Figures denote percentage of new tenancies receiving an income-related rent, which began in December 2000.

5Figure for 2000 includes vacant sales and sales to tenants only, whereas figures for 2001-2003 are for all property disposals, including sales to non-tenants and lease terminations.

6Includes transfer of properties to Community Housing Ltd.

not applicable

Source: Housing New Zealand Corporation

Rental units165,82163,86660,41859,46259,86562,02264,543
New tenancies214,61914,10718,92713,41710,4949,885
New tenancies for priority customers34,8308,6708,031
Percentage allocation to low-income households497.598.097.0
Property disposals53,2162,2843,3611,141215339420
Properties acquired or contracted64841,2246625647081,1672,941

Housing New Zealand Corporation provides access to housing for individuals with a need.

The corporation provides ongoing support to households, such as collecting and reviewing rental/mortgage payments, case management and other services to ensure customers continue to have the most appropriate housing.

The corporation aims to provide housing where demand is highest.

In 2002/03, there was a net increase of 2,521 in the corporation's stock, including 1,666 Auckland City Council units. This brought the total to 64,543 rental units, representing housing for about 180,000 people.

At 30 June 2003, the corporation's assets were valued at $7.5 billion and it returned a surplus of $26 million.

The Housing Innovation Fund ($63 million over four years) announced in the 2003 Budget will help the corporation foster increased non-state social housing sector and local government participation in housing.

The corporation will also work increasingly with the private sector to encourage mutually-beneficial investment in social housing.

The corporation provides sustainable housing for those in need through the following programmes:

  • Community group housing - The corporation supplies accommodation for social sector groups who provide housing for those with special needs. At 30 June 2003, 1,282 properties were let to a wide range of community-based groups providing such services.

  • Community renewal - This programme aims to improve the economic, social and physical environment through redevelopment and capital improvement. Community renewal has operated since December 2000, with the first projects in Fordlands (Rotorua), Aranui (Christchurch) and Clendon (Auckland). Projects in Talbot Park (Auckland) and Porirua East were launched in 2003, with another project in Northcote (Auckland) being planned.

  • Healthy housing - This is a joint initiative between the corporation and the Auckland, Counties Manukau and Northland District Health Boards. Its objective is to reduce overcrowding and housing-related health risks. During 2002/03, the corporation carried out 597 interventions to reduce the health risks of 441 households at a cost of $12.5 million.

  • Low deposit rural lending - Under this programme, the corporation helps low income families, particularly Māori, into home ownership. Applicants complete a 12-week home ownership course before becoming eligible for loan assistance with a 3 percent deposit. During 2002/03, 264 loans were approved for acquiring houses by loan recipients.

  • Rural housing - This programme addresses substandard housing in Northland, East Coast and eastern Bay of Plenty. The programme includes the Special Housing Action Zone (SHAZ) project. Under SHAZ the corporation provided 249 suspensory loans for essential repairs and 31 loans to help households address sewage, power and access issues in 2002/03, along with houses for those in need.

  • Maintaining and improving the state housing portfolio - State housing assets are improved through measures such as regular maintenance, modernisation and energy efficiency programmes. During 2002/03, 442 properties were modernised. Insulation and other energy efficiency features were installed in 2,619 properties.

  • Home ownership - The corporation began its pilot Mortgage Insurance Scheme (MIS) in September 2003 to support Kiwibank In Reach home loans to make home ownership easier for low to modest income earners. The trial runs until June 2005.

Table 22.04 details Housing New Zealand Corporation loan approvals in recent years.

Table 22.04. Housing New Zealand Corporation loan approvals
Years ending 30 June

Programme2000200120022003
NumberValueNumberValueNumberValueNumberValue

1Mortgage finance to build on multiple-owned Māori land.

2Low Deposit Rural Lending Programme.

3Loans to cover the cost of urgent and essential repairs and the cost of installing infrastructure services to new homes.

4Borrower has to meet Housing New Zealand Corporation's lending conditions and a deposit of at least 20 percent of the purchase price.

.. figures not available

Source: Housing New Zealand Corporation

  $(m) $(m) $(m) $(m)
Papakāinga120..70.4060.2720.09
LDRL2165..13011.0014611.6026419.80
Suspensory3....541.082033.702804.26
General413..120.6090.35110.37
      Total19837.0020313.0836415.9255724.52

Ministry of Housing

One of the principle functions of the Ministry of Housing is to administer the Residential Tenancies Act 1986. This involves the provision of information, advice and a dispute resolution service for tenants and landlords, and the receipt, investment and refund of residential tenancies bonds. The ministry delivers these services through its tenancy services division, which has 22 offices throughout New Zealand.

The ministry's advisory service offers education for landlords and tenants, while the dispute resolution service delivers mediation and administrative support to the Tenancy Tribunal, operated by the Ministry of Justice.

The ministry also administers the State Housing Appeals Authority, which hears appeals relating to income-related rents and the allocation of state housing, and provides purchase and monitoring advice to the government with respect to the Housing New Zealand Corporation.

In the year to 30 June 2003, there were 44,463 applications for dispute resolution, compared with 41,736 in the year to 30 June 2001. Of these, 58 percent were resolved through mediation. The remaining applications were not resolved or only partially resolved in mediation and were referred to the Tenancy Tribunal.

The ministry received 195,357 bond lodgements and made 177,640 refunds during the year.

As at June 2003, the average daily bond balance held on behalf of tenants and landlords was $138.85 million, compared with $115.62 million two years earlier.

22.2 Housing loans

An estimated 850,000 of the approximately 1,400,000 non-farm, privately-owned residential dwellings in New Zealand at 31 December 2003 had a loan or loans secured by mortgage.

The average value of loans secured on each property was about $105,000.

More than 300,000 of these mortgages were estimated to be secured on privately-owned residential rental properties. The remainder were on owner-occupied homes and second homes, with 2001 Census of Population and Dwellings data recording slightly more than half such dwellings with mortgage loans registered.

With house prices rising strongly in 2003, the value of residential dwellings increased by more than 20 percent. Turnover exceeded 10 percent of the stock of dwellings, while residential mortgage debt increased by more than $12 billion (16 percent).

Sixty percent of New Zealand homeowners had an average home loan of $105,000 at 31 December, 2003.

Figure 22.01 shows mortgages registered and discharged from 1920 to 2003.

Figure 22.01. Mortgages
Registered and discharged
Years ending 31 March

MortgagesRegistered and dischargedYears ending 31 March

Mortgage interest rates

Figure 22.02 shows that the average annual rate of interest on floating rate mortgages has been considerably lower in recent years than during the period of strong growth and immigration in the mid 1990s.

Figure 22.02. Home mortgage rates1
Years ending 31 December

Home mortgage rates1Years ending 31 December

1Annual average variable first mortgage housing rate.

Source: Reserve Bank of New Zealand

Since 1994, however, when fixed rate interest mortgages began to be widely offered in New Zealand, floating mortgage rates have not been a good indicator of the cost of borrowing on mortgage. By 1998, around 60 percent of all housing loans were at fixed rates and by the end of 2003 the figure was more than 65 percent.

Table 22.05 shows household borrowing for housing and other purposes obtained from a Reserve Bank of New Zealand monthly survey. Five banking groups of the 25 respondents in the survey were the source of more than 90 percent of the survey's total household debt.

Housing assistance

The accommodation supplement is available to low-income households, irrespective of whether they are renters, mortgagees or boarders, provided they are not living in Housing New Zealand Corporation accommodation.

The supplement is a cash payment administered by Work and Income and takes account of higher housing costs in main urban centres. The low-income threshold depends on circumstances and an abatement regime assists in targeting the supplement to households on lower incomes_ The supplement is subject to an asset test.

Table 22.05. Household borrowing
By quarterly average

QuarterReason for borrowingTotal
HousingOther
Source: Reserve Bank of New Zealand
 $ (million)
1990 December22,0413,01425,055
1991 December23,9373,12327,060
1992 December26,3513,25729,608
1993 December29,4023,58232,984
1994 December33,7533,93237,685
1995 December38,4344,45142,885
1996 December44,0475,03449,081
1997 December49,7125,31655,028
1998 December53,7605,43959,199
1999 December59,5535,92865,481
2000 March60,7146,01066,724
          June61,7306,07067,800
          September62,4306,19068,620
          December63,2166,43469,650
2001 March64,1236,56270,685
          June65,2946,62571,919
          September66,3016,74173,042
          December67,4446,99474,438
2002 March68,8477,13075,977
          June70,5567,17177,727
          September71,8727,31079,182
          December73,6797,53281,211
2003 March75,9607,65283,612
          June78,6087,71486,322
          September81,4667,79189,257
          December84,8977,99892,895

Table 22.06. Accommodation assistance from Work and Income

YearBenefits current at 30 JuneAnnual expenditure, years ending 30 June

1Accommodation benefit until 30 June 1993, subsequently accommodation supplement.

2At 31 May.

.. not available

Source: Ministry of Social Development

 Number$(million)
Accommodation benefit1
1990106,408 
1991112,658..
1992140,356180.1
1993150,6692210.8
Accommodation supplement
1994251,505351.3
1995266,275491.4
1996280,369561.8
1997297,134661.6
1998311,618792.7
1999318,189843.3
2000319,767867.0
2001268,612795.1
2002258,034719.6
2003251,941706.0

Table 22.06 shows accommodation assistance in recent years. Reintroduction on 1 December 2000 of income-tested rents for Housing New Zealand Corporation tenants resulted in a large number of people losing eligibility for the accommodation supplement because of lower rent levels.

At 30 June 2003, 251,941 people were receiving the accommodation supplement, 6,093 fewer than the 258,034 at 30 June 2002. During the year to 30 June 2003,237,615 applications for the supplement were granted, 9,622 fewer than during the year to 30 June 2002.

22.3 Building and construction

Building and construction is an important part of the New Zealand economy. For the year ending 31 March 2003, gross fixed capital investment on building and other construction totalled $13.4 billion. For the previous year, the figure was $11.9 billion and in 2001 it was $10.6 billion.

The number of people engaged in the industry at 28 February 2003 was 124,670, or 7.0 percent of those engaged in all industries other than farming. In addition, tens of thousands were employed supporting the industry in manufacturing, material supplies and transport.

The share of New Zealand's gross domestic product (GDP) contributed by the industry (in constant prices) was 4.2 percent in the year ending 31 March 2003, compared with 3.9 percent in the 2001 March year.

The most common construction systems used in New Zealand are light timber framing for housing, reinforced concrete (pre-cast and in situ) for multi-storey buildings and light steel framing for industrial buildings. However, with the introduction of a performance-based building code, traditional systems are slowly being replaced with new methods and products. With shortages of timber on the domestic market, light steel framing is becoming more common.

New Zealand has developed particular expertise in the design of earthquake-resistant structures and in other specialist areas such as hydro and geothermal power station design and construction.

Redevelopment of Jade Stadium's west stand won a New Zealand Institute of Architects supreme award in 2003.

Construction law

Building controls in New Zealand 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 essential requirements for building performance, to ensure the health and safety of building users and the protection of other people's property.

The Building Industry Authority also writes technical documents (known as The New Zealand Building Code Handbook and Approved Documents) which provide methods of satisfying the code. 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 territorial authorities, which must confirm that building projects satisfy 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 act's compliance schedule and annual building warrant of fitness provisions.

As of mid-2003, there were 19 building certifiers approved by the Building Industry Authority, some of whom were limited to approving work covered by the approved documents for housing, while others specialised in disciplines such as automatic sprinkler systems and lifts.

New Zealand is seen as a leader in the worldwide move to performance-based building codes. 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 supporting documents are reviewed every five years to ensure the code remains current.

Safe and healthy buildings are one of the Building Industry Authority's goals, and work on the dangerous buildings provisions of the Building Act 1991 continues to be a high priority, in particular earthquake-prone buildings.

Other factors such as fire risks and insanitary conditions can also make buildings dangerous.

The authority is funded by a building consent levy of $0.65 for every $1,000 of building work, applicable to projects exceeding $20,000. This produced income of about $4.6 million for the year ending 30 June 2003. The Building Industry Authority website is www.bia.co.nz

Building statistics

New Zealand's 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 source of these statistics is building consents issued by territorial authorities.

Building authorisations provide the primary indication of future building work to be put in place. As such, published figures on the number and value of building authorisations is of particular interest to economists and the government.

In addition, the Reserve Bank of New Zealand uses the figures to predict the magnitude of inflationary pressures within the building and construction industry and its contribution to overall inflation in the economy.

Table 22.07 shows the location and value of building authorisations for the years ending 31 March 2002 and 2003. Authorisation values shown usually represent the contract price or the estimated cost of the building before starting construction.

The finished cost may be higher or lower due to changes in wage rates, material prices and design.

Table 22.07. Building authorisations1
By location, number and value
Years ending 31 March

RegionAuthorisationsResidential valueNon-residential valueTotal building value
20022003200220032002200320022003

1Does not include alterations and additions.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 Number$(million)
Northland8831,002135.6160.632.998.3168.5258.9
Auckland8,58812,5111,356.61,844.6661.6592.72,018.22,437.3
Waikato2,1562,548332.9423.5174.5129.0507.4552.6
Bay of Plenty1,5071,934244.0351.779.084.7323.1436.4
Gisborne8311210.619.38.210.718.730.0
Hawke's Bay48059080.7113.060.452.4141.1165.4
Taranaki19729432.252.047.135.679.487.6
Manawatu-Wanganui60264990.9109.556.061.8146.9171.3
Wellington1,9872,351313.3376.3114.2104.2427.4480.5
Nelson21430234.052.429.914.163.966.5
Tasman40754060.887.029.114.089.8101.0
Marlborough27034340.054.913.420.153.475.0
West Coast12212512.817.123.112.635.929.6
Canterbury2,5253,487399.6593.4163.3268.9562.8862.3
Otago1,0541,247177.5245.772.068.3249.6314.0
Southland18628531.847.956.230.488.078.3
Area outside1---0.11.60.11.6
      Total New Zealand21,26228,3203,353.24,548.81,620.91,599.44,974.16,148.3

Table 22.08 shows values of building authorisations by building type for the five years ending 31 March 2003.

Authorisations cover alterations and additions, as well as new buildings.

‘Hostels, boarding houses’ includes barracks, orphanages, nurses' homes and boarding school accommodation; ‘hotels, motels’ includes private and licensed hotels, but excludes taverns.

‘Education buildings’ includes primary and secondary schools, colleges of education, technical institutes, university buildings, kindergartens and playcentres.

The broad category of ‘social, cultural, religious and recreational buildings’ includes churches, halls, theatres, cinemas, clubrooms, community centres and grandstands.

Table 22.08. Building authorisations
By type and value
Years ending 31 March

Type of building19992000200120022003

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Residential
New dwellings2,775.93,533.22,833.53,353.24,548.8
Alterations/additions and outbuildings680.4729.7710.6758.1875.7
      Total residential building3,456.34,262.93,544.14,111.35,424.5
Non-residential (includes alterations and additions)
Hostels, boarding houses101.276.843.485.9130.2
Hotels, motels154.1123.8134.2129.9144.1
Hospitals and nursing homes173.6198.1218.8279.1221.2
Education buildings355.8346.1312.4357.3426.0
Social, cultural, religious and recreational buildings319.8166.8275.1242.3205.8
Shops, restaurants, taverns304.4338.7371.8352.4393.0
Office and administrative407.0336.7478.0453.3303.8
Storage buildings154.7173.3187.9176.2264.6
Factories and industrial264.2314.5312.1385.0352.0
Farm buildings93.389.8123.5181.1162.4
Miscellaneous buildings29.840.921.223.424.8
      Total non-residential buildings2,357.82,205.52,478.42,665.92,627.9
      Total all buildings5,814.16,468.46,022.46,777.28,052.4

Residential and non-residential building authorisations are compared in Table 22.09, while figure 22.03 shows the number of new dwelling units authorised from 1974 to 2003.

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 to stability in the building industry.

New dwelling authorisations in the year ending 31 March 2003 totalled 28,320 units, with a total value of $4.5 billion. In dollar terms, this was a 36 percent increase on the previous year.

Figure 22.04 shows how the size of new dwellings has changed since 1990.

Table 22.09. Building authorisations
Residential and non-residential
Years ending 31 March

YearNew residential dwellingsTotal residential building1All buildings2
UnitsValueFloor area

1Includes new dwellings, outbuildings, alterations and additions.

2Includes all residential and non-residential building.

Source: Statistics New Zealand

 Number$(million)sq m (000)$(million)
199722,4182,927.43,820.43,562.65,892.1
199825,5653,252.04,077.33,938.36,301.2
199920,7662,775.93,310.33,456.35,814.1
200025,8583,533.24,261.54,262.86,468.4
200119,3702,833.53,382.43,544.16,022.4
200221,2623,353.23,876.34,111.36,777.2
200328,3204,548.84,982.85,424.58,052.3

Figure 22.03. New dwelling units authorised
Years ending 31 March

New dwelling units authorisedYears ending 31 March

Figure 22.04. Size of new dwellings
By average floor area

Size of new dwellingsBy average floor area

Work put in place

Contrasting with statistics based on building authorisations, surveys of building work put in place show the gross value of actual work done, excluding goods and services tax.

There can be varying time lags between issue of a building authorisation and commencement of building.

Table 22.10 shows the value of work put in place in the seven years up to 31 March 2003, while figure 22.05 compares the value of residential and commercial work put in place since 1974.

Table 22.1. Work put in place
By value
Years ending 31 March

YearDwellingsNon-residential buildings (including alterations and additions)
New DwellingsAlterations, additions and outbuildingsHotels and boarding homesHospitals and nursing homesFactories and industrial buildingsCommercial buildings1Education buildingsMiscellaneous2 buildingsTotal
GovernmentOther

1Includes shops, restaurants, taverns, offices, administrative buildings and storage buildings.

2Includes social, cultural, religious, recreational and farm buildings.

Source: Statistics New Zealand

 $(million)
199716.43,393.4687.4244.4183.9473.0753.6378.2837.76,968.0
199813.43,590.2641.6206.1197.1427.9763.2345.77.38.06,923.2
19999.02,967.8619.6276.3211.2258.3746.3404.9780.66,273.9
20004.83,864.3735.1304.4270.4326.0776.9354.3705.87,342.0
200114.13,268.1662.5212.7293.7309.4920.9403.7634.56,719.6
200217.33,279.1742.0231.0268.2467.9866.0391.3908.67,171.4
20037.24,322.4858.5241.7333.5388.3853.0468.7920.78,394.0

Figure 22.05. Work put in place
Years ending 31 March

Work put in placeYears ending 31 March

Building and construction price indexes

Price indexes for buildings and construction are contained within Statistics New Zealand's capital goods price index. Two series for residential buildings, four for non-residential buildings, four other construction and four land improvement price indexes have been produced since the December 1989 quarter.

For the year ending with the September 2003 quarter, the indexes recorded increases of 6.5 percent for residential buildings, 3.8 percent for non-residential buildings, 1.0 percent for other construction and 1.3 percent for land improvement.

In the September 2003 quarter, the residential buildings index recorded, for the fourth consecutive quarter, the most significant upward contribution to the Capital Goods Price Index. The residential buildings index saw 16 successive quarterly increases prior to the September 2003 quarter, establishing the upward trend in residential building construction costs.

The dwelling rentals component of the consumers price index increased by 3.1 percent in the year ending 31 December 2003.

Contributors

  • 22.1Statistics New Zealand; Quotable Value New Zealand; Housing New Zealand Corporation; Ministry of Housing.

  • 22.2Reserve Bank of New Zealand; Land Information New Zealand; Ministry of Social Development.

  • 22.3Statistics New Zealand; Building Industry Authority.

Websites

www.bia.co.nz - Building Industry Authority

www.hnzc.co.nz - Housing New Zealand Corporation

www.linz.govt.nz - Land Information New Zealand

www.minhousing.govt.nz - Ministry of Housing

www.msd.govt.nz - Ministry of Social Development

www.nzia.co.nz - New Zealand Institute of Architects

www.quotable.co.nz - Quotable Value New Zealand

www.rbnz.govt.nz - Reserve Bank of New Zealand

www.stats.govt.nz - Statistics New Zealand

Chapter 23. Transport

Table of Contents

Strait Shipping operates livestock, freight and passenger services between Wellington, Picton and Nelson.

While international air and telecommunication links are helping to overcome New Zealand's isolation as a trading nation, there remains a heavy reliance on sea transport for movement of the bulk of the country's exports and imports.

The period from the late 1970s has been marked by ongoing and continuing change in the New Zealand transport sector. Major regulatory changes have encouraged competition within the industry and allowed the ongoing introduction of a wide range of new technologies. Organisational changes have seen a greater use of commercial structures for publicly-owned transport systems, with some of these being transferred to the private sector.

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 ownership and operation of commercial port facilities, and waterfront labour was reformed in 1989. This reform saw the end of the government-managed labour pool system and introduced direct employment and enterprise bargaining to the waterfront.

23.1 Shipping

Ninety-nine percent of both New Zealand's exports (25 million tonnes) and imports (around 16 million tonnes) are carried by sea. By value, this represents 83 percent of exports and 75 percent of imports.

These figures clearly illustrates the importance to New Zealand of efficient and cost-competitive international shipping services, especially considering the country's distance from overseas markets.

Coastal shipping provides intra and inter-island links, and plays a key role in the distribution of petroleum products and cement.

Since the 1990s, New Zealand shipping policy has reflected the philosophy that the country's interests are best served by being a ship-using, rather than a ship-operating nation. The policy seeks to ensure for New Zealand exporters and shippers unrestricted access to the carrier of their choice, and to the benefits of fair competition among carriers.

The Maritime Transport Act 1994 regulates ship safety, maritime liability and marine environmental protection. Under the act, the Maritime Safety Authority of New Zealand (MSA) is responsible for maritime safety and for marine pollution prevention and response functions.

Statistics New Zealand's February 2003 business demographics recorded 770 full-time equivalent persons engaged in international sea transport, 1,350 in coastal water transport and 630 in inland water transport.

Table 23.01. Registered vessels involved in domestic and overseas trade
Years ending 31 December

YearNumber of vesselsNet tonnageNumber of crew1

1Figures may not be reliable.

Source: Maritime Safety Authority

Domestic
19951220,221269
19961226,048302
19971226,048302
1998816,875200
1999816,875200
2000814,580145
2001914,406158
20031121,673205
Overseas
1995969,354170
1996859,006153
1997754,711115
1998743,763111
1999432,54342
2000329,48423
2001329,48440
2003323,68648

Overseas lines

Major trading routes for New Zealand include the United Kingdom and Europe; Africa, India and the Middle East; North Asia, East Asia and South-east Asia; North America, Central America and South America; trans-Tasman and the Pacific.

New Zealand is well provided with international shipping services, with more than 30 global and regional international shipping lines calling at New Zealand ports. Among them are P & O Nedlloyd, Mediterranean Shipping Company, Contship Containerlines, Columbus Line, Maersk Sealand, CMA CGM Group, Hapag Lloyd, Wallenius Wilhelmsen, Malaysia International Shipping Corporation Berhad, China Ocean Shipping Company, Far Eastern Shipping Company, Orient Overseas Container Line, Nippon Yusen Kaisha Line, Mitsui OSK Lines, Pacific International Line, Australia New Zealand Direct Line, Chief Container Service, Tasman Orient Line, Pacific Forum Line, Sofrana Unilines and Pacific Direct Line.

Conference lines and vessel sharing agreements (VSAs) are involved in much of New Zealand's overseas shipping. Conferences are associations among shipping companies to provide joint services on several trade routes. VSAs are more limited arrangements than conferences, involving separate services jointly scheduling the same vessels, to better utilise vessel capacity. However, increased competition in the shipping industry has seen greater participation in New Zealand trade in recent years by independent carriers.

Inter-island shipping services

Interisland Line provides rail ferry services across Cook Strait between Wellington and Picton, transporting passengers, vehicles and freight. Tranz Rail also operates a high-speed car and passenger ferry service between Wellington and Picton. Lyttelton-based Pacifica Shipping operates two cargo vessels on services linking Auckland, Tauranga, Wellington, Nelson, Lyttelton, Timaru and Dunedin. Strait Shipping operates livestock, roll-on roll-off and passenger services between Wellington, Picton and Nelson. Auckland-based Sea-Tow operates tugs and barges on tramp services around the New Zealand coast. Black Robin Shipping operates a general cargo and livestock service between the North and South Islands and the Chatham Islands. In addition, since 1995, coastal shipping services are also provided by foreign ships transiting the New Zealand coast in the course of their international voyages.

Bulk shipping

Overseas trade. New Zealand's bulk shipping needs are served in the main by a mix of vessels, few of which operate in fixed services. Imported bulk cargoes include crude oil, phosphate rock, bauxite and petroleum coke. Exports include ironsand, coal, forest products and methanol. Sea-Tow provides tug and barge services, which can operate to Australia and the South Pacific.

Coastal. Bulk cement distribution is handled by three small cement vessels, two operated by Milburn New Zealand and one by the Golden Bay Cement Company. Two tankers operated by Silver Fern Shipping 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 commercial ports. These companies are predominantly owned by local authorities, although six are partly privatised and five of these are listed on the New Zealand Stock Exchange. Two of the port companies, Northland Port Corporation and Port of Tauranga Ltd, have established a new deepwater port (Northport Ltd) at Marsden Point, in Northland.

In addition to the 13 commercial ports, there are smaller ports at Westport, Greymouth, Wanganui and Taharoa.

Registration of ships. As at 31 December 2003, there were 2,525 ships on the New Zealand Register of Ships, with a total gross tonnage of 266,562 and net tonnage of 127,525. This compared with 2,944 ships with a gross tonnage of 270,435 and net tonnage of 135,344 in 2002, and 2,997 ships with a gross tonnage of 262,242 and net tonnage of 133,303 in December 2001. Under provisions of the Ship Registration Act 1992, ships not exceeding 24 metres register length are not required to have tonnages registered.

New registrations during 2003 included the passenger vessels Aratere, Milford Sovereign, Pride of Milford and Purbeck; and the fishing vessels Amaltal Enterprise, Avro Chieftain, Gudni Olafsson, Janas, Paerangi and San Liberatore.

Vessels removed from the New Zealand Register during 2003 included the passenger ferry The Lynx; the barge Union Bulk I; the tug Karamea, and the fishing vessel Kap Farvel.

New registrations during 2002 included the cargo vessel Southern Motu; the passenger vessels Fiordland Navigator and Santa Regina, and the fishing vessel Capt. M. J. Souza. Vessels removed from the New Zealand Register during 2002 included the fishing vessels Taharaki, Pakura and San Arawa II

Table 23.01 shows the number and capacity of vessels involved in domestic and overseas trade.

Seafarer qualifications. The MSA is the licensing body for merchant navy personnel. After qualifying for sea service, followed by further training and examination at approved teaching institutions, seafarers are issued with certificates of competency as master, mate or engineer, as well as 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 the requirements of relevant United Nations conventions and are accepted 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. 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 yacht master.

Maritime 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 international ships and health and safety standards for crews. The MSA is responsible for administering these conventions and for inspecting foreign and New Zealand ships to ensure they meet the required standards.

Marine safety services. There are 142 navigational aids owned and maintained by the MSA on headlands, capes, reefs and shoals around 5,400 nautical miles (9,000 kilometres) of New Zealand coastline. The aids consist of 96 automatic lights, 41 day beacons and five navigational buoys. There are no staffed lighthouses in New Zealand. The MSA also 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. The 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 navigation aids and the distress and safety radio system is met from a marine safety charge levied on all commercial ships (New Zealand and foreign). The government also contributes to costs, on behalf of the recreational boating sector.

Wrecks. Where ships are wrecked on the New Zealand coast or in lakes and rivers, the Director of Maritime Safety has powers for preserving life and protecting property. Contrary to popular belief, a wreck or any article belonging to it remains the property of the owner and it is illegal for others to take any items of wreckage. Persons finding or taking possession of wrecks, or articles from wrecks, must notify the police who may take custody until ownership is resolved.

Maritime accidents. The MSA investigates maritime accidents and incidents to identify their causes, analyses trends and makes recommendations as to how similar occurrences can be avoided. Investigations also assess whether there has been any breach of the law. Figure 23.01 provides an analysis of marine accidents.

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 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 local, regional, national and international levels to respond 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 100-year spill, arrangements are in place to use 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 throughout New Zealand.

Shipping industry review. The government established a shipping industry review in August 2000 and the six-member review team reported its recommendations in A Future for New Zealand Shipping. Proposals in the report included shipping taxation issues, pricing by ports, partnership links between merchant shipping and the Royal New Zealand Navy, maritime training, International Labour Organisation conventions, Closer Economic Relations (CER) with Australia opportunities, compliance costs and the need for more shipping and cargo-related statistics.

23.2 Civil aviation

There were 8,260 people (measured on a full-time equivalent basis) working in civil aviation at 28 February 2003, according to business demographic statistics compiled by Statistics New Zealand. Of these, 3,910 were employed in scheduled international air transport, and 3,620 in scheduled domestic air transport.

In addition to civil aviation, there were another 1,430 full-time equivalent persons working within other services to air transport.

Due to its island status and distance from other countries, New Zealand is one of the most aviation-oriented nations in the world. In a population of just 4 million, there are 8,687 pilots and 3,530 aircraft - one pilot for every 460 people and one aircraft for every 1,133 people.

The number of aircraft in the New Zealand civil fleet increased in the year ending 31 March 2003 from 3,378 to 3,530. The number of licensed aircraft engineers continues to increase, from 1,766 in 2002 to 1,847 in 2003. The rate of increase in the total number of hours flown by New Zealand registered aircraft between the year ending 31 March 1999 and the year ending 31 March 2003 averaged 1.0 percent a year.

Figure 23.01. Marine accidents
Years ending 30 June

Marine accidentsYears ending 30 June

Figure 23.02. Notifiable aircraft accidents1
Years ending 30 June

Notifiable aircraft accidents1Years ending 30 June

1Includes hang gliders and parachutes.

Source: Civil Aviation Authority

Civil Aviation Authority

The Civil Aviation Authority (CAA) is New Zealand's 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 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 operating the National Rescue Coordination Centre.

The CAA also acts on behalf of the Crown in respect of the International Civil Aviation Organisation (ICAO). As part of ICAO responsibilities, the CAA is designated the Aviation Security Authority, Air Traffic Services Authority, Personnel Licensing Authority, Meteorological Authority, Dangerous Goods Authority, and meets New Zealand's ICAO obligations for aeronautical information. It also undertakes ICAO responsibilities of a technical or safety regulatory nature associated with the ICAO Air Navigation Bureau and Technical Assistance Bureau.

The CAA is funded from a number of sources: a levy ($1.77 + GST per passenger, per sector) based on the number of domestic passengers; an international departing passenger levy ($0.89 + GST per passenger); a participation levy based on aircraft weights; an Aeronautical Information Services levy; and fees for services, such as certification, licensing, rules development; and policy advice to the government.

In the financial year ending 30 June 2003, the CAA received $22.902 million in income, and spent $21.729 million, resulting in a surplus of $1.173 million. Levies totalled more than 74 percent of income. The CAA web site is www.caa.govt.nz

Figure 23.02 shows the number of notifiable aircraft accidents in New Zealand from 1995 to 2003.

Airways Corporation of New Zealand Ltd (Airways)

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. 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. 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 International Civil Aviation Organisation (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 airport emergency organisations. Its technicians perform 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 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. 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 for 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. Specialised divisions of Airways provide a range of related aviation services. Aviation Publishing is responsible for producing aeronautical charts and manuals on behalf of the Civil Aviation Authority. 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.

Airports

Many New Zealand airports, formerly partnerships between central and local government, have been restructured as airport companies. These include the three main international airports at Auckland, Christchurch and Wellington.

Auckland International Airport Ltd and Wellington International Airport Ltd have become majority privately-owned companies. Auckland International Airport Ltd, New Zealand's largest airport company, was floated on the New Zealand Stock Exchange in July 1998.

A number of provincial airports have also been corporatised, ranging in size from Dunedin Airport Ltd to the smallest airport company, Chatham Islands Airport Ltd.

Another major change for provincial airports has been development of international business. Airports operated by Dunedin Airport Ltd, Palmerston North Airport Ltd, Queenstown Airport Corporation Ltd and Waikato Regional Airport Ltd have regular international flights, mostly to and from Australia. This growth has occurred with the emergence of airlines targeting the budget travel market.

Domestic air services

New Zealand allows up to 100 percent foreign ownership of domestic airlines and there is no domestic air services licensing. Air New Zealand is the major domestic operator and has regional connections through Air New Zealand Link branding of commuter airlines. Qantas provides jet services on the main trunk.

Emirates Airline began thrice-daily flights between Auckland and Dubai in August 2003.

International air services

International air services are operated under formal agreements between governments. New Zealand has 40 such agreements and a non-government agreement with Taiwan.

One agreement, the Multilateral Agreement on the Liberalization of International Air Transportation, provides for New Zealand's air services arrangements with Brunei Darussalam, Chile, Peru, Samoa, Singapore, Tonga and the United States. Agreements outline routes by which airlines can operate to and from New Zealand and, in some cases, capacity that can be used on those routes.

New Zealand's international air transport policy is to maximise economic benefits to New Zealand, including trade and tourism, consistent with foreign policy and strategic considerations.

Air New Zealand operates services to five gateways in Australia (Sydney, Melbourne, Brisbane, Perth and Cairns). 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 code-share basis.

Air New Zealand operates to Singapore, Japan (Tokyo, Osaka and Nagoya), Hong Kong and Taiwan and offers code-share services to Bangkok and Kuala Lumpur.

Own-aircraft services are operated to Honolulu, Los Angeles and San Francisco and code-share services are offered to a variety of other points in the United States, as well as to Vancouver and Toronto. Code-share services are also offered to Guadalajara and Mexico City.

Table 23.02 lists foreign airlines operating in New Zealand at 31 December 2003.

Freedom Air International, an Air New Zealand subsidiary, offers budget services across the Tasman.

There were 713,126 visitor arrivals from Australia in the year ending 31 December 2003 and 715,115 departing New Zealanders indicated Australia was the destination in which they expected to spend most time.

Table 23.02. Foreign airline operations
By date of commencement and routes served
At 31 December 2003

Date commencedAirlineRoutes served

1American Airlines (with Qantas); Air Canada, Austrian Airlines, Japan Airlines, Mexicana and United Airlines (with Air New Zealand); British Airways (with Qantas and Cathay Pacific); Delta Airlines (with Korean Air); KLM (with Malaysia Airlines); and Lufthansa (with Air New Zealand and Thai Airways) serve New Zealand on a code-share basis only. EVA Air and Singapore Airlines operate their own aircraft to New Zealand and also code-share with Air New Zealand. Polynesian Airlines operates its own aircraft to New Zealand and also code-shares with Qantas. Qantas operates its own aircraft to New Zealand and also code-shares with Air Pacific, Air Tahiti Nui and Polynesian Airlines. Air Tahiti Nui operates its own aircraft to New Zealand and also code-shares with Polynesian Airlines to Sydney.

2American Airlines began services to New Zealand in 1970, but ceased operating in 1974. Services were provided again between February 1990 and March 1992. The airline now code-shares with Qantas.

Source: Ministry of Transport

1 Apr 1961Qantas1Sydney/Melbourne/Brisbane/Perth/Cairns-Auckland/Christchurch/Wellington
Melbourne-Auckland-Los Angeles
Brisbane-Auckland-Los Angeles
Sydney-Auckland-Santiago
Auckland-Apia
Auckland-Nadi
Auckland-Papeete
4 Apr 1963British Airways1London-Los Angeles-Auckland
London-Hong Kong-Auckland
London-Sydney-Auckland/Wellington/Christchurch
1 Oct 1974Air PacificSuva/Nadi-Auckland
1 May 1976Singapore Airlines1Singapore-Auckland/Christchurch
25 Feb 1978Polynesian Airlines1Apia-Auckland
Apia-Tonga-Auckland-Sydney-Auckland-Niue-Apia
Apia-Niue-Auckland
Apia-Tonga-Wellington
1 Jul 1980Japan Airlines1
Tokyo-Auckland
Tokyo-Christchurch-Auckland
Osaka-Auckland
3 Dec 1985Cathay PacificHong Kong-Auckland
20 Dec 1985Aerolineas ArgentinasBuenos Aires-Auckland-Sydney
11 Feb 1986United Airlines1Los Angeles-Auckland-Melbourne/Sydney/Brisbane/Cairns/Rarotonga/Nadi
Los Angeles-Auckland-Wellington/Christchurch/Dunedin
Honolulu-Auckland
8 Nov 1987Air Caledonie InternationalNoumea-Auckland
5 Nov 1987Thai AirwaysBangkok-Sydney-Auckland
Bangkok-Brisbane-Auckland
4 Nov 1988Garuda IndonesiaDenpasar-Brisbane-Auckland
1 Nov 1989Air VanuatuPort Vila-Auckland
5 Dec 1989Malaysia AirlinesKuala Lumpur-Auckland
Kuala Lumpur-Brisbane-Auckland
1 Jul 1991Royal Tongan AirlinesTonga-Auckland-Sydney
29 Oct 1991Lufthansa1Frankfurt/Munich-Los Angeles-Auckland
Frankfurt-Singapore-Auckland
Frankfurt-Hong Kong-Auckland
Frankfurt/Munich-Bangkok-Sydney/Brisbane-Auckland
3 Nov 1993Korean AirSeoul-Auckland
7 Nov 1993EVA AirTaipei-Auckland
1 Nov 1995American Airlines2Los Angeles-Auckland-Melbourne/Sydney/Brisbane
27 Mar 1997Asian ExpressSydney-Auckland (freight)
1 Sep 1998Air Canada1Vancouver/Toronto-Los Angeles-Honolulu-Nadi-Auckland
Vancouver/Toronto-Los Angeles-Auckland
18 Sep 1999CargoluxLuxembourg-Damascus-Penang-Melbourne-Auckland-Hong Kong-Abu Dhabi-Luxembourg (freight)
Luxembourg-Kuala Lumpur-Melbourne-Auckland-Los Angeles-Luxembourg (freight)
16 Dec 1999Mexicana1Mexico City/Guadalajara-Los Angeles-Auckland
24 Aug 2000Air Tahiti NuiPapeete-Auckland-Sydney
29 Oct 2000KLM Royal Dutch Airlines1Amsterdam-Kuala Lumpur-Auckland
1 Jul 2001Singapore Airlines CargoSingapore-Sydney-Auckland-Singapore (freight)
Singapore-Sydney-Auckland-Jakarta-Singapore (freight)
29 Nov 2002Delta Air Lines1Los Angeles-Seoul-Auckland
20 Mar 2003Lufthansa CargoFrankfurt-Atlanta-Chicago-Honolulu-Auckland-Melbourne-Bangkok-Shariah-Frankfurt (freight)
Frankfurt-Chicago-Honolulu-Auckland-Melbourne-Penang-Lahore-Shariah-Frankfurt (freight)
Frankfurt-Atlanta-Chicago-Honolulu-Auckland-Melbourne-Kuala Lumpur-New Delhi-Frankfurt freight)
Frankfurt-Chicago-Honolulu-Auckland-Melbourne-Kuala Lumpur-New Delhi-Frankfurt (freight)
1 Aug 2003Emirates AirlineDubai-Sydney-Auckland
Dubai-Singapore-Melbourne-Auckland
Dubai-Singapore-Brisbane-Auckland
26 Oct 2003Asiana AirlinesSeoul-Auckland
26 Oct 2003Austrian Airlines1Vienna-Kuala Lumpur-Sydney/Melboume-Auckland/Wellington/Christchurch
27 Oct 2003Royal Brunei AirlinesBandar Seri Begawan-Brisbane-Auckland

The TranzAlpine Express crosses a viaduct on its way from Christchurch to the West Coast.

23.3 Railways

The New Zealand railway network spans 3,898 kilometres, from Otiria 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.

The Railways Department was reorganised in 1982 to become a government-owned corporation with a commercial mandate. The same year, the government began deregulation of the transport industry, removing statutory protections for rail against competition by road.

In 1990, the operating assets of the Railways Corporation were transferred to a limited liability company under government ownership, New Zealand Rail Ltd. In 1993, the company 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 market in the United States.

The process of deregulation, commercialisation and privatisation saw a reduction in the number of employees, from 21,000 with the Railways Department in 1982 to 3,757 with Tranz Rail in 2002.

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 the lease of other Crown land held for operational rail purposes. Lease and other income for the year ending 30 June 2002 was $1,786,000.

During the 1990s, Tranz Rail expanded into new markets, including the movement of bulk milk to dairy processing plants and establishment of New Zealand's first inland port south of Auckland. The new port, a joint development with the Port of Tauranga, is connected by train with Tauranga, creating a significant new line of containerised freight business.

In 2003, Toll Holdings Limited, an Australian-based transportation and logistics operator, acquired approximately 85 percent of the shares in Tranz Rail. As a result of Toll's offer for shares in Tranz Rail becoming unconditional, an agreement between Toll and the Crown was triggered, a key feature of which was the buy-back of track and associated infrastructure by the Crown. The Crown has announced that it will establish a new entity to own and manage the network.

Under the agreement, Tranz Rail retains exclusive rights to the network for freight purposes, subject to meeting minimum tonnage levels annually.

Freight transport. Tranz Rail's freight business is carried out under the brand name Toll Tranz Link. In the 2002/03 financial year, 14.8 million tonnes of freight was carried, providing, like the previous year, more than 70 percent of Tranz Rail's revenue. The bulk of freight revenue is from agriculture and food products, followed by manufactured products, forest products and coal.

Passenger services. Tranz Rail operates commuter services in Wellington, linking the central city with Johnsonville, Paraparaumu, the Hutt Valley, Palmerston North and Masterton. Tranz Rail's contract with the Auckland Regional Council to operate commuter services in Auckland ended on 1 July 2004. Since then commuter services have been provided by Connex.

Table 23.03 provides a summary of New Zealand railway operations.

Table 23.03. New Zealand railways
Statistical summary
At 30 June

Category199819992000200120022003

1As a result of Tranz Rail's sale of the Auckland corridor to the Crown in December 2000, it has operating rights, but does not own, 91 kilometres of the route.

2Twenty-eight of these units owned, and 10 leased, by Auckland Regional Transport Network Limited.

- nil or zero

… not applicable

Source: Tranz Rail

North Island (kilometres)2,4162,4162,4162,4102,41012,4101
     Electrified (kilometres)506506506506506506
South Island (kilometres)1,4881,4881,48814881,4881,488
     Electrified (kilometres)------
Bridges
Number2,1782,1782,1782,1782,1782,178
Kilometres757575757575
Tunnels
Number149149149149149149
Kilometres87.387.387.387.387.387.3
Locomotives
Diesel/diesel-electric218218218218218218
Electric272727272727
Rolling stock
Freight6,3826,0045,9485,6064,3214,048
Passenger (including motorised)3283213213141771772
 Passengers carried
Long distance458,000466,400465,800513,500221,000
Suburban11,293,00011,422,00012,118,0012,577,00012,300,00012,300,000
Freight carried (tonnes)11,706,00012,900,00014,699,00014,461,00014,330,00014,822,000

23.4 Road transport

Capital investment in New Zealand's roading and road transport system exceeds that on all other forms of transport. There were 92,494 kilometres of formed roads and streets at 30 June 2003 and nearly 3 million motor vehicles.

Statistics New Zealand's business demographics recorded 9,830 full-time equivalent persons engaged in the provision of road passenger transport in February 2003 and 23,890 persons engaged in providing road freight transport.

Commercial road users are regulated through a system of quality controls which focus primarily on safety regulation, although there is an increasing emphasis on environmental performance as well.

Transfund New Zealand, established in 1996, is responsible for funding roads and public passenger transport. The state highway network is managed by Transit New Zealand, a Crown entity established in 1989. Local roads are the responsibility of territorial authorities.

The Land Transport Safety Authority, established in 1993, manages all road safety issues, including the licensing and registration of all drivers and vehicles.

Transfund New Zealand

Transfund New Zealand is the government's land transport funding agency. As such, it is required to allocate resources in a way that contributes to an integrated, safe, responsive and sustainable land transport system.

The Land Transport Management Act 2003 set a new framework for Transfund to follow in allocating funding. The act reflects a new multi-modal approach, encourages long-term planning and allows funding flexibility in implementing the New Zealand Transport Strategy.

Transfund's role includes funding for construction and maintenance of state highways and local roads; funding for passenger transport services, eg commuter trains, buses and ferries; and funding for rail freight and barging. It funds walking and cycling projects, and projects which support regional development, eg roading projects supporting development of the forestry industry.

Transfund receives funding from the government's National Land Transport Fund. The money is held in a dedicated account known as the National Land Transport Account. By closely monitoring projected revenue streams, Transfund balances expenditure on its annual funding programme, the National Land Transport Programme (NLTP), against available revenue.

Transit New Zealand

Transit New Zealand, a Crown entity established in October 1989, manages, maintains and develops New Zealand's state highway network. The network totals 10,791 kilometres, including 169 kilometres of motorway, and has a replacement value of $12.5 billion. The network makes up 12 percent of New Zealand's total road length, but carries 49 percent of the traffic.

The Land Transport Management Act (LTMA), passed in November 2003, charges Transit with the objective of operating the state highway system in a way that contributes to an integrated, safe, responsive and sustainable land transport system. The act further states that in meeting its objective, Transit has to exhibit a sense of social and environmental responsibility.

In general, the new act requires Transit to work more collaboratively with local and regional councils, and other transport organisations, to develop the best transport solution, which may or may not involve state highway developments.

An annual land transport programme, covering major regional projects, smaller works, walking and cycling projects and a maintenance programme, is consulted on early in the calendar year. The final, prioritised programme, as approved by Transit's board, is submitted to Transfund New Zealand for funding approval for the start of each financial year.

Transit does not employ its own construction and maintenance staff directly. Its staff of 270 work through professional consultants and contractors selected by competitive pricing principles to provide development and maintenance services for the state highway network.

Transit's website is www.transit.govt.nz

Levelling work is carried out on realigning State Highway 1 between Pukerua Bay and Plimmerton.

Land transport network

Seventy-four national and provincial road controlling authorities and nine regional councils manage New Zealand's land transport network.

Tables 23.05 and 23.06 show expenditure on state highways and public roads respectively.

Table 23.04. Formed roads and streets

Year/nature of surfaceLocal authority roadingState highways, motorwaysTotal
Urban roadsRural roads
Source: Transfund New Zealand
 Kilometres
At 30 June 1997
Paved or sealed15,12830,84510,36556,338
Metal or gravel44535,06212135,628
          Total maintained roads15,57365,90710,48691,966
At 30 June 1998
Paved or sealed15,23830,76410,50056,502
Metal or gravel44235,1277135,640
          Total maintained roads15,68065,89110,57192,142
At 30 June 1999
Paved or sealed15,52030,96810,54057,028
Metal or gravel44234,5406535,047
          Total maintained roads15,96265,50810,60592,075
At 30 June 2000
Paved or sealed15,59031,47410,70757,771
Metal or gravel41933,8095434,282
          Total maintained roads16,00965,28310,76192,053
At 30 June 2001
Paved or sealed15,70831,76210,71658,186
Metal or gravel41433,5495834,021
          Total maintained roads16,12265,31110,77492,207
At 30 June 2002
Paved or sealed15,80932,01710,73658,562
Metal or gravel41833,3544733,819
          Total maintained roads16,22765,37110,78392,381
At 30 June 2003
Paved or sealed15,92932,25810,75058,937
Metal or gravel40933,1074133,557
          Total maintained roads16,33865,36510,79192,494

Table 23.05. Expenditure on state highways
Years ending 30 June

Class of expenditure19981999200020012200220033

1Includes the cost of flood damage repairs.

2From the year ending 30 June 2001, public roading expenditure includes the funding of public transport and alternative-to-road projects.

3For the year ending 30 June 2003, public roading expenditure includes the funding of walking and cycling projects.

Source: Transfund New Zealand

 $(000)
Construction and improvement199,237246,355302,864265,151280,259268,886
Bridges13,8986,5876,99910,9523,8797,960
Maintenance, repairs, etc1256,643262,742283,270272,447278,503299,267
          Total469,778515,684593,133548,550562,641576,113

Table 23.06. Expenditure on public roads
Years ending 30 June

Item19981999200020011200220033

1Expenditure is the Transfund contribution and does not include the local authority contribution. The rate of assistance to local authorities for construction work varies from 43 to 83 percent

2From the year ending 30 June 2001, public roading expenditure includes the funding of public transport and alternative-to-roading projects.

3For the year ending 30 June 2003, public roading expenditure includes the funding of walking and cycling projects.

Source: Transfund New Zealand

 $(000)
State highways expenditure469,778515,684593,133548,550562,641576,113
Local authority roading expenditure1287,570297,889290,926297,788319,163371,839
          Total757,348813,573884,059846,338881,804947,952

As Table 23.04 shows, there were 16,338 kilometres of urban roads, 10,791 kilometres of state highways and 65,365 kilometres of rural roads, making 92,494 kilometres of developed roading at 30 June 2003.

Transport licensing

The Transport Services Licensing Act 1989 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 and from 1 April 1993, all railway operators were required to develop a safety system to cover standards, practices and procedures.

Figure 23.03. Registration of new tractors
1950-2002

Registration of new tractors1950-2002

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, administration and label fee, goods and services tax and, in some cases, transport licence fee.

The country's vehicles are relicensed progressively throughout the year.

Annual relicensing charges for petrol-powered vehicles at 30 June 2004 were:

  • Motorcars, $217.05.

  • Motorcycles (private use-60cc or less), $263.80.

  • Motorcycles (more than 60cc), $275.05.

  • Rental cars and taxis, $242.55.

  • Trucks, vans and utilities (private passenger), $217.05 to $218.55.

  • Trucks, vans and utilities (subject to transport licence fee), $241.05 to $242.55.

  • Tractors (non-exempt), $90.65.

Motor vehicles exempted from the annual licence fee include a variety of machines such as pedestrian-controlled goods service vehicles, motor vehicles propelled and supported solely by self-laying tracks, vehicles used in a declared road construction zone and vehicles used on a road that is not a public highway. These vehicles are still required to be registered and licensed.

Table 23.07 shows registrations of new commercial vehicles in New Zealand, while Table 23.08 lists registrations of new cars and station wagons.

Not included in these tables are new tractors, shown in figure 23.03. Ex-overseas cars as a proportion of total registrations of new cars is shown in figure 23.04.

Table 23.07. Registration of new commercial vehicles
By gross weight in kilograms
Years ending 31 December

Year2,500 or less2,501 to 4,5004,501 to 9,0009,001 to 14,50014,501 and overOmnibus and service coachesTotal
Source: Statistics New Zealand
199610,85912,7022,6548821,7471,00029,844
19979,0059,7182,5498661,56681624,520
19986,3019,4562,0387811,18478020,540
19995,73711,2902,0368651,56683422,328
20004,85913,3751,7386741,88176423,291
20014,23914,1331,5047711,77783923,263
20024,75518,5052,3011,1782,3241,12030,183
20034,86421,2662,8741,3632,8501,09334,310

Table 23.08. Registration of new cars and station wagons

December yearcc rating
850 and under851 to 1,3001,301 to 1,6001,601 to 2,0002,001 to 5,0005,001 and overTotalVehicles previously registered overseas1New motor cycles

1Included in total.

Source: Land Transport Safety Authority

199180610,52335,36141,60114,497178102,96647,3514,042
19925927,20930,24136,67917,17420592,10039,1462,469
19934536,67430,94338,70120,73415897,66343,8412,601
19944946,67638,93647,74429,691312123,85362,0883,337
19955795,24646,95256,03537,375469146,65680,9763,451
19965863,79956,06667,40247,829496176,178111,7643,812
19976942,68045,27558,37948,256315155,59997,0414,078
19986082,68541,66959,86848,932332154,09499,9374,067
19991183,94948,41876,89959,208721189,313131,1183,849
20001204,12041,11469,83457,1461,408173,742116,1243,598
2001734,07041,62276,74462,4981,848186,855128,6933,575
2002334,45941,11076,26876,2142,420200,504136,4184,118

Figure 23.04. Registration of ex-overseas1 cars 1940-2002
As percentage of total new car registrations

Registration of ex-overseas1 cars 1940-2002As percentage of total new car registrations

1Ex-overseas cars are those that have been registered in another country before entry into New Zealand.

Source: Land Transport Safety Authority

Table 23.09 shows the number of licensed motor vehicles by vehicle type for the years 1998 to 2002.

Table 23.10 shows how many people there are per licensed car or other motor vehicle in New Zealand.

As a comparison, Table 23.11 shows the number of persons per car in various other Organisation for Economic Co-operation and Development countries.

Table 23.09. Licensed motor vehicles
As at 30 June

Type of vehicle19981999200020012002
Source: Land Transport Safety Authority
Cars1,762,8131,868,2971,886,9821,916,6851,970,403
Rental cars13,15415,11718,02217,17818,119
Taxis6,5727,2807,5887,1087,507
Trucks359,411371,365368,624363,166366,918
Buses and coaches10,95011,74812,39712,70913,379
Trailers308,751339,325354,487362,225373,940
Motorcycles38,15140,66437,79435,93936,045
Mopeds8,0347,4957,2537,3647,395
Tractors19,49219,66920,36921,22922,756
Exempt vehicles6,3486,6287,3697,7068,195
Miscellaneous14,11915,09015,09615,22516,644
          Total all vehicles2,547,7952,702,6782,735,9812,766,5342,841,301

Table 23.1. Licensed vehicles by population
As at 31 March

YearNumber of persons in population per licensed carNumber of persons in population per licensed motor vehicle1

1Excluding trailers and caravans.

21999 and 2000 figures are as at 30 June.

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
199922.041.61
200022.031.61
20012.041.63
20022.021.61

Table 23.11. Population per passenger car
Comparison with selected countries
Years ending 31 March

Country200020012002
Source: Organisation for Economic Co-operation and Development
 Number in population per passenger car
Germany1.921.871.85
Australia1.971.971.93
New Zealand2.032.042.02
France2.162.102.07
Canada2.202.152.17
United States2.152.212.22
United Kingdom2.392.282.28
Japan2.472.372.38
Korea, Republic of5.985.855.35

Motor vehicle registers

The Ministry of Economic Development operates two registers specifically concerned with motor vehicles - the Personal Property Securities Register (PPSR) under the Personal Property Securities Act 1999 and the Motor Vehicle Traders Register (MVTR) under the Motor Vehicle Sales Act 2003.

  • The Personal Property Securities Register is a form of ‘electronic’ noticeboard where secured parties can record specific details about security interests in personal property, including vehicles. Registration in the PPSR is one way to secure priority over personal property that is subject to a security interest. The PPSR was established in 2002 and replaced a number of existing securities registers, including the Motor Vehicle Securities Register and the Chattels Register. Buyers of motor vehicles can search the PPSR to see whether a security interest has been registered (indicating whether money is owed) in respect of a vehicle. In 2003, more than 1.3 million searches were conducted on the PPSR, about 70 percent of them relating to motor vehicles. The PPSR includes private and commercial motor vehicles, motorcycles, trucks, trailers, caravans, farm vehicles and aircraft. Boats are also covered, except those exceeding 24 metres. The PPSR can be accessed at www.ppsr.govt.nz

  • The Motor Vehicle Traders Register - While the PPSR is concerned with security interests in vehicles, the MVTR contains essential information about whether someone is a registered motor vehicle trader. Buying a motor vehicle from a registered motor vehicle trader provides improved protection for consumers. The MVTR holds information about who is registered and details of each trader's business such as its physical address. The MVTR includes a list of banned motor vehicle traders. The MVTR was established by the Motor Vehicle Sales Act 2003 (which replaced the Motor Vehicle Dealers Act 1975) on 15 December 2003. A wider definition of ‘motor vehicle trader’ means more traders must register under the new law. People who import more than three vehicles or who sell more than six vehicles in a 12-month period must be registered. The register can be accessed at www.motortraders.med.govt.nz

Motorway congestion has become a major problem for Aucklanders.

Road safety

The Land Transport Safety Authority (LTSA) is the government's chief adviser on land transport safety and suggests policy, develops standards and reviews land transport safety systems in consultation with industry groups.

Road laws are enforced by the New Zealand Police, who investigate serious and fatal accidents, enforce laws regarding heavy traffic and allowable weights of vehicles and loads, and assist with the licensing of road transport services such as taxis, buses and tow-trucks.

In 2002, the road toll dropped to its lowest in 38 years with police maintaining an emphasis on speed, alcohol and restraint usage.

Driver licensing. A New Zealand driver's 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 is required to undergo a medical check and to pass an older-driver practical test.

A graduated system for obtaining a driver's licence involves a number of restrictions on learner drivers to ensure they are protected from high-risk situations until they have obtained experience on the road. Incentives to attend driver education courses are available to all first applicants for licences. The system has three stages: Learner, restricted and full licence. A full licence test must be passed in order to graduate to a full licence.

Inspection of motor vehicles. All vehicles using New Zealand roads must be inspected regularly to ensure mechanical and structural fitness. They are inspected every six months, except for vehicles first registered after 1 August 1987 and less than six years old, which may be inspected every 12 months. Most lightweight vehicles require a warrant of fitness, which can be issued at approved garages, at testing stations operated by local authorities, or by Vehicle Testing New Zealand. 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, which can be issued by approved testing agencies only. Table 23.12 shows the age of major vehicle types in New Zealand at 31 December 2002.

Table 23.12. Age profile of major vehicle types
At 31 December 2002

Age in yearsCarsTrucksBusesCaravansMotor cyclesMotor-mopedsTrailers

1All vehicles recorded in the Motor Vehicle Register excluding vehicles with cancelled/lapsed registration.

Source: Land Transport Safety Authority

Under 1 year63,63817,9654543112,66579819,248
  158,11415,9264807052,67965618,963
  257,77116,0843822642,56746918,290
  362,73713,5935244912,70238017,200
  463,54212,0474242542,79728816,361
  589,12914,3975511642,46918715,813
  6118,44217,0637043261,91821015,284
  7130,91315.0825853521,39422314,816
  8167,19119,2236315411,42013913,124
  9158,05818,1155662841,24315111,530
10183,52419,7466113391,51327311,609
11166,83622,0368103592,14838610,945
12170,49229,8539006942,59758916,709
13159,24327,7929196503,18465314,100
14121,72724,3988116753,95274113,016
15101,26921,8898016354,13785112,042
1687,91720,0318337433,96990112,239
1780,92919,8236701,0992,67864715,147
1870,95917,8355305422,22141811,924
1942,38112,1833754952,0933089,695
2032,59411,2163033392,06350010,298
2124,9618,5032772602,0334019,712
2217,0626,6332402621,82142215,747
2312,3074,9232882201,41028211,605
2410,1843,9373051938169713,642
257,2353,53623321867410114,011
26 to 3042,56011,8966171,2034,03547963,864
31 to 3525,5965,4132928781,54921027,381
36 to 4015,9992,99116664171413117,105
41 to 5012,5152,871888201,69410510,793
51 years plus11,4182,642202051,749422,291
               Total vehicles12,367,243439,64215,39015,16268,90412,038484,504
               Mean age (in years)11.6312.5713.1918.2615.5413.7916.72
               Mean age in 200011.4212.2510.0318.4414.8313.9416.28

Safety belts. Wearing safety belts is compulsory in New Zealand for drivers and front-seat passengers in most classes of light vehicles registered after January 1955. It is compulsory for rear-seat passengers to wear safety belts in all cars. 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 safety 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 safety belts when available. All motor cyclists and pillion riders must wear safety helmets at all speeds. Bicycle helmets are also compulsory.

Alcohol impairment. Police have several tests available to deal with drivers affected by alcohol. Any driver may be required to give a passive test at any time. A breath-screening test may be administered after a police officer has detected alcohol on a 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. A driver commits an offence and is liable for prosecution if either:

  • Breath-alcohol concentration as recorded on an evidential breath-testing device exceeds 400 micrograms of alcohol per litre of breath, or 150 micrograms of alcohol per litre of breath in the case of a person under the age of 20.

  • Blood-alcohol concentration exceeds 80 milligrams of alcohol per 100 millilitres of blood, or 30 milligrams of alcohol per 100 millilitres of blood in the case of a person under the age of 20.

Speed limits. New Zealand's roading network is essentially a two-way system with one lane each way. Management of speed is, therefore, a critical aspect of traffic safety. Maximum speed limits for highways and motorways are 100 kilometres per hour (km/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. In recent years, road controlling authorities have been given more flexibility in setting speed limits and this has seen the introduction of more 60km/h zones on arterial roads. The Minister of Transport may also specify areas with a speed limit of 70km/h, 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.

Figure 23.05. Traffic convictions
Rate per 10,000 of population
Years ending 31 December

Traffic convictionsRate per 10,000 of populationYears ending 31 December

Speed cameras and lasers. Under the ‘anywhere/anytime’ policy adopted in December 2003, mobile and fixed speed cameras can be located anywhere and at any time, with all signage removed, excluding hidden or camouflaged cameras. Police also use laser speed measuring equipment to supplement speed cameras. The laser equipment 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.

Traffic offences. Penalties are imposed by courts for driving and other offences under the Transport Act 1962, the Land Transport Act 1998 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 whereby demerit points are automatically registered, according to a fixed scale, against people convicted of driving offences, or people who pay certain infringement fees. The director of the Land Transport Safety Authority may suspend a driver's licence 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 above the limit. Table 23.13 shows the number of traffic offences and infringements in New Zealand for the years ending 30 June 2002 and 30 June 2003. Figure 23.05 shows the rate of traffic convictions per 10,000 population.

Table 23.13. Traffic offences and infringements
Years ending 30 June

Category20022003Variance
Source: New Zealand Police
Percent
Drink/drive25,34824,744−2
Dangerous/reckless driving4,5865,159+12
Unsafe use of vehicle20,67523,805+15
Careless/inconsiderate driving or overtaking.12,24911,993−2
Speeding (under 100 kph).114,631190,433+66
Speeding (over 100 kph)134,502159,036+18
Speeding - trailer, towing, heavy motor vehicle.11,65014,710+26
Speeding - speed camera458,622488,714+7
Failure to stop/give way.31,39636,054+15
Failure to obey officer/fulfil duties.18,32218,746+2
Vehicle licence infringement19,09219,069−0
Driving while disqualified.8,2138,217+0
Certificate of fitness infringement.94,260100,761+7
Driver licence and vehicle registration infringement222,907255,933+15
Driver hours/log book infringement3,6263,783+4
Seat belt40,22466,977+67
Safety helmet.414532+29
Passenger/recovery/rental service vehicle2.0551,813−12
Vehicle condition16,28121,173+30
Vehicle noise/loading.5,4886,280+14
Bicycle infringement2,1482,774+29
Cycle helmet5,3998,673+61
Pedestrian and other.391597+53
Stock and vehicle bylaw offences234237+1
Local body bylaw infringements.8041,105+37
Other transport offences8,74410,391+19
          Total1,262,2611,481,709+17

Contributors

  • 23.1 Ministry of Transport; Maritime Safety Authority; Statistics New Zealand.

  • 23.2 Statistics New Zealand; Civil Aviation Authority; Airways Corporation of New Zealand; Ministry of Transport.

  • 23.3 Tranz Rail Limited; New Zealand Railways Corporation.

  • 23.4 Statistics New Zealand; Ministry of Transport; Transfund New Zealand; Transit New Zealand; Land Transport Safety Authority; Personal Properties Securities Register; New Zealand Police.

Websites

www.airnewzealand.co.nz - Air New Zealand Ltd

www.airways.co.nz - Airways Corporation of New Zealand

www.autocheckextra.co.nz - Autocheck

www.nzaa.co.nz - Automobile Association

www.caa.govt.nz - Civil Aviation Authority of New Zealand

www.ltsa.govt.nz - Land Transport Safety Authority

www.msa.govt.nz - Maritime Safety Authority of New Zealand

www.med.govt.nz - Ministry of Economic Development

www.justice.govt.nz - Ministry of Justice

www.transport.govt.nz - Ministry of Transport

www.customs.govt.nz - New Zealand Customs Service

www.police.govt.nz - New Zealand Police

www.ccmau.govt.nz/soe/profiles/NZRC.asp - New Zealand Railways Corporation

www.stats.govt.nz - Statistics New Zealand

www.transfund.govt.nz - Transfund New Zealand

www.transit.govt.nz - Transit New Zealand

www.taic.org.nz - Transport Accident Investigation Commission

www.tranzrail.co.nz - Tranz Rail Ltd

Chapter 24. Commerce and Services

Table of Contents

Company shares account for the bulk of trading on New Zealand's stock exchange.

Rather than relying on traditional marketing alliances and arrangements, New Zealand's export industries in recent years have had to compete in the international marketplace. The emphasis has also been on competitiveness within the New Zealand economy, with the government encouraging structural change through deregulation.

The past two decades have seen across-the-board tariff reductions, the disappearance of import licensing, removal of restrictions on the operation of financial markets and reorganisation of state trading enterprises on a more competitive basis. Among specific sectors deregulated to allow greater competition have been the telecommunications, transport and petroleum industries.

Withdrawal of subsidies and import controls exposed large areas of the domestic economy to new levels of competition. The result has been reorganisation and, in some cases, attrition, especially in manufacturing.

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 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 main competition laws. 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 substantially lessen competition in a market. The act also constitutes the Commerce Commission as a public enforcement agency providing scope for private remedies. The Commerce Act was reviewed in 1992 to ensure its provisions were consistent with other government policies promoting economic growth. Several amendments have been made to the act since then, including prohibition of business acquisitions that substantially lessen competition in any market.

The Fair Trading Act protects consumers and competitors from the consequences of inaccurate information. Under the act, a customer, a competitor or the Commerce Commission can take action if they think the act has been breached and, for example, erroneous material has been distributed about a product or a service.

As the economy has become more market oriented, traditional controls in the retail sector have also been reviewed. Laws controlling shop trading hours and the sale of liquor have been reviewed, and relaxed in some areas, to encourage competition and provide structures for businesses to compete with imported products and to meet consumer demand.

24.1 Controls on trading

Consumer affairs

Fair Trading Act 1986. The Fair Trading Act 1986 consolidates laws on misleading advertising, prohibits deceptive or misleading conduct and false representations about the provision of goods and services, prohibits certain unfair trading practices, and provides for consumer information and product safety standards.

Any person, including those not directly affected, can take action if he or she believes the act has been contravened.

Those breaching 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.

Consumer Guarantees Act 1993. The Consumer Guarantees Act 1993 creates statutory guarantees given automatically when a trader supplies goods or services to a consumer.

Any trader supplying goods automatically guarantees that:

  • The consumer has the right to ownership of the goods unless they are bought on hire purchase, or the consumer knows the trader is holding ownership until the goods are paid for.

  • The goods are of acceptable quality, which means fit for their common purpose, of acceptable appearance, free from minor faults, safe and durable. How goods measure up depends on the type of goods, the price, how they are represented or described, and any other relevant factors.

  • The goods are fit for any particular purpose the consumer has informed the trader of, except when the consumer doesn't, or it is unreasonable to, rely on the trader's judgement.

  • The goods correspond with any description, sample or demonstration model given or shown to the consumer.

Manufacturers and importers automatically guarantee they will be bound by any express guarantees they give over goods. They must make spare parts and repair facilities reasonably available. Notices saying that repairs and parts will not be available override the guarantee.

Any trader supplying services, including professional, banking and insurance services, automatically guarantees the services will be carried out with reasonable care and skill.

When no time is agreed for completion, services should be completed within a reasonable time, and when no price is agreed, the consumer should pay no more than a reasonable price.

When goods or services do not meet guarantees, a consumer can insist the supplier remedy the failure. If the supplier does not fix the fault, the consumer can have the product fixed elsewhere and recover costs from the supplier. If a fault cannot be corrected, or cannot be corrected in a reasonable time, or the fault is substantial, the consumer can:

  • Reject the goods and claim a full refund or replacement, or keep the goods and claim compensation for any drop in value.

  • Claim a remedy offered under a manufacturer's express guarantee.

The Ministry of Consumer Affairs' measurement service ensures accurate measurement of consumer goods.

  • Cancel a service and claim a refund, or claim compensation for any drop in value.

  • Claim compensation for any loss that could have been foreseen by the trader.

The Consumer Guarantees Act makes it easier for consumers to get a fair remedy when they buy faulty or poor goods and services. In most cases, when the fault can be fixed easily and speedily, the trader will have the opportunity to repair. When the problem is more serious and a repair is not good enough, the consumer can get a replacement or a refund in cash.

Ministry of Consumer Affairs Manatu Kaihokohoko

The Ministry of Consumer Affairs operates as a division of the Ministry of Economic Development and provides the following services:

  • The Research, Information and Capability Group provides information, training and telephone hotlines on consumer rights and obligations, focusing on communities whose members are likely to be disproportionately affected by a ‘bad deal’.

  • The Measurement Service and the Product Safety Service focus on trade measurement and consumer safety. The measurement service makes sure traders are aware of, and obey, the requirements of the Weights and Measures Act 1987 by carrying out spot checks on weighing and measuring equipment and checking the weight of packaged goods. The product safety service can suggest modifications to make a product safe, or request that unsafe products be removed from sale. The service also gives advice to companies recalling unsafe products.

  • The Energy Safety Service seeks to ensure the safe production, distribution, installation and use of electricity and gas. It also looks at quality measurements of gas and the quality of petrol and diesel.

The Ministry of Consumer Affairs website is www.consumeraffairs.govt.nz

Consumers' Institute

The principal aim of the Consumers' Institute is ‘to collect and disseminate information of benefit to consumers; and in doing so to advance the interests of its subscribing members and those of consumers generally’. This is done through research, the publication of Consumer magazine. Consumer Online and public advocacy on behalf of all New Zealand consumers.

The institute's work includes comparative tests and surveys of consumer goods and services; research into and advice on financial, food, health, safety, welfare and environmental matters; representation at parliamentary committees and public inquiries; liaison with government, business, trade and safety organisations; and an interest in consumer education and complaints advisory work for members.

Consumer magazine covers a wide range of consumer information and protection material, including results of tests on home appliances and other products. Consumer Online supplements Consumer magazine and, among other things, hosts a product safety recall register.

Funded through membership subscriptions, the sale of publications and contract research, the institute is completely independent and impartial. It has no financial ties with any commercial organisation. It does, however, have a good relationship with most traders, and liaises with trade and professional associations, as well as government departments, safety organisations and special-interest groups.

The institute's website is www.consumer.org.nz

Shop trading hours

Shops can open in New Zealand every day of the year, 24 hours a day, except on Christmas Day, Good Friday, Easter Sunday and up to 1 pm on Anzac Day.

Exceptions allow dairy/mixed businesses, service stations, takeaway outlets, souvenir and duty free shops, shops at public passenger transport terminals and genuine exhibitions and shows to open on any day. Garden centres have a specific exemption allowing them to open on Easter Sunday.

Sale of liquor

The minimum drinking age in New Zealand is 18. However, under the Sale of Liquor Amendment Act 1999, a person under 18 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 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 people living in a hotel or tavern, or people present dining.

Supermarkets and grocers are allowed to sell beer and wine.

The sale of liquor to any member of the public requires a licence, of which there are four:

  • On-licences authorise the sale and supply of liquor on the premises or conveyance (such as a ship or aircraft) for consumption on the premises only. Examples include taverns, licensed restaurants and night clubs.

  • Off-licences authorise the sale or delivery of liquor on or from the premises to any person for consumption off the premises. Examples are wine resellers, supermarkets and bottlestores.

  • Club licences authorise the sale and supply of 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’ 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.

  • Special licences enable the sale and supply of liquor on the premises, for consumption on the premises, to any person attending any occasion or event.

Table 24.01. Company registrations
Years ending 30 June

YearNew companies registeredCompanies dissolved or struck offCompanies on register

1Year ending 31 March.

Rrevised

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
200033,23420,255230,359
200135,25420,045249,047
200241,99615,509275,813

Hours of sale. The hours during which liquor is allowed to be sold or consumed are not spelt out in legislation. Each application is dealt with on its merits.

Liquor licensing. New Zealand's central liquor 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. The authority considers and determines applications for on, off and club licences, and for manager's certificates. It also decides on appeals against decisions by district licensing agencies. There are 74 district licensing agencies, which are essentially the local authority in each district or city. District licensing authorities receive applications for liquor licences, gather reports and determine all unopposed applications. Opposed applications are forwarded to the Liquor Licensing Authority. District licensing agencies grant special licences and temporary authorities, whether unopposed or not.

24.2 Commercial framework

Companies and partnerships

Individuals wishing to start a business can do so by forming a company under the Companies Act 1993, or by trading in their own name or in partnership under the Partnership Act 1908, which covers ordinary partnerships and the more rarely used special partnerships.

Companies. Companies are by far the most usual form of business operation in New Zealand. Incorporating a limited liability company under the Companies Act 1993 limits an individual's liability for any losses the business may suffer. Companies are founded on three concepts:

  • That the shareholders have limited liability, meaning that their liability is limited to the amount they have agreed to pay for their shares, so that if the company should fail owing money, their other assets are protected from seizure to pay the outstanding debts.

  • Their shares are transferable.

  • The company is a separate legal entity from the shareholders.

Companies in which shareholders have limited liability have names ending in ‘Limited’ or ‘Tapui (Limited)’.

Table 24.01 shows the number of new companies registered, companies dissolved or struck off, and the number of registered companies for each year from 1990 to 2002.

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. Characteristics of a partnership are that 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.

Commerce Commission

The Commerce Commission exists to enforce a number of general and specific regulatory regimes set out in the Commerce Act 1986, the Fair Trading Act 1986, the Electricity Industry Reform Act 1998, the Dairy Industry Restructuring Act 2001, the Telecommunications Act 2001 and the Credit Contracts and Consumer Finance Act 2003.

The commission, a Crown entity established under the Commerce Act 1986, consists of up to five members appointed by the governor-general on the recommendation of the Minister of Economic Development. Associate members may also be appointed. A Telecommunications Commissioner was established in 2001.

The commission's revenue is derived mainly from the Crown, supplemented by fees from parties seeking adjudication decisions. In addition, the commission receives some revenue from court costs awarded and from interest. New responsibilities in the electricity, telecommunications and dairy industries are, for the most part, funded by government-imposed industry levies.

The operational implications of the new responsibilities have seen the commission's budget increase significantly from $9.3 million in 2000/01 to $18.8 million in 2003/04.

In addition, the commission has increased its resources to meet its new responsibilities and had 113 staff at December 2003, compared with 95 in January 2002.

The commission operates from a head office in Wellington and has offices in Auckland and Christchurch that deal with Fair Trading Act responsibilities.

Commerce Act. The aim of the Commerce Act 1986 is to promote the efficient operation of markets through the promotion of competition for the long-term benefit of consumers. Specifically, the act is designed to prevent or deter abuses of market power, collusion and anti-competitive mergers. The act applies to all individuals and commercial organisations, including local government, state-owned enterprises and government departments insofar as they engage in trade. The act prohibits restrictive trade practices, including substantially lessening competition, excluding competitors, price fixing, taking advantage of market power, and resale price maintenance. Parties planning to enter arrangements that may be restrictive trade practices can apply to the commission for authorisation, which will be granted if the commission is satisfied that the public will ultimately benefit from the business practice, even though there is a lessening of competition. The act prohibits the acquisition of assets or shares in a business if the acquisition results in a substantial lessening of competition in a market. Under the act, those acquiring assets or shares can apply to the commission for clearance or authorisation. The commission will grant a clearance if it is satisfied an acquisition will not substantially lessen competition. 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 regulatory control for goods or services. Regulatory control may be imposed only where there is limited competition in the market for particular goods or services and control is seen as necessary or desirable in the interests of acquirers or suppliers. The last regulatory control, on natural gas, was lifted on 1 April 1993. Penalties for breaching the act are fines up to $500,000 for individuals and up to the greater of either $10 million or three times the value of any commercial gain resulting from the breach (or 10 percent of the turnover of the business if the commercial gain is unknown) for companies.

Fair Trading Act. 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 traders from engaging in conduct that is misleading or deceptive or is likely to mislead or deceive. It also 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; or have particular uses or benefits.

The act makes it a criminal offence to engage in certain unfair or misleading practices. These 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 ‘specials’ or ‘loss leaders’ to attract customers into a shop if the advertiser does not intend making the goods or services available for a reasonable time and in reasonable quantities.

  • Demanding or accepting payment without intending to supply the 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 December 2003, consumer information standards covered used motor vehicles; country of origin labelling of clothing and footwear; care labelling for textile goods (such as drycleaning, washing and ironing instructions); and fibre content labelling of textile goods. Product safety standards covered baby walkers, cigarette lighters, toys for children aged up to three, bicycles, and night clothes for children from six months to 14 years. In 2003, the Fair Trading Amendment Act doubled the maximum penalties for offences from $30,000 to $60,000 for individuals and from $100,000 to $200,000 for companies.

Electricity Industry Reform Act 1998. Under this act, businesses generating or selling more than a specified amount of electricity cannot also own powerlines. Businesses can apply to the Commerce Commission for exemptions from the act.

Dairy Industry Restructuring Act 2001. This act provides for the regulatory and structural reform of the New Zealand dairy industry. The act authorised the amalgamation of New Zealand's two largest dairy cooperatives, the New Zealand Cooperative Dairy Company Ltd and Kiwi Cooperative Dairies Ltd, into Fonterra Cooperative Group Ltd and the resulting ownership by Fonterra of all the shares in the New Zealand Dairy Board. The resulting cooperative may have a substantial degree of market power in a number of key domestic New Zealand dairy markets. The act provides for a legislative package of measures to mitigate the risks of that market power.

Telecommunications Act 2001. This act is aimed at reforming the telecommunications industry in New Zealand to deliver a better deal for consumers. The act aims to provide greater certainly, investment, competition, opportunity and consumer benefit. Under the act, the Commerce Commission resolves access disputes between carriers; oversees telecommunications service obligations; apportions the annual net cost between Telecom and liable carriers; and monitors the regulatory regime, recommending to the Minister of Communications changes to the list of regulated services.

Credit Contracts and Consumer Finance Act 2003. This act repealed the Credit Contracts Act 1981 and the Hire Purchases Act 1971 and introduced a new legislative framework for regulating credit transactions, consumer leases and property buy-back schemes.

Serious Fraud Office Te Tari Hara Taware

The Serious Fraud Office 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 35 at 30 June 2003 (37 at 30 June 2001) comprising forensic accountants, investigators, prosecutors and support staff. 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 of the office may, among other things, have regard to the suspected nature and consequences of the fraud, the suspected scale of the fraud, the legal, factual and evidential complexity of the matter, and any relevant public interest considerations.

The director's decision to investigate or take proceedings is discretionary and not subject to review.

During the 2002/03 financial year, 94 complaints were received and 23 full investigations were concluded. Of these, 21 resulted in prosecution, some with multiple offenders.

In addition, two investigations were concluded, but did not result in prosecution. Sixteen investigations were being conducted at 30 June 2003.

Seventeen successful prosecutions were concluded during the year. There was one prosecution that did not proceed as the individual died before the prosecution could be instigated.

The office's statutory powers are the most extensive in the area of criminal investigation 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 ending 30 June 2003, 972 notices were issued under these powers (887 requiring documents or information and 85 requiring people to attend interviews), compared with 887 in the previous year. Sixteen search warrants were executed, compared with 12 the year before.

Government funding for the year to June 2003 was $4,649 million. The Serious Fraud Office website is www.sfo.govt.nz

Takeovers Panel

The Takeovers Panel was established as a body corporate under the Takeovers Act 1993, which sets out its functions and powers. In summary, the panel's functions are:

  • To keep under review the law relating to takeovers of specified companies and to recommend any changes to the law it considers necessary.

  • To keep under review practices relating to takeovers of specified companies.

  • To investigate any act, omission or practice for the purpose of exercising its powers under the enforcement provisions of the act.

  • To make determinations and orders and to make applications to the court under the enforcement provisions of the act.

  • To cooperate with any overseas regulator and to communicate to that regulator information obtained by the panel in the performance of its functions and powers which it considers might assist that regulator.

  • To promote public understanding of the law and practice relating to takeovers.

In exercising its functions and powers, the panel is required to comply with the principles of natural justice.

Securities Commission

The Securities Commission's purpose is to strengthen confidence in New Zealand's capital markets, both in New Zealand and overseas, by promoting the efficiency, integrity and cost-effectiveness of the markets, thereby fostering capital investment in New Zealand.

The role and functions of the commission include:

  • Keeping under review the law and practices relating to bodies corporate, securities and unincorporated issuers of securities and to recommend changes to the Minister of Commerce.

  • To cooperate with overseas securities commissions.

  • To advise the minister on securities exchanges' conduct rules and amendment to those rules.

  • To promote public understanding of the law and practice of securities.

To perform these functions, the commission has the power to summon and receive evidence as to securities law and practice; to exempt persons from compliance with provisions of the Securities Act; to suspend or cancel a registered prospectus; to suspend or prohibit an investment statement; to enforce insider trading and substantial security holder law; and to require an exchange to provide information and assistance.

The commission may also consider certain matters arising under the Corporations (Investigation and Management) Act 1989, in particular, directions to ‘at risk’ corporations and declarations of statutory management.

Stock exchange

The New Zealand Stock Exchange Limited (NZSE), formerly a mutual society with sharebroker members, was demutualised and became a public company on 4 June 2003.

As part of that process, the NZSE changed its name to New Zealand Exchange Limited, trading as NZX, in June 2002.

NZX is now a company listed on one of its own markets, the NZSX market.

NZX operates and regulates markets in New Zealand for entities to raise capital (for example by issuing shares or debt securities) and for the trading of listed securities.

The trading markets are the NZSX (stock market), which had more than 200 quoted securities at 31 January 2004; the NZDX (debt market), where companies and the government list bonds and other fixed interest securities; and the NZAX (alternative market), for small to medium-sized and non-standard entities.

There were 169 New Zealand entities and 60 overseas entities listed on NZX's markets at 31 December 2003.

NZX brokers, previously sharebroker members of the NZSE, are accredited to provide investment advice and to buy and sell securities on NZX's markets on behalf of clients.

NZX brokers also advise entities on listing, and assist entities raise capital by issuing securities.

NZX is responsible for regulating the conduct of those that participate in its market, including NZX brokers and other market participants and listed issuers.

Under listing rules, listed issuers are required to disclose any information that is relevant for investors. NZX publishes these disclosures of information as market announcements, which ensures the market is kept informed.

There are also listing rules relating to the appointment of directors, the disclosure of financial results and general conduct.

NZX generates revenue from listing fees paid by listed issuers, fees paid by NZX brokers and NZX firms for accreditation, fees for trading activity, and from the sale of market data, such as trading statistics and prices. Revenue is also earned from the sale of exchange-traded funds (ETFs), a type of investment product.

As at 31 March 2004, NZX managed one ETF, the NZSX 10 Fund (or TENZ).

Figure 24.01 shows movement of the NZSX50 Index from July 1986 to October 2003.

Figure 24.01. Share price index1

Share price index1

Table 24.02. Bankruptcies
Years ending 30 June

YearNumber
Source: Ministry of Economic Development
19901,900
19912,052
19922,837
19932,532
19942,312
19951,963
19962,158
19972,466
19982,974
19993,297
20002,700
20012,886
20022,944

Securities trading is facilitated through NZX's FASTER (fully automatic screen trading and electronic registration) trading system. Orders to buy and sell securities are placed into the system by NZX brokers and are matched according to price and time priority. After orders are matched, delivery of securities and payment occurs and securities are registered in the name of the new owner.

NZX calculates a number of share price indices, including the NZSX50. This index tracks the collective movement in market value of the 50 largest listed issuers on the NZSX market.

Investors can now trade derivatives (investment products based on an underlying share or index) based on New Zealand securities. Called NZFOX, they are futures and options products listed on the Sydney Futures Exchange. Futures and options allow investors to hedge against risk or speculate (take on extra risk in the hope of making a profit). The NZX website is www.nzx.com

NZAX. The NZAX, NZX's market for small to medium-sized entities, opened on 14 November 2003 with an initial group of 11 listed companies. The first non-standard entity, a cooperative with a defined group of shareholders, listed a week later. The NZAX has been designed to provide a cost-effective and flexible listing facility for growing entities; to enable smaller entities, which may not be able to achieve a listing on the NZSX for cost reasons, to raise capital through the public markets; to help growing New Zealand businesses enhance their profile with the media, public and potential investors; to provide a share trading facility for non-standard entities, such as cooperatives; and to act as a catalyst for growth in New Zealand's capital markets environment. A cheaper and more flexible listing regime has been achieved through specific NZAX listing rules, which waive certain requirements on NZAX listed issuers. The NZAX replaced the new capital market, which closed in 2004.

Insolvency

Bankruptcy. Bankruptcy refers to the financial insolvency of individuals. Laws relating to bankruptcy in New Zealand are contained predominantly in the Insolvency Act 1967, the Insolvency Regulations 1970 and the High Court Amendment Rules (No 2) 1999. 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 filing a petition. An Official 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 assets are realised, the assignee deducts expenses incurred, pays any debts given statutory priority, and then divides the proceeds among 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 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. When an objection to discharge is lodged, the court determines whether a discharge should be granted. In all other cases, a person adjudicated bankrupt is automatically discharged three years after adjudication.

Table 24.02 shows the number of personal bankruptcies in New Zealand and figure 24.02 shows the bankruptcy rate per 100,000 head of population.

Figure 24.02. Bankruptcy
Rate per 100,000 population Years ending 31 December

BankruptcyRate per 100,000 population Years ending 31 December

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 to the extent possible, any surplus is distributed to shareholders, and the company is then removed from the register, whereupon it ceases to exist. Liquidation is carried out in accordance with the relevant provisions of the Companies Act 1993.

Company receivership. Companies with heavy debt loads and cash-flow problems can have a receiver appointed over their assets, either by the court, or, more commonly, under an express clause in a security. Securities often contain a lengthy recital of events that will enable the holder to recover the loan if the borrower gets into financial difficulties. One of these provisions is the power of the security holder to appoint a receiver. The function of a receiver is to sell what is necessary to recover the amount owed to the holder (plus costs), or manage the company's business for this purpose, and then retire as receiver. 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 for, 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, whereas a liquidator acts for unsecured creditors. Table 24.03 shows the number of companies placed under receivership and company liquidations in New Zealand from 1990 to 2002.

24.3 Insurance and superannuation

Operating environment

The insurance industry in New Zealand, both life and non-life, has a number of characteristics which make international comparison difficult.

In taking an overview of the New Zealand industry, it is necessary to identify and understand these characteristics.

Regulation. The Insurance Companies' (Ratings and Inspections) Act requires fire and general insurance (not life insurance) companies 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. The Insurance Companies' Deposits Act 1953 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. Insurance companies are also required to provide detailed annual reports and statements of financial condition to the Ministry of Economic Development. Life and general insurance companies are required to comply with consumer protection legislation such as the Fair Trading Act 1986 and the Consumer Guarantees Act 1993. The size and close-knit nature of the New Zealand insurance market has meant regulation of the industry has proceeded through a combination of 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.

Government involvement. Some classes of insurance which make a substantial contribution to the premium pool of countries overseas do not feature in New Zealand because of the different legal climate and background. For instance, the accident compensation scheme effectively removed many classes of liability insurance in New Zealand. Historically, the government had also been involved in both fire and general and life insurance through government-backed life insurance and mutual funds, but in recent years it has withdrawn from these activities. Fire services in New Zealand are funded through a levy upon all fire insurance policyholders.

Natural disaster insurance. New Zealand is susceptible to damage caused by earthquakes and other geophysical events, and insurance against these events has presented a considerable challenge. The Earthquake and War Damage Commission was established in 1944 to provide 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, which dropped war damage and non-residential property from the cover. Under the act, the Earthquake Commission (EQC) - a Crown entity responsible to the Minister of Finance - 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, tsunami, residential land in the case of storm or flood, and fire caused by any of these. 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). In the year ending 30 June 2003, there were 576 earthquake, volcanic and hydrothermal activity claims ($980,000) and 622 landslip claims ($4,796,000). EQC premium income for the year was $76.8 million and investment income was $277.8 million. The EQC website is www.eqc.govt.nz

The insurance industry

The life insurance industry has undergone considerable change in recent years, with demutualisations, takeovers and establishment of units to provide staff and services to other units being key contributing factors to the overall performance of the industry.

Statistics New Zealand's business demographic statistics recorded 35 life insurance enterprises at February 2003, three fewer than in February 2001.

The market is dominated by AMP, National, Colonial, New Zealand Insurance Life, Tower Retirement Investment and Prudential, who among them write about 75 percent of New Zealand's life insurance and superannuation business, measured by annual premium income.

Table 24.03. Company insolvencies
Years ending 30 June

YearCompanies placed under receivershipCompany liquidations
Court orderVoluntary

Note:Collection of figures for voluntary liquidation ceased in the year ending 30 June 2000.

Source: Ministry of Economic Development

19907771,0334,406
19916901,0311,356
19925751,0521,182
1993286991943
19942228881,367
19952197391,593
19961747601,691
19972407271,611
19982761,0782,038
19992199872,099
2000235810..
2001462697..
2002414887..

Life and general insurance companies are required to comply with the Fair Trading Act 1986 and the Consumer Guarantees Act 1993.

The non-life insurance market is divided among 139 enterprises (140 in 2001), including life companies doing non-life business who have made deposits under the Insurance Companies' Deposits Act 1953. Many of these depositors, however, are not active in the New Zealand market. Some deposits are made to support placements overseas by brokers, or by international re-insurers, and some are retained to support the runoff of workers' compensation business by insurers no longer active in New Zealand. Some New Zealand insurance business is placed directly offshore with Lloyds and the insurance company market in London. The ability to spread risk through international reinsurance markets has allowed New Zealand insurers to absorb large increases in business flowing from the government's decision to remove the Earthquake and War Damage Commission from non-residential disaster insurance. Business demographic statistics recorded 63 health (62 in 2001) and 76 (78 in 2001) general insurance enterprises in New Zealand at February 2003, and 6,000 full-time equivalent people (7,730 in 2001) engaged in the insurance industry. The considerable change which has taken place in the New Zealand insurance industry is likely to continue. The number of direct underwriters is reducing, with amalgamations and withdrawals, and this has been accompanied by a decrease in the number of re-insurers establishing a place of business in New Zealand. It is also probable that the number of major international brokers will be reduced, but that there will be a growing number of brokers operating on a local or regional level to service small businesses and the domestic market. It is generally expected that market growth will increase in the life insurance and superannuation fields to compensate for reduced government commitment to the provision of superannuation.

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 the government, or by quasi-government bodies which are wholly or partly public funded. The Building Research Association of New Zealand (BRANZ) undertakes work in assessing building materials and methods of construction, and the New Zealand 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.

24.4 Retail trade and services

Retailing embraces retail businesses, hotels, 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.

Table 24.04 shows annual retail sales from 1997 to 2003.

Table 24.04. Retail sales
By store type
Years ending 31 March

Store type997199819992000200120022003

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Food8,2538,6729,0869,53410,06110,90811,616
Footwear235239241242249269292
Clothing and softgoods1,3841,3911,3931,5011,5781,7221,814
Furniture and floor coverings1,0011,0441,0711,1341,1361,1971,389
Appliances1,3251,2721,3071,3651,4501,5221,628
Hardware810806756775798860932
Chemist1,1031,2541,2111,2741,3111,3711,483
Department1,8701,9522,1612,4212,5872,7172,924
Recreational goods1,5311,5981,5801,6541,7741,9412,059
Accommodation, hotels and liquor3,4873,5243,5733,6413,6343,8154,033
Cafes, restaurants and takeaways2,4142,5292,5962,8963,0643,3163,644
Personal and household services1,0201,0651,0791,1721,2131,2841,358
Other2,0122,0382,0832,2732,4532,6442,809
Subtotal26,44527,38328,13829,88231,30833,56635,981
Motor vehicle retailing6,8726,0405,8336,0716,0366,7317,448
Motor vehicle services5,2275,3695,3255,7966,6536,8637,253
All stores total38,54438,79239,29641,74943,99647,16050,682
Per head of population10,28610,22910,28210,86311,38112,09912,802

The hunt is on for bargains at a retail outlet sale in Wellington.

Retail sales trends

Total actual retail sales increased by 7.5 percent to $50,682 billion in the year ending 31 March 2003, compared with $47,160 billion in the previous March year, according to Statistics New Zealand's Retail Trade Survey.

All store types recorded increases in the year ending 31 March 2003 compared with the previous year.

The most significant increases were recorded by motor vehicle retailing (up 10.7 percent), food retailing (up 6.5 percent) and motor vehicle services (up 5.7 percent).

Regional sales

Retail sales in the North Island in the year ending 31 March 2003 increased by 7.4 percent on the March 2002 year. The South Island recorded an increase of 7.6 percent for the same period. The Auckland region recorded the strongest growth in sales, up 7.6 percent or $1,178 million. Table 24.05 shows sales by region.

Table 24.05. Retail sales
By region1
Years ending 31 March

YearNorth IslandSouth IslandTotal New Zealand
AucklandWaikatoWellingtonRemainder of North IslandTotal North IslandCanterburyRemainder of South IslandTotal South Island

1Comparisons of regional retail sales should be made with caution, as shoppers from outside their regions also patronise stores in other cities and make use of mail order services. Figures are exclusive of GST.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(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
199812,7273,5994,8108,47829,6134,9994,1809,17938,792
199912,6913,6494,9038,59029,8335,2244,2399,46339,296
200013,6703,7895,1519,00631,6175,6674,46510,13241,749
200114,4004,0695,2519,43433,1556,0684,78410,85344,008
200215,4884,5005,45010,15835,5966,4765,08711,56347,159
200316,6664,8915,69210,99038,2396,8425,60112,44350,682

Credit sales

Credit cards. The value of purchases using credit cards has risen strongly in recent years, more rapidly than borrowing on credit cards. The increase in credit card purchases has been spurred partly by wider acceptance of the card as a means of payment, for example in supermarkets, and by loyalty schemes. The growth in credit card usage is shown in Table 24.06.

Table 24.06. Credit card usage1
By value

Calendar YearAdvancesBillingsAverage monthly retail sales (excluding motor vehicle retailing)Proportion of all retail sales purchased by New Zealand cardholders in New Zealand
Total outstanding at 31 DecNew Zealand card holders spending in New ZealandOverseas card holders spending in New ZealandTotal

1Figures are monthly averages over the complete year.

Eestimate

Source: Reserve Bank of New Zealand

 $(million)Percent
19982,0674981076062,76218
19992,4036561197752,92622
20002,9049001421,0423,12129
20013,3901,1501651,3153,31735
20023,7681,3121991,5113,54637
20033,9531,4382171,6553,767E38E

Figure 24.03. Credit card borrowing
As a proportion of total household credit
Years ending 31 December

Credit card borrowingAs a proportion of total household creditYears ending 31 December

Figure 24.03 shows the value of personal credit card borrowing and that borrowing as a proportion of total household credit.

Hire purchase. Consumer credit is provided by retailers and finance companies, with finance companies particularly active in financing motor vehicles on hire purchase. The Hire Purchase Act 1971 is the governing legislation in New Zealand. The Credit Contracts Act 1981 reformed the law relating to the provision of credit under contracts of various kinds. Included in this act are provisions which prevent oppressive contracts and ensure disclosure of the cost of credit on a uniform basis.

Contributors

  • 24.1 Commerce Commission; Ministry of Consumer Affairs; Statistics New Zealand; Consumers' Institute; Department of Labour; Ministry of Justice.

  • 24.2 Ministry of Economic Development; Commerce Commission; Serious Fraud Office; Securities Commission; New Zealand Exchange Limited.

  • 24.3 Insurance Council of New Zealand; Earthquake Commission; Statistics New Zealand.

  • 24.4 Statistics New Zealand; Ministry of Consumer Affairs; Reserve Bank of New Zealand.

Websites

www.comcom.govt.nz - Commerce Commission

www.consumer.org.nz - Consumers' Institute

www.dol.govt.nz - Department of Labour

www.eqc.govt.nz - Earthquake Commission

www.icnz.org.nz - Insurance Council of New Zealand

www.lawcom.govt.nz - Law Commission

www.courts.govt.nz - Liquor Licensing Authority

www.consumeraffairs.govt.nz - Ministry of Consumer Affairs

www.med.govt.nz - Ministry of Economic Development

www.justice.govt.nz - Ministry of Justice

www.fire.org.nz - New Zealand Fire Service Commission

www.nzx.com - New Zealand Exchange Limited

www.oag.govt.nz - Office of the Controller and Auditor-General

www.iombudsman.org.nz - Office of the Insurance and Savings Ombudsman

www.ombudsmen.govt.nz - Office of the Ombudsmen

www.rbnz.govt.nz - Reserve Bank of New Zealand

www.sec-com.govt.nz - Securities Commission

www.sfo.govt.nz - Serious Fraud Office

www.stats.govt.nz - Statistics New Zealand

www.takeovers.govt.nz - Takeovers Panel

Chapter 25. Overseas Trade

Table of Contents

Forest product exports (excluding newsprint) earned New Zealand $3.2 billion in the year ending 30 June 2003.

25.1 Development and administration of trade

New Zealand Trade and Enterprise

New Zealand Trade and Enterprise (NZTE) is the New Zealand Government's trade and economic development agency, formed on 1 July 2003 from the merger of Trade New Zealand and Industry New Zealand.

NZTE coordinates public and private sector business initiatives through its network of 48 offices in New Zealand and around the world.

Its mission is to stimulate and grow the international competitiveness, profitability and capability of New Zealand businesses of all types. It offers companies of all size a comprehensive range of high-quality, responsive and expert services and programmes, which address capability and market development needs throughout a company's life cycle.

NZTE is largely government-funded, but has a board of directors appointed predominantly from the private sector.

NZTE's eight principal areas of focus are:

  • Sector development.

  • Regional economic development.

  • Business development.

  • Export development.

  • Investment New Zealand, which matches high-growth New Zealand companies with potential international investors.

  • Brand New Zealand, which helps New Zealand businesses build and maintain a distinctive New Zealand brand.

  • Enterprise culture, which supports positive attitudes towards business and entrepreneurs.

  • Events support.

The New Zealand Trade and Enterprise website is www.nzte.govt.nz

Services in New Zealand. NZTE has staff in 10 offices around New Zealand who work in sector-specific teams, reflecting the focus on industries in which New Zealand has a long-term sustainable advantage. These include education; agritech and life sciences; food and beverage; wood processing; building and interiors; niche manufacturing (including engineering and marine); information communication technologies; and creative (including film, television, music, publishing, consumer products and services). A Maori enterprise team, spanning all sectors, is dedicated to helping Maori and indigenous businesses grow. For start-up clients, services available include training, investment facilitation and incubator. For new exporters, a business consultancy line (0800 555 888) is available, along with mentoring, How To guides, networking events and seminars. For high growth businesses and exporters, client managers provide customised services such as business appraisals and applications for financing, export market consultancy, and access to NZTE's international network of trade commissioners.

Services overseas. NZTE has staff in an international network of 38 offices who understand local business cultures, speak the local language and provide hands-on assistance to New Zealand exporters. They conduct market and product research, identify suitable business partners, and arrange visit programmes, interpreters and trade fair promotions. Staff also provide international buyers, importers and distributors with information and intelligence on New Zealand's business capability, enabling them to source quality New Zealand products and services.

Brand New Zealand. NZTE and Tourism New Zealand jointly own the Brand New Zealand visual identity and incorporate the brand into all offshore activities that promote New Zealand and build New Zealand's reputation. NZTE is working to create an image that differentiates New Zealand internationally and enhances New Zealand's established/emerging areas of competitive advantage. The aim is to accelerate global awareness of New Zealand as being innovative, creative and technologically advanced.

World Customs Organisation

The New Zealand Customs Service is a fully participating member of the World Customs Organisation (WCO), established (as the Customs Cooperation Council) in 1952. In June 2002, the New Zealand Customs Service was elected to lead the Asia Pacific region of the World Customs Organisation, a post it held for two years.

The WCO is an intergovernmental organisation of 157 members with headquarters in Brussels. The WCO's functions include:

  • Promoting cooperation among members on all customs matters.

  • Examining technical aspects of customs systems and procedures with a view to promoting the highest degree of uniformity, simplification and transparency among members.

  • Promoting the uniform application and interpretation of conventions and other instruments and encouraging members to accede to conventions.

  • Promoting the exchange of information among members.

  • Cooperating with other intergovernmental agencies on matters within its competence.

The New Zealand Customs Service seeks to ensure a safe and secure border.

Border operations

The New Zealand Customs Service provides protection at the border by managing the import and export of goods and the movement of international passengers, aircraft and vessels in accordance with customs, immigration, quarantine and other statutory requirements. Customs seeks to ensure a safe and secure border, with 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 checking and clearing of passengers and craft at airports and seaports, surveillance and search for prohibited items, and investigation of customs offences and related items. Underpinning these activities is the collection and processing of intelligence on potential breaches of legislation the customs service enforces.

Overseas trade statistics

Overseas merchandise trade statistics measure the value and quantity of New Zealand's exports and imports. The statistics are compiled monthly by Statistics New Zealand based on entries lodged with the New Zealand Customs Service by exporters, importers and their agents. Table 25.01 provides overseas merchandise trade figures for the 10 years to 2003.

Exports are valued ‘fob’ (free on board), which is the market value of goods at the New Zealand port of loading. It includes the value added in bringing goods to the port, but excludes international freight and associated insurance. Re-exports are included, unless otherwise specified, while goods for repair are excluded.

Imports, which also exclude goods for repair, are valued ‘cif’ (cost, insurance and freight) and ‘vfd’ (value for duty). The cif value is the market value of goods at the New Zealand port of unloading. It includes the value added for the cost of international freight and associated insurance. The 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 cif values.

Balance of merchandise trade

An important analytical result of New Zealand's overseas trade is the ‘balance of merchandise trade,’ 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 imports over exports is a ‘deficit’, which is treated as a negative number.

In the year ending 30 June 2003, New Zealand's balance of merchandise trade was a deficit of $2.9 billion, compared with a surplus of $521 million for the June 2002 year.

Table 25.01. Overseas merchandise trade1
Years ending 30 June

YearExports (fob)Imports (cif)Balance of merchandise trade (fob-cif)

1Exports valued free on board at New Zealand ports, re-exports included. Imports valued cif (cost including insurance and freight).

Note:Some figures may not balance due to rounding.

Source: Statistics New Zealand

 $(million)
199419,82718,4691,358
199520,79021,261−471
199620,54621,352−807
199721,03321,324−290
199821,94122,589−648
199922,58224,248−1,667
200026,11129,193−3,082
200132,00031,92773
200232,33231,811521
200329,29132,161−2,869

25.2 Exports

In this chapter, export values include re-exports, which are goods imported into New Zealand and then exported without being significantly altered. Typical re-exports are aircraft and heavy machinery.

Exports in the year ending 30 June 2003 year totalled $29.3 billion, 9.3 percent lower than the June 2002 year total of $32.3 billion.

Dairy products and meat and edible offal were New Zealand's two most valuable export commodities in the year ending 30 June 2003, contributing 16.1 percent and 14.0 percent of total exports respectively.

Table 25_02 lists the major commodities exported

Table 25.02. Major export commodities1
Years ending 30 June

CommodityValue of exports
19992000200120022003

1Exports are valued free on board at New Zealand ports, re-exports included

Source: Statistics New Zealand

 $(million)
Dairy produce, eggs and honey3,7993,9145,8125,9234,714
Meat and edible offal2,8363,3794,1824,4294,111
Wood and articles of wood1,4992,0242,1922,3782,386
Machinery and mechanical appliances1,0351,1271,3211,3951,356
Fish, crustaceans and molluscs1,1841,2301,3741,4021,215
Albuminoidal substances; modified starches; glues; enzymes9149971,4441,3871,148
Fruit and nuts (edible)1,0649721,0451,1591,032
Aluminium and aluminium articles9581,1161,2951,176980
Wool, fine or coarse animal hair8579301,009944943
Electrical machinery, equipment and parts6998441,0881,018938

The largest export increases for the year came from iron and steel (up $42 million); optical, medical and measurement equipment (up $29 million); vehicles, parts and accessories (up $19 million); and carpets and other textile floor coverings (up $14 million). The largest falls were for dairy products (down $1.2 billion); organic chemicals (down $421 million); paper and paperboard articles (down $325 million); meat and edible offal (down $318 million); and albuminoidal substances and glues (down $239 million). The main contributor to the lower export values of albuminoidal substances and glues was casein and caseinates, which fell $214 million in the year ending 30 June 2003.

Dairy products

The export value of dairy products was $5.6 billion in the year ending 30 June 2003, down 20.2 percent on the previous June year. Dairy products made up 19.2 percent of New Zealand's total merchandise export value. The most valuable dairy product exports were milk powder ($2.6 billion), cheese ($1.0 billion), casein and caseinates ($959 million) and butter ($922 million) Table 25.03 shows the value of dairy produce exports from 1999 to 2003.

Table 25.03. Dairy produce exports1
Years ending 30 June

Product19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Milk powder, milk, cream.1,7721,8563,2013,2022,648
Cheese and curd9849911,2731,4171,001
Casein and caseinates7648061,2131,173959
Butter and dairy spreads9159231,1031,084922
Buttermilk products, yoghurt938416013681
Whey and other products2441535227
               Total dairy produce exports4,5514,7017,0037,0645,638
               Percentage of total exports20.11821.921.819.2

Main export markets in the 2003 June year were the United States, Belgium, the Philippines, the People's Republic of China and Japan. The United States was the main export market for casein and caseinates, accounting for 47.8 percent of total earnings for these products. Germany and Japan were the next most valuable markets. Export values fell greatest to the United States, Japan, the United Kingdom and Indonesia. The value of dairy product exports to Belgium, the People's Republic of China, Russia and Germany showed strongest growth for the year, as shown in Table 25.04.

Table 25.04. Dairy produce exports1
By destination
Years ending 30 June

Country19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
United States634707846929679
Belgium204152227225356
Philippines192199337392320
China, People's Republic of128100168207316
Japan389363490502314
Mexico195137328408310
Malaysia245272380329262
Australia185222275280253
Indonesia84139335313201
Taiwan175188265250191
Thailand117119214231182
Canada2948131159176
Saudi Arabia113123189224171
Germany8789153144168
Sri Lanka113108165150117
Viet Nam7964267184102
Egypt11591121128100
Singapore77162849196
Korea, Republic of577111811995
Venezuela10410321116189
Other countries1,2321,2441,7001,6381,141
               Total dairy produce exports4,5514,7017,0037,0645,638

Meat and edible offal

Table 25.05 shows the value of New Zealand's exports of meat and edible offal fell 7.2 percent to $4.1 billion in the year ending 30 June 2003. This followed a 5.9 percent rise in the year ending 30 June 2002. The main contributor to the decrease in export values in the 2003 June year was beef, which fell by 13.8 percent ($252 million).

Table 25.05. Meat and edible offal exports1
Years ending 30 June

Commodity19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Beef1,0911,4041,6781,8201,570
Pig-12--
Sheep1,5091,6992,1262,2592,257
Goat66656
Venison145165238221165
Offal81103128117108
Poultry1-113
Other32343
               Total meat and edible offal exports2,8363,3794,1824,4294,111
               Percentage of total exports12.612.913.113.714.0

As Table 25.06 shows, the United States, at $1.1 billion, remained the most valuable export market for meat and edible offal, even though receipts were down 12.9 percent ($164 million) on the previous June year.

Exports to the United Kingdom and Germany, the next largest markets, decreased 0.4 percent ($2 million) and 8.7 percent ($35 million) respectively. Decreases were also recorded for Canada (down $93 million), Belgium (down $26 million) and Hong Kong (down $8 million), while increases were recorded for the Republic of Korea (up $14 million), Saudi Arabia (up $14 million) and Taiwan (up $11 million).

The main markets in Asia were Japan ($163 million), Taiwan ($134 million) and the Republic of Korea ($111 million).

Table 25.06. Meat and edible offal exports1
By destination
Years ending 30 June

Destination19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Source: Statistics New Zealand

 $(million)
United States7861,0821,2201,3131,149
United Kingdom440468541541539
Germany274301420404369
France110150229260261
Canada131116278335242
Belgium155168175208182
Japan159160199168163
Taiwan87101102123134
Korea, Republic of28494697111
Mexico1628777372
Switzerland3054555763
Saudi Arabia5766824862
China, People's Republic of1418385860
Italy3538526257
Malaysia3246576052
Netherlands3544454951
French Polynesia2833375050
Hong Kong5056645446
Other countries369401465469448
               Total meat and edible offal exports2,8363,3794,1824,4294,111

Forest products

The value of forest product exports, excluding newsprint, in the year ending 30 June 2003 was $3.2 billion, a decrease of 5.1 percent ($171 million) on the previous June year, as shown in Table 25.07.

Table 25.07. Forest product exports12
Years ending 30 June

Commodity19992000200120022003

1Excludes newsprint.

2Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Wood (sawn)558734769864855
Wood (rough)466655695758722
Board (fibre, veneer, plywood)333434517516545
Wood pulp385636643548461
Paper and paperboard1302390419440348
Other142201211240265
               Total forest product exports12,1863,0503,2543,3663,195
               Percentage of total exports9.711.710.210.410.9

Main contributors to this drop in value were falls of 21.0 percent ($92 million) in exports of paper and paperboard (excluding newsprint) and 16.4 percent ($85 million) in exports of wood pulp.

Exports of board (fibre, veneer and plywood) increased by 5.7 percent ($30 million).

The most value type of forest product exported was sawn timber ($855 million).

New Zealand's two main destinations for forest products, Australia ($678 million) and Japan ($674 million), showed decreases of 4.3 percent ($31 million) and 2.0 percent ($14 million) respectively in the year ending 30 June 2003.

The United States, the third main destination for forest products, showed a 1.1 percent decrease ($6 million), to $519 million, while the fourth main destination, the Republic of Korea, was down 18.5 percent ($98 million) in value.

Table 25.08 shows the destination of forest products from 1999 to 2003.

Table 25.08. Forest product exports12
By destination
Years ending 30 June

Destination19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

2Excludes newsprint.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Australia555748724708678
Japan563657821687674
United States245353427524519
Korea, Republic of304467443529431
China, People's Republic of60180215387343
Philippines35627979125
Indonesia60110987374
Taiwan841321109273
Malaysia3348495143
Hong Kong6667714340
India3224262328
Thailand2243383227
Viet Nam1124271820
Singapore2432182320
Fiji1119201717
New Caledonia88689
Saudi Arabia-2219
United Arab Emirates1411858
Western Samoa56898
Tanga35568
Other countries5152584942
               Total forest product exports2,1863,0503,2543,3663,195

Fish, crustaceans and molluscs

Exports of fish, crustaceans and molluscs, including extracts and preparations, were worth $1.3 billion in the year ending 30 June 2003, down 13.7 percent ($206 million) on the previous June year. Excluding extracts and preparations, the export value of fish, crustaceans and molluscs was $1.2 billion, down 13.3 percent ($187 million) on the previous June year, as shown in Table 25.09.

Table 25.09. Fish, crustacean and mollusc exports1
Years ending 30 June

Product19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Fish fillets and other fish meat499487536508452
Frozen fish262284325313266
Molluscs and aquatic invertebrates214204249312251
Crustaceans120153149162146
Fresh or chilled fish7586949289
Edible fish meal; dried, salted or smoked fish1113171210
Live fish33422
               Total fish, crustacean and mollusc exports1,1841,2301,3741,4021,215
Extracts and preparations
Prepared or preserved molluscs5367877260
Prepared or preserved fish, including fish eggs2934404437
Fish or crustacean extracts and juices43888
               Total fish, crustacean and mollusc exports, including extracts and preparations1,2701,3341,5081,5271,321
               Percentage of total exports5.65.14.74.74.5

Main contributors to the overall fall were molluscs, down by $61 million to $251 million, fish fillets down by $56 million to $452 million and frozen fish down by $48 million to $266 million. Table 25.10 shows exports of fish, crustaceans, and molluscs to the United States fell by 17.5 percent, or $53 million, in the June 2003 year. The value of exports to Japan fell by 16.6 percent ($47 million), while the Republic of Korea recorded a 48.3 percent ($37 million) drop.

Table 25.1. Fish, crustacean and mollusc exports1
By destination
Years ending 30 June

Destination19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
United States246272254301248
Japan263303333283236
Australia157166194195207
Hong Kong132161180189153
Germany6248465867
Spain4242786258
China, People's Republic of4321436056
Korea, Republic of4234527740
France4144444531
Singapore2435443529
United Kingdom2921302723
Taiwan2230241917
Malaysia1214211616
Greece1313121315
Italy1213221514
Canada1013151714
Thailand2223171412
Belgium2413121112
Netherlands1511211812
American Samoa26247
Other countries5652636854
               Total fish, crustacean and mollusc exports1,2701,3341,5081,5271,321

Apple exports were worth more than $390 million to New Zealand in the year ending 30 June 2003.

Fruit, nut and vegetable exports

Table 25.11 shows that fruit, nut and vegetable exports were valued at $1.5 billion in the year ending 30 June 2003, down 9.4 percent ($156 million) on the previous June year. Kiwifruit was the main contributor to the decrease, falling by 12.8 percent ($79 million) to $539 million. Other contributors to the decrease included apples, down $29 million to $392 million, and squash and gourds, down $14 million to $67 million.

Table 25.11. Fruit, nut and vegetable exports1
Years ending 30 June

Product19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Kiwifruit474459595619539
Apples489405342422394
Legumes10597121118106
Onions, shallots, garlic, leeks etc10682101104103
Squash and gourds6160728268
Corn4648635752
Berry fruit3029332426
Avocado1925262826
Capsicum1015232224
Carrots and other edible roots1723221716
Other fruit, nuts and vegetables9798101119102
          Total fruit, nut and vegetable exports1,4541,3391,4951,6081,451
          Percentage of total exports6.45.14.75.05.0

Table 25.12 shows that in the year ending 30 June 2003, the main destination for New Zealand's fruit, nut and vegetable exports was Japan, which took $366 million worth, up 0.3 percent ($1 million) on the previous year. The United Kingdom, down $43 million to $133 million, and Australia, down $8 million to $121 million, were the next most important markets for New Zealand fruit, nut and vegetable exports. A significant proportion of New Zealand's fruit, nut and vegetable exports are sold on consignment and classified as destination unknown - European Union. In the year ending 30 June 2003, $235 million worth of fruit, nut and vegetable exports was classified in this category, down 22.7 percent ($69 million) on the previous year.

Table 25.12. Fruit, nut and vegetable exports1
By destination
Years ending 30 June

Destination19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Japan295319373365366
Destination unknown-European Union361261293304235
United Kingdom182158130176133
Australia8989127129121
United States138146149144119
Taiwan4750567475
Netherlands3117236154
Spain3057513447
Germany4120323944
Korea, Republic of69142734
Other countries234215247255224
          Total fruit, nuts and vegetable exports1,4541,3391,4951,6081,451

Mechanical and electrical machinery exports

Machinery exports from New Zealand to the value of $2.3 billion were recorded for the year ending 30 June 2003. This was down in value by 4.9 percent ($119 million) on the previous June year, as shown in Table 25.13.

Table 25.13. Mechanical and electrical machinery exports1
Years ending 30 June

Product19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Refrigerators and freezers94114129147156
Boards, panels and consoles for electricity control79118157145139
Mechanical parts and accessories111104133124108
Dish washing machines607598125108
Transmission apparatus124115141112106
Harvesting and threshing machinery3943516276
Telecommunication apparatus4441536475
Electrical machines and apparatus55759310471
Industrial machinery and laboratory equipment4747556168
Insulated wire and cable5649645662
Other1,0271,1911,4351,4141,325
          Total mechanical and electrical machinery exports1,7341,9712,4082,4132,294
          Percentage of total exports7.77.57.57.57.8

The main types of machinery exported were refrigerators and freezers ($156 million); boards, panels and consoles for electricity control ($139 million); mechanical parts and accessories ($108 million); dish washing machines ($108 million); and transmission apparatus ($106 million).

Table 25.14 shows that Australia ($961 million) and the United States ($454 million) were New Zealand's most valuable markets for machinery exports in the year ending 30 June 2003, even though they showed decreases in value of 4.4 percent and 3.1 percent respectively on the previous year.

These two countries accounted for 61.7 percent of machinery exports for the June 2003 year. The United Kingdom, the third main destination for machinery exports, showed a 2.9 percent increase, to $126 million.

Table 25.14. Mechanical and electrical machinery exports1
By destination
Years ending 30 June

Destination19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Australia8038979461,005961
United States243327477468454
United Kingdom108105119122126
Singapore5552826868
Canada3337424657
Germany2134383745
Hong Kong6362985645
Taiwan2631494144
Fiji3634303943
China, People's Republic of1615346240
Japan1934572933
Western Samoa1922232723
Malaysia1515304021
South Africa1720212920
Thailand5691817
Netherlands1613191817
France2116101113
India51151212
Denmark55171012
Papua New Guinea877611
Other countries200229295270231
          Total mechanical and electrical machinery exports1,7341,9712,4082,4132,294

25.3 Imports

Imports referred to in this chapter are valued cif (cost, insurance and freight) and in New Zealand dollars.

Foreign currency values are converted to New Zealand dollars when import documents are processed by the New Zealand Customs Service. Customs sets exchange rates used for conversions each fortnight.

Imports for the year ending 30 June 2003 were valued at $32.2 billion, an increase of 1.1 percent ($350 million) on the previous June year.

Table 25.15 shows the value of the major commodities imported to New Zealand between 1999 and 2003.

Table 25.15. Major commodities imported1
By value
Years ending 30 June

Commodity19992000200120022003

1Imports valued cif (cost including insurance and freight).

Source: Statistics New Zealand

 $(million)
Vehicles, parts and accessories2,9843,5493,6674,3894,985
Mechanical machinery and equipment3,4453,8074,1114,3704,333
Mineral fuels1,3782,3193,5602,8703,152
Electrical machinery and equipment2,5252,9383,3902,8072,699
Plastics and plastic articles9961,1911,3371,3151,279
Optical, medical and measuring equipment762845984987967
Paper, paperboard and paper articles739833910934924
Aircraft and parts8011,503884829804
Pharmaceutical products682724781763747
Iron or steel articles352402451491491
Iron and steel370462479529481
Apparel - not knitted or crocheted330394448437446

Machinery

Machinery imports (mechanical and electrical) totalled $7.0 billion in the year ending 30 June 2003. This was down 2.0 percent ($145 million) on the previous June year, as shown in Table 25.16

Table 25.16. Mechanical and electrical machinery imports12
Years ending 30 June

Product19992000200120022003

1Imports valued cif (cost including insurance and freight).

2Confidential data excluded.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Automatic data processing machines8818731,024938929
Machinery, parts and accessories336419498481449
Electrical apparatus for line telephony or telegraphy454464479313315
Transmission apparatus270436461401310
Bulldozers, graders, levellers, etc97170160233269
Records, tapes and other recorded sound223205217195202
Reception apparatus for television115130148154193
Electrical apparatus for electrical circuits127137144142143
Taps, cocks, valves etc111123127140132
Electric water, space and oil heaters96109120129129
Other3,2613,6784,1244,0513,961
          Total mechanical and electrical machinery imports5,9706,7457,5017,1777,032
          Percentage of total imports24.623.123.522.621.9

The main types of machinery imported were automatic data processing equipment ($929 million), mechanical parts and accessories ($449 million), electrical apparatus for line telephony ($315 million) and transmission apparatus ($310 million).

The United States was the main source of imported machinery, supplying 18.6 percent ($1.3 billion) of machinery imports in the year ending 30 June 2003. Australia supplied 11.7 percent ($822 million) and Japan 11.6 percent ($816 million).

Compared with the previous June year, the largest decreases in the supply of imported machinery were recorded by the United States (down $320 million), France (down $40 million), Singapore (down $36 million) and Malaysia (down $29 million).

The People's Republic of China (up $126 million), Japan (up $39 million) and Australia (up $37 million) recorded higher import values in the year ending 30 June 2003, as shown in Table 25.17.

Table 25.17. Mechanical and electrical machinery imports12
By country of origin
Years ending 30 June

Country19992000200120022003

1Imports valued cif (cost including insurance and freight).

2Confidential data excluded.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
United States1,5341,7702,0441,6351,315
Australia651706738784822
Japan675805817777816
China, People's Republic of240311457582708
Germany323380411478496
Malaysia251333356332303
Italy185206231267294
Taiwan252266295270267
Korea, Republic of125158181260261
Singapore323358321271235
Other countries1,4121,4511,6511,5201,515
          Total mechanical and electrical machinery imports5,9706,7457,5017,1777,032

Vehicles

Table 25.18 shows the value of vehicles imported into New Zealand in the year ending 30 June 2003 was $3.3 billion, a 16.1 percent increase ($457 million) on the previous June year's value.

Japan was New Zealand's main source of imported vehicles, supplying 52.0 percent by value and 74.9 percent by number during the year ending 30 June 2003. The value of vehicles from Japan was 11.4 percent ($176 million) higher than in the previous June year and the number was up by 12.4 percent.

The number of vehicle imports, and their value, from Australia and Germany also increased.

Table 25.18. Passenger vehicle imports1
By country of origin
Years ending 30 June

Origin19992000200120022003

1Imports valued cif (cost including insurance and freight).

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)Quantity$(million)Quantity$(million)Quantity$(million)Quantity$(million)Quantity
Japan1,352156,7881,462152,4911,330142,5281,536157,6601,711177,230
Australia32112,63740915,54140214,43946315,84456619,061
Germany2158,3872057,3912488,87330412,07039412,654
United States504,293665,422775,3611106,3291367,061
United Kingdom693,061903,611793,240833,6341314,733
Belgium211,224301,512271,276893,953833,655
France221,194291,372361,434522,118632,743
Korea, Republic of767,096906,920594,083282,043513,772
South Africa12312292255033768837677
Italy1227915428185132873928735
Other countries855,1821205,9081144,7761035,010884,436
          Total passenger vehicle imports2,224200,1642,527200,8882,415187,0262,832210,0883,289236,757

Mineral fuels

Table 25.19 on page 426 shows that the value of mineral fuel imports into New Zealand in the year ending 30 June 2003 was $3.2 billion, up 9.6 percent (or $281 million) on the previous June year. Imports of crude petroleum rose by 4.3 percent ($79 million) and imports of non-crude petroleum rose by 18.9 percent ($168 million). Crude petroleum made up 61.5 percent by value of all mineral fuel imports.

Table 25.19. Mineral fuel imports12
Years ending 30 June

Product19992000200120022003

1Imports valued cif (cost including insurance and freight).

2Confidential data excluded.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Crude petroleum8911,4972,3551,8601,939
Non-crude petroleum4097371,0448891,057
Coal, coke, briquettes, etc7076149105145
Other810121611
          Total mineral fuel imports1,3782,3193,5602,8703,152
          Percentage of total imports5.77.911.29.09.8

Table 25.20 shows Australia provided 29.9 percent of New Zealand's mineral fuel imports in the year ending 30 June 2003, compared with 34.0 percent for the previous June year. Oman provided 11.1 percent in 2003, compared with 11.2 percent the previous year

Table 25.2. Mineral fuel imports12
By country of origin
Years ending 30 June

Country19992000200120022003

1Imports valued cif (cost including insurance and freight).

2Confidential data excluded. - nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Australia4446901,002977944
Oman66185239322351
United Arab Emirates135168398382333
Malaysia85145345212252
Brunei Darussalam1732-68216
Singapore162564116172
Saudi Arabia241481560394151
Qatar123224933124
Nigeria257926-120
Indonesia1011712682
Other countries327471606341407
          Total mineral fuel imports1,3782,3193,5602,8703,152

25.4 Trading partners

In the year ending 30 June 2003, 79.3 percent of New Zealand's merchandise exports went to Northeast Asia, Australia, Europe and northern America, compared with 77.9 percent in the previous June year and 77.6 percent in the June 2001 year.

For the year ending 30 June year 2003, 82.7 percent of New Zealand's merchandise imports came from the same country groups, compared with 82.8 percent in the year ending 30 June 2002 and 81.1 percent in the June 2001 year.

North-east Asia, which includes Japan, the People's Republic of China, the Republic of Korea and Taiwan, is the most important country group for both export and import merchandise trade, followed by Australia.

Top 10 trading partners

New Zealand's top 10 trading partners received 70.1 percent of New Zealand's merchandise exports and supplied 74.5 percent of merchandise imports in the year ending 30 June 2003.

The single most important trading partner for exports and imports was Australia, followed by the United States and Japan.

In the year ending 30 June 2003, these three countries took 47.0 percent of New Zealand's merchandise exports and provided 47.3 percent of imports.

Tables 25.21 and 25.22 show New Zealand top 10 trading partners from 1999 to 2003.

Table 25.21. Merchandise exports1
Top 10 countries of destination
Years ending 30 June

Country19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Australia4,8575,5286,0836,3266,050
United States2,9953,7334,6514,9224,366
Japan2,8943,3824,3143,7323,354
China, People's Republic of6267661,1261,4341,457
United Kingdom1,3261,5421,5381,5801,361
Korea, Republic of8861,1801,3861,4661,178
Germany624646843828855
Taiwan533664730711667
Belgium486426522551651
Canada294332582691605
          Total top 10 countries15,52118,19721,77522,24020,544
Other countries7,0607,91410,22510,0918,747
          Total all countries22,58226,11132,00032,33229,291

Table 25.22. Merchandise imports1
Top 10 countries of origin
Years ending 30 June

Country19992000200120022003

1Imports valued cif (cost including insurance and freight).

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Australia5,3676,8437,0107,1887,278
United States4,2835,1275,2984,7774,067
Japan3,0563,4743,4273,6183,876
China, People's Republic of1,2341,6302,1492,3712,687
Germany1,0881,1821,4191,5761,713
United Kingdom1,0661,1611,1871,2071,120
Malaysia525717966800864
Korea, Republic of504687700747832
Italy518581676768826
Taiwan547627683649700
          Total top 10 countries18,18822,03023,51623,70223,965
Other countries6,0617,1638,4118,1098,196
          Total all countries24,24829,19331,92731,81132,161

Australia

Australia is New Zealand's main trading partner, taking 20.7 percent of New Zealand's merchandise exports and supplying 22.6 percent of imports in the year ending 30 June 2003.

Table 25.23 shows trading figures with Australia from 1992 to 2003.

Exports to Australia decreased in value by 4.4 percent ($276 million) on the previous June year and imports rose by 1.2 percent ($90 million).

Exports of mineral fuels to Australia in the year ending 30 June 2003 fell by 17.3 percent ($75 million) on the previous June year, while exports of mechanical machinery and equipment rose 1.2 percent ($8 million) as shown in Table 25.24 on page 428.

Imports of vehicles, parts and accessories from Australia in the year ending 30 June 2003 rose 21.1 percent ($132 million) on the previous June year.

Imports of mechanical machinery and equipment rose by 14.1 percent ($63 million), while imports of mineral fuels fell by 3.4 percent ($33 million) as shown in Table 25.25 on page 428.

Table 25.23. Trade with Australia1
Years ending 30 June

YearExports (fob)Imports (cif)Balance of merchandise trade (fob - cif)

1Exports valued free on board at New Zealand ports, re-exports included. Imports valued cif (cost including insurance and freight).

Note:Figures may not balance due to rounding.

Source: Statistics New Zealand

 $(million)
19923,3883,427−39
19933,7863,74738
19944,1623,942220
19954,3424,444−101
19964,2054,964−759
19974,2765,080−804
19984,5895,579−990
19994,8575,367−510
20005,5286,843−1,316
20016,0837,010−927
20026,3267,188−862
20036,0507,278−1,228

Table 25.24. Trade with Australia12
By main commodities exported
Years ending 30 June

Commodity19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

2Export values exclude confidential data.

3Data no longer confidential assigned to specific commodities.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Mechanical machinery and equipment532574630661669
Wood and articles of wood306429342380412
Mineral fuels308414498435360
Electrical machinery and equipment270323316344292
Precious metals, jewellery, coins191223263291279
Plastics and plastic articles206234255256254
Dairy products176211262269243
Paper and paperboard articles322393446437176
Fish, crustaceans and molluscs139142166162175
Wool and animal hair107134112127156
Other commodities2,2992,4502,7942,9632,796
Confidential data3---1238
          Total main commodities exported4,8575,5286,0836,3266,050

Table 25.25. Trade with Australia123
By main commodities imported
Years ending 30 June

Commodity19992000200120022003

1Imports valued cif (cost including insurance and freight).

2Confidential data excluded.

3Data no longer confidential assigned to specific commodities.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Mineral fuels4446901,002977944
Vehicles, parts and accessories385503514628761
Mechanical machinery and equipment348353382447509
Paper and paperboard articles295373415415425
Electrical machinery and equipment303353357338312
Inorganic chemicals278317371325286
Plastics and plastic products232266283286266
Pharmaceutical products203242238210210
Books, newspapers and printed matter159173170174186
Beverages, spirits and vinegar110136158161183
Other commodities2,6093,4383,1203,2253,184
Confidential data---212
          Total main commodities imported5,3676,8437,0107,1887,278

United States

The United States is New Zealand's second main export destination and import supplier. In the year ending 30 June 2003, however, merchandise exports decreased by 11.3 percent ($555 million) and merchandise imports decreased by 14.9 percent ($710 million).

Table 25.26 shows the value of trade with the United States.

Main commodities contributing to the decrease in exports were meat and edible meat offal, down 12.4 percent ($163 million), milk powder, butter and cheese, down 39 percent ($142 million), and casein and caseinates down 19.0 percent ($107 million).

Main commodities contributing to the decrease in imports were electrical machinery and equipment, down 33.3 percent ($203 million), mechanical machinery and equipment, down 11.4 percent ($117 million), and aircraft and parts, down 15.3 percent ($106 million).

Vehicles, parts and accessories imported from the United States increased by 6.4 percent ($18 million) in the year ending 30 June 2003.

Tables 25.27 and 25.28 show the value of exports and imports with the United States.

Table 25.26. Trade with the United States1
Years ending 30 June

YearExports (fob)Imports (cif)Balance of merchandise trade (fob - cif)

1Exports valued free on board at New Zealand ports, re-exports included, Imports valued cif (cost including insurance and freight).

Note:Figures may not balance due to rounding.

Source: Statistics New Zealand

 $(million)
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
19982,5893,974−1,385
19992,9954,283−1,288
20003,7335,127−1,394
20014,6515,298−647
20024,9224,777145
20034,3664,067299

Table 25.27. Trade with the United States123
By main commodities exported
Years ending 30 June

Commodity19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

2Confidential data excluded.

3Data no longer confidential assigned to specific commodities.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Meat and edible offal7861,0821,2201,3131,149
Logs, wood and wood articles212311377494496
Casein and caseinates385443588565458
Mechanical machinery and equipment154180248276258
Fish, crustaceans and molluscs240263249298245
Dairy produce (except casein and caseinates)250268260365223
Electrical machinery and equipment88147230193196
Vehicles, parts and accessories4292134121131
Optical, medical and measuring equipment707091112124
Fruit and nuts133143140132102
Other commodities6337351,1131,054966
Confidential data----18
          Total main commodities exported2,9953,7334,6514,9224,366

Table 25.28. Trade with the United States123
By main commodities imported
Years ending 30 June

Commodity19992000200120022003

1Imports valued cif (cost including insurance and freight).

2Confidential data excluded.

3Data no longer confidential assigned to specific commodities.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Mechanical machinery and equipment1,0431,0791,1141,025908
Aircraft and parts7381,191777692586
Electrical machinery and equipment490691929611408
Vehicles, parts and accessories154221218279297
Optical, medical and measuring equipment273282342320268
Plastics and plastic articles194220248239205
Chemical products110100116128117
Organic chemicals11911213712485
Pharmaceutical products4055657782
Books, newspapers and printed matter83851027368
Other commodities1,0391,0911,2501,2091,044
Confidential data----1
          Total main commodities imported4,2835,1275,2984,7774,067

Japan

Japan is New Zealand's third main trading partner after Australia and the United States for both merchandise exports and imports.

Merchandise exports to Japan in the year ending 30 June 2003 were down 10.1 percent ($378 million) from the previous June year, while imports were up 7.1 percent ($258 million).

Main contributors to the fall in exports were dairy products (down 39.7 percent or $155 million), aluminium and aluminium articles, down 13.9 percent ($89 million), and fish, crustaceans and molluscs, down 16.4 percent ($45 million).

Main contributor to the rise in imports was vehicles, parts and accessories, up 14.6 percent ($292 million).

Table 25.29 shows the value of merchandise trade with Japan in recent years.

Tables 25.30 and 25.31 on page 430 show the value of exports and imports with Japan.

Table 25.29. Trade with Japan1
Years ending 30 June

YearExports (fob)Imports (cif)Balance of merchandise trade (fob - cif)

1Exports valued free on board at New Zealand ports, re-exports included. Imports valued cif (cost including insurance and freight).

Note:Figures may not balance due to rounding.

Source: Statistics New Zealand

 $(million)
19922,7152,375340
19932,7592,653106
19942,8872,928−41
19953,4173,176241
19963,3022,885417
19973,1382,846292
19983,0382,539499
19992,8943,056−162
20003,3823,474−93
20014,3143,427887
20023,7323,618115
20033,3543,876−522

Japan is a major market for New Zealand beef.

Table 25.3. Trade with Japan123
By main commodities exported
Years ending 30 June

Commodity19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

2Confidential data excluded.

3Data no longer confidential assigned to specific commodities.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Logs, wood and wood articles480565733602578
Aluminium and aluminium articles501642808642553
Dairy produce283272350391235
Fish, crustaceans and molluscs255295321274229
Fruit and nuts133142176185184
Vegetables162177197180182
Meat and edible offal159160199168163
Miscellaneous edible preparations326311095138
Mineral fuels46144202121138
Albuminoidal substances and glues130116168155120
Other commodities7138051,049899558
Confidential data---21276
          Total main commodities exported2,8943,3824,3143,7323,354

Table 25.31. Trade with Japan123
By main commodities imported
Years ending 30 June

Commodity19992000200120022003

1Imports valued cif (cost including insurance and freight).

2Confidential data excluded.

3Data no longer confidential assigned to specific commodities.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Vehicles, parts and accessories1,6461,8581,7332,0002,293
Mechanical machinery and equipment407496500550561
Electrical machinery and equipment268310317227255
Optical, medical and measuring equipment121152158159150
Iron and steel8089928493
Rubber and rubber articles6870758580
Plastics and plastic articles6390766879
Photograph film, papers and chemicals4250606456
Toys, games and sports requisites4023334739
Paper and paperboard articles3643373228
Other commodities285294346303240
Confidential data----3
          Total main commodities imported3,0563,4743,4273,6183,876

People's Republic of China

The People's Republic of China became New Zealand's fourth largest trading partner in the year ending 30 June 1999, displacing the United Kingdom, which had been the country's largest trading partner until Australia, Japan and the United States became dominant in the late 1970s.

In the year ending 30 June 2003, the People's Republic of China took $1.5 billion worth of New Zealand's merchandise exports, up 1.6 percent, or $22 million, on the previous June year.

Main commodities exported were dairy products ($303 million), logs, wood and wood articles ($220 million) and wool and animal hair ($152 million).

New Zealand imported goods worth $2.7 billion from the People's Republic of China in the year ending 30 June 2003, an increase of $316 million, or 13.3 percent, on the previous June year.

Main commodities imported were machinery and equipment ($708 million), clothing ($607 million) and toys, games and sports equipment ($146 million).

Tables 25.32 and 25.33 show the value of exports and imports.

Table 25.32. Trade with the People's Republic of China123
By main commodities exported
Years ending 30 June

Commodity19992000200120022003

1Exports valued free on board at New Zealand ports, re-exports included.

2Confidential data excluded.

3Data no longer confidential assigned to specific commodities.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Dairy produce12395158195303
Logs, wood and wood articles277596199220
Wool and animal hair122128166220152
Raw hides, skins and leather1939114111117
Wood pulp and waste paper22808111978
Animal originated products (except dairy produce)3334485976
Meat and edible offal1418385860
Fish, crustaceans and molluscs4321425955
Animal or vegetable fats and oils5244343848
Paper and paperboard articles2335457245
Other commodities146198303299203
Confidential data---6100
          Total main commodities exported6267661,1261,4341,457

Table 25.33. Trade with the People's Republic of China123
By main commodities imported
Years ending 30 June

Commodity19992000200120022003

1Imports valued cif (cost including insurance and freight).

2Confidential data excluded.

3Data no longer confidential assigned to specific commodities.

- nil or zero

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)
Electrical machinery and equipment155198298323399
Mechanical machinery and equipment85113159259309
Apparel, not knitted or crocheted148209278284305
Apparel, knitted or crocheted188253319301302
Toys, games and sports requisites98111140128146
Footwear7395116137132
Furniture, furnishings, lighting fittings37546876107
Plastics and plastic articles4248657378
Optical, medical and measuring equipment2133486476
Textiles3646596576
Other commodities351471598662756
Confidential data----1
          Total main commodities imported1,2341,6302,1492,3712,687

Asia Pacific Economic Cooperation (APEC)

APEC provides 21 countries in the region (including New Zealand, Australia, Japan and the United States) with a forum to promote economic interaction and policy coordination to ensure regional economic growth.

APEC countries received 72.4 percent ($21.2 billion) of New Zealand's merchandise exports in the year ending 30 June 2003, compared with 72.6 percent ($23.5 billion) in the previous June year.

APEC countries supplied 71.4 percent ($23.1 billion) of New Zealand's merchandise imports in the year ending 30 June 2003, compared with 71.5 percent ($22.7 billion) in the previous June year. Figure 25.01 shows trade with APEC countries between 1990 and 2003.

European Union

Countries of the European Union - which replaced the European Economic Community in 1993 - took 15.9 percent ($4.7 billion) of New Zealand's merchandise exports in the year ending 30 June 2003 and supplied 19.2 percent ($6.2 billion) of New Zealand's imports. Trade with EU countries is shown in figure 25.02.

Figure 25.01. Trade with APEC countries
Years ending 30 June

Trade with APEC countriesYears ending 30 June

Figure 25.02. Trade with EU countries
Years ending 30 June

Trade with EU countriesYears ending 30 June

Figure 25.03. Trade with Asia
Years ending 30 June

Trade with AsiaYears ending 30 June

Asia

New Zealand's exports to Asia increased during most of the 1990s. They were affected in the later years of the decade by the Asian economic crisis, but recovered in the years ending 30 June 2000 and 2001. Due to the negative impacts of Severe Acute Respiratory Syndrome (SARS) and the Iraq war, however, the value of New Zealand's exports to Asia dropped 11.6 percent in the year ending 30 June 2003. Figure 25.03 shows recent trends in Asian trade statistics.

Country groupings

Tables 25.34 and 25.35 show the values of exports and imports with selected country groupings in recent years.

Table 25.34. Merchandise exports1
By country grouping
Years ending 30 June

YearCountry grouping
AsiaEuropeEUOECDAPECASEANTotal exports
 $(million)
19936,5663,2573,05713,43713,1381,35318,971
19946,9623,4293,12714,16714,0771,30919,827
19957,9903,4983,24314,88615,0431,48520,790
19968,0433,5683,27914,36314,7031,65020,546
19977,9043,8223,41414,58714,9631,79821,033
19987,6334,1103,73615,38015,4901,67121,941
19997,5014,2043,95116,23415,8641,63422,582
20009,1874,4994,25718,79618,8892,08026,111
200111,7475,0944,82922,45423,3602,91132,000
200211,2275,1864,89022,70023,4652,74832,332
20039,9304,9414,66020,79221,2192,29129,291
YearProportion of total exports
AsiaEuropeEUOECDAPECASEAN

1Exports valued free on board at New Zealand ports, re-exports included.

Source: Statistics New Zealand

 Percent
199334.617.216.170.869.37.1
199435.117.315.871.571.06.6
199538.416.815.671.672.47.1
199639.117.416.069.971.68.0
199737.618.216.269.471.18.6
199834.818.717.070.170.67.6
199933.218.617.571.970.37.2
200035.217.216.372.072.38.0
200136.715.915.170.273.09.1
200234.716.015.170.272.68.5
200333.916.915.971.072.47.8

Table 25.35. Merchandise imports1
By country grouping
Years ending 30 June

YearCountry grouping
AsiaEuropeOECDAPECEUASEANTotal imports
 $(million)
19935,0833,72413,87812,2243,43077417,333
19945,5524,05014,84813,0453,75086218,469
19956,2744,62717,20215,3354,3431,09321,261
19966,2504,83917,21915,2604,5601,30221,352
19976,3444,60417,00715,3894,2421,27321,324
19986,3764,80417,85916,2754,4081,36022,589
19997,4605,12018,82517,4544,6811,71624,248
20008,9645,53322,25621,3355,1912,11429,193
200110,0155,99023,09722,7695,5912,59431,927
200210,3706,39523,29522,7386,0082,53431,811
200311,4016,61223,15723,0566,1782,85932,161
YearProportion of total imports
AsiaEuropeOECDAPECEUASEAN

1Imports valued cif (cost including insurance and freight).

Source: Statistics New Zealand

 Percent
199329.321.580.170.519.84.5
199430.121.980.470.620.34.7
199529.521.880.972.120.45.1
199629.322.780.671.521.46.1
199729.821.679.872.219.96.0
199828.221.379.172.019.56.0
199930.821.177.672.019.37.1
200030.719.076.273.117.87.2
200131.418.872.371.317.58.1
200232.620.173.271.518.98.0
200335.520.672.071.719.28.9

25.5 Overseas cargo

Overseas cargo records all goods (by value and gross weight) loaded or unloaded at New Zealand's seaports and 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 overseas merchandise trade statistics. These include goods on short-term loan or lease; service transactions, eg computer data tapes and drawings; goods consigned for modification or repair; and returnable containers and samples. 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.

Table 25.36 shows the volume and value of overseas cargo loaded at New Zealand ports.

Table 25.36. Overseas cargo loaded at New Zealand ports1
Years ending 30 June

SeaportValueGross weight
200120022003200120022003

1Includes merchandise freight, goods for repair, loaned and leased goods, military and diplomatic goods, and returnable containers and samples.

Note:Figures may not add to stated totals due to rounding

Source: Statistics New Zealand

 $(million)(tonnes)
Whangarei3043523541,098,9181,414,1361,679,017
Auckland6,9636,4995,6772,012,7531,996,7822,008,910
Tauranga7,3127,5046,4156,410,5587,194,1757,865,360
Taharoa232017876,393741,568743,492
Gisborne127156118565,317715,005605,786
New Plymouth1,9011,9182,1523,445,2203,726,2843,236,741
Napier2,1212,2122,2931,596,4321,789,3641,976,038
Wellington1,4231,280850620,052621,665634,727
          North Island seaports20,17519,94017,87716,625,64318,198,98018,750,070
Nelson8498027601,193,3861,231,0211,132,805
Picton132927105,510256,004282,079
Westport023015,40628,859
Lyttelton2,9232,8942,3492,697,3332,925,2842,979,288
Timaru501607828226,978245,291385,331
Dunedin2,2462,2012,590936,542802,4341,063,682
Invercargill (Bluff)1,2491,162908644,883768,523577,222
          South Island seaports7,7807,6967,4655,804,6326,243,9646,449,266
          Total seaports27,95527,63725,34222,430,27524,442,94325,199,336
Airport
Auckland3,5653,8113,89468,11073,88176,116
Hamilton000002
Whenuapai000000
Wellington11484672,794  
Christchurch1,2881,0981,05320,44818,12718,286
Dunedin000001
          Total airports4,9674,9935,01491,35293,73895,752
Parcel post68881436
          Total cargo loaded32,92732,63730,36422,521,63424,536,69525,295,124

Overseas cargo loaded

Overseas cargo loaded at New Zealand ports in the year ending 30 June 2003 weighed 25 million tonnes, up 3.1 percent on the previous June year. The value of cargo loaded was $30.4 billion, down 7.0 percent. By cargo weight, the main seaport was Tauranga, which handled 31.1 percent of all overseas cargo loaded at New Zealand ports. By value, the main seaports were Tauranga (21.1 percent of the total) and Auckland (18.7 percent). By weight, air cargo was only 0.4 percent of total cargo loaded, but by value it was 16.5 percent of the total, reflecting the comparatively high value and perishable nature of much air cargo.

Overseas cargo unloaded

Overseas cargo unloaded at New Zealand ports in the year ending 30 June 2003 weighed 16.2 million tonnes, an increase of 4.6 percent on the previous June year. The value of cargo unloaded increased 0.7 percent to $31.7 billion, as shown in Table 25.37. By cargo weight, the main port was Whangarei, which handled 33.7 percent of total unloadings, followed by Auckland (22.5 percent). By value, the main port was Auckland seaport (45.2 percent of the New Zealand total), followed by Auckland airport (20.1 percent). By weight, air cargo was only 0.5 percent of all cargo unloaded, but by value it represented 21.9 percent of the total.

Table 25.37. Overseas cargo unloaded at New Zealand ports1
Years ending 30 June

SeaportValueGross weight
200120022003200120022003

1Includes merchandise freight, goods for repair, loaned and leased goods, military and diplomatic goods, and returnable containers and samples.

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

 $(million)(cif)
Whangarei2,6682,0942,2535,068,6005,258,1115,444,743
Auckland13,31513,96514,3183,030,4213,345,6643,632,981
Tauranga2,0632,5882,3921,574,8481,837,9331,864,193
Gisborne5542326,284143
New Plymouth178180187349,500356,358442,071
Napier446460468795,422743,942684,090
Wellington1,8091,8451,876767,622882,9471,009,075
          North Island seaports20,48521,13621,49711,586,64512,431,23913,077,296
Nelson18822519656,16597,81398,072
Westport66267187,43523,805
Lyttelton1,8692,0802,085923,6741,210,7561,268,545
Timaru171171259226,512235,245287,243
Dunedin211224252252,041284,969263,728
Invercargill (Bluff)5014714061,027,9361,014,3871,048,066
          South Island seaports2,9463,1773,2002,486,9992,930,6052,989,459
          Total seaports23,43124,31324,69714,073,64415,361,84416,066,754
Airport
Auckland7,1946,3456,37876,27771,96977,306
Hamilton000000
Wellington166180932,5351,8481,465
Christchurch5935574779,2348,8329,432
Dunedin000000
Total airports7,9537,0816,94888,04682,64988,204
Parcel post646146133144155
          Total cargo unloaded31,44831,45631,69114,161,82315,444,63716,155,113

Contributors

  • 25.1 New Zealand Trade and Enterprise; Customs New Zealand; Statistics New Zealand.

  • 25.2 - 25.5 Statistics New Zealand.

Websites

www.customs.govt.nz - Customs New Zealand

www.nzte.govt.nz - New Zealand Trade and Enterprise

www.seafood.co.nz - New Zealand Seafood Industry Council

www.stats.govt.nz - Statistics New Zealand

Chapter 26. Money and Banking

Table of Contents

The launch of Kiwibank Ltd in 2002 brought the number of registered banks in New Zealand to 18 and reversed the trend of diminishing bank branches.

26.1 Financial institutions

Unlike most other countries, New Zealand has no specific restrictions on the provision of financial services such as deposit taking. Only financial institutions wishing to use the word ‘bank’ (or one of its derivatives) in their name or title are required to obtain authorisation to operate as registered banks. Nevertheless, in terms of volume, registered banks dominate financial intermediation in New Zealand, although there are a substantial number of small non-bank financial institutions, such as finance companies, credit unions and building societies. The majority of registered banks are subsidiaries or branches of overseas banks. Only two of the 18 banks registered at January 2004 were New Zealand owned.

The Reserve Bank of New Zealand

The Reserve Bank of New Zealand is New Zealand's central bank with three main functions - operating monetary policy to maintain price stability; promoting maintenance of a sound and efficient financial system; and meeting the currency needs of the public.

The bank is required to manage monetary policy independently to maintain overall price stability. Price stability is defined in a contract between the bank's governor and the Minister of Finance as keeping inflation between 1 and 3 percent on average over the medium term. This is achieved through influencing short-term interest rates, which, in turn, influence longer-term interest rates and thus spending, saving and borrowing by the public and businesses.

The reserve bank is also responsible for the registration and prudential supervision of registered banks, and the oversight of payment systems, to help ensure a sound and efficient financial system.

The bank issues New Zealand's currency and manages foreign exchange reserves. The bank provides cash and debt management services to the government, and secretariat services to the Overseas Investment Commission.

The Reserve Bank of New Zealand Act 1989 defines the bank's duties and governance arrangements, but makes the bank operationally independent. The bank's chief executive officer, or governor, is accountable for the bank's actions. The bank's performance is monitored by a board of directors on the Treasurer's behalf.

Bank registration and supervision

The Reserve Bank of New Zealand Act 1989, requires the bank to maintain a sound and efficient financial system and to avoid significant damage to the financial system that could result from the failure of a registered bank.

Accordingly, the bank's supervision and registration framework does not aim to protect depositors or individual banks from loss. Instead, the main focus is on the efficient and effective operation of the banking system as a whole.

A major disruption in the provision of financial services, or lack of efficiency in the delivery of services, could potentially impose significant costs on other sectors of the economy.

In the event that a bank does fail, the reserve bank has crisis management powers that allow it to take steps to minimise any flow-on effects to the rest of the financial sector.

There is no upper limit on the number of banks that can be registered in New Zealand. The policy behind this 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. Nevertheless, all applicants for registration must satisfy the reserve bank that they can meet minimum prudential requirements. Applicants must satisfy the bank that they are primarily involved in providing financial services. In addition, when considering an application for registration, the reserve bank is required to have regard to:

  • Incorporation and ownership structure.

  • Size and nature of the proposed business.

  • Standing of the applicant in financial markets.

  • Suitability for their positions of directors and senior managers.

  • Standing of the owner in financial markets.

  • Ability to carry on business in a prudent manner.

  • If the applicant is an overseas bank, the amount and frequency of disclosure in their home jurisdiction.

  • If the applicant is an overseas bank, the law and regulatory requirements in the home jurisdiction relating to bank registration or authorisation, the priority of claims of creditors in an insolvency, the duties and powers of the applicant's directors, accounting and auditing standards, and disclosure of financial and other information.

As at January 2004, there were 18 registered banks. Only two registered banks were not wholly overseas owned, TSB Bank Ltd and Kiwibank Ltd (a subsidiary of state-owned enterprise New Zealand Post Ltd).

One of several amendments to the Reserve Bank of New Zealand Act in 2003 was the introduction of a requirement that the reserve bank's consent be obtained before any significant change in bank ownership takes place, in recognition of the influence that a bank's owners can have on the operations and health of the bank. The power was exercised in October 2003 when the Australia and New Zealand Banking Group applied to purchase the National Bank of New Zealand, at the time the largest commercial transaction in New Zealand's history.

The reserve bank's supervision framework focuses primarily on public disclosure and director attestation requirements. Each bank must publish a quarterly disclosure statement containing a comprehensive range of financial information on the bank, the banking group it heads and, where applicable, the parent company. The bank's directors are required to sign each disclosure statement and a number of attestations about key prudential matters, including one relating to the adequacy of the bank's systems and controls.

The disclosure and attestation requirements strengthen market disciplines on banks and sharpen incentives for directors to take appropriate responsibility for the prudent operation of their banks. The disclosure regime also provides depositors and other creditors with the information they need to make informed decisions on where best to place their money.

Banks are also required to meet regulatory requirements covering several areas, including:

  • The internationally-agreed minimum capital adequacy ratio of 8 percent.

  • Exposure to connected persons.

  • The scope of non-banking business the bank can undertake.

  • Provisions in the bank's constitution.

The Reserve Bank of New Zealand has a wide range of powers to respond to a bank distress or failure, including the power to give directions to the bank and the ability to recommend to the Minister of Finance that a bank be placed under statutory management.

Tables 26.01 and 26.02 list the assets and liabilities of the Reserve Bank of New Zealand.

Table 26.01. Assets of the Reserve Bank of New Zealand
At June 30

YearDenominated in foreign currencyDenominated in New Zealand dollars 
AdvancesInvestment in NZ 
Current account advancesMarketable securitiesIMF holdings of SDRsForeign assetsSettlement institutions1Crown settlement account2Advances to TreasuryGovernment securitiesOtherFixed assets and inventoriesOther assets3Total assets

1Repurchase advances, secured loans, overnight advances and accrued interest owing from settlement institutions.

2Net overdrawn balances in the Crown settlement account.

3Includes accounts receivable and sundry assets.

- nil or zero

Source: Reserve Bank of New Zealand

$(million) 
19941,2542,900--850-1,1761,247-70117,508
19951,1132,889--773-1,2501,519-6197,614
19961,2973,0561-682-1,2491,982-6178,335
19971,1333,340--750-1,2362,041-5888,566
19981,8604,490211,059-1,2042,149-58610,829
19992,2833,602--3,064--2,256156611,268
20002,0204,109--1,600--2,492-48510,274
20011,8104,056--2,517--2,708-44411,139
20022,7632,825-42,819--3,002-35611,454
20032,9383,137--2,120--3,3001036211,543

Table 26.02. Liabilities of the Reserve Bank of New Zealand
At 30 June

YearDenominated in foreign currencyDenominated in New Zealand dollarsTotal liabilities
Current1Long term2IMF allocations of SDRs3DepositsCurrency in circulationOther liabilities7Capital reserves
Reserve bank bills4Government5Settlement institutionsOther6

1Foreign currency denominated repurchase, secured loan and credit line financing provided by foreign counterparties.

2Foreign currency denominated financing provided by The Treasury (and the earthquake commission up to 3 June 1998).

3SDR denominated financing provided by the IMF. In December 1998, SDR assets and liabilities were transferred to The Treasury. SDRs are now directly accounted for on the Crown balance sheet.

4Short-term discount securities issued by the reserve bank. The bank ceased issuing reserve bank bills on 5 February 1999. All reserve bank bills and related advances to The Treasury were repaid by 9 April 1999.

5Net in funds balance in the Crown settlement and other government accounts held at the reserve bank.

6Includes IMF No 1 account, staff deposits and other sundry deposits.

7Creditors and accounts payable.

- nil or zero

Source: Reserve Bank of New Zealand

$(million)     
19942603,5463471,1322641741,413304417,508
1995723,5963341,2412803581,516294857,614
19963813,6703011,24953518281,59955498,335
19975953,5862921,2366081461,6651433948,566
19981,2664,7143701,2039572251,73315840110,829
19991,4744,405--2,8811551,8851355411,268
20001,5414,589--1,32849362,1601455710,274
20019634,756--2,25066702,46316640511,139
20021,0474,192--2,9474152,6591058011,454
20038964,069--3,1432242,806759611,543

New Zealand financial system

Before 1984, a range of regulatory distinctions existed among different types of deposit-taking financial institution. Aside from trading (commercial) banks, there were trustee and private savings banks, building societies, credit unions, merchant banks, stock and station agents and many finance companies. Regulations prescribed the activities each of these institutions could engage in.

Since 1984, however, deregulation has led to a concentration of business in banks.

There are now two broad categories of deposit-taking financial institution - registered banks and ‘other financial institutions’.

Registered banks

After the banking industry was deregulated in the 1980s, the number of registered banks in New Zealand increased significantly, partly as a result of non-bank financial institutions obtaining registered bank status and partly due to an inflow of foreign banks.

The National Bank of New Zealand Ltd had a new owner in 2003, with British-based Lloyds TSB selling to the Australia and New Zealand Banking Group Ltd.

Registered banks proved very efficient intermediaries in the deregulated market and they absorbed the business of many finance companies. In 1985, banks provided a quarter of all domestic credit, whereas by 2003 they had more than an 85 percent share. Most competitors had transferred their activities to the banking framework, or lost ground.

By 2003, banks provided more than 90 percent of household credit, compared with 20 percent in 1985.

Non-bank financial institutions declined in importance following deregulation, as most of the larger ones became banks, while some 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 operations.

In 2003, British based Lloyds TSB sold The National Bank of New Zealand Ltd to the Australia and New Zealand Banking Group Ltd. At 1 January 2004, there were 18 registered banks in New Zealand. In spite of rationalisation, the number of banks per capita is still relatively high by international standards. In part, this reflects the open nature of the registration regime. The non-bank financial sector following deregulation is small compared with other countries, for example, Australia.

The New Zealand banking system is characterised by a high degree of foreign, particularly Australian, ownership. Around 99 percent of the assets of the New Zealand banking system are under ownership of a foreign bank parent, with approximately 70 percent under Australian ownership.

Registered banks operating in New Zealand at 1 January 2004 were: ABN AMRO Bank; AMP Bank Ltd; ANZ Banking Group (New Zealand) Ltd; ASB Bank Ltd; Bank of New Zealand Ltd; Bank of Tokyo-Mitsubishi (Australia) Ltd; Citibank NA; Commonwealth Bank of Australia; Deutsche Bank AG; Kiwibank Ltd; Kookmin Bank; Rabobank Nederland; Rabobank New Zealand Ltd; St George Bank New Zealand Ltd; The Hong Kong and Shanghai Banking Corporation Ltd; The National Bank of New Zealand Ltd; TSB Bank Ltd; Westpac Banking Corporation.

Table 26.03 lists the liabilities and assets of M3 financial institutions (a group of 13 financial institutions surveyed by the reserve bank in compiling monetary aggregates).

Table 26.03. Liabilities and assets of M3 financial institutions
At 30 September

Item1997199819992000200120022003

1Includes trade creditors/debtors, accounts payable/receivable, and items in transit, timing and statistical adjustments.

2Any two entities, ie companies, organisations or individuals with the same shareholders and/or any company which holds 20 percent or more of the paid up capital of another company (the associated). A subsidiary is an associate.

3The large decline in this category is due to the reserve bank ceasing to issue reserve bank bills with implementation of the overnight cash rate regime in early 1999.

Source: Reserve Bank of New Zealand

$(million)   
Liabilities -
New Zealand dollar funding -
      New Zealand residents83,78087,63793,58493,869104,048107,711116,858
      Non-residents12,41913,56515,03314,50727,33528,21125,206
Total96,199101,202108,617108,376131,383135,922142,064
Foreign currency funding -
      New Zealand residents3,3813,6243,0223,7262,7503,3774,348
      Non-residents13,59021,96726,93739,03237,69636,03935,752
Total16,97125,59129,95942,75840,44639,41640,100
Capital and reserves6,9707,8748,5329,62210,50311,89714,044
Other liabilities15,6237,2914,76911,67013,9678,48012,059
         Total liabilities125,763141,958151,877172,426196,299195,715208,267
Funding from associates211,30417,64623,00129,80029,79232,33028,197
Assets -
Government securities3,5935,6268,2646,9536,8585,8767,699
New Zealand notes and coin279282330452555588599
Claims on the reserve bank31,2331,0962121711
New Zealand dollar claims -
      New Zealand residents (M3)7,19310,71910,60210,41912,46011,45811,768
      New Zealand residents (non M3)98,527104,637114,158120,693129,579138,977151,639
      Non-residents3,6894,5765,9507,76215,53015,67013,392
Total109,409119,932130,710138,874157,569166,105176,799
Foreign currency claims
      New Zealand residents3,2453,4073,3664,0105,7674,2864,363
      Non-residents1,0038172,7645,6648,69710,4468,294
Total4,2484,2246,1309,67414,46414,73212,657
Foreign currency fixed assets and equity investment4353641758674
Shares (in New Zealand companies)397496294281153529812
Other assets16,60010,2686,09216,14916,6087,7989,627
         Total assets125,763141,959151,877172,426196,299195,715208,268
Financial claims on associates21,4541,8423,8975,47112,89414,21211,127

Access to branches and services. At December 2002, there were 1,098 bank branches throughout New Zealand. The first automated teller machines (ATMs) were introduced to New Zealand in mid-1979 and by the end of 1982 all major trading banks offered ATM services. The number of machines steadily increased through the 1980s and after declining through a rationalisation process in the late 1990s, the number of ATMs has increased again. There were 1,889 bank-owned ATMs in New Zealand at 31 December 2002, compared with 1,692 two years before.

Electronic Funds Transfer at Point of Sale (Eftpos). Eftpos was introduced to New Zealand in 1984 as a means of paying for retail goods and services. Banks agreed in 1990 to integrate their Eftpos services and growth of the network has since been rapid. At 31 December 2002, there were 95,221 Eftpos terminals in New Zealand supermarkets, service stations, liquor markets and other retail outlets, compared with 84,351 two years before.

Credit cards. Credit cards have become popular for the purchase of goods and services and at 31 December 2002 there were 2.65 million cards on issue nationally, an increase of nearly 16 percent in two years. Figure 26.01 shows the growth in credit card debt.

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 effectively be undertaken on an industry basis. The association introduced a Code of Banking Practice in 1992, which established minimum standards of practice to be observed by banks in their dealings with personal customers. The most recent edition of the code was published in 2003 following a comprehensive public consultation process. The code is linked to an independent external complaints review process, the Banking Ombudsman scheme, established in July 1992.

Internet banking has been part of the transformation in the way New Zealanders pay for their goods and services. Transactions by cheque dropped from 54 percent of all transactions to 13 percent in the decade to 2002.

Figure 26.01. Credit card debt

Credit card debt

Total advances outstanding
Years ending 31 December
Source: Reserve Bank of New Zealand

EFTPOS (Electronic Funds Transfer at Point of Sale) transactions now make up more than 35 percent of all payment transactions made in New Zealand, with nearly 100,000 terminals in use nationwide.

Other deposit-taking financial institutions

Notwithstanding the dominance of banks in the market, there remain more than 70 smaller deposit-taking financial institutions in New Zealand, in addition to 60 small credit unions. Among them are a medium-sized nationwide cooperative savings institution and a large regionally-based building society continuing to specialise in housing finance, and nine others, most of which since deregulation have diversified their lending portfolios away from reliance on lending for housing. Credit unions have total loans to members of less than $300 million, or less than 0.5 percent of all loans to households.

Total loans of finance companies unaffiliated to banks doubled in the five years ending 31 December 2003. In the latter part of the period, lending for property development contributed strongly to loan growth, but it was nonetheless well spread across hire purchase for cars and consumer goods, for business leasing and plant and machinery purposes, and for commercial and residential property development.

More recent developments in the ‘other financial institution’ market include the growth of residential mortgage managers - lenders who fund their loans via securitisation in wholesale markets - and the emergence of several ‘non-conforming’ personal lenders. In addition, several retail groups have stepped up their involvement in personal finance, for example, by issuing a credit card or offering direct personal loans in addition to providing hire purchase finance. Since the late 1990s, the banks' share of the personal lending market has declined slightly as other institutions have developed a range of niche markets.

26.2 Money

Currency

New Zealand's decimal currency system was introduced in 1967, when dollars and cents replaced pounds, shillings and pence as monetary units.

One of the Reserve Bank of New Zealand's key statutory obligations is to provide New Zealand's currency. The total face value of currency in circulation (bank notes and coins) was $2.88 billion at 30 June 2003, which was a 5 percent increase on the previous June year. The currency consisted of about 100 million bank notes and 1.1 billion coins.

The first substantial change to New Zealand's banknotes since the introduction of decimal currency occurred in 1992 when a new series was issued which contained more security features. Portraits on the notes are: $5, Sir Edmund Hillary; $10, Kate Sheppard; $20, Queen Elizabeth II; $50, Sir Apirana Ngata; and $100, Ernest Lord Rutherford of Nelson. Queen Elizabeth II features on the watermark of all 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 additional security features.

Monetary policy

Monetary policy is implemented by the Reserve Bank of New Zealand under the terms of the Reserve Bank of New Zealand Act 1989. The government has given the reserve bank responsibility for keeping average inflation between 1 and 3 percent a year over the medium term. The specific details of the target are set out in a written contract between the governor of the reserve bank and the Minister of Finance, called the Policy Targets Agreement (PTA). The reserve bank changed the way it implements monetary policy in March 1999 when 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 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 in response to the bank's quarterly inflation projections and to emerging economic data.

Under the OCR system, the reserve bank influences short-term interest rates by being prepared to lend an unlimited amount of cash overnight, or borrow an unlimited amount of cash overnight, at interest rates fractionally above or below the stated OCR. This influences other interest rates, affecting demand within the economy and therefore inflationary pressures.

The reserve bank act stipulates that the bank must publish policy statements that specify how it intends to achieve the inflation target defined in the PTA, and the reasons for choosing the policies and means it intends to use to achieve the target. The policy statements must also provide a medium-term policy outlook, and must review and assess the implementation of monetary policy since the previous policy statement.

To meet these requirements, the bank publishes Monetary Policy Statements which provide the economic projections and rationale underpinning its monetary policy decisions and that assess the implementation of monetary policy since the previous publication.

The OCR is reviewed eight times a year - at each of the bank's quarterly Monetary Policy Statements, and approximately halfway between those statements.

Figure 26.02 shows the movement of monthly average wholesale interest rates for 90-day bills and 5-year government stock from December 1989 to December 2003.

Figure 26.02. Key market rates

Key market rates

Average wholesale interest rates
Quarters ending 31 December
Source: Reserve Bank of New Zealand

Government securities market

The government sells three types of debt instruments to meet its financing requirements:

  • Government bonds are a medium-term (usually with maturity of three to around 10 years) instrument paying a fixed coupon interest rate and aimed at the wholesale market (mainly institutional investors). Since September 1983, government bonds have been sold through regular, competitive tenders.

  • Treasury bills are short-term (usually with maturity of up to around 12 months), wholesale debt instruments. Bills have been sold through regular, weekly tenders since January 1985 to meet the government's ongoing funding requirements. They are also used to meet the government's seasonal financing needs. Bills do not pay interest, but rather are sold (and subsequently traded) at a discount to their par (maturity) value, producing an effective yield for the holder.

  • Kiwi Bonds, introduced in 1985, are aimed at retail investors. These bonds are fixed-interest instruments issued on demand in six-month, one, two and four-year maturities. On issue, Kiwi Bond interest rates are related to the current market yields on wholesale government bonds (of comparable maturities). They are transferable and may be sold by the holder to another party.

The Reserve Bank of New Zealand maintains registers of government securities (and those of local authorities and other public bodies and several state-owned enterprises). At September 2003, the value of total government securities registered was $36,106 billion. Of this, $7,993 billion comprised Treasury bills.

Kiwi Bonds to the value of $466 million were also on issue at this date. (These figures exclude securities issued by state-owned enterprises.)

Foreign exchange

New Zealand has had a floating exchange rate since 1985. That is, the value of the New Zealand dollar against other currencies is set solely by the market. However, successive governments have resolved to retain a capacity, via the Reserve Bank of New Zealand, to intervene in the foreign exchange market. Intervention could be undertaken, for example, in the event of disorderly conditions in the market for New Zealand dollars following 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 of New Zealand holds and manages the government's foreign exchange reserves, invested in a diversified portfolio of liquid foreign currency assets of about $4.5 billion. There has been no intervention in the foreign exchange market since the currency was floated.

Table 26.04 shows monthly foreign exchange rates from September 1999 to January 2004.

Table 26.04. Foreign exchange rates1
TWI percent change

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$1TWI base Jun ‘79,100MonthlyAnnual

1All average exchange rates use representative 11.10am market mid-rates.

Source: Reserve Bank of New Zealand

1999
September0.52240.32210.805356.050.497855.7-1.9-1.3
2000
September0.41880.29220.754644.690.480548.3-4.5-13.2
2001
September0.41980.28690.828049.860.460549.6-2.82.7
2002
September0.46990.30220.858756.740.479353.81.38.6
2003
January0.54040.33410.926464.160.508559.83.716.2
February0.55340.34400.931166.110.513861.01.919.3
March0.55410.35000.920365.760.513360.9-0.216.6
April0.55090.35010.905366.000.507860.5-0.613.8
May0.57620.35530.890767.610.498661.41.413.3
June0.58090.34980.874168.700.497661.40.18.8
July0.58600.36060.885469.520.514962.51.714.4
August0.58230.36510.893769.180.521962.70.217.8
September0.58380.36270.883167.210.520262.2-0.815.5
October0.60100.35870.867665.870.513662.20.012.4
November0.62770.37170.877368.540.536864.53.814.2
December0.64660.36990.875869.740.527165.10.912.8
2004
January0.67280.36890.873071.590.533066.42.011.0

Figure 26.03 shows movements in the trade-weighted index since 1980.

Figure 26.03. Trade-weighted index

Trade-weighted index

At 30 June
Source: Reserve Bank of New Zealand

Contributors

26.1Reserve Bank of New Zealand; New Zealand Bankers’ Association.
26.2Reserve Bank of New Zealand; New Zealand Bankers' Association; Office of the Banking Ombudsman

Websites

www.bankombudsman.org.nz - Banking Ombudsman

www.nzba.org.nz - New Zealand Bankers' Association

www.rbnz.govt.nz - Reserve Bank of New Zealand

www.stats.govt.nz - Statistics New Zealand

Chapter 27. Public Sector Finance

Table of Contents

Finance Minister Michael Cullen is applauded after delivering his 2003 Budget speech.

27.1 Central government finance

The New Zealand public sector management system is concerned with, and seeks to bring together, both the financial and non-financial aspects of public sector performance.

Each element of the system is intended to reinforce 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 translate strategy into action, to promote informed decision making and accountability, and to encourage the state sector to be responsive and efficient.

The system achieves these aims through planning, decision-making and scrutiny processes that culminate in passage of the government's Budget, through incentives for managing efficiently, and through reporting and feedback processes.

The system emphasises expected performance within the control of managers, delegating authority to achieve high-quality performance, providing incentives to perform to 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 policy projects and pilots are underway that seek to improve areas such as Crown entity governance and accountability, departmental accountability and reporting, public service senior leadership and management talent, collaboration among departments, and relationships with non-government organisations.

Roles and responsibilities. The State Sector Act 1988 sets out the general duties and responsibilities of public service chief executives, and the processes for their appointment and reappointment. Chief executives have contracts of up to five years, with tenure based on performance. They are recommended, appointed, employed and reviewed by the independent State Services Commissioner, though cabinet (operating through the governor-general in council) may veto the commissioner's appointment recommendation. As the legal employer of staff in their departments, public service chief executives have the power, within the bounds of general employment law, to hire and fire, set salaries and negotiate conditions of employment. Cabinet ministers are formally responsible for specifying performance expectations of departments. Departmental chief executives are in turn responsible to the relevant ministers for delivering the expected services (sometimes referred to as the government's ‘purchase’ interest) and maintaining the department's ability to keep delivering effectively, efficiently and economically (the ‘ownership’ interest).

Services are placed firmly in the context of government policy goals. For these purposes, chief executives are given appropriate managerial decision-making authority. There are incentives to perform and requirements for the presentation of performance information as a basis for monitoring and assessment. The following chart summarises this.

Purchase and ownership interests. Chief executives' annual performance agreements distinguish 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 as the purchaser of services directly to the government or to third parties on the other. The government looks for a balance between strong, healthy departments and value for money in their operations.

Setting objectives. Setting objectives within the public service 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. Outputs are placed firmly in the context of government policy goals.

The Budget process

The Fiscal Responsibility Act 1994 requires clear formulation and reporting by the 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.

  • 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 long-term fiscal objectives and short-term fiscal intentions, and on the extent to which these are consistent with the above principles, and provide justification for any inconsistencies.

These fiscal objectives must be first presented to parliament by 31 March - three months before the start of the financial year - in the Budget Policy Statement. In practice, the objectives are generally presented in December, allowing debate on them to take place well before the Budget itself.

The government maintains a baseline Budget, projecting policies forward four years. Baseline updates occur regularly as the government makes adjustments in accordance with its strategic and fiscal objectives. Outside these Budget update processes, amendments to the baseline are generally permitted only for fiscally-neutral adjustments, unavoidable or uncontrollable expenses, natural disasters or civil emergencies, recognition of existing liabilities, and capital investments supported by business plans and a sound business case.

The Budget must be introduced to 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 forecasts must be prepared on a GAAP basis consistent with other reports and must include a statement of specific fiscal risks, including contingent liabilities which describe, and quantify if possible, all 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, for benefits or other unrequited expenses, for borrowing expenses, for other expenses, for capital injections, for the purchase or development of capital assets, and for the repayment of debt. This gives parliament control over outputs purchased from departments and others, what size balance sheets it thinks are needed to produce those outputs, and what resources it wants transferred among different groups in the community, but which do not involve 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 re-prioritise and choose the appropriate mix of outputs to achieve desired outcomes.

The systems also identify opportunities for improving output performance and facilitate cost recovery where there are recognisable recipients of the service or output.

Cash management. Before the start of each year, each department negotiates with Treasury a profile of cash payments to the department during the year (updated as needs alter). Treasury operates a central cash management system which sweeps all departmental bank accounts each night and invests spare funds in the overnight money market.

Table 27.01 details actual or forecast government expenses for the years 2003 to 2008.

Table 27.01. Government expenses
Years ending 30 June

Expense200320042005200620072008
ActualForecastForecastForecastForecastForecast

.. figures not available

Source: The Treasury

   $(million)  
Subsidies and transfer payments15,10715,51615,86916,58417,29618,060
Personal expenses11,62012,24512,64012,94512,99313,056
Operating expenses22,56523,47624,31825,30225,68825,966
New operating spending for Budget 2004..351,1531,6791,9102,113
Forecast new operating spending......9782,4223,915
Finance costs2,5502,5562,4192,5112,4272,406
Net foreign-exchange (gains)/losses81(38)........
Movement in total GSF liability1,647(364)(51)(75)(108)(128)
Movement in total ACC liability1,65482552584612634
          Total Crown expenses55,22453,50856,90060,50863,24066,022
Analysis of subsidies and transfer payments
Social assistance grants
        New Zealand superannuation5,6425,8906,0886,4196,8107,206
        ACC payments1,3091,3861,4231,4881,5531,618
        Unemployment benefit1,2741,1461,1171,1931,2141,261
        Domestic purposes benefit1,5201,5611,5951,6471,7011,756
        Family support862836798794792791
        Student allowances387391405418432449
        Other social assistance grants3,7423,8834,0424,2264,3914,576
        Subsidies113145128128129129
Other transfer payments
Official development assistance230245245245246246
Other283328262828
          Total subsidies and transfer payments15,10715,51615,86916,58417,29618,060
Analysis of personnel expenses
GSF pension costs
(excluding liability movement)9789861,0071,0511,0891,109
Other pension expenses7877113114114114
Other personnel expenses10,56411,18211,52011,78011,79011,833
          Total personnel expenses11,62012,24512,64012,94512,99313,056
Analysis of operating expenses
Depreciation expense (by class of asset):
Buildings701737742735756754
Electricity distribution network86116119124124124
Electricity generation assets143161183203224225
Specialist military equipment (SME)168182212213213213
State highways199211235261285308
Aircraft (ex SME)10513797929393
Other plant and equipment676816870918926967
Other assets99869396101105
Total depreciation costs2,1772,4462,5512,6422,7222,789
Other operating items:      
Rental and leasing costs712703817812821828
Change in provision for doubtful debts67217203200217214
Write off of bad debts1886764666665
Goodwill amortised844747474747
Grants paid306252257265271279
Lottery prize payments301303314331349367
Loss/(gain) on sale of assets19..........
Other operating18,71119,44120,06520,93921,19521,377
Total operating expenses22,56523,47624,31825,30225,68825,966

Figure 27.01. Revenue and expenses

Revenue and expenses

As proportion of GDP
Source: The Treasury

Parliamentary scrutiny

Parliament's scrutiny of the government's financial performance involve the Budget and several reporting events through the year. Budget documents incorporate:

  • The government's Budget speech and fiscal strategy for the medium term (10 years).

  • An economic and fiscal outlook, including the government's forecast financial statements.

  • Estimates of appropriations ministers seek from parliament.

  • Statements of intent for each government department.

Progress against the Budget is reported monthly from the end of the first quarter.

These reports are prepared on a GAAP basis, consistent with the forecasts, and must be published within six weeks of the end of the month. Annual financial statements must be prepared and audited within three months.

Parliament and its committees scrutinise financial management of the executive, comparing actual performance with planned performance, in three ways:

  • 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 plans laid a year earlier.

  • Examination of the performance of state-owned enterprises and other non-departmental government entities.

Figure 27.01 illustrates the relationship between revenue and expenses as a proportion of gross domestic product.

Line-by-line consolidation of Crown financial statements

Changes to accounting standards required changes to the way the Crown financial statements were prepared from the Budget 2002. These changes were required for consistency with Generally Accepted Accounting Principles and did not alter the government's fiscal policy.

The Crown financial statements now record the revenues, expenses, assets and liabilities of all Crown-controlled entities, eg departments, state-owned enterprises (SOEs) and Crown entities, except tertiary educational institutions.

Previously, only the net surplus, net investment and net worth of SOEs and Crown entities were recorded. The goods and services tax (GST) on Crown expenses has also been removed.

Net worth and the operating balance are largely unaffected.

The Crown will publish fully consolidated (‘total Crown’) accounts, as described above, but will split out ‘core Crown’ information.

Core Crown revenues and expenses are similar to the previous presentation of the accounts, except that they remove GST on Crown expenses.

This change results in some of the historical data contained in this yearbook being restated from that contained in previous yearbooks. This is because, where possible, the historical data has been recast to be consistent with the current treatment.

External reporting

The Financial Statements of the Government of New Zealand include the following key statements:

  • Statement of financial performance (see Table 27.02).

  • Statement of financial position (see Table 27.03).

  • Statement of movements in equity.

  • Statement of cash flows (see Table 27.04).

  • Statement of borrowings (see Table 27.07 in section 27.03).

  • Statements of commitments.

  • Statement of contingent liabilities.

  • Statement of unappropriated expenditure, expenses or liabilities.

Departmental financial statements contain the same key statements, as well as a statement of objectives and a statement of service performance.

Publication of financial statements, with an audit opinion attached, within three months of the end of the financial year for the whole of government is an important feature of the New Zealand financial management system. Very few countries account for government operations under accrual accounting rules.

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 exercise of the power to levy. Further, it is impossible to value this ‘asset’ with sufficient reliability, and any attempt to do so would drown 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.

Figure 27.02 shows operating balances from 1992 to 2003.

Table 27.02 shows the government's statement of financial performance for 2003 and forecasts for 2004-2008.

Table 27.02. Statement of financial performance
Years ending 30 June

Revenue and expenses200320042005200620072008
ActualForecastForecastForecastForecastForecast

.. figures not available

Source: The Treasury.

   $(million)  
Crown revenue
Taxation39,78542,25144,11446,04347,94450,140
Levies, fees, fines and penalties2,7633,0133,1703,2413,3033,377
Total revenue levied through the Crown's sovereign power42,54845,26447,28449,28451,24753,517
Sales of goods and services10,38510,38011,65712,29712,70913,034
Investment income1,8592,0912,4522,8863,3353,772
Other revenue2,2351,7871,7671,7561,7861,805
Total revenue earned through the Crown's operations14,47914,25815,87616,93917,83018,611
Total Crown revenue57,02759,52263,16066,22369,07772,128
Crown expenses
Social security and welfare17,08415,97116,86517,61418,35419,120
GSF pension expenses2,625622956976981981
Health7,4127,9618,1668,8098,7318,666
Education7,7888,2458,4918,7048,8729,078
Core government services1,6551,6831,5921,6421,5951,606
Law and order1,9111,9992,0352,0632,0772,064
Defence1,1541,2041,1531,1461,1481,150
Transport and communications5,6195,3295,9826,1906,3306,446
Economic and industrial services4,2804,5094,6434,7274,8494,877
Primary services1,0231,1421,1131,1261,1571,173
Heritage, culture and recreation1,4251,5611,6161,6321,6721,711
Housing and community development542620610607611612
Other75109106104104104
Finance costs2,5502,5562,4192,5112,4272,406
Net foreign-exchange (gains)/losses81(38)........
New operating spending for the 2004 Budget..351,1531,6791,9102,113
Forecast new operating spending......9782,4223,915
Total Crown expenses55,22453,50856,90060,50863,24066,022
Revenues less expenses1,8036,0146,2605,7155,8376,106
Net surplus of tertiary education institutes1517878808181
Operating balance (including minority interest)1,9546,0926,3385,7955,9186,187
Minority interest12..........
Operating balance1,9666,0926,3385,7955,9186,187

Figure 27.02. Operating balance

Operating balance

Source: The Treasury

Table 27.03 shows the government's statement of financial position for 2003 and forecasts for 2004-2008.

Table 27.03. Statement of financial position
At 30 June

Assets and liabilities200320042005200620072008
ActualForecastForecastForecastForecastForecast

.. figures not available

Source: The Treasury

   $(million)  
Assets
Cash and bank balances2,7322,4552,4252,5162,6892,878
Marketable securities, deposits & equity investments21,30621,74223,72826,93930,56534,234
Advances6,3007,5878,86010,11810,94811,832
Receivables10,1439,6499,81110,03010,14210,362
Inventories8409249921,0381,0341,028
Other investments264261261261261261
Property, plant and equipment52,66753,52755,03555,79456,11256,249
Tertiary education institutes investment4,2124,4284,5344,6144,6964,777
Commercial forests312305306306306306
Intangible assets (including goodwill)1,0751,1301,009912844776
Forecast new capital spending..1247851,2331,7332,283
          Total99,851102,132107,746113,761119,330124,986
Liabilities
Payables and provisions11,87810,43610,23810,10310,0829,997
Currency issued2,8952,9282,9282,9282,9282,928
Borrowings - sovereign guaranteed31,07729,06326,76926,00225,68625,207
Borrowings - non-sovereign guaranteed7,2087,0558,3228,9358,4197,946
Provision for government superannuation fund pension liability13,85713,49313,44213,36713,25913,131
Provision for ACC outstanding claims liability9,1559,2379,78910,37310,98511,619
          Total76,07072,21271,48871,70871,35970,828
Assets less liabilities23,78129,92036,25842,05347,97154,158
Crown balance
Taxpayer funds8,06314,25720,59526,39032,30838,495
Revaluation reserve15,62415,66315,66315,66315,66315,663
Minority Interest94..........
          Crown balance23,78129,92036,25842,05347,97154,158

Table 27.04 shows the government's cash flows for 2003 and forecasts for 2004-2008.

Table 27.04. Statement of cash flows
Years ending 30 June

 200320042005200620072008
 ActualForecastForecastForecastForecastForecast

.. figures not available

Source: The Treasury

   $(million)  
Cash flows from operations
Cash was provided from
Total tax receipts39,46842,21544,13146,02647,92050,117
Total other sovereign receipts2,5312,8672,9403,0023,0763,096
Interest1,2001,1511,0931,0981,2121,257
Dividends456068788797
Sales of goods and services10,54310,27611,29012,03412,43212,761
Other operating receipts1,5031,4821,4161,4251,4851,525
Total cash provided from operations55,29058,05160,93863,66366,21268,853
Cash was disbursed to
Subsidies and transfer payments15,30515,96516,37417,11517,84118,625
Personnel and operating payments30,08732,38532,74633,82234,05234,454
Finance costs2,2032,3602,3282,3102,1302,111
Forecast new operating spending..351,1532,6574,3326,028
Total cash disbursed to operations47,59550,74552,60155,90458,35561,218
Net cash flows from operations7,6957,3068,3377,7597,8577,635
Cash flows from investing activities
Cash was provided from
Sale of physical assets24028........
Total cash provided from investing activities24028........
Cash was disbursed to
Purchase of physical assets3,4923,8934,1123,4593,0743,063
Net increase in advances1,3411,3661,3331,3641,1401,010
Net purchase/(sale) of marketable securities, deposits and other equity investments5,023(87)1,7202,7052,5602,223
Forecast new capital spending..124661448500550
Total cash disbursed to investing activities9,8565,2967,8267,9767,2746,846
Net cash flows from investing activities(9,616)(5,268)(7,826)(7,976)(7,274)(6,846)
et cash flows from operations and investing activities(1,921)2,038511(217)583789
Cash flows from financing activities
Cash was provided from
Issue of circulating currency14733........
Net issue/(repayment) of government stock292(1,018)(711)(169)286(288)
Total cash provided from financing activities439(985)(711)(169)286(288)
Cash was disbursed to
Net repayment/(issue) of foreign-currency
borrowing(392)1,330456105107109
Net repayment/(issue) of other
New Zealand-dollar borrowing(1,542)11(619)(575)596210
Total cash disbursed to financing activities(1,934)1,341(163)(470)703319
Net cash flows from financing activities2,373(2,326)(548)301(417)(607)
Net movement in cash452(288)(37)84166182
Opening cash balance2,2742,7322,4552,4252,5162,689
Foreign-exchange gains on opening cash balances6117777
Closing cash balance2,7322,4552,4252,5162,6892,878

27.2 Taxation

The New Zealand tax year is from 1 April to 31 March. The Inland Revenue Department administers three principal acts, the Income Tax Act 1994, the Tax Administration Act 1994 and the Goods and Services Tax Act 1985.

Individuals

The New Zealand Government deducts taxes at income source, with a graduated scale pay-as-you-earn (PAYE) tax deducted from wages and salaries, and withholding tax deducted from various other specified categories of income.

The tax system has been simplified for individual taxpayers by removing the requirement for wage and salary earners to file annual income tax returns. In certain circumstances, wage and salary earners receive a statement showing whether they have tax to pay or will receive a refund.

The PAYE system has been amended to require employers to provide the Inland Revenue Department with a monthly schedule detailing each employee's salary or wage income, PAYE deductions and other information such as student loan and child support payments.

Tax rates

Income tax is deducted under the Income Tax Act 1994 and is charged on most income, including business profits, employment income, royalties, interest, dividends and pensions.

Rates of income tax for the 2003/04 tax year were:

  • Income up to and including $38,000 19.5c for every dollar.

  • Income over $38,000 33c for every dollar.

  • Income over $60,000 39c for every dollar.

Rates used for assessment are based on annual income (normally from 1 April to 31 March).

Resident withholding tax

Resident withholding tax (RWT) is an amount of tax deducted from investment income. For example, when banks pay interest they deduct resident withholding tax before paying the recipient.

The tax rate is 33 percent for dividends that are company profits paid to shareholders, reduced by the amount of any imputation credits or dividend withholding payment credits attached to the dividend.

Individual taxpayers can choose between a 19.5 percent, 33 percent and 39 percent tax rate for interest.

If the recipient does not provide the interest payer with a taxpayer identification number, a non-declaration rate of 39 percent applies. Certain recipients of interest or dividends (such as charitable or non-profit organisations, sports clubs and others) may claim exemption from RWT.

Imputation credit

Dividends received from a New Zealand company may have imputation credits and/or withholding payment credits attached. An imputation credit is a tax credit received from a company for tax it has already paid on its profits. It therefore avoids the double payment of tax (by the company and its shareholders) on the same income. Withholding payment credits arise when a New Zealand company has paid dividend withholding tax on foreign dividends received. The imputation system integrates personal and business tax for company income distributed as dividends and allows a credit for tax paid by the company on that income.

From April 2003, eligible Australian companies have been able to elect to be a New Zealand imputation credit account company. New Zealand shareholders in electing Australian companies are then able to claim imputation credits allocated for their share of New Zealand tax paid by the company.

Rebates

Rebates are deductions from the amount of tax to be paid. The Inland Revenue Department administers several types of rebates for personal taxpayers. These include:

  • A rebate for low-income New Zealand resident taxpayers receiving wages and salaries.

  • A transitional tax allowance for certain full-time employees.

  • A child rebate for taxpayers aged under 18 and 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. The maximum rebate is $310.

  • A rebate for charitable donations, which is 33.3 percent of all qualifying donations. The minimum qualifying charitable donation is $5 and the maximum rebate is $630.

The Inland Revenue Department's call centre in Wellington provides information on a wide range of taxation issues.

Company taxation

Company taxation is deducted under the Income Tax Act 1994. The company rate of taxation differs from that of individuals in that a company does not get any of the exemptions or rebates individuals are entitled to, and a flat tax rate of 33 percent applies to companies. Company taxation in the year ending 30 June 2003 produced $5,526 billion.

A company resident in New Zealand is assessable on all income, whether earned in New Zealand or elsewhere. A company is a New Zealand resident if it is incorporated in New Zealand; if it has its head office in New Zealand; if it has its centre of management in New Zealand; or if control of the company by its directors is exercised in New Zealand.

When companies pay dividends to shareholders, they receive a credit for tax they have paid.

A company not resident in New Zealand is liable for tax only on income earned in New Zealand. Non-resident companies are taxed at 33 cents in the dollar for any activity they conduct in New Zealand. For most non-residents who simply earn interest or dividend income, non-resident withholding tax is the final New Zealand tax on that income.

Fringe benefit tax

Fringe benefit tax (FBT) is a tax on any benefits employees receive from their employer as part of their employment, eg a company car. It is payable at the rate of 64 percent. However, employers have the option of using the multi-rate calculation process, which reflects the remuneration level of those employees receiving benefits. It is payable by the employer on an annual or quarterly basis.

Taxable fringe benefits include private use of a motor vehicle by an employee; low-interest loans; free, subsidised or discounted transport and other goods and services; and the employer's contribution to accident, sickness or death benefit fund and insurance policies.

Total FBT collected in the year ending 30 June 2003 was $374.64 million.

Goods and services tax

Goods and services tax (GST) is a value-added tax charged at 12.5 percent on supplies of most goods and services made or provided in New Zealand. GST was introduced at a rate of 10 percent in 1986 and increased to 12.5 percent in 1989.

All companies and individual traders with an annual turnover of $40,000 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 pay the GST they have collected, less the GST on their purchases, to the Inland Revenue Department.

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, residential property rentals, and the sale of donated goods and services by non-profit organisations.

Total GST assessed in the year ending 30 June 2003 was $7,394 billion.

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 and compressed natural gas 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 imported into New Zealand.

The excise regime is dependent on the licensing of 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 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 export of those goods (eg ships' provedores).

  • Storage by or for the manufacturer or 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 area in which it was manufactured (ie off-site storage of wine).

  • Storage of imported goods or goods manufactured in a manufacturing area, of a kind that are subject to duty, and on which duty has not been paid, pending the sale of those goods to people departing to or arriving from a country outside New Zealand or to people exercising an entitlement to the supply of goods free of duty. These premises are usually duty free shops.

Figure 27.03 illustrates customs and excise receipts from 1960 to 2003 as a proportion of consolidated account taxation.

Figure 27.03. Customs and excise receipts

Customs and excise receipts

As proportion of total consolidated account taxation1
1Taxation is recorded on an accrual basis from 1992 onwards.
Source: The Treasury

Rates of excise duty on alcoholic beverages are adjusted on 1 June each year.

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. Liability for excise-equivalent duty is triggered by importation of the goods.

Excise duty on alcoholic beverages is due for payment by 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.

Rates of excise duty and excise-equivalent duty are contained in the third schedule to the act. The legislation provides discretionary authority for the government to apply increases to the rates of excise and excise-equivalent duties on alcoholic beverages and tobacco products in accordance with movement in the consumers price index. Adjustments may be made to alcoholic beverage rates on 1 June of any year and to rates of duty on tobacco products on 1 December in any year. Excise-equivalent duty rates are similarly adjusted.

Fuel excise and road user charges

Excise duty is paid on all purchases of petrol, liquid petroleum gas (LPG) and compressed natural gas (CNG).

The excise duty on petrol is 41.28 cents a litre (excluding GST). The duty on liquid petroleum gas (LPG) is 10.4 cents a litre, and on compressed natural gas (CNG) 10.5 cents a litre.

The Road User Charges Act 1977 provides for payment of road user fees by all vehicles of more than 3.5 tonnes and smaller vehicles powered by diesel fuel, which is not taxed for road purposes. Road user charges vary depending on the number of axles, the number of wheels and the weight of the vehicle.

In the case of petrol excise duty, 17.725 cents per litre of the duty, and the total excise duty for LPG and CNG is paid into the national land transport fund. All road user charges are also paid into the fund, as are vehicle registration fees paid by motorists.

The fund contributes to the maintenance and construction of New Zealand's roading network; alternatives to roading such as public passenger transport; traffic enforcement; and road safety education and publicity.

Gift duty

Gift duty is paid by a person giving someone else a property. It is taxed at progressive rates according to the total value of gifts within a 12-month period. Dutiable gifts with a value up to $27,000 are not taxed. From there, the gift duty rate rises progressively, from 5 percent to a top rate of 25 percent on gifts exceeding $72,000 in any 12-month period. A gift duty statement must be provided to the Inland Revenue Department 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

Stamp duty was abolished 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 for cheque duty (with exceptions) and banks are required to forward quarterly statements containing particulars of all bill of exchange forms to the Inland Revenue Department. Licensed printers who print prepaid bills of exchange are required to forward statements to Inland Revenue monthly. Cheque duty is set at the rate of 5 cents a bill of exchange or 5 cents a 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 a duty on the betting profits that a racing club (horses and greyhounds) makes from its race meetings.

Totalisator duty is payable at the rate of 20 percent of the betting profits of a racing club or the Totalisator Agency Board (TAB). Statements must be forwarded to the Inland Revenue Department by the 20th of the month following the event. Totalisator duty totalled $40,036,897 for the period ending 30 June 2003, compared with $38,528,933 in the year ending 30 June 2002.

Lottery duty is payable at the rate of 5.5 percent of the nominal value of all tickets in the drawing of a lottery, including instant games, lotteries and prize competitions promoted by the New Zealand Lotteries Commission. Organisers of a lottery are required to supply Inland Revenue with a statement of lottery duty payable and pay it within 14 days of drawing the lottery.

Gaming machine duty at the rate of 20 percent is payable on profits from dutiable games played on gaming machines. Gaming machine operators are required to send a statement to Inland Revenue each month setting out the gaming machine duty, and pay the duty by the due date.

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 send a statement of the casino win to Inland Revenue and pay casino duty on a monthly basis.

International tax

Non-residents. Non-residents are taxed in New Zealand only if their income is from a New Zealand source. If the income is interest, dividends or royalties, a person is liable for non-resident withholding tax (NRWT). NRWT is deducted by the bank or other paying institution. Provided certain criteria are met, the resident payer of interest can seek registration as an approved issuer and pay an approved issuer levy (AIL) of 2 percent. NRWT may be able to be claimed as a credit by the nonresident in the country of residence, but AIL is not able to be claimed as a credit as it is not a tax and has not been deducted from the interest. 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, ie strong financial, personal or other ties with New Zealand. Each case is considered on its 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 New Zealand residents if they are absent from New Zealand for more than 325 days (about 11 months) in any 12-month period and they do not have an enduring relationship with New Zealand during that time.

Pensions. Pensions paid to New Zealand residents by countries with which New Zealand has a double tax agreement are generally subject to tax in New Zealand. If the person receiving the pension is taxed in the country of origin, credit is allowed against New Zealand income tax for the overseas tax paid, up to the amount of New Zealand tax on that income.

Double tax agreements. New Zealand has agreements to avoid double taxation with Australia, Belgium, Canada, China, Denmark, Fiji, Finland, France, Germany, India, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, Netherlands, Norway, Philippines, Russia, 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.

Social assistance

Family assistance. Family assistance is financial help for low to middle income families with children under 18 years living at home. Entitlement is based on combined family income and the number and age of the children. Family assistance consists of family support, parental tax credit, child tax credit and family tax credit. Family support is the main part of family assistance and involves a payment to low to middle income families for each child living at home up to the age of 18. How much is paid depends on how many children are living at home, how old they are and the combined family income. If the family receives an income-tested benefit, family support is paid by the Ministry of Social Development. Otherwise it is paid by the Inland Revenue Department. Child tax credit, parental tax credit and family tax credit are paid by Inland Revenue. These can be received when a family's income does not include income-tested benefits from the Ministry of Social Development, New Zealand superannuation, veteran's pension, accident insurance payments for more than three months, or a student allowance. The child tax credit is payment of up to $15 a week for each child under 18. The parental tax credit provides extra financial support to a maximum of $150 a child a week for the first eight weeks after a child is born. The family tax credit tops up a family's total income to at least $18,363 a year ($280 after tax each week). 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 and in a single parent family, weekly hours of work must be at least 20 hours. If, in either of these situations, either partner has been injured and is receiving accident compensation payments, but would usually be working, they can still be eligible for the family tax credit.

Duty at the rate of 20 percent is payable on profits from gaming machines in clubs and bars.

Child support. The Inland Revenue Department administers the child support scheme whereby parents not living with their children pay money to help financially support them. To qualify for child support, the child must be under 19 years of age, a New Zealand citizen or ‘ordinarily resident’ in New Zealand, not married or be in a de facto relationship, be financially dependent, ie not working full time or receiving a benefit or student allowance. The person caring for the child (the custodian) generally applies for child support. Custodians are sometimes people other than parents - such as grandparents, a member of the whanau, or Child Youth and Family if it has care of the child. In these cases both parents may pay child support. Custodians receiving a sole parent benefit must apply for child support. A standard formula is used to calculate how much child support must be paid by the paying parent. The standard formula uses a process which works out the paying parent's taxable income, takes away a set living allowance (the amount of which depends on their living arrangements, eg whether they have a partner and/or children living with them) and multiplies the result by a percentage based on the number of children the paying parent pays child support for. Inland Revenue collects payments from the paying parent and passes them on to the custodian to assist with care of the child, or to the government to help offset the cost of the benefit if the custodian is receiving a sole parent benefit. The payment is passed on only when it has been received from the paying parent. There are approximately 216,000 paying parents, 235,000 custodians, and 387,000 children in the scheme. The overall debt collection rate (excluding penalties) is approximately 87 percent. In the year ending 30 June 2003, Inland Revenue collected $266 million from paying parents, of which $110 million was paid to custodians and $156 million to the government.

Student loans. The Ministry of Education is responsible for student loan policy and the scheme is administered by StudyLink. StudyLink makes loans available to borrowers and at the end of each academic year the loans are transferred to the Inland Revenue Department. Inland Revenue assesses and collects loan repayments until the loan is repaid.

Interest rates and repayment thresholds are reviewed annually and are effective from 1 April to 31 March. The interest rate in 2003/04 was 7 percent and the repayment income threshold $15,964. Borrowers earning over the repayment threshold are required to pay 10 cents in the dollar of every dollar earned over the repayment threshold.

Those who are on salary and wages generally have their loan repayments deducted at source, along with PAYE deductions.

Government statistics

Table 27.05 is from the government's accounts. As well as taxes and duties collected by the Inland Revenue Department, the accounts also include taxes and duties collected by the New Zealand Customs Service.

Table 27.05. Breakdown of tax revenue
Years ending 30 June

Tax1997199819992000200120022003
Source: The Treasury
    $(million)   
Direct income tax
Individuals
      Source deductions12,26412,77312,29512,97213,70314,60015,933
      Other persons3,3823,2433,0243,1233,8714,0194,195
      Refunds(658)(687)(701)(625)(790)(836)(834)
      Fringe benefit tax336340323306342361375
Total15,32415,66914,94115,77617,12618,14419,669
Corporate tax
      Gross companies tax2,9463,4693,4713,9604,6214,5175,245
      Refunds(99)(98)(157)(112)(123)(224)(191)
      Non-resident withholding tax824662717735760664732
      Foreign-source dividend withholding payments354285883141154
Total3,7064,0754,0394,6415,3415,0985,940
Other income tax
      Resident withholding tax on interest income1,0019618647239901,0001,111
      Resident withholding tax on dividend income722056347712057
      Estate and gift duties0022211
Total1,0731,1669297721,0631,0211,169
            Total direct income tax20,10320,91019,90921,18923,53024,26326,778
Indirect income tax
Goods and services tax
      Gross goods and services tax10,86710,83011,29512,36013,47214,63814,959
      Refunds(4,512)(4,271)(4,440)(5,214)(6,007)(6,642)(6,221)
Total6,3556,5596,8557,1467,4657,9968,738
Other indirect taxation
      Petroleum fuels excise692786802808810874995
      Tobacco excise666681714777764815850
      Customs duty909750528612648666750
      Road user charges426466468507532580621
      Alcohol excise438439432442436452465
      Gaming duties129139155176206210248
      Motor vehicle fees155158174177181188197
      Energy resources levies104879610811111194
      Approved issuer levy and cheque duty1831869458616049
Total3,7023,6923,4633,6653,7493,9564,269
            Total indirect taxation10,05710,25110,31810,81111,21411,95213,007
            Total tax collected30,16031,16130,22732,00034,74436,21539,785

Table 27.06 provides a comparison of public account taxation and national disposable income in New Zealand for the years 1986 to 2003.

Table 27.06. Public account taxation and national disposable income
Years ending 31 March

YearNational disposable income1,3Public account taxation
Total2Percentage of national disposable income 

1National disposable income is calculated on a year ending 31 March. From 1990. Public Account taxation is on a 30 June year.

2From 1992 accounts prepared on an accrual basis.

3Data from 1997 to 2000 has been revised.

Source: Statistics New Zealand

 $(million)Percent
198639,12514,235.936.4
198744,85517,408.138.8
198850,67621,528.142.5
198955,44322,863.941.2
199058,64726,198.144.7
199160,18125,797.642.9
199257,34323,901.041.7
199359,36025,812.043.5
199464,51227,705.042.9
199569,65330,213.043.4
199674,41332,233.043.3
199777,73131,916.041.1
199881,46632,982.040.5
199983,39032,156.038.6
200086,56234,035.039.3
200191,66036,738.040.1
200299,89936,215.036.3
2003104,49139,785.038.1

Taxation review authorities

The Taxation Review Authorities Act 1994 established one or more taxation review authorities. There are two authorities, each consisting of one person who is either a district court judge or a barrister or solicitor of the high court of no fewer than seven years practice. They are appointed by the governor-general. The authorities sit as judicial authorities for hearing and determining objections to assessments of tax or duty, or to decisions or determinations of the Commissioner of Inland Revenue.

27.3 Assets and liabilities

Public debt management

The New Zealand Debt Management Office (NZDMO) is responsible for managing the government's New Zealand-dollar and foreign currency debt, some liquidity assets, and overall net cashflows within an appropriate risk management framework. The principal risks managed are market, credit, liquidity, funding, concentration, and operational risk. In 1988, NZDMO introduced reform of public sector cash management, involving centralisation of surplus cash funds for investment and cash management, and decentralisation to departments of responsibility for payments and other banking operations. Separation of the government's financial management from monetary policy implementation, which is the responsibility of the Reserve Bank of New Zealand, 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, the government borrowed externally to finance the balance of payments deficit and maintain a fixed exchange rate. Since the adoption of a freely floating exchange rate, the government has borrowed externally only to finance foreign-exchange reserves. All other borrowing has been in the domestic market. Net foreign-currency debt was eliminated in September 1996, through the proceeds from asset sales and, since 1994, fiscal surpluses.

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. The government's long-term fiscal objectives include running operating surpluses on average over the economic cycle to allow a build up of assets to meet future New Zealand superannuation costs. Total debt will be managed at prudent levels with gross sovereign issued debt remaining below 30 percent of gross domestic product (GDP) on average across the economic cycle. Quantifiable contingent liabilities of the government, including the Reserve Bank of New Zealand, state-owned enterprises and Crown entities, amounted to approximately $4,468 billion at 31 October 2003.

Figure 27.04. Public debt

Public debt

As proportion of GDP
Source: The Treasury

Figure 27.04 illustrates gross and net public debt as a proportion of GDP for the years 1975 to 2003.

Table 27.07 is one of the key statements from the Financial Statements of the Government of New Zealand, Statement of borrowings.

Table 27.07. Statement of borrowings
At 30 June

 200320042005200620072008
 ActualForecastForecastForecastForecastForecast

1Sovereign issued debt is debt issued by the New Zealand Debt Management Office (NZDMO) and also includes the Reserve Bank of New Zealand, given it is integral to the debt management of the Crown. It excludes debt issued by state-owned enterprises (SOEs) and Crown entities and any sovereign-guaranteed debt of SOEs and Crown entities. Gross sovereign issued debt includes any New Zealand Government stock held by the Government Superannuation Fund and the New Zealand Superannuation Fund.

2Net core Crown debt is a core Crown measure calculated as gross sovereign issued debt less financial assets (excluding the net assets of the Government Superannuation Fund and the New Zealand Superannuatuion Fund due to their restricted nature).

.. figures not available

Source: The Treasury

   $(million)  
Sovereign guaranteed debt
New Zealand-dollar debt
      Government stock18,74517,34516,15215,43815,14314,275
      Treasury bills5,3175,3895,3445,2445,2225,202
      Loans and foreign exchange contracts(500)(159)(778)(655)(655)(246)
      Retail stock and other818659558482483483
Total24,38023,23421,27620,50920,19319,714
Foreign-currency debt
      United States dollars2,4951,6081,2721,2721,2721,272
      Japanese835983983983983983
      European and other currencies3,3673,2383,2383,2383,2383,238
Total6,6975,8295,4935,4935,4935,493
            Total sovereign guaranteed debt31,07729,06326,76926,00225,68625,207
Non-sovereign guaranteed debt
      New Zealand5,7396,0397,4268,1437,7347,370
      United States dollars977893773669562453
      Japanese yen212..........
      European and other currencies280123123123123123
            Total non-sovereign guaranteed debt7,2087,0558,3228,9358,4197,946
            Total borrowings (gross debt)38,28536,11835,09134,93734,10533,153
Less
Financial assets (including restricted assets), marketable securities, deposits and equity investments
      New Zealand dollars8,2765,8425,5565,8256,2386,416
      United States dollars4,1443,8083,7374,0364,3644,726
      Japanese yen8381,0171,0171,0171,0171,017
      European and other currencies2,2471,153982794591377
      Reserve position at International1,0671,2251,3941,5811,7831,997
Monetary Fund
      New Zealand equity investments1,4012,3012,9213,6254,3815,196
      Foreign equity investments3,3336,3968,12110,06112,19114,505
            Total21,30621,74223,72826,93930,56534,234
Advances and cash
      Student loans5,3706,0736,7907,5498,3579,219
      Other advances9301,5142,0702,5692,5912,613
      Cash2,7322,4552,4252,5162,6892,878
            Total advances and cash9,03210,04211,28512,63413,63714,710
            Total financial assets30,33831,78435,01339,57344,20248,944
Borrowings less financial assets7,9474,33478(4,636)(10,097)(15,791)
Net New Zealand-dollar debt11,47811,0888,9406,5683,671762
Net foreign currency debt(3,531)(6,754)(8,862)(11,204)(13,768)(16,553)
            Borrowings less financial assets7,9474,33478(4,636)(10,097)(15,791)
            Gross sovereign issued debt136,08634,46932,94033,01933,60434,057
Net core Crown debt217,57716,93515,44214,61913,87813,439

Table 27.08 shows central government debt from 1986 to 2003 as the amount owed per head of population.

Table 27.08. Gross indebtedness of central government

YearAmountPer head of population
Source: Statistics New Zealand
As at 31 March$(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
199143,93612,688.34
199247,10512,440.47
199347,47813,186.55
199446,42913,115.11
199544,09612,639.24
199641,50011,815.65
199735,97210,974.77
199837,8929,429.10
199936,7129,880.32
200036,0419,342.37
200136,7619,473.26
200236,2029,190.42
200336,0869,000.80

Table 27.09 shows the maturity profile of New Zealand Government debt as at 30 June 2003.

Table 27.09. Refinancing/repricing risk

Assets and liabilitiesTotal at 30 June 20030-12 months1-2 years2-5 years5-10 yearsMore than 10 years

- nil or zero

Source: The Treasury

Domestic assets
Cash and deposits2,5332,51221---
Marketable securities7,1286,8131601487-
Others2,5742,439126855-
Domestic liabilities
Government stock18,7453,0362,6804,3667,3721,291
Treasury bills5,3175,317----
Retail stock8186705791--
Others5,2393,2044421,170289134
Foreign assets
Cash and deposits686686----
Marketable securities4,7862,9554241,07329440
Others6,3316,26958436
Foreign liabilities
Foreign currency debt8,1665,0937781,708387200

27.4 Local government finance

Most of New Zealand's 86 local authorities separate their activities into regulatory-type functions and those run along the lines of normal businesses.

To facilitate this, councils have set up business units which compete with outside businesses for council contracts, such as those involving roading, works and maintenance, and refuse collection.

In addition to business units, councils often have shareholdings in electrical supply companies, as well as companies which operate ports, airports and bus transport.

Financial information covering councils and business units is shown in Table 27.10.

Table 27.1. Local authority statistics - non-trading activities1
Years ending 30 June

Income and expenditure199819992000200120022003

1Covers all activities of local authorities not classified as trading activities, eg local government administration, provision of water supply, roading, parks and reserves, town planning and regulation.

2Rates, petroleum tax and fees and fines not available separately.

.. figures not available

Note:Figures may not add to stated totals due to rounding.

Source: Statistics New Zealand

   $(million)  
Operating income
      Rates (including water values)1,921.81,992.52,102.92,204.92,303.9..2
      Petroleum tax25.225.426.426.327.0..2
      Grants, subsidies and levies370.3390.6398.7398.6440.0471.4
      Fees and fines159.9158.1174.9185.6187.4..2
      Sales and other income661.4687.5712.4730.5769.7812.1
      Investment income318.3372.3334.3293.2419.9300.5
Total3,456.93,626.43,749.73,838.94,147.84,230.0
Operating expenditure
      Employee costs848.7849.1830.9839.7880.0944.9
      Interest166.1165.6153.9146.1143.1149.8
      Depreciation404.1697.3715.7730.5765.5832.9
      Purchases and other expenditure1,902.91,754.31,808.11,891.92,002.72,043.7
Total3,321.93,466.43,508.53,608.23,791.33,971.2
Surplus/(deficit) before non-operating items135.0160.0241.5230.7356.5258.8
      Net gains from non-operating items98.61,348.0672.9247.5186.5..
Surplus/(deficit) after non-operating items233.61,508.1914.1478.2543.0..
Additions to fixed assets1,094.51,260.51,249.91,390.11,597.7..
Disposal of fixed assets116.7163.2131.4107.297.2..

Contributors

27.1The Treasury.
27.2Inland Revenue Department, The Treasury, Customs New Zealand, Ministry of Transport, Statistics New Zealand, Taxation Review Authority.
27.3The Treasury, Statistics New Zealand.
27.4Statistics New Zealand.

Websites

www.acc.co.nz - Accident Compensation Corporation

www.ird.govt.nz - Inland Revenue Department

www.ltsa.govt.nz - Land Transport Safety Authority

www.localgovtnz.co.nz - Local Government New Zealand

www.msd.govt.nz - Ministry of Social Development

www.transport.govt.nz - Ministry of Transport

www.customs.govt.nz - New Zealand Customs Service

www.rbnz.govt.nz - Reserve Bank of New Zealand

www.ssc.govt.nz - State Services Commission

www.stats.govt.nz - Statistics New Zealand

www.treasury.govt.nz - The Treasury

www.transfund.govt.nz - Transfund New Zealand

www.winz.govt.nz - Work and Income New Zealand

Glossary of statistical terms

Statistical terms defined here are a selection of those frequently used in censuses, surveys and series referred to in this book.

Abortion.

Statistics and rates refer to New Zealand-registered induced abortions.

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.

ANZSIC.

The Australia New Zealand Standard Industry Classification is a hierarchical industrial classification which groups businesses based on the types of economic activities they carry out. ANZSIC is closely based on the International Standard Industrial Classification Revision 3 (United Nations 1990).

Assumption.

A statement about a future course of behaviour from which demographic projections are derived.

Baby boom.

Usually the period 1946-65 associated with high fertility rates and high numbers of births.

Balance of payments.

A statistical statement that systemically summarises, for a specific time period, the economic transactions of an economy with the rest of the world.

Balance of payments conceptual adjustments.

Adjustments to international trade statistics to bring the value of exports and imports into line with balance of payments concepts. Imports are adjusted to free on board (fob) value. Exports are adjusted for goods shipped and sold on consignment.

Balance on current account. A balance of payments statement is presented as a series of accounts - current, capital and financial. The current account records the export and import of goods and services, income earned and paid and, under current transfers, offsetting entries to resources supplied or received from nonresidents. The sum of the exports of goods and services, earnings and resources received (inflows), less imports of goods and services, income paid and resources supplied (outflows) is the balance on current account. The account is usually in either surplus (inflows exceed outflows) or deficit (outflows exceed inflows).

Balance on current transfers.

This is calculated by deducting total debit entries from total credit entries for all current transfers components, eg income tax and international aid.

Balance on goods.

This is calculated by deducting the total imports of goods from the total exports of goods. The balance is in surplus when exports of goods exceed imports.

Balance on income.

This is calculated by deducting the total income accruing to foreign investors from their investments in New Zealand from the total income earned by New Zealand investors from their investments abroad. Income includes profits, dividends and interest.

Balance on services.

This is calculated by deducting total imports of services from total exports of services. Services include transportation, travel and insurance.

Balance on the external current account

(national accounts). The residual item for the external account, this is the excess of income from the rest of the world over payments to the rest of the world. A negative value indicates payments exceed income.

Banking sector.

All units engaging in financial intermediation as a principal activity and having liabilities in the form of deposits or financial instruments.

Birth rate (crude).

The number of births per 1,000 estimated mean population.

Births.

Include live births and stillbirths. A change in definition in the Births, Deaths and Marriages Registration Act 1995 means stillbirths from September 1995 onwards are not directly comparable with earlier years.

BPM5.

Balance of Payments Manual, edition 5.

Bonds and notes.

Financial instruments that give the holder the unconditional right to a fixed money income or a contractually-determined variable money income.

Capital account.

This account records all transactions that involve the receipt or payment of capital transfers and acquisition or disposal of non-produced, non-financial assets, eg patents and copyrights. The balance is equal to debit entries (inflows) minus credit entries (outflows).

Capital transfers to/from the rest of the world

(national accounts). The excess 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 New Zealand System of National Accounts, it has been possible to separately identify some of these flows only since 1984/85. Otherwise, they have been included in current transfers to/from the rest of the world.

Census.

A survey of the total population of interest. The Census of Population and Dwellings, carried out at five-yearly intervals, is an example of a census. (See also sample survey).

Census night population count.

A count of all people present in a given area on a given census night. The census night population count of New Zealand includes visitors from overseas, but excludes New Zealand residents temporarily overseas. For a subnational area, the count includes visitors from overseas and from others parts of New Zealand, but excludes people who usually live in the area, but are absent.

Census undercount/overcount.

Census undercount is the number of people missed by a census who were meant to be counted. Census overcount is the number of people counted by a census who should not have been counted, or who were counted more than once. Net census undercount is the difference between undercount and overcount, usually expressed as a percentage of what should have been the complete count, rather than as a percentage of what was counted.

Census usually resident population count.

A count of all people who usually live in a given area and are present in New Zealand on a given census night. The count excludes visitors from overseas and New Zealand residents temporarily overseas. For a subnational area, the count excludes visitors from overseas and from others parts of New Zealand, but includes people who usually live in the area, but are absent.

Change in inventories

(national accounts). This consists of changes in:

  • Stocks of outputs that are still held by the units that produced them prior to their being further processed, sold or delivered to other units.

  • Stocks of products acquired from other units that are intended to be used for intermediate consumption or for resale without further processing.

They are measured by the value of the entries into inventories, less the value of withdrawals and the value of any recurrent losses of goods held in inventories, and include work in progress.

cif

(cost including insurance and freight). A basis for valuation of merchandise imports, representing the cost to the importer of buying the goods and bringing them to the wharfside or airport in the importing country.

Compensation of employees

(national accounts). Total remuneration, in cash or in kind, payable by enterprises to employees. It includes contributions paid on an employee's behalf to a superannuation fund, a private pension scheme, the Accident Compensation Corporation, a casualty and life insurance scheme and other fringe benefits.

Compensation of employees to/from the rest of the world

(national accounts). In principle, these items cover the compensation residents of one country earn from employment in another, where, because their stay is for a period of less than 12 months, they are classed as non-residents. In practice, data available does not permit estimates of these items.

Consensual union (de facto relationship).

Two people usually living in the same dwelling, but not in a registered marriage to each other, who share mutual concern for each other, have a degree of economic, social and emotional interdependence, and consider their relationship to be akin to marriage.

Consumers price index.

See indexes.

Consumption of fixed capital

(national accounts). This represents the reduction in the value of fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence or normal accidental damage. It is valued at replacement cost.

Current account.

This account records all transactions (other than those in financial items) that involve economic values and occur between resident and non-resident entities. Also recorded are offsets to current economic values provided or acquired without a quid pro quo. The major classifications are goods, services, income and transfers.

Current transfers to/from the rest of the world

(national accounts). These refer to current transfers which take place between residents and non-residents. Examples include government aid in the form of food, clothing and medical supplies; social contributions and/or benefits; and personal transfers such as gifts.

Death rate (crude).

The number of deaths per 1,000 estimated mean population.

Density (of population).

The average number of people per square kilometre (or hectare) in a particular locality.

Depreciation.

As charged in books of account on fixed tangible assets owned by establishments and ancillary units.

Direct investment.

Investments 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 set out by the International Monetary Fund to determine ‘significant influence’ in the direct investment enterprise is that the investor must hold at least 10 percent of the voting capital of the enterprise. Once the direct investment relationship has been established, all forms of financial capital investment between the direct investor and direct investment enterprise are classed as direct investment, ie equity and debt.

Direct investment income.

Income earned by investors from their direct investment relationship with 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.

Divorce (dissolution of marriage).

The process by which the legal relationship of husband and wife is dissolved.

Divorce rate.

The number of divorces per 1,000 estimated existing marriages.

Domestically-issued securities.

Domestically-issued securities consist of domestically-issued bonds and notes taken up directly by non-resident organisations and individuals, or through New Zealand organisations acting as nominees.

Dwelling.

A structure, part of a structure, or a group of structures used, or intended to be used, as a place where people live.

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 limit).

  • Is registered for GST and is involved in agriculture or forestry.

Employed.

All people in the working-age population who, during the reference week, worked for one hour or more for pay or profit in the context of an employee/employer relationship, or in self-employment. Also, people who worked without pay for one hour or more in work which contributed directly to the operation of a farm, business or professional practice owned or operated by a relative.

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 people 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. It can be a company, a partnership, a trust, an estate, an incorporated society, a local or central government organisation, a voluntary organisation or a self-employed individual.

Estimated resident population.

An estimate of all people who usually live in a given area at a given date. The estimated resident population of New Zealand includes all residents present in New Zealand and counted by the census (census usually resident population count), residents temporarily overseas (who are not included in the census), and an adjustment for residents missed or counted more than once in the census (net census undercount). Visitors from overseas are excluded. For a subnational area, the estimate excludes visitors from overseas and from other parts of New Zealand, but includes people who usually live in the area, but are absent. The estimated resident population at a given date after a census includes births, deaths and net migration of residents between census night and the given date.

Ethnicity.

The ethnic group or groups that people identify with or feel they belong to. Ethnicity is a measure of cultural affiliation as opposed to race, ancestry, nationality or citizenship. It is self-perceived and people can affiliate to more than one ethnic group. People can identify with an ethnicity even though they may not be descended from ancestors with that ethnicity. Conversely, people may choose not to identify with an ethnicity even though they are descended from ancestors with that ethnicity.

Ex-nuptial birth.

A child born to parents who are not legally married at the time of birth. Ex-nuptial births include births to parents in a consensual union.

Ex-nuptial birth rate.

The number of ex-nuptial births per 1,000 estimated mean not-married women aged 15-49 years.

Exports of goods and services.

All goods and services produced by New Zealand residents and purchased by non-residents.

External migration.

The short-term and long-term movement of overseas and New Zealand travellers into and out of New Zealand.

Family.

A couple with a child or children, or one parent with a child or children, usually living together in a household.

Fertility.

The actual level of reproduction of a population based on the number of live births that occur. Fertility is normally measured in terms of women of childbearing age, defined as 15-44 years, although births to women outside this age range do occur.

Final consumption expenditure

(national accounts). Expenditure, including imputed expenditure, on goods and services according to which sector (private and government) actually pays for the goods and services and therefore makes the decision on the expenditure.

Financial account.

This account records transactions associated with changes in ownership of the foreign financial assets and liabilities of an economy. For example, foreign investors' purchases and sales of equity (shares) issues by resident New Zealand companies, and the borrowing overseas, and lending overseas, by New Zealand entities.

Financial derivatives.

Financial derivatives are based on other products, either financial or real, or prices associated with financial products, and which involve:

  • Future delivery, receipt or exchange of financial items such as cash or another derivative instrument.

  • Future exchange of real assets for financial items where the contract may be tradeable and have market value.

Financial derivatives include such things as currency swaps, interest rate swaps, futures, forward foreign exchange contracts, options (put and call) and warrants.

Financial performance.

The broad heading for variables which measure the financial performance of a unit or group of units, including variables for such things as income, expenditure, profit and stocks.

Financial position.

The broad heading for variables which measure the financial position of a unit or group of units. Previously called the balance sheet, it includes assets, liabilities, equity and investment in fixed assets.

Foreign direct investment in New Zealand.

Investment in New Zealand-located enterprises by non-resident investors which meets the direct investment criteria. The financial account measures transactions which increase and decrease these investments. The international investment position (IIP) statement measures the value of this investment at points in time.

fob

(free on board). The current market value of goods in the country of origin, including all costs necessary to get them on board a ship or aircraft, but excluding freight, insurance and other costs involved in transporting them between countries.

Full time.

People working 30 hours or more a week.

Full-time equivalents.

The number of full-time equivalent persons engaged equals the number of full-time employees and working proprietors, plus half the part-time employees and working proprietors.

General government sector.

Central and local government units, other than the monetary authority.

General marriage rate.

The number of marriages per 1,000 of the estimated mean not-married population aged 16 and over.

Geographic unit.

A separate operating unit engaged in New Zealand in one or predominately one kind of economic activity from a single physical location or base.

Gross

(national accounts). Used to denote values before deducting consumption of fixed capital.

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). Measured by the total value, less disposals, of a producer's purchases of fixed assets, plus certain additions to the value of non-produced assets (such as subsoil assets or major improvements in the quantity, quality or productivity of land) realised by the productive activity of institutional units. The term ‘gross’ indicates that consumption of fixed capital has not been deducted from the value of the outlays.

Gross national expenditure (national accounts).

The total expenditure within a given period on final goods and services by New Zealand residents, ie excluding goods and services used up during the production process.

Gross national income

(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 taxes on production and imports, and before the deduction of allowances for the consumption of fixed capital. Previously referred to as gross national product.

Gross operating surplus

(national accounts). The residual item to the gross domestic product and expenditure account, obtained after deducting compensation of employees and taxes on production, less subsidies, from value added.

Gross reproduction rate.

The average number of daughters that a woman would have during her life if she experienced the age-specific fertility rates of that year. It excludes the effect of mortality.

Gross tonne.

The unit of actual weight of cargo, including packaging, but not including the weight of reusable containers.

Harmonised system.

The New Zealand Harmonised System Classification was adopted from the January 1988 reference month for processing customs entries and publishing statistics on external trade. It replaced the Customs Cooperation Council Nomenclature (CCCN) commodity classification and the Standard International Trade Classification (SITC).

Household.

Either one person usually living alone, or two or more people usually living together and sharing facilities, in a private dwelling.

IMF.

International Monetary Fund.

Imports of goods and services.

All goods and services produced by non-residents and purchased by New Zealand residents.

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 is held constant so that the price movement can be measured. The most frequently quoted index in New Zealand is the consumers price index, which reports quarterly changes in price levels of goods and services purchased by private New Zealand households during a specified base period. By expressing the changes in index form, price changes in commodities as diverse as beef, hairdressing and club subscriptions can all be aggregated to produce a measure of overall price change.

Indirect taxes.

Taxes assessed on producers in respect of the production, sale, purchase and use of goods and services, and which add to the market prices of those goods and services. They includes sales tax, local authority rates, import and excise duties, fringe benefit tax and registration fees such as motor vehicle registration paid by producers.

Insurance

(balance of payments). This covers the provision of various types of insurance by non-residents to residents, and vice versa. All types of insurance and reinsurance are included, including freight insurance on goods, reinsurance and other forms of direct insurance, such as life, marine, general and fire and accident. Also included are commissions related to insurance transactions earned by agents.

Intermediate consumption

(national accounts). The value of goods and services used as inputs in production.

International investment position.

A statistical statement of:

  • The value and composition of the stock of an economy's financial assets, or the economy's claims on the rest of the world.

  • The value and composition of the stock of an economy's liabilities to the rest of the world.

Investment income.

Income earned by foreign investors from their equity and financial assets invested in New Zealand (the debit or expenditure item), and the income New Zealand investors earn from their equity and financial assets invested abroad (the credit or income earned item).

Investment income to/from the rest of the world

(national accounts). This consists of:

  • Investment income, which represents transfers of income accruing to the owners of financial assets (mainly from earning interest and dividends) and tangible non-produced assets (from owning natural assets such as land, subsoil assets and water resources). This now includes reinvested earnings on overseas direct investment, where the retained earnings of a direct foreign investment enterprise are treated as if they were distributed and remitted to foreign direct investors in proportion to their ownership of the equity of the enterprise and then reinvested by them in the enterprise.

  • Entrepreneurial income, which refers to actual withdrawals of income from enterprises operating overseas, such as branches of foreign companies.

Kind of activity unit.

A subdivision of an enterprise consisting of a set of one or more activity units for which a single set of accounting records is available.

Labour force.

The labour force consists of people aged 15 and over who regularly work for one hour or more a week for financial gain, or who work without pay in a family business, as well as those who are unemployed and actively seeking work.

Labour income (total).

Income before tax which people aged 15 and over receive in a financial year from all sources, eg wages, salary, government benefits, interest, dividends, commission, pre-tax business or farming income (less expenses).

Life expectancy at birth.

The average length of life of a newborn baby, assuming they experience the age-specific mortality rates of a given period throughout their life. Life expectancy represents the average longevity of the whole population and does not necessarily reflect the longevity of an individual.

Loans.

Direct agreements between borrowers and lenders, involving the transfer of funds to the borrower and the repayment to the lender over time. Loans include 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.

Refers to financial instruments with an original maturity of more than one year.

Main urban areas.

Centres with populations of 30,000 or more.

Marriage rate (crude).

The number of marriages per 1,000 estimated mean population.

Marriage (registered).

The act, ceremony or process by which the legal relationship of husband and wife is constituted. In New Zealand, marriage must be solemnised by a celebrant or before a registrar of marriages.

Maturity profile.

Time to run to scheduled maturity, ie the residual maturity at the survey time point.

Mean population.

The average number of people in an area during a given period, usually a year. This measure may be estimated in terms of a simple or weighted arithmetic mean of monthly or quarterly population during the reference period.

Median.

A value with an equal number of items on either side of it.

Median age.

Half the population is younger, and half older, than this age.

Merchandise exports.

Goods of domestic origin, and re-exports, sent from New Zealand to other countries, including goods leased for a year or more, but excluding goods for repair.

Merchandise imports.

Goods from other countries landed in New Zealand, including goods leased for a year or more, but excluding goods for repair.

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, including goods leased for a year or more, but excluding goods for repair.

Minor urban areas.

Centres with populations of 1,000 or more not already classified as a main or secondary urban area.

Monetary authorities sector.

New Zealand's monetary authority is the Reserve Bank of New Zealand.

Money market instruments.

Securities generally giving the holder the unconditional right to receive a stated fixed sum of money on a specified date. These instruments are usually traded at a discount in organised markets. The predominant money market instruments in New Zealand are treasury bills, reserve bank bills, bills of exchange and certificates of deposit.

National disposable income

(national accounts). The total income of New Zealand residents from all sources available for either final consumption (current spending) or saving.

Natural increase.

The excess of live births over deaths. When deaths exceed births, this is described as a natural decrease or a negative natural increase.

Net errors and omissions.

A balancing item. The balance of payments statement employs a double entry system and so in the accounting sense it should always balance. In practice, this seldom occurs due to factors such as the variety of data sources used, the probability that some transactions will not be captured, and the possibility of errors in reporting and compilation. Net errors and omissions (or residual) is used to balance the accounts.

Net lending to the rest of the world

(national accounts). The residual item for the national capital account. If the nation's savings are insufficient to pay for all capital investment needed for production, the shortfall must be borrowed from overseas. Net lending to the rest of the world is then a negative item.

Net reproduction rate.

The average number of daughters that a woman would have during her life if she experienced the age-specific fertility and mortality rates of that year.

New Zealand direct investment abroad.

Investment by New Zealand investors in overseas-located enterprises which meets the direct investment criteria. The balance of payments financial account measures transactions which increase and decrease these investments. The international investment position statement measures the value of this investment at points in time.

New Zealand residents departing temporarily or returning after a short-term absence.

A New Zealand resident whose absence from New Zealand is intended to be, or was, less than 12 months.

NZSNA.

New Zealand System of National Accounts.

Operating expenditure.

Expenditure from the main activities of a unit, usually directly incurred from sales of goods and services. Excludes salaries and wages, interest, donations and extraordinaries.

Operating income.

Income incurred from the main activities of a unit, usually from the sales of goods and services. Generally excludes extraordinaries, interest, dividends and subsidies.

Operating surplus

(financial accounts). Surplus or deficit of total income less total expenditure, before direct tax, payments to owners and stock change.

Other investment.

A residual category encompassing all forms of financial capital not included elsewhere, ie direct, portfolio or reserves. Types of capital include trade finance (trade creditor and debtor accounts), loans and deposits.

Other sectors.

Includes non-financial corporations, insurance companies, pension funds, other non-depository financial intermediaries, private non-profit institutions and households.

Output

(national accounts). Output represents the value of total production, including intermediate inputs. Deduction of intermediate inputs from output gives value added.

Overseas trade - exports and imports.

Customs entries relating to goods cleared. Overseas trade statistics show exports valued free on board (fob), and imports valued cost including insurance and freight (cif) and value for duty (vfd).

Paid employees.

People who have an employment agreement and who receive remuneration for their work in the form of wages, salary, commission, tips, piece rates, or pay in kind.

Part time.

People who work fewer than 30 hours a week.

Permanent and long-term arrivals.

People who have spent the previous 12 months or more overseas and who have arrived in New Zealand intending to stay 12 months or more.

Permanent and long-term departures.

People who have spent the previous 12 months or more in New Zealand and who have departed for an intended absence of 12 months or more.

Population estimate.

Data from the most recent Census of Population and Dwellings updated with estimates of births, deaths and net migration since the census.

Population projection.

An estimate of the future size and/or composition of a specified population based on an assessment of past trends and assumptions about the future course of fertility, mortality and migration.

Portfolio investment.

Investment in equity securities of less than 10 percent of the voting stock of an enterprise; and investment in debt securities, such as bonds and notes and money market instruments.

Provisional (statistics).

Statistics which are derived using preliminary or incomplete data and released before final data becomes available.

Purchase of non-produced non-financial assets to/from the rest of the world net

(national accounts). This refers to assets (tangible and intangible) that come into existence other than through processes of production. Also included are the costs of ownership transfer on, and major improvements to, such assets.

Re-exports.

Merchandise exports that were earlier imported into New Zealand and comprise less than 50 percent New Zealand content by value. Examples are computer hardware, machinery and aircraft.

Re-imports.

Goods, materials or articles imported in the same condition as they were exported from New Zealand. (One-third of New Zealand re-imports are made up of live animals, principally racehorses and dogs).

Replacement fertility.

Generally refers to a total fertility rate of 2.1 children per woman, which equates to the average number of children each woman would need to have for a population to replace itself in the long term, without migration. The rate allows for the sex ratio at birth (roughly 105 males born for every 100 females) and for some mortality of females between birth and childbearing.

Reserve assets.

External financial assets denominated in foreign currencies that are readily available to, and controlled by, monetary authorities.

Resident population.

In census statistics, a resident is a person who self-identifies that they usually live in an area. In external migration statistics, a resident is a person who self-identifies on a departure card that they have lived in New Zealand for 12 months or more, and on an arrival card that they live in New Zealand and have been away for less than 12 months and that they intend to stay in New Zealand for 12 months or more.

Resident population concept.

A statistical basis for a population in terms of those who usually live in a given area at a given time. The census usually resident population count is a census measure, and the estimated resident population is a demographic measure, of the resident population concept.

Residents and non-residents.

An individual or enterprise is a resident of New Zealand when their centre of economic interest is in New Zealand. Broadly, an individual is resident in New Zealand if they live in New Zealand for one year or more and their general centre of interest is determined to be New Zealand. This can apply to people who spend much of their time outside New Zealand, but still retain ‘permanent’ links with New Zealand. Resident individuals include people whose usual place of living is New Zealand, New Zealanders living, travelling or working abroad for less than a year, New Zealanders living abroad studying, and New Zealand diplomatic or military personal. An entity is resident in New Zealand if it engages in production of goods or services in New Zealand. Resident entities include New Zealand-located subsidiaries of overseas companies and New Zealand-located branches or partnerships of overseas entities. Individuals and entities not regarded as residents of New Zealand are defined as non-residents. Non-resident entities include overseas-located subsidiaries, associates and branches of New Zealand companies.

Revised

(statistics). In this volume, any data different from that printed in previous editions.

Rural areas.

Areas not defined as urban. They include rural centres with populations of 300 to 999 in a reasonably compact area which service their surrounding rural areas (district territory), districts not included in main, secondary or minor urban areas, and inlets, islands, inland waters and oceanic waters outside urban areas. The population aboard ships is not included.

Salaries and wages.

Gross earnings during the accounting year of all paid employees (full time, part time and casual). 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. Excluded are drawings of working proprietors or partners.

Sample survey.

A type of survey in which only a representative part of the population of interest provides detailed information. The sample statistics are summarised and are used to estimate statistics for the full population.

Saving

(national accounts). The residual item in the national income and outlay account. It is the amount of national disposable income left after current spending.

Seasonal adjustments.

Adjustments made to statistical time series (usually monthly or quarterly) to provide a refined series in which the estimated fluctuations due to seasonal variations have been removed.

Secondary urban areas.

Centres with populations between 10,000 and 29,999.

Short term.

Financial instruments with an original maturity of less than one year.

Statistical discrepancy.

In the New Zealand System of National Accounts, items making up gross domestic product (GDP) and expenditure on GDP are estimated independently, using diverse data sources. The combination of survey and other measurement and timing errors in the various components results in a difference between the estimates, known as the statistical discrepancy.

Stocks.

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 fiirther processing.

Subsidies

(national accounts). Current unrequited payments made by governments to enterprises on the basis of the levels of their production activities, or the quantities or values of the goods and services that they produce, sell or import.

Taxes on production and imports

(national accounts). Taxes payable on goods and services when they are produced, delivered, sold, transferred or otherwise disposed of by their producers. Also included are taxes and duties on imports that become payable when goods enter the economic territory by crossing the frontier or when services are delivered to resident units by non-resident units. They also include other taxes on production, which consist mainly of taxes on the ownership or use of land, buildings or other assets used in production, or on the labour employed, or compensation of employees paid.

Total fertility rate.

The average number of live births that a woman would have during her life if she experienced the age-specific fertility rates of a given period.

Trade credits.

Accounts payable to, and prepayments received from, non-residents for imports and exports of goods and services.

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, including freight, air fares, freight insurance, port services and stevedoring.

Travel

(balance of payments). The expenditure of foreign travellers in New Zealand and New Zealanders travelling overseas.

Unemployed.

All people in the working-age population who, during the reference week, were without a paid job, were available for work, and had actively sought work in the past four weeks, or had a new job to start within four weeks.

Urban areas.

Non-administrative areas with urban characteristics and a high to moderate concentration of population. Main, secondary and minor urban areas are differentiated by population size.

vfd

(value for duty). The assessed value of merchandise imports on which duty is based. It approximates the current domestic value of goods in the exporting country.

Visitor from overseas.

In census statistics, a visitor from overseas is a person who self-identifies that they usually live overseas. In external migration statistics, a visitor from overseas is a person who self-identifies on an arrival card that they intend to stay in New Zealand less than 12 months.

Vital statistics.

Statistics of events such as births, deaths and marriages which influence the numbers of a population.

Value added

(national accounts). The value added to goods and services by the contributions of capital and labour (ie after the costs of bought-in materials and services have been deducted from the total value of output).

Working-age population.

The usually resident, non-institutionalised civilian population of New Zealand aged 15-64.

Index

Names of people who are featured in the sidebar short articles are included in the index.

Ministries, departments, government agencies and other organisations cited in the Yearbook with a Māori name may be accessed by that name.

Names of organisations and bodies starting with National and New Zealand may also be found under a more commonly known name (eg ERMA, for Environmental Risk Management Authority), in an inverted form (eg String Quartet, NZ) or in a particular subject area (eg Department of Conservation, listed under the main heading Conservation).

Acts of parliament are included in the index when there is a major reference.

For major commodities such as wool, see the specific entry Wool. Information on less significant commodities may be found under more general terms (eg for Apples, look under Fruit and go to the pages listed there).

Generally New Zealand has been abbreviated to NZ to save space in the index. Similarly, United Nations has been abbreviated to UN.

A

Abortion, 147-148
Abuse, child, 125
Academy of Sport, NZ, 239-240
Access radio stations, 213
Accident Compensation Corporation (ACC), 149, 154-155, 412
Accidents
air, 390, 391
general accidents, 152-153
industrial, 158
injury prevention, 153-154
injury statistics, collection of, 149
marine accidents, 389
OSH investigations, 158
preschool children, 153
road crashes, 148-151
water, 151-152
Accommodation sector
FTE persons working in sector, 323
tourist, 251
Accounts
International accounts; National accounts
Accreditation services
Standards and accreditation services
Administrative boundaries, 1
Adoption, 127-128
Adult and community education, 174
Advertising industry, 216-217
Aerial photography, 295
Afghanistan, 56, 67
Africa, relationship with, 56-57
AFTA (ASEAN Free Trade Area) Agreement, 55
Age
Asian population, 113-114
age-sex profile, 93
ethnic groups, generally, 96
Māori, 105
mortality, 90-91
Pacific peoples, 111
projections, 77-78, 79
deaths from external causes by, 153
age-sex profile, 93
ethnic groups, generally, 96
Māori, 105
mortality, 90-91
Pacific peoples, 111
projections, 77-78, 79
labour force participation, 260
age-sex profile, 93
ethnic groups, generally, 96
Māori, 105
mortality, 90-91
Pacific peoples, 111
projections, 77-78, 79
at marriage, 87
age-sex profile, 93
ethnic groups, generally, 96
Māori, 105
mortality, 90-91
Pacific peoples, 111
projections, 77-78, 79
population
age-sex profile, 93
ethnic groups, generally, 96
Māori, 105
mortality, 90-91
Pacific peoples, 111
projections, 77-78, 79
unemployment by, 264
Aggregates, minerals, 367
AgResearch Ltd, 274
Agricultural sector
assistance and subsidies, 326, 331
dairy, 334, 336, 418
horticultural, 339
meat, 331-332, 419
wool, 333-334
bees and beekeeping, 338-339
dairy, 334, 336, 418
horticultural, 339
meat, 331-332, 419
wool, 333-334
census, 338
dairy, 334, 336, 418
horticultural, 339
meat, 331-332, 419
wool, 333-334
crops, 339-341
dairy, 334, 336, 418
horticultural, 339
meat, 331-332, 419
wool, 333-334
current situation and trends, 325-326
dairy, 334, 336, 418
horticultural, 339
meat, 331-332, 419
wool, 333-334
dairy products, 325, 334-336, 418
dairy, 334, 336, 418
horticultural, 339
meat, 331-332, 419
wool, 333-334
eggs, 337
dairy, 334, 336, 418
horticultural, 339
meat, 331-332, 419
wool, 333-334
exports
dairy, 334, 336, 418
horticultural, 339
meat, 331-332, 419
wool, 333-334
farmland use, 326
farms, types of, 326
foot and mouth disease, 330
FTE persons working in sector, 323
generally, 325
horticulture, 340-341
international policy, 327
livestock, 327-329
MAF, 326-327
meat products, 329-332, 419
organisations, 326-327
pastoral agriculture, 327-328, 327-329
pigs, 336-337
poultry meat, 337
wool, 332-334
Agriculture and Forestry, Ministry of, 326-327
AgriQuality NZ Ltd, 327
Aid
humanitarian, 56
International development assistance
international development assistance
International development assistance
AIDS Foundation, NZ, 142
Air Force, Royal NZ, 71-72
Air NZ Ltd, 38
Air quality, 282-283
Air Training Corps, 67
Air transport
Civil aviation
Airports, 392
Alcohol
consumption, 138-139
Wine industry
driving and, 400
Wine industry
sale of, 405-406
Wine industry
wine industry
Wine industry
Alcohol Advisory Council of NZ (ALAC), 139
Alexander Turnbull Library, 225
Allowances
disability, 122
student allowances, 167
Alternative health advisory committee, 131
America's Cup, 247
Anau Ako Pasifika, 171
Animal health services, 327
Animals
livestock, 327-329
species, 11, 12
Antarctica
Conservation Department, 298
Defence Force assistance, 67-68
Operation Antarctica, 67-68
ozone hole, 7
research, 294
Ross Dependency, 63
territory, 63
treaty system, 63
Anthems, national, 49
Antiquities, protection of, 223
ANZAC (Australian and NZ Army Corps), 66
ANZCERTA (Closer Economic Relations), 54, 55
ANZUS Treaty, 54, 66
Aotearoa Traditional Māori Performing Arts Society, 222
APEC (Asia Pacific Economic Cooperation), 54, 431
Apparel industry, 373-374
Apprenticeships, 265
Aquaculture, 285
Archaeological sites, protection of, 223
Architecture awards, 382
Archives
Archives NZ, 224
cartoons, 224
films, 231
radio, 213
Area of NZ, 1-2
Armed offender squads, 200
Army, NZ, 70-71
Art galleries, 223
Artificial aids, 136
Arts, culture and heritage
administration, 233-236
Archives NZ, 224
art galleries and museums, 223
Cartoon Archive, 224
censorship, 231-232
copyright, 232-233
expenditure by public, 221
film and video, 229-231
FTE persons working in sector, 324
government involvement, 221
Historic Places Trust, 223, 303
library services, 224-226
literature, 226-227
performing arts, 227-229
taonga tuku iho, 221 -222
Te Papa Tongarewa, 222-223
ASEAN (Association of South-East Asian Nations), 54, 55, 65
Asia
relationship with, 54, 55
trade, 54, 55, 432
Asia 2000 Foundation, 54, 55
Asia Pacific Economic Cooperation (APEC), 54, 431
Asian Development Bank, 61
Asian population, 78, 79, 113-115
Assaults
convictions, 188
on police, 201
Assets
international, 322
privatisation of, 16
Assisted human reproduction advisory committee, 131
Association of South-East Asian Nations (ASEAN), 54, 55, 65
Asure NZ Ltd, 327
Attorney-General, 186
Auckland region
Infrastructure Auckland, 46
population, 83
Auditor-General, 40
Australia
CER Agreement, 54, 55
defence relationship, 54, 66
New Zealanders in, 91
relationship with, 53-54
social security agreements, 124
trade, 54, 427-428
Australia and NZ Closer Economic Relations
Trade Agreement (CER), 54, 55
Australia NZ Food Standards Code, 54, 141
Authors' Fund, 227
Automobile Association, NZ, 150, 412
Automobiles
Motor vehicles
Aviation
Civil aviation
Aviation, civil
Civil aviation
Awards
architecture, 382
EEO Trust, 116
gallantry and bravery, 38
honours system, 23, 41
Oscars, 229

B

Bachelor degrees, 175
Balance of payments, 317-319
Ballet, Royal NZ, 229
Bankers' Association, NZ, 439
Banking Ombudsman, 439
Bankruptcy, 410
Banks and banking
Asian Development Bank, 61
Banking Ombudsman, 439
FTE persons working in sector, 324
generally, 435
other deposit-taking institutions, 440
ownership, 436, 438
registered banks, 437-440
Reserve Bank of NZ, 435-437
services, 439
World Bank, 61
Beef cattle
farming, 327, 328
meat exports, 332, 419
products, 329-330
Bees and beekeeping, 338-339
Benefits and pensions
Social development
Bestselling books, 227
Bibliography, national, 225
Biketawa Declaration, 52
Bilateral schedule, 57-58
Bill of Rights Act 1990, NZ, 43
Biodiversity, 281-282, 292
Bioethics Council, 287
Births
Childbirth
Births, Deaths and Marriages Office, 89
Blood Service, NZ, 132
Boarding schools, 167, 172
Boards of trustees, schools, 165
Book publishing, 227
Booksellers NZ, 227
Border operations, 417
Borrowing, credit cards, 414, 439
Bosnia, deployment in, 66
Bougainville, deployments in, 52, 200
BRANZ (Building Research Association of NZ), 277, 412
Bravery awards, 38
Breast cancer screening, 144
Broadband data services, 205, 210
Broadcasting
convergent broadcasting, 210
elections, 209
NZ On Air, 208
parliament, 33
policy, 208-209
radio, 212-213
standards, 209
television, 210-212
Broadcasting Commission (NZ On Air), 208
Broadcasting Standards Authority, 209
Budget, 444-446
Building and construction
awards, 382
building authorisations, 383-384
building code, 382-383
construction law, 382-383
FTE persons working in sector, 323
generally, 382
price indexes, 385
work put in place, 385
Building, authorisations, 383-384
Building Industry Authority, 382
Building Research Association of NZ (BRANZ), 277, 412
Business
e-commerce, 206-207
statistics, 323-324
visas, long-term, 103
Business NZ, 257
Butter, 334

C

CAB (Citizens Advice Bureau), 128
Cabinet, 32-33
Cabinet Office, 32
Cadastral Surveyors Board of NZ, 295
Cadet forces, 67
Cambodian Mine Action Centre, 66
Campbell Island/Motu Ihupuku, 1, 182
Canada, 55, 124
Cancer
control of, 141
deaths, 147
screening programmes, 144
Capital account
International accounts
Capital goods price index, 385
Capital investment, 314-315
Capital stock, 315
Care and protection services, 125-126
Cargo, overseas, 433-434
Caribbean, relationship with, 55
Carpet industry, 373
Cars
Motor vehicles
Carter Observatory, 276
Cartoon Archive, NZ, 224
Cartwright, Dame Silvia, 24
Casein, 334
Casino Control Authority, 246
Casinos, 243, 246
Cattle farming, 327, 328
Caves, 2
Cawthron Institute, 276-277
CCMAU (Crown Company Monitoring Advisory Unit), 39-40, 270
CDs, spending on, 228
Censorship, 231-232
Census of agricultural production, 338
Census of Population and Dwellings
data collected, 80
ethnicity question, 95, 104-105, 110, 113, 115
focus in 2006, 85
labour force, definitions, 259
population growth, 1858-2001, 76
religious affiliation question, 98
rounding and random rounding, 94
Census of prison inmates, 198
Central government
Government
Centres of Research Excellence, 277
CER Agreement, 54, 55
Cervical cancer screening, 144
Chamber Music NZ, 228
Chamber Orchestra, NZSO, 227
Chatham Islands
land area, 1
time zone, 12
Cheese, 334
Cheque duty, 452
Chicken production, 337
Chief censor, 232
Chief executives, government departments, 39, 443-444
Child abuse, 125
Child and Youth Mortality Committee, 131
Child disability allowance, 122
Child support payments
collection of, 117, 123
taxation, 453-454
Child, Youth and Family Services (CYFS), 125-128
Childbirth
ex-nuptial birth rate, 88
generally, 87
Māori, 106
fertility rate, 86-89, 93
generally, 87
Māori, 106
median age of childbearing
generally, 87
Māori, 106
registration of, 89
Childcare subsidy, 121
Children and young people
adoption, 127-128
care and protection, 125-126
child abuse, 125
dental services, 145
health services, 144-145
minimum wage, 255
offences, 203
preschool children, accident and injury rates, 153
sport, 240-241
youth justice services, 126-127
China, trade with, 430-431
Chinese
early immigrants, 14
Chiropractors, 134
CHOGM (Commonwealth Heads of Government), 61
Choral Federation, NZ, 228
Chronology, c1300-2003, 16-22
Churches, religious affiliation and, 98
Cinema
Film and video
Citizens Advice Bureau (CAB), 128
Citizenship, 98-100
Civil aviation
accidents, 390, 391
air traffic control, Pacific region, 392
aircraft, number of, 389
airports, 392
Airways Corporation, 390-391
Civil Aviation Authority, 390
domestic services, 392
FTE persons working in sector, 389
generally, 389
international services, 392-393
‘open skies’ agreement, 54
tracking passengers and crews, 390
Civil Aviation Authority, 390
Civil Defence and Emergency Management, Ministry of, 156
Clark, Rt Hon Helen, 32, 62, 67
Clays, 367
Clerk of the Executive Council, 32
Clerk of the House of Representatives, 30
Climate, 7-11
Climate change, 7, 9, 283, 292, 293-294
Clinical dental technicians, 135
Closer Defence Relations (CDR), 54, 66
Closer Economic Relations (CER), 54, 55
Clothing industry, 373-374
Coal, 286, 289, 363-364, 367
Coalition government, 28
Coastal water quality, 284
Coastline, length of, 2
Coat of arms, 47
Colleges of Education, tertiary councils, 165
Commerce
Commerce Act 1986, 407
Commerce Commission, 406-407
companies, 406
consumer affairs, 404-405
corruption, international comparisons, 408
credit contracts and consumer finance, 408
Fair Trading Act 1986, 404, 407
general environment, 403
insolvency, 410
insurance and superannuation, 411
partnerships, 406
sale of liquor, 405-406
Securities Commission, 409
Serious Fraud Office, 408
share price index, 409
shop trading hours, 405
stock exchange, 409-410
Takeovers Panel, 408
trading controls, 404-406
Commercial List, 182
Commodities, exports and imports
Exports and imports
Commonwealth, 61
Commonwealth Heads of Government (CHOGM), 61
Commonwealth of Independent States, relationship with, 56
Communicable disease control, 139-140
Communications
advertising, 216-217
access and use, 205-207
broadband services, 205, 210
broadcasting policy, 208-209
access and use, 205-207
broadband services, 205, 210
FTE persons working in sector, 324
access and use, 205-207
broadband services, 205, 210
generally, 205
access and use, 205-207
broadband services, 205, 210
history, 15
access and use, 205-207
broadband services, 205, 210
internet
access and use, 205-207
broadband services, 205, 210
magazines, 215
newspapers, 214-215
postal services, 217-220
radio, 212-213
telecommunications services, 209-210
television, 210-212
Community and voluntary sector
FTE persons working in, 324
Office for the Community and Voluntary Sector, 119
police and, 202, 203
voluntary welfare organisations, 142
Youth Service Corps, 116
Community-based sentences, 194-195
Community boards, 46
Community Constables, 202
Community education, 174
Community law centres, 186
Community Magistrates, 183
Community Probation Service, 194
Community Services Card, 122
Compact discs, spending on, 228
Companies
generally, 406
insolvency, 410-411
liquidation, 410
receiverships, 411
taxation, 451
Complementary health advisory committee, 131
Compressed natural gas, 363
Computers
end-user IT sales, 207
internet use, 206-207
Concert FM, 213
Conservation
biodiversity strategy, 281-282
conservation boards, 302
land administered by, 298
national parks and reserves, 298-303
recreation promotion, 302
Department of Conservation
conservation boards, 302
land administered by, 298
national parks and reserves, 298-303
recreation promotion, 302
Kākāpo, 282
non-government organisations, 303
NZ Conservation Corps, 116
tourism and, 252
Conservation Authority, NZ, 302
Consolidated accounts
National accounts
Constables, community, 202
Constitution
Crown and governor-general, 24-25
Declaration of Independence, 1835, 23, 34
electoral system, 25
history of, 23
judiciary, role of, 181
parliamentary tradition, 25
Premiers and Prime Ministers, 26
sources of, 23
Construction
Building and construction
Consular representation, 53
Consumer affairs, 405-405
Consumer Affairs, Ministry of, 405
Consumer finance, 408
Consumer Guarantees Act 1993, 404-405
Consumers' Institute, 405
Consumers Price Index (CPI), inflation target and, 307
Contaminated sites, 291
Controller and Auditor-General, 40
Convention on the Conservation and Management of Highly Migratory Fish Stocks in the Western and Central Pacific Ocean (WCPFC), 52
Convictions, 187-191, 402
Cook Islands
migration to NZ from, 111
special relationship with, 51
Cook Strait inter-island ferries, 388
Copyright, 232-233, 278
Coroner's Court, 184
Corrections, Department of
Justice system
Correspondence School, The, 172
Corruption, international comparisons, 408
Council of Trade Unions, NZ, 257
Counter-terrorism, 56, 65, 67
Court of Appeal, 182
Courts system, 182-185
CPI, inflation target and, 307
Creative NZ
Authors' Fund, 227
generally, 234-236
Māori arts, 221
Creches, 171
Credit cards, usage and borrowing, 413, 439
Credit contracts, 408
Crime, proceeds of, 196
Criminal Investigation Branch, 202
Criminal justice system
Justice system
CRIs (Crown Research Institutes), 274-276
Croatia, deployment in, 66
Crop and Food Research, 275
Crown Company Monitoring Advisory Unit (CCMAU), 39-40, 270
Crown entities, 38
Crown, governor-general as representative of, 24
Crown Law Office, 186
Crown-owned land, 297-298
Crown-owned minerals, 289
Crown Research Institutes (CRIs), 274-276
Cultural heritage
Arts, culture and heritage
Culture and Heritage, Ministry for, 233-234
Currency
Money
Current account
International accounts
Curriculum, schools, 161-162
Customs and excise, 416, 451-452
Customs Service, NZ, 390, 416-417, 451-452
Cycling, 243
CYFS (Department of Child, Youth and Family Services), 125-128

D

Dairy Companies Association of NZ, 335
Dairy farming, 327, 328
Dairy industry, 325, 334-336, 408
exports, 334, 336, 418
Dance, NZ School of, 229
Day care, 171
Daylight saving, 12
Deaths
abortion, 147-148
cancer, 147
Child and Youth Mortality Committee, 131
drownings, 152
external causes, 153
fetal mortality rate, 147
infant mortality rate, 145, 147
major causes, 146
median age, 91
mortality rates, generally, 90, 93
registration of, 89
road accidents, 150-151
Debt
credit cards, 413, 439
government instruments, 441
public, 307, 455-457
Declaration of Independence, 1835, 23, 34
Deer farming, 328
Defence and security
Africa, 57
Defence Force
ANZUS, 66
Defence Force
Asia, 54, 55
Defence Force
Australia, 54, 66
Defence Force
community assistance, 67-68
Defence Force
counter-terrorism, 56, 65, 67
Defence Force
disarmament, 72
Defence Force
expenditure, 68
Defence Force
FTE persons working in sector, 324
Defence Force
intelligence and security, 73-74
Defence Force
Middle East, 56
Defence Force
NZ Defence Force
Defence Force
Pacific region, 52
personnel, numbers of, 68
policy, 64-65
UN, involvement in, 59-60
Defence Force
Air Force, 71-72
Army, 70-71
casualties, overseas, 67
constitution, 64
international relations, 65-67
locations, NZ, 65
Navy, 69-70
policy, 64
Defence, Ministry of, 64
Demography
Population
Asians, 113-115
Māori, 104-107
Pacific peoples, 110-113
Denmark, 124
Dental research, 145
Dental technologists, 133
Dentists and dental health services, 133, 136, 145
Department of Child, Youth and Family Services (CYFS), 125-128
Department of Conservation
Conservation
Department of Corrections
Justice system
Departments, government
State Sector
Deportation, 104
Designated character schools, 173
Designs, registration of, 278
Detached Hydrographic Survey Unit (DHSU), 69
Dietary supplements, regulation of, 141
Dietitians, 134
Diplomatic representation, 53
Director of Human Rights Proceedings, 42, 43
Disabled people
advisory committee, 131
disability allowance, 122
disability support services, 142-143
Health and Disability Commissioner, 143
NZ Disability Strategy, 163
Office for Disability Issues, 119
special education policy, 163
Disarmament, 72
Disaster relief
civil defence, 156
overseas, 58, 67
Discrimination, unlawful, 42-43, 115, 257
Diseases
communicable disease control, 139-140
occupational disease, 159
Disputes tribunals, 185
District Courts, 183
District health boards, 130-131
Dividends, taxation of, 450
Doctors, 132-133
Dogs, police, 202
Doha Development Agenda (WTO), 60-61, 293
Domestic purposes benefit (DPB), 120, 121, 122
Domestic violence
immigration and, 104
legislation, 117
Dominion status, 15
Double tax agreements, 453
DPB (Domestic purposes benefit), 120, 121, 122
Drama School, NZ, 229
Drinking water, 137
Driving
alcohol impairment, 401
convictions, 189
licences, 400
motor vehicle running costs, 400
seat belts, 401
speed limits, 401
traffic offences, 190, 402
Drownings, 152
Drug Intelligence Bureau, 201
Drugs
control of, 137
misuse of, 138
offences, 201
pharmaceutical benefits, 135
seizures, 201
Duties (tax), 416, 451-453
Duty solicitors, 185
DVD hire, 231
Dwellings, census
Census of Population and
Dwellings

E

E-commerce, 206-207
E-government strategy, 206
EAB (External Assessments Bureau), 74
Early Childhood Development (ECD), 164
Early childhood education
administration, 163-164
attendance, 170
curriculum, 169
enrolments, 179-180
full-time equivalent teaching staff, 178
funding, 166
institutions, numbers of, 179-180
licensing, 169
Māori language, 170
Pacific children, 164, 170-171
providers, 170-171
services, 169-171
Te Whāriki, 169
Earthquake Commission (EQC), 411
Earthquakes, 4-6
East Timor, deployments in, 67, 200
Economic Development, Ministry of, 370
Economic research, 271-272
Economy
business statistics, 323-324
International
exchange rates, 306
International
fiscal indicators, 307
International
fiscal policy, 307
International
GDP, 306
International
generally, 305
International
growth rate, 306
International
inflation rate, 306, 307
International
interest rates, 308, 441
International
international accounts
International
accounts
monetary policy, 307-308, 440-441
national accounts see National accounts net debt, 307
net worth, 307
Official Cash Rate, 306, 308, 440
operating balance, 307
public debt, 307, 455-457
recent developments, 306
Education
administration, 163-165
Early
Schools
Tertiary education
boards of trustees, 165
Early
Schools
Tertiary education
curriculum, 161-162
Early
Schools
Tertiary education
Early Childhood Development, 164
Early
Schools
Tertiary education
early childhood education
Early
Schools
Tertiary education
childhood education
Schools
Tertiary education
Education Review Office, 164
Schools
Tertiary education
funding, 165-168
Schools
Tertiary education
international development assistance, 58
Schools
Tertiary education
international students, 178
Schools
Tertiary education
Learning Media, 165
Schools
Tertiary education
Māori, 169
Schools
Tertiary education
Ministry of Education, 163
Schools
Tertiary education
National Qualifications Framework, 162-163
Schools
Tertiary education
NCEA, 162-163
Schools
Tertiary education
NZ Qualifications Authority, 164
Schools
Tertiary education
NZ Teachers' Council, 164
Schools
Tertiary education
Rural Education Activities Programme, 168
Schools
Tertiary education
school age population, 78, 163
Schools
Tertiary education
schools
Schools
Tertiary education
services, 169-177
Tertiary education
special education policy, 163
Tertiary education
teacher registration, 164
Tertiary education
tertiary councils, 165
Tertiary education
tertiary education
Tertiary education
Education and care centres, 171
Education, Ministry of, 163
Education Review Office (ERO), 164
EEO Trust, 115-116
Eggs, 337
Elderly people
Older people
Elections
local government, 46-47
Parliamentary elections
overseas missions to observe, 61
Parliamentary elections
parliamentary
Parliamentary elections
Electrical machinery exports, 422-423
Electricity, 355, 358-360
Electricity Commission, 359-360
Electricity, gas and water supply services, FTE
persons working in sector, 323
Electricity Reform Act 1998, 408
Electronic commerce, 206-207
Elizabeth II, Queen, 23
Email
Internet
Embassies, overseas, 53
Emblems, national, 47-48
Emergency and disaster relief
civil defence, 156-157
overseas, 58, 67
Employment
discrimination, 257
EEO Trust, 115-116
employers' advocacy, 257
equal employment opportunities, 257
health and safety, 157-159
holidays, 255-256
hours of work, 255
industry training, 265
Labour Day, 258
labour relations, 253-254, 257-258
legal framework, 253-256
manufacturing sector, 323, 372-373, 374
minimum entitlements, 255-256
minimum wage, 255
parental leave, 256
PAYE, 449
Quarterly Employment Survey, 323
sick and bereavement leave, 256
union membership, 257
work stoppages, 257-258
workers' advocacy, 257
Employment Court, 184
Employment Relations Act 2000, 253-256
Employment Relations Authority, 254
Employment Relations Service, 254
Energy
coal, 286, 289, 363-364, 367
consumer demand, 355
electricity, 355, 358-360
environment and, 285-286, 357-358
gas, 355, 361-363
geothermal, 358, 364
greenhouse gas emissions, 357-358
hydroelectricity, 358, 364
hydrogen, 365
intensity and efficiency, 356-357
landfill gas, 364
national strategy, 355-356
oil, 355, 360-361
primary supply, 358
renewables, 364-366
research and development, 358
solar, 366
sources, 185
superconductivity, 356
supply and demand balance, 357
usage by fuel, 185
wind energy, 365-366
Environment
air quality, 282-283
Resource management
biodiversity, 281-282, 292
Resource management
climate change, 7, 9, 283, 292, 293-294
Resource management
energy and, 285-286, 357-358
Resource management
esplanade reserves, 285
Resource management
generally, 281
Resource management
genetic modification, 325
Resource management
international initiatives, 287, 291-294
Resource management
Karori Wildlife Sanctuary, 289
Resource management
land use, 281, 287
Resource management
marine environment, 285, 389
Resource management
MFAT, role of, 287, 292
Resource management
minerals, 286
Resource management
ozone layer, 7, 283-284
Resource management
Parliamentary Commissioner for the environment, 43
Resource management
Queen's chain, 285
Resource management
resource management
Resource management
soil quality, 286
sustainable development, 286-287
tourism and, 252, 287
trade and, 293
water quality, 284
Environment and Conservation Organisations of NZ, 303
Environment Court, 184
Environmental research funding, 272
Environmental Risk Management Authority (ERMA), 293
Equal employment opportunities, 257
Equal Employment Opportunities Trust, 115-116
ERMA (Environmental Risk Management Authority), 293
ERO (Education Review Office), 164
Esplanade reserves, 285
ESR (Institute of Environmental Science and Research Ltd), 276
Ethnic Affairs, Office of, 115
Ethnic groups
age structure, 96
European ethnic group
Māori
Pacific peoples
Asian population, 78, 79, 113-115
European ethnic group
Māori
Pacific peoples
census question, 95, 104-105, 110, 113
European ethnic group
Māori
Pacific peoples
composition of population, generally, 78-79, 95-96
European ethnic group
Māori
Pacific peoples
convicted offenders, 191
European ethnic group
Māori
Pacific peoples
country of birth, 97
European ethnic group
Māori
Pacific peoples
European
European ethnic group
Māori
Pacific peoples
infant mortality rates, 147
Māori
Pacific peoples
life expectancy, 90
Māori
Pacific peoples
Māori
Māori
Pacific peoples
Pacific peoples
Pacific peoples
population projections, 79
race relations, 16
unemployment, 265
Europe, relationship with, 55-56
European ethnic group
convicted offenders, 191
early population, 15
projections, 79
total proportion of, 78
population
early population, 15
projections, 79
total proportion of, 78
unemployment, 265
European Union, 55, 431
Events, chronology of, c1300-2003, 16-22
Ex-nuptial birth rate, 88
Exchange rates, 306, 441-442
Excise duty, 451-452
Exclusive Economic Zone, 349
Executive Council, 32
Executive government, 32-33
Exercise, 237-243
Exotic diseases and pest management, 327
Exports and imports
balance of payments, 317-318
coal, 363, 367
dairy products, 334, 336, 418
forest products, 346-348, 347, 420
fruit, 339, 422
horticultural, 339
machinery, 422-423
major commodities, 417
meat and edible offal, 419
minerals, 367
nuts, 442
oil, 361
seafood, 352-353, 421
seeds, 339
sheepmeat, 331
vegetables, 339, 422
wool, 333-334
machinery, 424-425
major commodities, 424
mineral fuels, 425-426
oil, 361
timber, 347
vehicles, 425
exports
coal, 363, 367
dairy products, 334, 336, 418
forest products, 346-348, 347, 420
fruit, 339, 422
horticultural, 339
machinery, 422-423
major commodities, 417
meat and edible offal, 419
minerals, 367
nuts, 442
oil, 361
seafood, 352-353, 421
seeds, 339
sheepmeat, 331
vegetables, 339, 422
wool, 333-334
machinery, 424-425
major commodities, 424
mineral fuels, 425-426
oil, 361
timber, 347
vehicles, 425
imports
machinery, 424-425
major commodities, 424
mineral fuels, 425-426
oil, 361
timber, 347
vehicles, 425
merchandise trade statistics, 417
Pacific region, 52
values of goods and services, 315-316
External Assessments Bureau (EAB), 74
External migration, 91-92
External trade
Exports and imports
Extinct species, 11, 12

F

Fair Trading Act 1986, 404, 407
Families
definition of, 80
legislation, 117
population projections, 80
Family assistance, 121
Family benefit, 122
Family Courts, 184
Family day care, 171
Family group conferences, 126-127
Family Planning Association, NZ, 142
Family support, 121
Family/whānau agreements, 125-126
Farming
Agricultural sector
Feature films, 230
Federated Mountain Clubs, 303
Ferries, inter-island, 388
Fertility rate
generally, 86-89
Māori, 105
Fetal mortality rate, 147
Fiji, migration to NZ from, 113
Film and Literature Board of Review, 232
Film and video
censorship, 231-232
cinema admissions, 231
distribution and exhibition, 231
feature films, 230
Film Archive, 231
Film Commission, 229, 231
Oscars, 229
The Lord of the Rings Trilogy, 222, 229
video/DVD hire, 231
Film and Video Labelling Body, 231
Film Commission, NZ, 229, 231
Finance, public sector
Government finance
Financial Account
International accounts
Financial Action Task Force (FATF), 62
Financial institutions
Banking Ombudsman, 439
banking services, 439
FTE persons working in sector, 324
generally, 435
other deposit-taking institutions, 440
ownership of banks, 436
Fingerprints, 202
Fire protection and control
Fire Service, 156
Fire Service Commission, 156, 412
incidents attended by fire brigades, 156-157
state areas, 302
Fiscal indicators, 307
Fiscal policy, 306
Fish and Game Council, NZ, 303
Fisheries
FTE persons working in sector, 323
Defence Force assistance, 67
generally, 349-350
Pacific region, 52
quota management, 350
total allowable commercial catch, 351
commercial fishing, 350-352
customary fishing, 350
management
Defence Force assistance, 67
generally, 349-350
Pacific region, 52
quota management, 350
total allowable commercial catch, 351
commercial fishing, 350-352
customary fishing, 350
Māori
commercial fishing, 350-352
customary fishing, 350
resources, 349
seafood industry, 352-353, 421
sharks, 353
surveys, 351
Fishing, recreational, 242
Five Power Defence Arrangements, 65
Fixed capital formation, 314-315
Flags
first flag, 34, 48
national flag, 48
Floods, 9-10, 11
Fluoridation of water, 145
Fonterra, 335, 336
Food
exports and imports
Exports and imports
Food Standards Code, 54
inspection services, 326
safety and quality, 140-141, 326
Food and Agricultural Organisation (UN), 59, 327
Food Safety Authority, NZ, 326
Foot and mouth disease, 330
Footwear industry, 374
Foreign affairs
International relations
Foreign Affairs and Trade, Ministry of
Disarmament Division, 72
environment division, 287, 292
generally, 51
Foreign aid
International development assistance
Foreign currency credit rating, 455
Foreign exchange rates, 308, 441-442
Foreign investment, international accounts, 317-321
Forest and Bird Protection Society of NZ, Royal, 303
Forest Research, 274
Forests and forestry
conservation
forest funds, 302
forest parks, 301
forest products, 345-348, 420
FTE pèrsons working in sector, 323
generally, 343
ownership, 344-345
planting and production, 345
timber imports, 347
timber production, 348-349
types, 12, 343-344
wood supply, 344
Forum Fisheries Agency (FFA), 52
Foundation for Research, Science and Technology, 272
FPP system of electoral representation, 28
FRANZ arrangement, 52
Franz Josef Glacier, 3
Fringe benefit tax (FBT), 451
Fruit
exports, 339, 422
plantings, 340-341
Fuel excise duty, 452
Fuels
Energy; Minerals

G

Gallantry awards, 38
Galleries, art, 223
Gambling Commission, 246
Gambling, problem, 246
Gaming, 243, 244-246
Gaming duty, 452-453
Gas, 355, 361-363
GATT (General Agreement on Tariffs and Trade), 55, 60, 325, 327
GCSB (Government Communications Security Bureau), 73
GDP (Gross Domestic Product), 306, 308, 309, 311-313
General Agreement on Tariffs and Trade (GATT), 55
General elections
Parliamentary elections
Genetic modification, 325
Geographic Board, NZ, 296
Geography
climate, 7-11
extremes, 1
geology and soils, 3-7
physical features, 1-3
Geological and Nuclear Sciences Ltd, Institute of, 275
Geothermal energy, 358, 364
Gift duty, 452
Glaciers, 2, 3
Global Environmental Facility, 293
Global warming, 7, 9, 283, 292, 293-294
GNI (Gross National Income), 308
Goat farming, 329
God Defend NZ: Aotearoa, 49
Gold, 286, 366
Gold rush, 14
Goods and services, exports and imports
Exports and imports
Goods and services tax (GST), 451
Government
constitution
Constitution
State Sector
Parliament
State sector
departments, generally
State Sector
Parliament
State sector
e-government strategy, 206
Parliament
State sector
executive government, 32-33
Parliament
State sector
finance see Government finance FTE persons working in sector, 324
Parliament
State sector
local government see Local government national emblems and anthems, 47-49
Parliament
State sector
parliament
Parliament
State sector
State sector
State sector
Government bonds, 441
Government Communications Security Bureau (GCSB), 73
Government finance
accounting practice, 446
Budget, 444-446
chief executives, duties and responsibilities, 443-444
external reporting, 446-447
generally, 443
government expenses, 445
public debt, 307, 455-457
revenue and expenses as proportion of GDP, 446
statement of cash flows, 448-449
statement of financial performance, 447
statement of financial position, 448
tax revenue, 454-455
Governor-general
Dame Silvia Cartwright, 24
former representatives, 24-25
powers of, 24, 32
Grain crops, 339-340
Grapes, 341
Greece, 124
Greenhouse gas emissions, 283, 284, 286, 293-294, 357-358
Greenshell mussels, 421
Greenstone, 286, 367
Gross Domestic Product (GDP), 306, 308, 309, 311-313
Gross fixed capital formation, 314-315
Gross National Income (GNI), 308
Growth and Innovation Advisory Board (MoRST), 269
Guardian visas, 102
Guardianship Act 1968, 117
Guernsey and Jersey, 124

H

Hazardous substances, 289
He Korowai Oranga, 144
Health
accidents
Accidents
Deaths
Health services
Public health
death, causes of
Deaths
Health services
Public health
health services
Health services
Public health
NZ Health Strategy, 130
Public health
occupational safety and health, 157-159
Public health
problem gambling, 246
Public health
public health
Public health
Health and Disability Commissioner, 143
Health Information Privacy Code 1994, 42
Health Information Service, NZ, 149
Health, Ministry of, 129-130
Health Research Council, 132, 273
Health services
advisory committees, 131
Public health
benefits and subsidies, 135-136
Public health
Blood Service, 132
Public health
district health boards, 130-131
Public health
expenditure, 132
Public health
FTE persons working in sector, 324
Public health
health professionals, regulation of, 132-135
Public health
health research, 132, 273
Public health
hospital services, 135, 145-146
Public health
Ministry of Health, 129-130
Public health
organisation of, 129-135
Public health
public health
Public health
Residual Health Management Unit, 131
Health Sponsorship Council, 136
Health Workforce Advisory Committee, 131
HealthPAC, 136
Herald of Arms, NZ, 41
Heritage
Arts, culture and heritage
Heritage areas, world, 299-300
High Court, 182-183
High temperature superconductivity, 356
Highways, state, 396, 397
Historic Places Trust, NZ, 223, 303
Historic reserves, 301
History
20th century, 15-16
Chinese immigrants, 14
chronology of events, 16-22
European settlement, 14-15
Māori settlement, 13
oral history, 225
politics, 15, 16
social welfare, 15
Hocken Library, 226
Holidays, employee entitlements, 255-256
Home-based early childhood care, 171
Home-based schooling, 173
Home detention, 195-196
Home nursing and home help, 136
Home ownership
Housing
Honey bees, 338-339
Honours system
generally, 41
Order of NZ, holders of, 23
Horticulture, 339-341
HortResearch Ltd, 274
Hospital services, 135, 145-146
Hospitality industry, FTE persons working in sector, 323
Hotels
accommodation use, 251
FTE persons working in sector, 323
House of Representatives
Parliament
Household Labour Force Survey, 259, 262
Households
borrowing, 381
Census of Population and Dwellings
census
Census of Population and Dwellings
consumption expenditure, 314
definition of, 80
income, 267
population projections, 80
Housing
assistance, 381-382
Building and construction
construction
Building and construction
generally, 377
house price index, 377
house sales, 377
Housing NZ Corporation, 378-380
loans and mortgages, 380-381
Ministry of Housing, 380
property prices, 377
Human rights
UN reporting requirements, 59
unlawful discrimination, 42-43, 115, 257
Human Rights Commission, 43, 115
Human Rights Review Tribunal, 43, 185
Humanitarian assistance, 56
Hunting and shooting, 242
Hydroelectricity, 358, 364
Hydrogen, as energy source, 365
Hydrographic survey, 69
Hydrography, national, 295

I

ILO (International Labour Organisation), 59, 60, 254
Immigration
citizenship
approvals by nationality, 100
grant of, 99
domestic violence policy, 104
family sponsored stream, 101
international/humanitarian stream, 103-104
overseas-born population, 97
Pacific peoples, generally, 111-113
partnership policy, 101
policy, 101
population change due to, 91
refugees, 103-104
removal and deportation, 104
Samoan quota, 104
skilled/business stream, 101
sources of migration, 102
temporary entry, 102-103
Immunisation, 140, 145
Imports
Exports and imports; Overseas trade
Imprisonment
Prisons
Income
annual, 266
Taxation
gross income and tax paid, 267
Taxation
household, 267
Taxation
personal income, 266
Taxation
by region, 266
Taxation
salary and wage rates, 267
Taxation
tax
Taxation
weekly earnings, 266
Income support, 120-123
Independence Day, proposal for, 34
Independence, Declaration of, 23, 34
Independent schools, 166, 172
Independent youth benefit, 120, 121
Industrial designs, registration of, 278
Industrial Research Ltd, 275
Industry
accidents, 158
Manufacturing sector
manufacturing sector
Manufacturing sector
research associations, 277
training, 265
Infant mortality
Deaths
Inflation rate, 306, 307
Information and communication technologies (ICT), 205-207
Infrastructure Auckland, 46
Injury prevention, 153-154
Injury statistics
collection of, 149
Inland Revenue Department
child support payments, collection of, 117, 123
Taxation
taxation, generally
Taxation
Inmates of prisons, 198-200
Insolvency, 410
Inspector-General of Intelligence and Security, 73
Institute of Environmental Science and Research Ltd (ESR), 276
Institute of Geological and Nuclear Sciences, 275
Insurance Council of NZ, 412
Insurance industry
FTE persons working in sector, 324
generally, 411-412
Integrated schools, 166-167, 172
Intellectual Property Office of NZ (IPONZ), 277
Intellectual property rights, 232-233, 277-278
Intelligence and security agencies, 73-74
Inter-island ferries, 388
Interest rates
key market rates, 441
monetary policy and, 308, 440
mortgages, 381
International accounts
balance of payments, 317-319
deficits and surpluses, 320-321
generally, 318
capital account, 319
deficits and surpluses, 320-321
generally, 318
current account
deficits and surpluses, 320-321
generally, 318
financial account, 319
generally, 317
international assets and liabilities, 322
international investment position, 319-320
international investment, sources of, 321
services, trade in, 318
International Accreditation NZ (IANZ), 279
International Atomic Energy Agency, 60
International Civil Aviation Organisation (ICAO), 390, 391
International Development Agency, 61
International development assistance
Africa, 57
Latin America and Caribbean, 55
Pacific region, 52
spending, 57-59, 61
International Energy Agency (IEA), 62
International Epizootics Organisation, 327
International investment, international accounts, 317-321
International Labour Organisation (ILO), 59, 60, 254
International Plant Protection Convention, 327
International relations
Africa, 56-57
Asia, 54, 55
Australia, 53-54
Canada, 55
Caribbean, 55
development assistance, 57-59
diplomatic and consular representation, 53
Europe, 55-56
generally, 51
international organisations, 59-62
Latin America, 55
Middle East, 56
NZ territories, 62-63
Pacific region, 51-52
United States, 54-55
International students
tertiary education, 178
visas, 102
International tourism, 249-251
International Whaling Commission, 293
Internet
access and use, 205-207
broadband services, 205, 210
Intervention Service, 194
Invalid's benefit, 120, 121, 122
Investment, international, 317-321
IPONZ (Intellectual Property Office of NZ), 277
Iraq, 56, 67
Ireland, 124
Iron, 367
Islands, outlying, 1
ISO certification service, 279
Iwi
Māori

J

Japan, trade with, 429-430
Joint Geospatial Support Facility, 69
Judges, 181, 182-184
Judicial Committee of the Privy Council, 182
Judicial salaries, 183
Jury service, 186
Justice, Ministry of, 181-182
Justice system
convictions, 187-191
community-based sentences, 194-195
contracted facilities and services, 193-194
crime reduction, 194
home detention, 195-196
parole, 195, 197-198
prison inmates, 198-200
Probation and Offender Services, 194-196
proceeds of crime, 196
Public Prisons Service, 196
sentence of imprisonment, 197
victims' rights, 197
corrections system
community-based sentences, 194-195
contracted facilities and services, 193-194
crime reduction, 194
home detention, 195-196
parole, 195, 197-198
prison inmates, 198-200
Probation and Offender Services, 194-196
proceeds of crime, 196
Public Prisons Service, 196
sentence of imprisonment, 197
victims' rights, 197
courts system, 182-185
criminal justice, 187-193
police, 200-203
Rape Crisis, 193
restorative justice, 191
sentences and sentencing, 191-192, 194-196, 197
Victim Support, 192-193
Justices of the Peace, 183

K

Kākāpo, 282
Karori Wildlife Sanctuary, 289
Kindergartens, 170
Kiwi Bonds, 441
Kiwifruit, 341
Knowledge creation funding, 271
Kōhanga reo, 110, 170
Kosovo, deployment in, 66
Kura kaupapa Māori, 172
Kyoto Protocol, 283, 292, 293-294

L

Laboratory technologists, 135
Labour Day, 258
Labour force 2000-2003, 259
definition of, 259
employment status, 260-261
full and part-time employment, 260
industry structure, 261
occupational structure, 262
participation rates by sex and age, 260
unemployment, 262-265
Labour market
discrimination, 257
Labour force
employers' advocacy, 257
Labour force
employment assistance, 265-266
Labour force
equal employment opportunities, 257
Labour force
income, 266-267
Labour force
industry training, 265
Labour force
international organisations, 254
Labour force
labour costs, 268
Labour force
Labour Day, 258
Labour force
labour force
Labour force
labour relations, 253-254, 257-258
minimum entitlements, 255-256
unemployment, 262-265
union membership, 257
work stoppages, 257-258
workers' advocacy, 257
Labour relations, 253-254, 257-258
Lakes, 3
Lamb
Sheep
Land
Crown-owned, 297-298
Geographic Board, 296
Māori land, 296-297
overseas parties, acquisition by, 296
registration of ownership, 295-296
rural sales, 295
survey system, 294-295
use, 281, 287
valuation, 298
Land Information NZ (LINZ), 294, 297
Land Transport Safety Authority (LTSA), 150, 400
Land wars, 14
Landcare Research NZ Limited, 275
Landcorp Farming Ltd, 298
Landfills, 291
Landscape, 3
Languages, official, 110
Latin America, relationship with, 55
Law centres, 186
Law Commission, 185
Layout designs, 278
Leap seconds, 12
Learning Media, 165
Legal aid, 185-186
Legal deposit system, 225
Legal Services Agency, 185
Legal system
community law centres, 186
courts system, 182-185
Crown Law Office, 186
jury service, 186
Law Commission, 185
legal aid, 185-186
Legal Services Agency, 185
Ministry of Justice, 181-182
specialist tribunals, 185
Leisure
lotteries and gaming, 243, 244-246
outdoor activities, 242-243
racing, 243, 244
sport, 237-243
Liabilities, international, 322
Library services
Hocken Library, 226
legal deposit system, 225
National Bibliography, 225
National Library, 224-225
Parliamentary Library, 225
public libraries, 226
specialist library and information centres, 226
universities, 226
Life expectancy
early Māori, 13
generally, 90
Life insurance, 412
Limestone, 367
Limited Service Volunteer Scheme, 67
Liquidation, 410
Liquor, sale of, 405-406
Literature, 226-227
Livestock, 327-329
Loans, housing, 380-381
Local government
community boards, 46
composition of, 45-46
elections, 46-47
finance, 457-458
Infrastructure Auckland, 46
Māori wards, option for, 46
official information and meetings, 44, 45
population estimates, 84-85
regional councils, 44
sources of power, 44-45
special purpose local authorities, 46
territorial authorities, 45, 46
unitary authorities, 46
Local Government Commission, 47
Local Government Official Information and Meetings Act 1987, 40, 41, 44, 45
Local television services, 211-212
Lockouts, 257-258
Lotteries, 243, 244-245
Lottery Grants Board, NZ, 245
LTSA (Land Transport Safety Authority), 400

M

Machinery
exports, 422-423
imports, 424-425
MAF (Ministry of Agriculture and Forestry), 326-327
Magazines, 215
Mail services, 217-220
Malaghan Institute of Medical Research, 132
Mana Kai Rangahau, 275
Mana Tohu Mātauranga o Aotearoa, 164
Manaaki Whenua, 275
Manatū Kaihokohoko, 405
Manufacturing sector
business development, 370
carpet, 373
economic activity survey, 374-375
employment, 323, 372-373, 374
footwear, 374
general environment, 369-370
major industries, 372-374
motor vehicles, 374
tariffs, 370
textiles and apparel, 373-374
wine industry, 341, 372-373
Māori
broadcasting, 38, 209, 211
generally, 169
kōhanga reo, 170
kura kaupapa Māori, 172
whare wānanga, 165, 175, 277
wharekura, 110
fisheries assets, 352
traditional locations, 107
convicted offenders, 191
generally, 169
kōhanga reo, 170
kura kaupapa Māori, 172
whare wānanga, 165, 175, 277
wharekura, 110
fisheries assets, 352
traditional locations, 107
cultural heritage, 221-222
generally, 169
kōhanga reo, 170
kura kaupapa Māori, 172
whare wānanga, 165, 175, 277
wharekura, 110
fisheries assets, 352
traditional locations, 107
early society, 13-14
generally, 169
kōhanga reo, 170
kura kaupapa Māori, 172
whare wānanga, 165, 175, 277
wharekura, 110
fisheries assets, 352
traditional locations, 107
education
generally, 169
kōhanga reo, 170
kura kaupapa Māori, 172
whare wānanga, 165, 175, 277
wharekura, 110
fisheries assets, 352
traditional locations, 107
fishing and fisheries, 350-352
fisheries assets, 352
traditional locations, 107
forestry claims, 345
fisheries assets, 352
traditional locations, 107
health services, 144
fisheries assets, 352
traditional locations, 107
history and society, 13-15
fisheries assets, 352
traditional locations, 107
iwi
fisheries assets, 352
traditional locations, 107
land wars, 14
population see Māori population rights, 16
taonga tuku iho, 221-222
te reo Māori, 110, 222
unemployment, 265
war effort, 15
writers' competition, 226
Māori Appellate Court, 184
Māori Battalion, 15
Māori Congress, 110
Māori Council, NZ, 109
Māori Education Trust, 169
Māori electoral districts, 35
Māori electoral roll, 25, 33, 108
Māori Health Strategy, 144
Māori Heritage Council, 221
Māori land, 296-297
Māori Land Court, 184, 297
Māori Language Commission, 110, 222
Māori population
age distribution, 105
early, 13, 15
census ethnicity question, 104-105
early, 13, 15
fertility rate, 105
geographical distribution, 106-107
infant mortality rates, 147
life expectancy, 90
early, 13
male to female ratio, 105
median age of childbearing, 106
projections, 79
proportion of total population, 78, 106
Māori Television Service, 38, 209, 211, 222
Māori Trustee, 109
Māori wards, option for, 46
Māori Women's Welfare League, 110
Mapping services, 294-295
Marginal strips, 285
Marine environment, 285, 389
Marine reserves and parks, 302
Maritime Safety Authority, 389
Marriages
celebrants, 89
marriage rate and median age, 87
registration of, 89
Masters of the High Court, 183
Maternity services, 136
Measurement Standards Laboratory, 272
Meat
exports, 331-332, 419
products, 329-332, 419
Meat & Wool NZ, 330-331
Mechanical machinery exports, 422-423
Mediation Service, 254
Medical Council of NZ, 132
Medical professionals and technologists, 132-135
Medicines
control of, 137
misuse of, 138
pharmaceutical benefits, 135
Members of Parliament, 29-31
Men
convicted offenders, 191
life expectancy, 90
sports participation rates, 242
Meningococcal disease, immunisation against, 140, 145
Mental health services, 142, 146
Merchandise trade, 417, 432-433
Metals, 366-367
MFAT
Ministry of Foreign Affairs and Trade
Middle East, relationship with, 56
Midwives, 133, 136
Migration, internal, 83
Migration to NZ
Asian peoples, 113
external migration, generally, 91-92
Pacific peoples, 112
Military Police Company, 70
Milk production and processing, 325, 334-336
Minerals
Crown-owned minerals, 289
environment and, 286
fuel imports, 425-426
generally, 286
metals, 366-367
non-metallic minerals, 367-368
Miner's benefit, 122
Minimum wage, 255
Mining, FTE persons working in sector, 323
Ministerial Advisory Committee on Complementary and Alternative Health, 131
Ministries, generally
State Sector
Ministry for Culture and Heritage, 233-234
Ministry of Agriculture and Forestry (MAF), 326-327
Ministry of Civil Defence and Emergency Management, 156
Ministry of Consumer Affairs, 405
Ministry of Defence, 64
Ministry of Economic Development, 370
Ministry of Education, 163
Ministry of Foreign Affairs and Trade
disarmament division, 72
environment division, 287, 292
generally, 51
Ministry of Health, 129-130
Ministry of Housing, 380
Ministry of Justice, 181-182
Ministry of Research, Science and Technology (MoRST), 269
Ministry of Social Development, 119-124
Ministry of Tourism, 248
Ministry of Women's Affairs, 116
Ministry of Youth Development, 116-117, 125
MMP system of electoral representation, 28, 35
Modern Apprenticeships, 265
Money
currency, 440
foreign currency credit rating, 455
interest rates, 440, 441
monetary policy, 307-308, 440-441
Official Cash Rate, 306, 308, 440
trade-weighted index, 308, 442
MoRST (Ministry of Research, Science and Technology), 269
Mortality rates
Deaths
Mortgages and interest rates, 380-381
Motor vehicle industry, 374
Motor Vehicle Traders Register, 399, 400
Motor vehicles
accidents, 148-151
imports, 425
inspection, 400
registers, 399-400
registration and licensing, 398-399
running costs, 400
safety belts, 401
Motu Ihupuku, 1, 182
Mountaineering, 243, 303
Mountains, 2
Movies
Film and video
Mozambique Accelerated Demining Programme (MADP), 66
MPs, 29-31
Multilateral schedule, 59
Multinational Force and Observers (Sinai), 66
Murder, 197
Museum of NZ Te Papa Tongarewa, 222-223
Museums, 223
Music
CDs, spending on, 228
Chamber Music NZ, 228
Choral Federation, 228
Music Industry Commission, 227
NBR NZ Opera Company, 229
Symphony Orchestra, 227-228
Music Industry Commission, NZ, 227
Mussel industry, 421
Mutual Assistance Programme, 65

N

National accounts
capital stock, 315
external account, 310-311
GDP and expenditure account, 309
national capital account, 310
national income and outlay account, 309
and expenditure account, 309
by industry, 311-312
measurement of, 308
consolidated accounts
external account, 310-311
GDP and expenditure account, 309
national capital account, 310
national income and outlay account, 309
and expenditure account, 309
by industry, 311-312
measurement of, 308
expenditure on GDP, 313
and expenditure account, 309
by industry, 311-312
measurement of, 308
external trade, 315-316
and expenditure account, 309
by industry, 311-312
measurement of, 308
GDP
and expenditure account, 309
by industry, 311-312
measurement of, 308
generally, 308
GNI, measurement of, 308
gross fixed capital formation, 314-315
household sector, 314
national disposable income, 308
national saving and net overseas borrowing, 310
principle aggregates, 308
National Advisory Committee on Health and Disability (National Health Committee), 131
National Advisory Committee on Health and Disability Support Services Ethics, 131
National anthems, 49
National assets, privatisation of, 16
National Certificate of Educational Achievement (NCEA), 162-163
National Certificates, 177
National Cervical Screening Programme, 144
National Diplomas, 177
National disposable income (NDI), 308
National Drug Intelligence Bureau, 201
National Drug Policy, 138
National Ethics Committee on Assisted Human Reproduction, 131
National Fingerprint Office, 202
National flag, 48
National Health Committee, 131
National Health Epidemiology and Quality Assurance Committee, 131
National Immunisation Register, 140, 145
National Institute of Water and Atmospheric Research Limited (NIWA), 275-276
National Library of NZ, 224-225
National parks, 298-299, 300
National Qualifications Framework, 162-163, 174
National Radiation Laboratory, 137
National Radio, 213
National residences, admissions to, 127
National Topographic/Hydrographic Authority (LINZ), 295
National Youth Orchestra, 228
National Youth Orchestra, NZSO, 228
Natural gas, 355, 361-362
Nature Heritage Fund, 302
Nature reserves, 300
Navigation safety, 69
Navy, Royal NZ, 69-70
NBR NZ Opera Company, 229
NCEA (National Certificate of Educational Achievement), 162-163
Netherlands, The, 124
New organisms, 289
Newspapers, 214-215
Ngā Kaitaunaki Kōhungahunga, 164
Ngā Kaitiaki O Ngā Taonga Whitiāhua, 231
Ngā Taonga Kōrero, 213
Ngā Whenua Rahui, 282, 302
Niue
migration to NZ from, 111
special relationship with, 51
NIWA (National Institute of Water and Atmospheric Research Limited), 275-276
Non-resident withholding tax (RWT), 451, 453
North Island
land area, 1
manufacturing, employment in, 372-373
population distribution, 82
Notifiable diseases, 139
Nuclear disarmament, 72
Numbers, rounding of, 94
Nurses and nursing services, 133, 136
Nuts, 442
NZ Academy of Sport, 239-240
NZ Agency for International Development (NZAID), 52, 57-59
NZ AIDS Foundation, 142
NZ Army, 70-71
NZ Authors' Fund, 227
NZ Automobile Association, 150, 412
NZ Bankers' Association, 439
NZ Bill of Rights Act 1990, 43
NZ Blood Service, 132
NZ Cadet Corps, 67
NZ Cancer Control Trust, 141
NZ Cartoon Archive, 224
NZ Certificates, 177
NZ Certificates in Engineering (NZCE), 177
NZ Choral Federation, 228
NZ coat of arms, 47
NZ Conservation Authority, 302
NZ Conservation Corps, 116
NZ Council of Trade Unions (NZCTU), 257
NZ Customs Service, 390, 416-417, 451-452
NZ Daylight Time (NZDT), 12
NZ Defence Force
Defence Force
NZ Diploma in Business (NZDipBus), 177
NZ Disability Strategy, 163
NZ Drama School, 229
NZ Exclusive Economic Zone, 349
NZ Family Planning Association, 142
NZ Film Archive, 231
NZ Film Commission, 229, 231
NZ Fire Service, 156
NZ Fire Service Commission, 156
NZ Fish and Game Council, 303
NZ flag
first flag, 34, 48
national flag, 48
NZ Food Safety Authority, 326
NZ Geographic Board, 296
NZ Health Information Service, 149
NZ Health Strategy, 130
NZ Herald of Arms, 41
NZ Historic Places Trust, 223, 303
NZ Immigration Service, 101-104
NZ Institute for Crop and Food Research Ltd, 275
NZ Lottery Grants Board, 245
NZ Māori Council, 109
NZ Music Industry Commission, 227
NZ National Bibliography, 225
NZ On Air, 208
NZ Opera Company, 229
NZ Order of Merit, 41
NZ Parole Board, 198
NZ Police
Police
NZ Pork Industry Board, 336-337
NZ Positive Ageing Strategy, 124
NZ Post Ltd, 217-220
NZ Press Council, 214-216
NZ Public Service, 36-37
NZ Qualifications Authority (NZQA), 164
NZ Scholarship, 163
NZ School of Dance, 229
NZ Society of Authors, 226-227
NZ Standard Time (NZST), 12
NZ Stock Exchange, 409-410
NZ String Quartet, 228
NZ Superannuation, 120, 122, 123, 124
NZ Symphony Orchestra, 227-228
NZ Teachers' Council, 164
NZ Trade and Enterprise, 369, 371, 415-416
NZ Trade Development Board, 51
NZ Venture Investment Fund, 273
NZ Wool Board, disestablishment of, 333
NZAID
NZ Agency for International Development (NZAID)
NZCE (NZ Certificates in Engineering), 177
NZCTU (NZ Council of Trade Unions), 257
NZDipBus (NZ Diploma in Business), 177
NZQA (NZ Qualifications Authority), 164
NZSIS (Security Intelligence Service), 73

O

Occupational Safety and Health Service (OSH), 157-159
Occupational therapists, 134
Ocean management, 293, 349
Fisheries
OECD
Organisation for Economic Cooperation and Development (OECD)
Offences
children and young people, 203
convictions for, 187-191
drug offences, 201
sentenced inmates, 198-199
traffic offences, 190, 402
Office for Disability Issues, 119
Office for Human Rights Proceedings, 115
Office for Senior Citizens, 119, 124
Office for the Community and Voluntary Sector, 119
Office of Ethnic Affairs, 115
Office of Film and Literature Classification, 231, 232
Office of the Insurance and Savings Ombudsman, 412
Office of Treaty Settlements, 109
Offices of Parliament, 38
Official Assignee, duties in relation to, 196
Official Cash Rate, 306, 308, 440
Official Information Act 1982, 40, 41
Official languages, 110
Oil, 355, 360-361
Older people
Office for Senior Citizens, 119, 124
population projections, 77-78
Positive Ageing Strategy, 124
public health services, 141
Olympic Games, 237, 238
Ombudsmen, 40-41
Open Polytechnic of NZ, The, 175-176
Opera Company, NBR NZ, 229
Operation Antarctica, 67-68
Operation Enduring Freedom, 67
Optometrists and dispensing opticians, 134
Oral History Centre, 225
Order of NZ, 23, 41
Organisation for Economic Co-operation and Development (OECD)
employment statistics, 263
environment Policy Committee, 293
involvement in, 62, 254
Organisation for the Prohibition of Chemical
Weapons, 60
Orphan's benefit, 120, 121, 122
Out of School Care and Recreation (OSCAR) subsidy, 121
Outdoor leisure activities, 242-243
Overseas-born New Zealanders, 97
Overseas investment in NZ land, 296
Overseas relations
International relations
Overseas trade
Asia, 54, 55, 432
Australia, 54, 427-428
Canada, 55
cargo, 433-434
China, 430-431
Customs Service, 416-417
development and administration, 415-417
Europe, 55-56
exports and imports see Exports and imports Japan, 429-430
Latin America and Caribbean, 55
major trading partners, 426-427
merchandise trade, 417, 432-433
Middle East, 56
Pacific region, 52
United States, 54-55, 428-429
World Customs Organisation, 416
WTO, 60-61
Ozone layer, 7, 283-284

P

Pacific Agreement on Closer Economic Relations (PACER), 52
Pacific Early Childhood Education Services, 170
Pacific Forum Line (PFL), 52
Pacific Island Countries Trade Agreement (PICTA), 52
Pacific Islands Forum, 52
Pacific peoples
convicted offenders, 191
Early childhood education, 164, 170-171
infant mortality rates, 147
age distribution, 111
census ethnicity question, 110
geographical distribution, 111, 112
projections, 79
proportion of total population, 78
migrant quota, 104
age distribution, 111
census ethnicity question, 110
geographical distribution, 111, 112
projections, 79
proportion of total population, 78
migration to NZ, 111-113
age distribution, 111
census ethnicity question, 110
geographical distribution, 111, 112
projections, 79
proportion of total population, 78
population
age distribution, 111
census ethnicity question, 110
geographical distribution, 111, 112
projections, 79
proportion of total population, 78
unemployment, 265
Pacific region
air traffic control, 392
environmental issues, 293
radio broadcasting, 212
relationship with, 51-52
social security agreements, 124
Pākehā
European ethnic group
Parental leave, 256
Parents as First Teachers (PAFT), 170
Parks
forest parks, 300
marine parks, 302
national, 298-299, 300
Parliament
150th anniversary celebrations, 27
representation, 29
role of, 28
seats held by, 27
bills, passage of, 28-29
representation, 29
role of, 28
seats held by, 27
broadcasting, 33
representation, 29
role of, 28
seats held by, 27
Budget, 444-446
representation, 29
role of, 28
seats held by, 27
Cabinet, membership of, 32-33
representation, 29
role of, 28
seats held by, 27
Clerk of the House, 30
representation, 29
role of, 28
seats held by, 27
debates, 29
representation, 29
role of, 28
seats held by, 27
elections
representation, 29
role of, 28
seats held by, 27
executive government, 32-33
representation, 29
role of, 28
seats held by, 27
House of Representatives, 27-31
representation, 29
role of, 28
seats held by, 27
Leader of the Opposition, 30
representation, 29
role of, 28
seats held by, 27
legislative procedure, 28-29
representation, 29
role of, 28
seats held by, 27
members of the 47th parliament, 30-31
representation, 29
role of, 28
seats held by, 27
Offices of Parliament, 38
representation, 29
role of, 28
seats held by, 27
political parties
representation, 29
role of, 28
seats held by, 27
Royal Assent, 29
salaries and allowances, 29
select committees, 29
sessions, 29
Sovereign and, 27
Speakers, 29, 30
Youth Parliament and, 27, 117
Parliamentary Commissioner for the Environment, 43
Parliamentary elections
broadcasting, 209
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
electoral boundaries, 35-36
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
electoral districts (map), 35
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
electoral rolls, 33
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
enrolment, 33
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
Māori electoral districts, 35
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
Māori electoral roll, 23, 33, 108
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
MMP system, 28, 35
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
voter turnout, 36
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
voting
2002 election, 36
electronic voting, 25
patterns, 34
process, 34
Parliamentary Library, 225
Parole, 195, 197-198
Parole Board, NZ, 198
Partnerships, 406
Passport Office, 101
Pastoral agriculture, 327-328
Patents, 277
Peace-keeping missions, 59, 65
PEN NZ Inc, 226-227
Penal institutions
Prisons
Pensions
expenditure, 122
numbers in force, 123
NZ superannuation, 120, 122, 123, 124
overseas pensions, taxation of, 453
Performing arts, 227-229
Personal Property Securities Register, 399
Personal services, FTE persons working in sector, 324
Pest management services, 327
Petrochemicals, 363
Petroleum, 289, 425-426
PHARMAC, 136
Pharmaceutical benefits, 135, 136
Pharmacists, 134-135
Physical activity, 237-243
Physiotherapists, 134
PICTA (Pacific Island Countries Trade Agreement), 52
Pigs, 336-337
Pipfruit, 340, 341
Pitcairn Islanders, migrant quota, 104
Plant species, 12
Plant variety rights, 278
Platinum group metals, 367
Playcentres, 170
Playgroups, 171
Plunket Society, 142
Podiatrists, 134
Police
assaults on, 201
communities and, 202, 203
dogs, 202
fingerprints, 202
generally, 200
operations, 200-203
overseas duty, 200
population per sworn officer, 200
prosecutors, 200
speed cameras, 201, 402
Police Commissioner, 200
Police Complaints Authority, 201
Police Detention Legal Assistance, 185
Police Infringement Bureau, 201
Politics
history, 15, 16
election broadcasting, 209
representation, 28
role of, 28
seats held by, 27
political parties
election broadcasting, 209
representation, 28
role of, 28
seats held by, 27
Pollution
air, 282-283
marine environment, 285, 389
water, 290
water quality, 284
Polytechnics
list of, 175
Open Polytechnic of NZ, 175-176
research, science and technology, 277
tertiary councils, 165
vocational qualifications, 177
Population
age-sex profile, 93
composition of population, 79
Population growth
Māori population
early population, 15
Population growth
Māori population
population projections, 78
Population growth
Māori population
Asian population, 78, 79, 113-115
composition of population, 79
Population growth
Māori population
early population, 15
Population growth
Māori population
population projections, 78
Population growth
Māori population
change, 86-92
composition of population, 79
Population growth
Māori population
early population, 15
Population growth
Māori population
population projections, 78
Population growth
Māori population
country of birth, 97
composition of population, 79
Population growth
Māori population
early population, 15
Population growth
Māori population
population projections, 78
Population growth
Māori population
distribution, 82-85
composition of population, 79
Population growth
Māori population
early population, 15
Population growth
Māori population
population projections, 78
Population growth
Māori population
ethnic composition, 78-79, 95-96
composition of population, 79
Population growth
Māori population
early population, 15
Population growth
Māori population
population projections, 78
Population growth
Māori population
European
composition of population, 79
Population growth
Māori population
early population, 15
Population growth
Māori population
population projections, 78
Population growth
Māori population
ex-nuptial birth rate, 88
Population growth
Māori population
external migration, 91-92
Population growth
Māori population
fertility rate, 86-89
Population growth
Māori population
growth
Population growth
Māori population
life expectancy, 90
Māori population
Māori
Māori population
mortality, 90-91
North and South Islands, 82
overseas-born, 97
school age, 163
Tokelau, 62
urban and rural, 83-85
vital statistics, 89
Population growth
counting method
census, 1858-2001, 76
estimated resident population, 1885-2003, 81
age groups, 77-78, 79
educational age groups, 78, 163
ethnic population, 78-79
families and households, 80
generally, 76-77
territorial authorities, 80
ethnic groups, 78-79, 95-96
age groups, 77-78, 79
educational age groups, 78, 163
ethnic population, 78-79
families and households, 80
generally, 76-77
territorial authorities, 80
future demographic trends, 76
age groups, 77-78, 79
educational age groups, 78, 163
ethnic population, 78-79
families and households, 80
generally, 76-77
territorial authorities, 80
historical and projected, 75
age groups, 77-78, 79
educational age groups, 78, 163
ethnic population, 78-79
families and households, 80
generally, 76-77
territorial authorities, 80
projections
age groups, 77-78, 79
educational age groups, 78, 163
ethnic population, 78-79
families and households, 80
generally, 76-77
territorial authorities, 80
Pork, 336-337
Pork Industry Board, NZ, 336-337
Port companies
generally, 388
overseas cargo loaded and unloaded, 433-434
Positive Ageing Strategy, 124
Postal services, 217-220
Pouhere Taonga, 223, 303
Poultry industry, 337
Poultry Industry Association of NZ (PIANZ), 337
Pounamu, 286, 367
Premiers, former, 26
Press Council, NZ, 214-216
Preventive detention, 197
Prevlaka, deployment in, 66
Price indexes
building and construction, 385
CPI and inflation target, 307
house price, 377
share price, 409
Primary production
Agricultural sector
Primary schools
Schools
Prime Ministers
former, 26
Rt Hon Helen Clark, 32, 62, 67
Prime Television, 211
Priority Occupations List, 102
Prisons
contracted facilities, 193
facilities planned, 193
inmates, 198-200
parole eligibility and final release, 197-198
prisoner escort services, 191
Public Prisons Service, 196
sentence of imprisonment, 197
Privacy Act 1993, 42
Privacy Commissioner, 42
Private schools, 166, 172
Private training establishments (PTEs), 167, 176
Privatisation of assets, 16
Privy Council, 182
Probation and Offender Services, 194-196
Project PROBE, 205, 210
Property (Relationships) Act 1976, 117
Property and business services, FTE persons working in sector, 324
Protected Disclosures Act 2000, 41
Psychological Service, 194, 195
Psychologists, 133
Public debt, 307, 455-457
Public health
alcohol, 138-139
cancer control, 141
child health, 144-145
communicable disease control, 139-140
dental health, 145
disability support services, 142-143
drinking water, 137
family health, 143
food safety and quality, 140-141
generally, 136
Health and Disability Commissioner, 143
law reform, 136
Māori health, 144
medicine and drug control, 137
mental health, 142, 146
older people, 141
radiation protection, 137
schools initiative, 144
sexual and reproductive health, 143
suicide prevention, 142
tobacco, 139
voluntary agencies, 142
women's health, 144
Public holidays, employee entitlements, 255-256
Public hospitals, 135, 145-146
Public libraries, 226
Public Prisons Service, 196
Public radio, 213
Public sector finance
Government finance
Public Service, 36-37
Public Trust, 44
Publications and publishing books, 227
censorship, 231-232
magazines, 215
newspapers, 214-215
Pulp and paper industry, 345-346
Push Play programme, 242

Q

Qualifications
Schools; Tertiary education
Qualifications Framework, National, 174
Qualmark NZ Ltd, 248, 251
Quarantine services, 326
Queen Elizabeth II National Trust, 282, 303
Queen of NZ, 23
Queen's chain, 285
Queen's Service Order, 41
Quota Management System, 350
Quotable Value (QV), 298

R

Race relations, 16
Racing, 244
broadcasting, 212
generally, 243
Radiation Laboratory, National, 137
Radiation protection, 137
Radiation technologists, 135
Radio
archives, 213
commercial radio, 213
community radio, 213
Māori radio, 209
Pacific region, 212
public radio, 213
Radio Network of NZ Ltd, 213
Radio NZ Ltd, 213
Radiocommunications, 212
Railways, 394-395
history, 15
Rainfall, 8-11
Raoul Island, 1
Rape Crisis, 193
Rating valuations, 298
Receiverships, 411
Recreation
Arts, culture and heritage; Leisure; Sport
Recreation reserves, 301
Regional Assistance Mission to the Solomon Islands (RAMSI), 67
Regional councils
farmland use by area, 326
generally, 44
livestock distribution by area, 329
population estimates, 85
Regions
income, 266
income by, 266
Māori population, 106-107
Pacific peoples, 111, 112
television services, 211
Registers, motor vehicles, 399-400
Registration
banks, 436
births, deaths and marriages, 89
health professionals, 132-135
land transfer, 295-296
motor vehicles, 398
ships, 388
teachers, 164
Relationship property, 117
Religious affiliation, 98
Removal from NZ, 104
Reproductive health services, 143
Rescue operations, 67, 200
Research, science and technology
Antarctica, 294
Carter Observatory, 276
Cawthron Institute, 276
CCMAU, 270
Centres of Research Excellence, 277
Crown Research Institutes, 274-276
energy sector, 358
funding, 270-274
generally, 269
government departments, 277
government research agencies, 274-277
intellectual property rights, 277-278
MoRST, 269
organisation of, 270-271
research associations, 277
research initiatives, 278
standards and accreditation services, 279-280
universities and polytechnics, 277
Reserve Bank of NZ
assets and liabilities, 437
bank registration and supervision, 436
functions, generally, 435
monetary policy, 307-308, 440-441
Reserves, 300-301
Resident withholding tax (RWT), 450
Residential care, 127
Residual Health Management Unit, 131
Resource management
contaminated sites, 291
Crown-owned minerals, 289
planning framework, 287-289
pollution and waste, 290-291
soil management, 290
waste and landfills, 291
water management, 290
Restorative justice, 191
Retail trade and services
credit sales, 413-414
FTE persons working in sector, 323
retail sales, 412-413
Retirement
NZ superannuation, 120, 122, 123, 124
transitional retirement benefit, 120, 121, 122, 123
Retirement Commission, 120
Rivers
generally, 2
management, 290
marginal strips and esplanade reserves, 285
water quality, 284
Road accidents, 148-151
Road safety, 150, 400-402
Road transport
alcohol impairment, 401
driver licensing, 400
fuel excise duty, 452
funding, 395
generally, 395
licensing, 397
LTSA, 150, 400
motor vehicle registers, 399-400
public roads, 397
road user charges, 452
safety belts, 401
speed cameras and lasers, 402
speed limits, 401
state highways, 396, 397
vehicle inspection, 400
vehicle registration and licensing, 398-399
Roads, public, 397
Ross Dependency, 63
Royal Forest and Bird Protection Society of NZ, 303
Royal Honours system, 23, 41
Royal NZ Air Force, 71-72
Royal NZ Ballet, 229
Royal NZ Navy, 69-70
Royal NZ Plunket Society, 142
Royal Society of NZ, 273
Ruapehu lahar, 6
Rural Education Activities Programme, 168
Rural population, 83-85
Russia, relationship with, 56

S

Safety
emergency management, 156-157
occupational safety and health, 157-159
road, 150, 400-402
water, 151
Salary and allowances
judicial, 183
parliamentary, 29
salary and wage rates index, 267
Sale of liquor, 405-406
Salt, 367
Samoa
migrant quota, 104
migration to NZ from, 113
Sanitary works, 137
Scenic reserves, 300
Schools
administration, 163-165
assessment, 173-174
attainment levels, 172
attendance, 174
boarding bursaries, 167
boarding schools, 172
boards of trustees, 165
choices, 172-173
Correspondence School, 172
curriculum, 161-162
dental service, 145
designated character schools, 173
enrolments, 179-180
full-time equivalent teaching staff, 178
funding, 166-167
health promotion, 144
home-based schooling, 173
independent schools, 166, 172
institutions, numbers of, 179-180
integrated schools, 166-167, 172
international students, 178
kura kaupapa Māori, 172
NCEA, 162-163
school age population, 78, 163
services, 171-174
special education, 163
special schools, 173
state schools, 172
structure of system, 171
transport, 167
University Entrance, Bursary, and Scholarship grades, 173-174
wharekura, 110
years in attendance, 171
Science sector
Research, science and technology
Scientific reserves, 301
Scott Base, 63
Sea cadet forces, 67
Seafood industry, 352-353, 421
Search and rescue, 67, 200
Secondary schools
Schools
Secretariat of the Pacific Community, 52
Secretary of the Cabinet, 32
Securities Commission, 409
Securities market, government, 441
Security
Defence and security
Security Intelligence Service (NZSIS), 73
Security interests in vehicles, registration of, 399
Seed crops and certification, 339-340
Select committees, 29
Senior citizens
Older people
Sentences and sentencing, 191-192, 194-196, 197
Serious Fraud Office, 408
Sewerage schemes, subsidisation of, 137
Sex ratios
age-sex distribution, 93
employment by industry, 261
employment by occupation, 262
participation rates, 260
weekly earnings, 266
deaths from external causes, 153
employment by industry, 261
employment by occupation, 262
participation rates, 260
weekly earnings, 266
labour market
employment by industry, 261
employment by occupation, 262
participation rates, 260
weekly earnings, 266
Māori, 105
mortality, 90-91
Sexual health services, 143
Share price index, 409
Sharks, 353
Sheep
farming, 327, 328
meat exports, 331, 419
meat products, 329
wool, 332-334
Shipping, 387-389
Shooting and hunting, 242
Shop trading hours, 405
Sickness benefit, 120, 121, 122
Sierra Leone, deployment in, 67
Silica sand, 367
Silver, 366
Sinai, involvement in, 66
Single transferable vote (STV) system, 47
SIS (Security Intelligence Service), 73
Sixth Form Certificate, 163
Skiing, 242
Skilled migrants, 101
Skills-based work permits, 102, 103
SKY Network Television Ltd, 211
Smoke-free environments, 139
Smokefree initiatives, 136
Smoking, incidence of, 139
Snowboarding, 242
Social development
benefits and pensions
advance payments, 122
continuation after death, 123
family assistance, 121-122
income support, 120-123
NZ superannuation, 120, 122, 123, 124
other assistance, 122-123
payment during hospitalisation, 123
special needs grants, 122
transitional retirement benefit, 120, 121, 122, 123
war pensions, 124
child support payments, collection of, 123
Child, Youth and Family Services, 125-128
Citizens Advice Bureau, 128
community providers, 128
history, 15
Ministry of Social Development, 119-124
Office for Disability Issues, 119
Office for Senior Citizens, 119, 124
social security agreements, 124
StudyLink, 122, 167-168
Trans-Tasman Travel Arrangement (TTTA), 54
Social Development, Ministry of, 119-124
Social science research funding, 277
Society
Asian population, 78, 79, 113-115
Ethnic groups
Māori
Pacific peoples
Social development
citizenship, 98-100
Ethnic groups
Māori
Pacific peoples
Social development
ethnicity, generally
Ethnic groups
Māori
Pacific peoples
Social development
human rights, 115-117
Māori
Pacific peoples
Social development
immigration, 101-104
Māori
Pacific peoples
Social development
Māori
Māori
Pacific peoples
Social development
Pacific peoples
Pacific peoples
Social development
religious affiliation, 98
Social development
social welfare
Social development
SOEs (State-owned enterprises), 37-38
Soil quality, 286, 290
Solar energy, 366
Solicitor-General, 186
Solomon Islands, deployments in, 52, 67, 200
Sorted (Retirement Commission's website), 120
Sound Archives, 213
South Island
land area, 1
manufacturing, employment in, 372-373
population distribution, 82
South Pacific Applied Geoscience Commission (SOPAC), 52
South Pacific Commission
Secretariat of the Pacific Community
South Pacific Forum
Pacific Islands Forum
South Pacific Regional Environment Programme (SPREP), 52, 293
South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA), 52
Sovereigns
constitutional functions of, 24, 27
Elizabeth II, 23
former, 23
SPARC (Sport & Recreation NZ), 237-243
Speakers of the House of Representatives, 29, 30
Special Air Services Group, 70
Special benefit, 122
Special education policy, 163
transport assistance, 167
Special needs grants, 122
Special schools, 173
Specialist Youth Service Corps, 116
Speed cameras, 201, 402
Speed limits, 401
Sport
generally, 237
high performance athletes, 239-240
Olympic Games, 237, 238
participation rates, 239, 242
SPARC, 237-243
young people, 240-241
Sport & Recreation NZ (SPARC), 237-243
Sport, NZ Academy of, 239-240
Stamp duty, 452
Stamp issues, 219
Standards and accreditation services
science and technology sector, 279-280
tourist sector, 248, 251
Standards NZ, 280
State and state-integrated schools
Schools
State-owned enterprises (SOEs), 37-38
State sector
composition of, 36-38
Budget, 444-446
chief executives, 39, 443-444
departments outside Public Service, 37
list of, 36-37
Controller and Auditor-General, 40
Budget, 444-446
chief executives, 39, 443-444
departments outside Public Service, 37
list of, 36-37
Crown Company Monitoring Advisory Unit, 39-40
Budget, 444-446
chief executives, 39, 443-444
departments outside Public Service, 37
list of, 36-37
Crown entities, 38
Budget, 444-446
chief executives, 39, 443-444
departments outside Public Service, 37
list of, 36-37
departments and ministries
Budget, 444-446
chief executives, 39, 443-444
departments outside Public Service, 37
list of, 36-37
gallantry and bravery awards, 38
honours system, 41
Human Rights Act 1993, 42-43
Human Rights Commission, 43, 115
Human Rights Review Tribunal, 43
Offices of Parliament, generally, 38
official information, 40, 41
Ombudsmen, 40-41
Parliamentary Commissioner for the Environment, 43
Privacy Commissioner, 42
Public Service, 36-37
Public Trust, 44
Reserve Bank of NZ, 38
state-owned enterprises, 37-38
State Services Commissioner, 38
Step up scholarships, 168
Stewart Island/Rakiura, 1
Stock Exchange, NZ, 409-410
Streets, 397
Strikes, 257-258
String Quartet, NZ, 228
Student allowances, benefits, and bursaries, 167
Student loan scheme, 168
Students, international, 178
StudyLink, 122, 167-168
Suicide prevention, 117, 142
Sulphur, 367
Superannuation industry, 411-412
Superannuation, NZ, 120, 122, 123, 124
Superconductivity, 356
Supervision, sentence of, 195
Supreme Court, 182
Surveying
Cadastral Surveyors Board of NZ, 295
hydrographic, 69
land, 294-295
Symphony Orchestra, 227-228

T

Taihoro Nukurangi, 275-276
Takeovers Panel, 408
Talent-based visas and work permits, 103
Tariffs
GATT Uruguay Round, 55, 60, 325, 327
manufacturing sector, 370
Tatua Cooperative Dairy Company, 336
Taupo Fishery Advisory Committee, 303
Taxation, 449
cheque duty, 452
child support payments, 453-454
companies, 451
double tax agreements, 453
excise duty, 451-452
family assistance payments, 453
fringe benefit tax, 451
gaming duty, 452-453
gift duty, 452
goods and services tax, 451
government revenue, 454-455
gross income and tax paid, 267
imputation credit, 450
income tax, 449-451
individuals, 449
non-residents, 453
NRWT, 451, 453
overseas pensions, 453
rebates, 450
resident withholding tax, 450
review authorities, 455
road user charges, 452
stamp duty, 452
Te Aka Matua o te Ture, 185
Te Kāhui Tika Tangata, 43, 115
Te Kooti Whenua Māori, 184, 297
Te Kotahitanga Manu Reo O Aotearoa, 228
Te Kura ā Tuhi, 172
Te Manatu Ahuwhenua, Ngaherehere, 326-327
Te Manatū Ture, 181-182
Te Manatu Whakaiato Taiohi, 116-117, 125
Te Māngai Pāho, 209
Te Ohu Kai Moana, 350-352
Te Papa Tongarewa, 222-223
Te Pokapū Whakahoki Pātai main i te Iwi Whānui, 128
Te Pou Taki Korero, 165
Te Pouherenga Kaiako o Aotearoa, 164
Te Puna Mātauranga o Aotearoa, 224-225
Te Puna Tahua, 245
Te reo Māori, 110, 222
Te Reo Whakapuaki Irirangi, 209
Te Rōpū Whakatarairanga Hauora, 136
Te Tāhuhu o te Mātauranga, 163
Te Tari Hara Tāware, 408
Te Tari Matawaka, 115
Te Tari O te Kaitiaki Mo Ngā Take Mātauranga Māori, 169
Te Taura Whiri i te Reo Māori, 110, 222
Te Toihau Hauora Hauātanga, 143
Te Whāriki, 169
Teacher registration, 164
Teachers' Council, NZ, 164
Technology sector
Research, science and technology
Tectra Ltd, 333
Telarc Limited, 279
Telecom Corporation of NZ Ltd, 209
Telecommunications Act 2001, 408
Telecommunications services, 209-210
Telecommunications Users' Association of NZ (TUANZ), 207
Television
local content, 211
Māori Television Service, 38, 209, 211, 222
most popular programmes, 210
service providers, 210-212
Television NZ Ltd (TVNZ), 210-211
TelstraClear Limited, 210
Temperatures, 7-11
Tenancy Tribunal, 185
Territorial authorities
generally, 45, 46
population
estimates, 84-85
projections, 80
Terrorism, 56, 65, 67
Tertiary councils, 165
Tertiary education
administration, 165
Bachelor degrees, 175
enrolments, 176, 179-180
full-time equivalent teaching staff, 178
funding, 167-168, 174
institutions, numbers of, 179-180
international students, 178
National Qualifications Framework, 174
Open Polytechnic of NZ, 175-176
participation, 174
polytechnics, 175
private training establishments, 167, 176
qualification completions, 176-177
scope, 174
services, 174-177
student allowances, benefits, and bursaries, 167
student loan scheme, 168
StudyLink, 122, 167-168
universities, 175
vocational qualifications, 177
wānanga, 175
Tertiary Education Commission, funding by, 174
Textiles and apparel, 373-374
The Lord of the Rings Trilogy, 222, 229
Therapeutic substances, control of, 137
Timber, 347, 348-349
Time zone, 12
Tokelau
migration to NZ from, 112
population, 62
special relationship with, 51, 62-63
Toll Holdings Ltd, 394
Tonga, migration to NZ from, 112
Topography, national, 295
Tourism
accommodation, 251
generally, 246
international visitors, 249-251
market, 246-247
organisations, 248
Qualmark, 248, 251
strategy, 247-248
sustainability, 252, 287
transport, 252
Tourism Industry Association NZ (TIANZ), 248
Tourism, Ministry of, 248
Tourism NZ, 248
Trackside, 212
Trade
domestic retail trade, 323, 412-414
environment and, 293
overseas trade see Exports and imports;
Overseas trade
Trade and Economic Cooperation Agreement (TEC), 55
Trade and Enterprise, NZ, 369, 371, 415-416
Trade Development Board, 51
Trade union membership, 257
Trade-weighted index, 308, 442
Trademarks, 277-278
Traditional sites, protection of, 223
Traffic offences, 190, 402
Training benefit, 122
Training incentive allowance, 123
Tramping, 243, 303
Trans-Tasman Travel Arrangement (TTTA), 54
Transfund NZ, 395
Transit NZ, 396
Transitional retirement benefit, 120, 121, 122, 123
Transport
civil aviation, 389-393
Road transport
FTE persons working in sector, 324
Road transport
generally, 387
Road transport
international visitors, 252
Road transport
railways, 394-395
Road transport
road transport
Road transport
school children, 167
shipping, 387-389
Transport Accident Investigation Commission, 390
Tranz Rail, 394
Treasury bills, 441
Treaty of Waitangi
importance of, 108
meanings, 14
settlements, 108, 109
signing, 14
Treaty of Waitangi Fisheries Commission, 350-352
Tribunals, 184-185
TUANZ (Telecommunications Users' Association of NZ), 207
Tuatara, 11
TV
Television
TV3 Network Services Ltd, 211
TVNZ, 210-211

U

UN (United Nations), 59-60
UN Assistance Mission in East Timor (UNAMET), 67
UN Environment Programme (UNEP), 60, 293
UN Food and Agricultural Organisation (FAO), 59, 327
UN Framework Convention on Climate Change, 283, 292, 293-294
UN Nations Mission in Sierra Leone (UNAMSIL), 67
UN Truce Supervision Organisation (UNTSO), 56, 66
Unemployment by age, 264
demographic and social characteristics, 263
by educational attainment, 264
by ethnicity, 265
OECD countries, comparison with, 263
rate, 262
Unemployment benefit, 120, 121, 122
student hardship, 168
UNESCO, 59
Union membership, 257
Unitary authorities, 46
United Kingdom, 124
United Nations
UN (United Nations)
United States
defence relationship, 54, 66
relationship with, 54-55
trade, 54-55, 428-429
Universities
Bachelor degrees, 175
library services, 226
list of, 175
research, science and technology, 277
tertiary councils, 165
University Entrance, Bursary, and Scholarship grades, 173-174
Unsupported child benefit, 120, 121, 122
Urban population, 83-84
Uruguay Round (GATT), 55, 60, 325, 327

V

Vaccination services, 140, 145
Valuation of land, 298
Valuers' Registration Board, 298
Veal exports, 332
Vegetable exports, 339, 422
Vegetation, 12
Vehicles
Motor vehicles; Road transport
Venture Investment Fund, NZ, 273
Veteran's pension, 120, 122, 123, 124
Vice-regal representatives, 24-25
Victim Support, 192-193
Victims' rights, 197
Video
Film and video
Visitor's permits, 102
Vital statistics, 89
Vocational qualifications, 177
Volcanoes, 3, 6-7
Voluntary sector
Community and voluntary sector
Volunteer Service Abroad (VSA), 57
Voting
local government elections, 47
Parliamentary elections
parliamentary elections
Parliamentary elections

W

Wages
minimum wage, 255
wage rates, 267
Waitangi National Trust Board, 303
Waitangi, Treaty of
Treaty of Waitangi
Waitangi Tribunal, 16, 108-109, 185
Walking, 243
Wānanga
Whare wānanga
War pensions, 122, 123, 124
Wars, involvement in, 15
Waste and landfills, 291
Water
accidents, 151-152
drinking water, 137
fluoridation, 145
management, 290
pollution, 290
quality, 284, 290
Water Safety NZ, 151
Weather
2002, 9-10
2003, 11
generally, 7
Welfare benefits
Social development
Westland Milk Products, 336
Whale sanctuaries, 301
Whaling Commission, International, 293
Whanau agreements, 125-126
Whare wānanga
councils, 165
generally, 175
research, science and technology, 277
Wharekura, 110
Wholesale trade, FTE persons working in sector, 323
Widow's benefit, 120, 121, 122
Wildlife, 11, 12
Wildlife reserves, 301
Wind energy, 365-366
Wine industry, 341, 372-373
Women
convicted offenders, 191
health services, 144
labour force, 260
life expectancy, 90
rights, 116
sports participation rates, 242
Women's Affairs, Ministry of, 116
Wool, 332-334
Wool Board, disestablishment of, 333
Work and Income, 120
employment assistance, 265-266
Work permits, 102
Work stoppages, 257-258
Working holiday schemes, 103
World Bank, 61
World Customs Organisation, 416
World Health Organisation, 59, 327
World heritage areas, 299-300
World Heritage Committee, 60
World Meteorological Organisation, 60
World Trade Organisation (WTO)
Cairns Group, 327
Doha Development Agenda, 60-61, 293
World Wars, involvement in, 15
Writers and writing, 226-227

Y

Young offenders
convicted offenders, 191
Specialist Youth Service Corps, 116
Youth aid section, 202, 203
Youth Courts, 184
Youth Development, Ministry of, 116-117, 125
Youth Development Strategy Aotearoa, 125
Youth Education Service (YES), 202
Youth minimum wage, 255
Youth Orchestra, National, 228
Youth Parliament, 27, 117, 125
Youth Service Corps, 116
Youth suicide prevention, 117

Appendix A. Weights and measures

All the statistics in this volume are in metric (SI) units, except for ship tonnages (not cargo).

Metric To ImperialMetric Multiples
 
Length
    1 milimetre (mm)= 0.04 inches (in.)1 centimetre (cm)= 10 milimetres (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)= million cubic centimetres (cc)
    1. cubic metre (m3)= 35.31 cubic feet (cu. ft.)1 litre (l)= 10,000,000 cubic
 = 1.31 cubic yards= 1 milimetres (ml)1 cubic centimeter (cc)
1 litre (l)= 1.76 pints1 cubic metre (cm3)= 1 000 litres (l)
 = 0.22 gallons  
Mass (weight)
    1 gram (g)0.04 ounces (oz)  
    1 kilogram (kg)= 2.20 pounds (lb)1 kilogram (kg)= 1 000 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) 
Pressure
    1 kilopascal (kPa)= 0.15 pounds per square inch (psi)1 megapascal (MPa)= 1 000 kilopascals (kPa)
    1 megapascal (MPa)= 0.06 tons per square inch (tons psi)  
Temperature
Energy
    1 kilojoule (kJ)= 0.95 British thermal units (Btu)1 megajoule (MJ)1 000 kilojoules (kJ)
 0.24 calories (cal)1 kilowatt hou(kWh)= 3.6 megajoules (MJ)
  1 gigajoule (GJ)= 1 000 megajoules (MJ)
  1 terajoule (TJ)= 1 000 gigajoules (GJ)
  1 petajoule (PJ)= 1 million gigajoules (GJ)
Power
    1 kilowatt (kW)= 1.34 UK horsepower1 kilowatt (kW)= 1 000 watts
  1 megawatt (MW)= 1 000 kilowatts (kW)
  1 gigawatt (GW)= 1 000 megawatts (MW)